New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-07-06
THE DEFEAT OF THE CURRENCY BILL

HE DEE EAl OE lHE COkkENC1 BILL.
THE EXPANsIoNISTs JOIN THE BANK INTEREST
To DEFEAT THE CONFERENCE REPORT on
THE NEW CURRENCY BILL-THEY INSIST
UPON INITIATION.
WASHINGTON, June 30.-The overwhelming
defeat Of the conference report the Currency bill
brought about by remarkable combination Of the bank
ing interest which. according 10 Gen. Butler, includes
about Onethrd Of the members Of the House, the Demo
Gratis who oppose the whole national banking system and
the friends OF expansion who desire more irredeema-
bile papermoney The bill came back from the Confer
Committee entirely shorn of the initiation provision
which Mr. Judd got put upon in the House As agreed
10 by the Committee the bill proposed four things First
10 authorize establishment Of banks in the West
and South and the issue Of S&OOOO Of additional bank
currency Second TO retire the $4,000 OF outstanding
three per notes order save the interest upon
them and 10 cOuneTbsance the issue Of bank cur
rcucy that there should be no expansion Third, to
take $5OOO of circulation from banks in states having
their quota, and give it to states where
there deficiency. Fourth authorize free banking
a gold basis.
When the bill came back to the in this shape the
advocates Xpansonwee in great rage aboutit Judd
Coburn and Ingerso and all their followers who think
gold and silver relics Of baTbaTsm, and who want 70 Co
money out of paper" TO Mr. IngersOls expression
until every his pockets full furious in their
opposition the BILL andto its defeat took
questionable of msrepresentng it's provisions
and eject They declared that it measure Of con-
traction and attempted prove it by One-sided
ments which disregarded the most important points in
the case and by their bad logic and arithmetic
they muddlcd the brains of many wel-meaning but
stupid men in the House who incapable Of indie
pendent thinking. that they abandoned their feeble at
tCmpts to comprehend the bill and concluded that il
mysterious affair that it would be safest to vote against
The Germans call man whose stupidity Is OF the Dense
cubica kind an There is unusually large drove
of these in the House in the present Congress- and
ia Iudd nd a IA
the expansion pen.
The friends OF expansion declared that the blwoud
the currency the amount of 900 OOO which figure
they by adding the 100000 OF reserve that
the banks will have 10 keep on hand for circula-
ton Of S45OOO00O the Sl00OOOO which they estimated
would be the amount OF deposits reserved and withdrawn
from circulation. But they either were not intelligent
enough understand refused 10 consider three
tia points which completely overthrow their arguments,
namely: Firstly: That the Three per Cents are not
fixed part of the volume of the currency. On the con-
frary they constantly being redeemed and cancelled
eleven millions having retired during past year,
SO II legislation is adopted TO supply their place
with national bank notes. later actual con
traction will take place Of the whole volume OF these
notes. Secondly The Three per Cents are held as re-
by Eastern banks but these same banks have now
in their vaults fifty millions of reserves than they
are required to keep by law the being in green
backs II the Three yer Cents should be retired, as con-
tempated by the b banks would not have to reach
out the volume of currency in circulation and With
draw greeubacs to take their places reserves, but
would simply take the they have already ON hand
for that purpose Thirdly: The proportion Of deposits
which the new banks would be required to keep in re-
serve would be much more than balanced by the large
amount OF credits they would create and put into crcu-
lation in the shape Of checks and drafts
These three essential points strongly urged by Gen.
Garfield during the debate, but the advocates OF eNpan
zion resOutcy closed their them, ana for the
OXen," not having got far as the Iud cnts OF finance,
they % course could not comprehend them. Tie last
Tennsy lyania practical banker, who, adopting the
theory Of many eminent financial writer's that bank de-
posts increase volume Of the circulating medium u
the extent OF their full amount, estimated that the Dill
would effect actual initiation Of 81 100000 go
The opposition of the banking interest which, with
exceptions, voted against the bill was entirely nat
liral. II was not be expected that men who have
property bank stock would support measure which
reduce their profits by taking away part OF me
circulation of their banks, and obiging them 10 put
lreeubicks in their vaults for reserves instead or the
profitable Three per Cents When the sensitive pocket
Icrye was touched il Of use 20 talk 10 these men
f the Injustice OF depFiVDg the West ana South OF their
f4ir SHIRE circulation and banking facilities. Many or
1ne Western members, however, Who were swept away
into the furious tide Of O-itOn created by the e&p
suu,t, begin Dee troubled about their votes, ana say
AZ they would have supported the bib had they not
lIped that second conference committee would report
i" its opposition 10 imitation, this is out OF the question
bill is probably dead for the session. and these gen
will have To answer 10 their constituents Tor the
Iart tary in defeating measure that would nave
all r'cd them immediate relief by distributing seventy
l4ilnOus OF currency among them.