Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1870-07-06
Congress and the Currency.

OVhG Noo ~ ny NhAANhS
On the 10Th uIt., a debate sprang up in
the House on the report of the confer
ence committee of the Senate and House,
on the currency bill. An abstract of the
debate shows how unlikely it is that
Congress will arrive at an early or salts
factory solution of this question-than
which no other of more especial public
concern has been before the present ses-
sion of Congress:
MI. Coburn opposed the report, and
argued that under it the people of the
west are not going to get any redistrlbu-
ton within reasonable time. He beliey-
ed il would be better to put the bill of
until next Congress, and then pass a
general measure of redistribution rath-
| er than take this measure of contraction,
which tended to bring disaster on the
country. There was no expansion which
would require S54, 000, 900 of greenbacks
to be kept as a reserve, instead OF S54,-
000, 600 of three per cents to be with
drawn, and provided only for an issue
of 81, O00, 900 of national bank currency.
Ii was therefore a measure of cOntradic-
ton in that respect and also in respect
to the gold bank section. Mr.. Judd also
argued against the conference report,
I MulGAl. III CAdAAAACAs SCNAAIo AZ AhNoNAOL
against the desire of h house, and
against the best interests of the country.
He asserted that If the report were adopt
/ ed, the currency would be contracted at
least eighteen or-twenty million dollars.
Fortv-iiVe million of g~reenbackS wOuld
have to replace three per cent. certiii-
Gates that was Just equal to the amount
of the additional national bank currency
allowed to be issued, butof the addition
al issue Of2O per e on S9,OOO,OOO had TO
be held as greenbacks, so that this amount
locked up would be $4,000. 900. As to
the gold bank section, he regarded 1t n
a Pigment of the brain; il would be only
adding to the difficulties of the situa-
ton. They had o 4 currency OF ma
tional bank notes and greenbacks, and
YOU would throw on an additional sup
ply of shinplasters--if the members
chose to call it so. He expressed a coz
viction that if this report were rejected,
and anew conference committee appoint
ed, the Senate would concur substanti-
ally in the provisions made by the
House.
Mr.. Armstrong expressed his belief
that any policy looking to the contrac-
ton of currency would be injurious to
the business interests of the country
He regarded the conference report as a
positive measure of contraction, at least
TO the amount of 5000 600. lie thought
the wisest policy would be to reject the
report even though the bill should fail.
Nh. Cox EXPRESSED his opinion that
the measure was not much either of con-
traction or expansion. 1t might work a
little contraction at first but 1t would
produce expansion and explosion. 1t
was a bill which satisfied neither the
House or n body, neither contraction
lists nor expansionistS. What Congress
should do was to march boldly up to
the measure of a return of gold n sill
yer as the President has recommended.
Mr.. Burcharda also condemned h con-
, ference report. particularly because the
committee had abandoned the S95,O0O,OOO
additional issue, which would have
reached all the States having less than
their fair share Ofthe distribution OF cur
rency.
Mi. Morgan also opposed the report,
as being a measure of contraction,
Mr.. Ingersol thought it would hardly
| do, when the people were asking Con-
gress for bread. to give them a stone, and
> he imagined the present proposition was
. no more nor less than that, lie believed
four-fifths Of the people, if there could
be a popular vote on the subject, would
. vote in favor of an increase of currency
! and that, too, in the shape of greenbacks,
! rather than national bank notes.
i Mr.. Townsend also opposed the re-
, port. because he looked upon it as a
measure of great expansion.
, Mr.. Benton characterized as most ar
rant nonsense the talk in favor Of lnfia-
ton and expansion. He was twitted and
l badgered considerably by Messrs. i
+: ridge and IngerEoll as 10 his own views
; about greenbacks, but was smusingly
i successful III keeping those views to
himself.
MI, Jones, of kentucky, advocated the
{ conference report, and stated facts show
: ing the propriety of the redistribution
0 of the currency. He was afraid that un
4 less this conferences report was agreed
, to the bill would fail. He approved Of
4 the report not because it met his views
3 to their full e-tGlt, b4t It did go in some
measure, apd he believed It was the bes'
: the House could get,
g Mr., Garfield closed the discussion by
d a speech in advocacy of the report, as tc
the point that the report was a measure
of contraction. He called attention tC
the remarkable spectacle presented II
e the House by two exceedingly able and
Intelligent Republicans from PennsylVa'
e mia, both of them intimately acquainted
e with the nationGl banking system, ont
of them, Mr.. Armstrong, had made I
y speech opposing the report, because l
I WAS u measure VI 0
e other. Mr.. Townsend, had made a speech
f opposing il as a matter of initiation. n
d was as high n compliment as the repor
could have, because il was clearly prov.
ed by one that was not a contraction, anC
d by others that it was not imitation, anC
II that was inst what the confreres of tn
House and Senate had expected to reach
q These gentlemen who had figured NJ
# contraction in the bill ignored the fac
o that in starting the additional $4,000 90,
d of currency in places now destitute, thu
a credit business of the country would b.
increased by the whole volume of check
and drafts issued from hand to hand il
st order to prevent contraction, being work
II cd by the withdrawal of three per cents
e which were always liable 10 be present
ed for redemption. The committee o
conference proposed to nave an addition
IF al issue of S45, O0O, 900 of national BAN
n currency, which will be distributed III
u Southern and Western States and Terri
tories, but no part falling to Ohio.l
Mr.. Butler of Massachusetts, askel
Mr.. Garfield how he expected the mem
u bers to vote for the report if two abb,
and experienced gentlemen like thosl
J. from Pennsylvania could not agree as Il
Yhatit meantg
J., Mr.. Garfield replied that If the gentle
D. man from Massachusetts did not under
stand it he need not vote for it.
/ Mr., Butler said he did not mean to.
lie Mr.. Garheta utI rot expect those VIII
is talked of gold and silver as relics o
T financial barbarism would vote for spel
he a bill. He added that L would saqaF,
s. better with his own notions TO let thesl
E. western men who opposedit fight thei