The Evansville journal. [volume] (Evansville, Ind.) 1866-1870, 1870-01-26
CONGRESSIONAL.
xList OONGRE8s-sECOSB SESSION

nnblie meeting OF merchants of cleveland
against q continuance of the income TAX.
Referred to the Committee on t1nance.
Robertson, from the Committee on PO-
lttical Disabilities, reported fayorably a
bill TO relieve certain persons from legal
political disabilities.
HamIin called up joint resolution re-
lating to the seizure OF distilled spirits IN
California, the question being upon It's IN
definite pOstpOnemenI. After some dis
cussion 1t was laid aside, and at O'Clock
the currency bill was taken up.
Eenton spoke sgalnst any expansion of
currency, and ia favor of the early return
10 a specie basis. The pending bill neither
retarded nor tended to advance tins latter
desirable result. He favored the gradual
conjunction OF currency, bCt concluded
that this bill contained little to aggra-
vate the evils OF the hour. The Secreta-
Ty's plan for funding the debt, and fur
nishing new bonds for banking purposes,
in place of the old, might be the best we
could hope to get. At all events, he had
not 81 pet measure OF his own.
Sumner moved TO amend by substitute
ing for the bill similar bill recently in
tToduced by him, for an increase OF bank
circulation TO $4,000 Coo upon O. retire
Inent OF greenbacRs.
posed to take action on the bill to day
sherman, on behalf OF the Finance
Committee, desired the Senate to take ac-
tiOn on the bill to-day He said it was pre-
lImiuary measure, and upon its dISp sal
the committee would proceed to consider
other imp Jrlant measures before them;
among them was the one now offered as
an amendment, tut which had no perti-
nGnce mere. me plan OF fSIlTluS LnrS0
per cent. ertiftates was recommended by
the secretary OF the Treasury and Presl-
dept, and no objection to IL that he knew
of, had been made in the public prints.
1t seemed to be conceded this was the
most innocent way in which the pressing
necessity for a partial distri button could
be made. The other pro vision OF the bill
was generally assented to. The only
doubt now was whether such banks
chiefly on the Pacific coast, were aetuAlly
organizing on the basis OF the Dill
Mortoa Suggested that there should be
some understanding in regard TO whether
this bill was to be finaltty upoa the sub
ject of redistribution of the currency. A
bill had passed the Senate. and was before
the ii House, by which thirty million dollars
OF currency was TO be taken from the East
ern states having an excess and given 10
the Western States. If this was supple
mentary TO the former bill the result
would be a redistribution to the extent of
$75, 100000 but his inference FRONT he stat e.
M ent yesterday by the Chairman or the
Finance Committee, led him to consider
this as substitute for the ether bill, IN
which case he would not iaVor lts because
it would not give currency enough tothe
West. Discussing IL In the light OF sub
stttute several things might be said Of 1t.
First, in its present form the bill would
su bstantially result in contraction of the
currency by the amount Of S6,45O, 900, be-
cause it would require the Withdrawal OF
that amount of a reserve to be held by the
Banks issuing Ga, ,C00,000 In point of fact
there would be an actual contraction to
that amount
He showed that since June 80, 1868, t, ere
had been an actual contraction by the re-
demptIon of the per cent certificates of
the s26 OJOOO0 which the country had felt,
though the cause of the stringency was
unknown. This bill would increase the
amount or contraction to nearly S33, ,OO0, ,OOO,
He said the sense OF Congress had been
repeatedly declared In opposition to tue
contraction of currency and he character
ized as unsound the Argument of Commits
SiOner Wells that the depreciation of cur
rency rested upon its excess, and that
there was an excess of some 5000, 900 or
S3OO0e0,000. The Commissioners compar-
ison was between q volume OF currency
in circulation in England, Scotland, Ire-
land and other countries with that in this
country, yet our territorial area exceeded
more than thirty times that of thu United
Kingdom, while ee-fOurtEs of our peo-
| pie did not possess the business facilities
OF the bank credit and bank cheek en-
i gagged there. The comparison Of the pres
! enJ volume of currency with that before
! the war was equally deceptive, in view of
| our territorial expansion, and the fact
| that the States have now no more curren~
| cy ottheir own than they had before the
| war, while that of the Government is used
| In every paIt OF the country. Quantities OF
/ IL are in actual transit over tine country,
/ and thus demand is created for national
| currency whicn did not exist before the
| war Tne actual value OF carre3cy to-day,
was OF more stable than six months ago.
