New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-03-27
THE POSITION OF THE HOUSE.
Mr. MAYNARD's CURRENCY BILL TAKEN UP-AN APP
PARENT DESIRE FOR FURTHER INFLATIoN-TIIE
PROVISIONS OF THE MEASURE.

PARENT DESIRE FOR FURTHER INFLATIoN-THE
PROVISIONS OF THE MEASURE.
TBY TELEGRAPH TO THE TRTBUSEl
WAsHINGToY March 2j-The House is evidently
determined upon further initiation. The -Four
Hundred Million bin, which Will effect expansion
of 900 Of greenbacks beyond tho present legal
limit and Of $4,000 900 beyond the amount to which
the Secretary Of the Treasury has unlawfully in
creased the circulation does not content the advo
Gates Of iIredeemable paper money. The effect Of
the bill upon them is like that of glass of brandy
upon drunkard, and only makes them crazy for
more of the initiation stmulant. To-day Mr.. May
uard's bill for an unlimited issue of bank cur
rency was taken up, in preference to the
pending appropriation BILL by o majority
SO large that Mr. Garfield who had earnestly pleaded
the Importance of proceeding with the necessary
public business of the session, gave up the contest
without demanding the Yeas and Nays. This vote
sigaifed far than that the House preferred TO
discuss first of two measures having rival claims
to its attention. 1t meant that the majority were
impatent TO pass some measure involving extensive
that they willing to sacrifice all other
legislation to that end Mr. Maynard bill removes
all limit to the National bank circulation it also af
fords an opportunity for further greenback initiation
By clause which provides that the entire amount
of United States notes outstanding at any one time
clause will of course be subject to amendment and
the House can, by majority vote, increase the
limit to $500 900 or to any other sum. The BILL
therefore throws open the food gates of imitation to
the fullest extent.
In his speech in its advocacy to-day. Mr.. Maynard
frankly admitted that the theory upon which it is
based was that the banks should put out as much
currency the people will take, and he defended
this theory upon the ground that National bank
notes are not legal tender, and that as one is
obliged to take them unless he wishes it, there can
be no harm in allowing the banks to issue as
much as the country will absorb. This is the
kind Of financial craftsmanship that rules the
hour The only check afforded by the bill
upon this power of the banks to deluge
the country with their notes, is to
be found in the requirement that they shall keep
deposit of five per centum of their circulation in
legal tenders in the Treasury for the redemption of
their issues. There is also provision in the last
section for a slow approach to specie payments by
the substitution for greenbacks of S2OOOOOO of gold
notes per month, redeemable in coin in two years
from date. This, however, the House will be pretty
sure to strike out. The debate on the bill may be
expected to be Us tedious and proftess as that on
the same subject which has been going on for weeks
in the Senate The following is concise summary
Of the provisions in the bill:
The first section repeats the provision of the Bank
ing law which requires the banks to keep legal
tender reserve to redeem their circulation Section
. abolishes all restriction in the total amount of
National bank circulation aud repeats the provision
Of the law Of 1870 which limits the circulation of
any bank to $4,000. Section provides that every
bank shall deposit in the Treasury, aud keep good
sum in greenbacks equal to five per cent Of its cir
culation for the redemption OF its notes. Ii also
limits the total greenback circulation to Si00O0O00O.
Section 4 authorizes banks to retire their notes
from circulation by depositng legal tenders with
the Treasury in sums of not less than $1,000 where
mon they may withdraw proDOrtionate amount Of