Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1866-03-30
The Loan Bill.
SPEECH OF HON. J. S. MORRILL,, OF VT,
IN THE HOUSE OF REPRESENTATIVES,,
MARCH 16, 1866

Ma. MoRRILL-Mr. Speaker, perhaps there
has been and there may not be any more Impor-
tsnt measure before this Congress than the one
now under consideration. The purpose Of the
present bill is to establish a policy and say to
the world that resumption Of specie payments
shall not be indefinitely postponed. And
warn gentlemen that if this House shall take
the responsibility Of reversing what may be
considered to have been hitherto the national
policy. il will, in my opinion, be utterly impos-'
sible for the Secretary OF the Treasury to main
tain the price Of gold even where il now il,
and consequently the prices Of all the articles
Of merchandise and all productions which enter
into the cost Of living will be increased.
Mr.. Speaker, the finances Of the country are
not yet beyond peril. The time when we may
look with the most apprehension in relation to
our financial affair is yet to come. The pro-
cess Of generating an inflated paper currency
gives some pleasure, but to be safely delivered
of it is generally attended by grief If gentle
men will look back to the times Of our financial
disasters, they will see that they have always
occurred IN time of the greatest imitation Of the
currency. Take the financial disaster of 1887;
We had then increased our bank currency to an
enormous extent. In 1880. the currency Of the
country was but SCI 900 200; in 1887, it had
been increased to Sl49, 000, 200, and then oc-
CURED that tremendous CONFUSION that was
felt from the centre TO the circumference Of our
land. 1t fell to s5S 200, 900 in ls43. In 1857
it had again increased to S2l4 .00O. 900 and then
occurred, as gentlemen will remember. another
great revulsioa.
The amount of currency that this country re
quires in the ordinary normal condition Of af-
fairs has usually been not more than from FIVE
to seven or eight dollars per capita That is a.
Oneh has oo a a. a - +
the country when it was in a healthy state
From 1889 to 1858, inclusive, period Of fifteen
years, DIR. Elder states that the average cirou-
lation Of bank currency did not vary more than
twenty-siI cents per capita, standing very uni
formly at about So 20.
Now, what is the amount Of circulation, say
ing nothing about the gold and silver coin, Of
which 1t is proven there Is as much in the coun-
try to day as at any previous time 1t is con-
ceded by the gentleman from Maine [ SIr. Pikel
that Of State bank currency there is now SEQ
100000; of national bank currency $500, OOO,- !
OOO; Of legal tenders and fractional notes $3.50 |
OOO,OOO And then, in addition to that. we
have compound interest notes amounting 10 |
,OOO,OOO, making total ofS944 900, 900, |
amounting to thirty dollars per capita, viii |
any man undertake to say that thi. is not too |
Duch for the business Of the country To re- |
quire 20 much 1t would be necessary 10 show
that the business of the country had more than |
qusdrupled.
should argue that we did not need as much |
currency now as We generally do; for the reason
that more personal debts have been liouidated
within the last four years than within any four
years in the history Of our country.
But, Mr.. Speaker, the Secretary af the Treas
ury is a master Of his special subject be-
lieve It viii be conceded here, and 1 may almost
say throughout the world, that he is an able
nnaneier No man ventures to impeach his in
tegrlty. Now, If he should have this power
conferred upon him. no one expects that he will
at once, if at sill. fund any considerable ouan-
tity Of the legal=tender notes WHY Because
in order to facilitate the greater transactions Of
exchanging our present Indebtedness, our seven
thirtles, our compound-interest notes, our tenn
pororsry loans, be must make il an object for
every nan to accept United States bonds; and
unless he can make the bonds better than anv
other obligations Of the Government, Including
legal tenders, it will be impossible for him TO .
make the exchange. Therefore there need not
Do the slightest apprehension that the legal
lender notes viii not be the last obligations TO
% funded. 1t may be that occasionally he will
'eceive In payment these legal-tender notes;
'ut II he does, he will be very likely at once to
Jay them out again ,
stReAs tuat tLtrt Is rcQuQQ-
mt currency it is only necessary to look at tbs
arge smount OF private deposits In our banks {
addition to the immense amount of CON-
'ound-interest notes which they keep (it being
more profitable to hold than non-interest be.r' I
ng legal tenders) as part Of their reserve in G
rder to redeem their own issues They have. / /;
elieve, on depositfrom four to Eve hundred mil
on dollars belonging to the people. In addition ;
, tnat the Government Itself has $50, 0O0, 900 [
currency on hand II these sums were Ia he
niocked aud 60 into circulation in any form. ?
whole or in part, as Is likely to be the case II o
10 project Of the gentleman from Pennsylvan,a I,
'ould succeed, that Is to say, il We sbould ~
ave the Secretary Of the Treasury with simply
'e power he now has, the result will be tbat
= currency viii be practically increased to
me extent Otherwise the deposits would he =
ost likely to be absorbed BY being exchanged W
r United States bonds.
Mr. Speaker. let me say one word more
here has never been any country that could az
port gram Manufactures, or anything else, BE-