Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1866-04-05
The Loan Bill.
Speech of Hon. J.. s. MoyrW, of ~, IN the
House Of Representatives., March 16, 1866.

House Of Representatives., March 16, 1866.
Mr. Morrill-Mr Speaker, perhaps
there has been and there may not be any
more important measure before this
Congress than the one now under con-
sideration. The purpose Of the present
bill is to establish Il policy and say to
the world that resumption of specia
payments shall not be indefinitely post
poned. And warn gentlemen that if
this House shall take the responsibility
of reversing what may be considered to
have been hitherto the national policy,
it will, in my opinion, be utterly impOs-
sible for the Secretary of the Treasury
to maintain the price of gold even where
it now is, 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 coun-
try are not yet beyond peril, The time
when we may look with the most APP
prehension in relation to our financial
affairs is yet to come. The process Of
generating an inflated paper currency
gives some pleasure, but to be safely de-
livered of it is generally attended by
grief. If gentlemen 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 $6l,000,000 in 1887, it had
been increased to $4,000, 900, and
then occurred that tremendous convul-
sion that was felt from the centre to
to S5S,000,000 in l843. In 1857 it had
again increased to $2l4,000,000, and
then occurred, as gentlemen will re-
member, another great rcvulsion.
The amount of currency that this
country requires in the normal condition
of affairs has usually been not more than
from five to seven or eight dollars per
capita. That is as much as has been re-
quired to do the business Of the country
when it was in healthy state. From
1889 to 1858, inclusive, period of fiji
teen years, DR.. Elder states that the av-
erage circulation of bank currency did
not vary more than twenty-six cents
per capita, standing very uniformly at
about S. 20.
Now, what is the amount of circula-
ton, saying nothing about the gold and
silver coin, Of which it is proven there
is as much in the country to day as at
any previous time 1t is conceded by
the gentleman from Maine TMr. Pike
that of the State bank currency there is
now $50 600 900; o, national bank cur
rency $500 100000; of legal tenders and
fractional notes $3.50 900 600. And then,
in addition to that, we have compound
interest notes amounting to Sl74,000, 900,
making total of 1914 900 900, amount.
ing to thirty dollars per cQpita. Will
any man undertake to say that this is
not too much for the business of the
country To require so much it would
be necessary to show thst the business
of the country had more than Quadru-
pl d.
| should argue that we did not need
as much currency now as we generally
do; for the reason that more personal
debts have been liquidated within the
last four years than within any four
years in the history of our country.
But, Mr.. Speaker, the Secretary of the
Treasury is master of his special sub
ject. l believe it will be conceded here,
and / may almost say throughout the
world, that he is an able finsncier No
man ventures to impeach his integrity
Now, if he should have this power con-
ferred upon him, no one expects that he
will at once, if at all, fund any consid-
cradle quantity of the legal-tender notes
Why? Because in order to facilitate
the greater transactions of exchanging
our present Indebtedness, our seven thir.
ties, our mpound-interest notes. our
temporary loans, he must make it an 90.
ject for every msn to accept United
States bonds; and unless ne can make
the bonds better than any other obliga-
lions OF the government, including legal
tenders, it will be impossible for him to
make the exchange. Therefore there
need not he the slightest apprehension
that the legal tender notes will not be
the last obligations 20 be funded. It
may be that occasionally he will receive
in payment these leLsl-tender notes but
if he does, he will be very likely ST. once
to pay them out again.
To show, Mr.. Speaker, that there Is
redundant currency, it is only necessary
to look at the large amount OF private
deposits in our banks in addition 10 the
immense amount of compound interest
notes which they keep Git being more
profitable TO hold thsn non-interest
bearing legal tenders) as part of their
reserve N order to redeem their own is.
sues. They have, believe, on deposit,
from four 70 five hundred million dollars
belonging to the people. In addition to