He did not acquiesc5 in the opinion that
/ the ptice OF gold would continue to decline
/ until the return of specie payments. 1t
| WAS entirely within the range of pOssibtl-
/ ity that gold would bs at 40 cents within
! fo;ty months. Many of the gold gamblers
| OF New York had been deeply wounded,
and it would be sometime before others
| took their places; but their places would
| be taken and Intelligent financlerS in New
! York are looking forward TO q rise In gold
/ at no aisJa MT day. The cohdition of the
| crops has also entered Into the question.
i Therefore, in providing for q system of
/ banking IL was not safe TO caicnlabe that
| gold would never go above so per ct. There
| was no security Whatever asatuSt 1T, in
! regard TO the provisions of this bill for
ssInbI ishing banks on q coin basis, reQuir-
| log them to redeem their notes in gold,
and only TO have 70 per cent. OF gold IN
their vaults; and he thought the principle
might be successfully carried out in the
| Pacific States, but he felt confident It
would practically fail on this side OF the
Rocky Mountains. 1t would be thought
| dangerous Sor the Government to attempt
TO establish banks on that basis.
In reply 10 a remark by sherman, he
| claimed that transactions in god IN New
I York City were IN the main limited to
transactions between importers and per-
sons in foreign countries, with whom lney
dealt. importers sell their goods to job
bers, and the latter to Western merchants
ON gold basis, but when there Is no gold
in transaction they sell for gold. win the
understanding that when the debt
comes due they are to be paid in
ee,ii goid e5f on that day. These gold notes pro-
posed by the bill, could not go into eireu
iation any more rapidly than the goI
| they represen ted, and could not be Kept
ailoat except by the bank keeping dol
lar In gold for each dollar 1t had out. In
/ case of an increase In the price OF gold,
these notes would be run home for re-
demption, in order 10 procure gold to sell
4 I to importers, who were required 10 nave
! it. Toe banks would then nave to go out
and buy at q large premium, which would
inevitably bring about their suspension;
| Two circulatiOnS unequal in value could
| not long exist at the same time, Tor the
deprecated circulation would drive the
| other out of existence.
| In this connection Morton referred tC
? | abuses to which the banking system had
! 4 become subjec He said national banks
could afford to loan money cheaper thar
other banks, because they not only got 81 :
per cent. interest on bonds deposited witt
the Government, but received ninety pei
, cent. in currency. notwithstanding this
! in many States these banks loaned theil
| money at the same rates obtained by pr1
: | vate bankers, when, If required TO loaI
= be to keep down rates of interest OF al
> other money lenders, making nationa
= banks public bl lesSings and sy stem popular
u They ought not TO be allowed to 1nves
: stocks, and make profits on the interes
of these stocks. This was at war with tn
n I purpose Tor which they were created. Spe
: clal privileges had been granted them q
4 enable them to furnish special accom- m .
, dations TO the people of tn country, an
q they should not be permitted to loan NOR
. Than 10 per cent. of their money on collat
+ erals. Money obtained in that way an
. on call was used for stock and gol
: operations, and not In the productive bus
5 mess OF the country, stock and gold brok
| erS being able to bOrr1W money at q and
: / Der cent while business men and manu-
Z facturers had to pay 10 and IL per cen
Thus, stock and gold speculator
on deposit, and for which they paid IN
: terest, being loaned upon call to stoc
{ and gold spectators, and not upon regu
: lar paper to merchants and traders.
y Stewart favored the bill as an experl
ment calculate ed to prove beneficial to tn
eI~,.. - fE,saT ~ n