The Jackson standard. [volume] (Jackson C.H., Ohio) 1847-1888, 1867-01-24


Verted into long bonds, II we have left that door
open 70 the Secretary Of the Treasury, then we
had better here and now, before. suDset, pass q
law that no misunderstanding legal tender
should ever be converted INTO Understanding
bonds Of any description, Iteapnot consent 70
believe that we have made such An egregious
blunder as 70 allow such thing 70 be done.
Mr.aWENTW0RTH. The gentleman says I
objected 70 his resolution; objected only toa
NJ PRICE. There were. Two resolutiops. and
the gentleman very kindly objected TO both ,lf
o. Mr. WENTWORTH, Was 1t all in one proPoI
sition7 ~ y ii l.1l ~ sial 5,', Ia .,ssll ,ll3
) Mr. PRICE. They were on the same paper,
but they were susceptible of division Il the gentle
man had seen proper to call for q division but he
Mr. WENTWORTH Does not the gentIeman
1nderseSnd parliamentary law well enough 70
know that We cannot divide proposition when
the question "a upon Its reception. Only after 1t
is received can itbe divided therefore objected
to tts reception. lqy9zf ,t fsi.iurf3 ID tori fias
: NJ PRICE, am 90 well acquainted with
parliamentary. law as 70 know that the House
could not act omit in any manner until 4 was re-
celyed, and tbegentleman. availed himself of the
privilege, KNOWING that . single objection would
bstOpit 70 prevent is coming UP for debate or d.
vision or anything else. jIfrs u sa5a. .bo..ns
But TO return 10 what was saving when was
interrupted When at the last session that bill
was under consideration, 4 expressed my views
upon It ID short speech, and / took the ground
tliat we should retire these notes no faster than
the receipts Of the Government exceeded its ex-
penditufes and that we must not retire the non
Iinterestp paper and keep aaoat the other.
Ieertainly combated toAt8e extent Of my ability
then and shall continue 10 do Il 50 long as shall
remain q member Of this Hottse the doctrine that
the Government should make any more interest
paying notes and maintained that IL 1t retired any
II should be the interestpaylng notes. l suppos-
ed was entirely with the gentIen6an from Ohio
In that, and am only sorry 70 find there Is pos
sibility of my being hnistateiIln regard to 1t.
Mr.. BUNDY. II Is wholly immaterial; and the
Gentleman sgroadly Stands it ias any, mem
Der Ohfthe fo6l perhape tghetlIef there IS aspro-
vlsloniin th8laMD the effect Shieh lie Chains or
not. What are the facts in the caseas, The gen
tleman knows as wellasI do that If you do not
Increase fthe Understanding bonds bf the Gov
ernment they remain asthey are bearing interest.
In other wordsif you. retire anything, would 1t
not be better to retire the bonds that bear INTEREST,"
90 Mr. PRICE. The notes'thdt bearinterest.s
p Mr.. BUNDY.d Why do you give the Secretary
of the Treasury permission TO retire four millions
month OF notes upon which the Government
paySho interest and retain as Indebtedness those
upon which it does pay iBtefestgl There is the
pimpoliey of the Ching. / care not what the spe-
elal provisions of your law are; il anountsto
nothing, becauseif we are getting more revenue
than Is necessary TO meet the ordinary expenses
Of the Government that surplus ought TO be APP
plledto the payment of the debt upon,whieh We
lre paying interest and not Of thatupon which we
are paving no interest. He would be avery fool
ish man indeed VINO in the administTationsofh his
own affairs should give surplus above his nee
essary expenses or the requirements of his bnsi-
ness I'd bay those notes upon which he had TO pay
no interest while he let those remain upon which
he was paving interest. 49, i''cW y9Halgl0
E9 Mr.. KELLEY .ahlVillthe gentleman Weld Pm
Mr.. BUNDYgn Oh YES, only am afraid the
gentleman win intefIedt better speech thanmy
own, GLaughterl ho"ss t' 2soi5i aseF 9h}
Mr.. KELLEY. 1 desire Just at this point to soy
that the theory Of The Secretary Of the Treasury IS
that by absorbing the n-inlerest bearing notes,
while the eompound-interest notes are a1oat, he
Is cOntss citing the currency and ] wish TO ask
the gentleman to permit me TO have read from the
Public Ledger, Of philadelphia apapef of uhqiies-
TONED standing, an article owing that the banks
recognize the absorption Of the compo1nd-lnter-
est notes as contraction and are afraid that retir
ing them even at their maturity will bring them
to insolvency or TO suspension Of the payment OF
greenbacks In the redemption Of their notes.
ask for the reading of the Artcle: H.
The Clerk read az follows; ..u ~ y.
THE proposition to take from the national
banks the right TO count cornpopnd notes as part
VI ulSiT Iebti TebcENO.
bankers, who see In it the seeds Of financial revul
sion, the result Of an arbitrary and violent change
/ IN the law. The withdrawal of the compound
notes from the banks at maturity win force upon
them conservative policy, which cannot fail TO
be felt by their debtors, who must pay up as fast
al the banks are obliged to contract by the atiir-
lng Of their interest," bearing reserve, The follow
Ing extract from letter from the president OF the
FIRST National Bank at New York whose expert
ence III currency and banking gives his opifiiohs
great weight s entitled Y Fls consideration & Of
SNiiPtSfs :. DO us nEnsn 1i9i SpV 1gE7z ! rn.j
90 III wish to enter my protest to the Honorable
Mr.. H0oPER and Others. against samepdiRg the
national bank law so that the banks cannot count,
In their reserve money their cOmpound-inteTest
notes., w hen they are due and lsayable they
should not be counted as money! but 10 compel
the banks to substitute geld or greenbacks for the
compounds they hold any faster than they fall
due will surely cause o severe reyulsi0n In the
money market, and the Governments Itself will not
be among : the minor sufferers. The banks will
necessarily violate the law as regards their reserve
or fail many OF, them, outright p, .,..fr
"a. MI. BUNDY. / would before Il got through, If
had not forgotten IT, have referred 70 that feat
nit me to say. In passing, that 1 have no kynpa-
thy with banks or bankers who are apprehensive
of any such state Of things, II Is their business 10
provide against any such contingencies. / was
going on TO say-and ! am sorry That i have no
moOrlngs 10 which can fasten for the purpose'of
making my speech, IL you can call ~ such, CON
nected-1 was going on, 70 say that the Legitimate
effect Of The processes now iay operation, inaugu-
rated BY the Secretary Of the Treasury, and sec
onded, lam sorry to say by the. Congress of the
United States Is 20 bring us down TO the cifcula-
tion OF the national banks without any authority
for Jthett increase OF that circulation, TO wit 10
$292 900 600 or less than we had during the ter
rible times Of 1860 and 1861. say that thai state
of things Is Inevitable, Inevitable, Why2 Why,
the Government derives from Its sources OF reye-
nue. Is applied, not To- the extlnguishment Of the
interest bearing bonds of the GOvernmenb but TO
the extinguishment Of the non-interes- -bearlng
bonds to great extent Why retire the non-ln-
terestlbearing Hotesa What reason is there for
that? -Four huhdredlmiIli0ns of them atsix per
cent. would produce $24, ,000, 900 o year, which.
under apeace establishment, would have been
leonsideredA large soureeof revenue for the pur-
pose of carving on the Government andpaying
Its ordinary expenses ; and yet it is proposed 10
retire all that class Of public Indebtedness not as
rapidly asthe Secretary of the Treasury asks, nd
nit but as fapldiy as Inc may dott under the law.
Does that look like good financial policy
Why was 1t inaugufated7 Why Is II insisted on
With such pertlnaclty on the paTt OF tne mead OF
the exchequer? .Why,Asir without attrlbutmg
any selfish motives in the matter, without suppos-
ing for moment that he had any aspiration for
the future with regard to himself, 1t would be a
very pleasant thing for him TO have It said in his
tory that during his administration Of the financial
affairs Of the country he had become its greatest
tinancier. object y to enIorcs the resumption
q specie WHO wants the assumption y ht
Several IrIREBS., We do, ,9iiia q = =, ,J9H9g
M. BUNDY. we do, but We want II IN d way
that win not destroy the great industrial interests