National Republican. (Washington City (D.C.)) 1872-1888, 1874-04-09
THE NATIONAL FINANCES.

ADDRESS OF SENATOR CONKLING.
During the discussion Of the currency bill on
| Monday last and before the final vote as taken,
| Mr.. Conkling said Mr.. President, when the pres
| emit session Of Congress opened, the country had
| been visited with severe financial disaster. The
causes Of the panic, called are known to all OBJ
serving and rejecting men, and there can, think
be little doubt VI hat its causes were. 1t did not
happen because there was not currency enough to
| transact all the actual business of the country.
On the contrary, with gold and silver virtually
| banished from circulation, the currency had
nearly doubled in twenty years-doubled not
merely in the total, but also in the rate counte
by population. In 1880 the coin and note clrcula-
tiOn of the country was ten dollars and half per
Capita in 1850 the coin circulation was eleven dol
lars and thirty cents per capita; in 1870 the note
circulation was eighteen dollars and forty-two
cents per capita, and gold at the same time paid
duties and did other commercial offices.
Currency famine was not the disorder Of which
trade fell sick in September, 1873 Tho nature
and state Of the currency, not the lack OF cur
rency, explains the shipwrecks of last year in SO
far as they are due to paper money. No currency
can be safe and sound unless II be stable. Cur.
rency cannot be stable unless its value be fixed
and tangible: and If it be not ezchangeable into
coin, or eIchangeable for anything coin will buy,
currency must fuctuate with the vibrations Of
trade and speculation.
For years our currency has been infirm, for
three reasons:
First. Because its value has ever been change
able and changing, 1t being not redoemabls and
not redeemed.
Second. Because 1t has been ever subject to the
shifting will OF Congress; and no currency ever
can be steadfast or reliable which is tinkered or
may be tinkered every year by Congressional ma
jorities or Congressional combinations.
Third because the amount has baeQ arbitrary.
being fixed By Congress, instead Of being by the
laws of trade, the laws OF trade will adjust
prommissory currency which may be sent homo
for redemption to be refused and dishonored II 1t
be not paid.
In view of these and other facts, was ready to
vote for free banking. will vote now for free
banking, with needed safeguards. The contrac-
tion involved In o resumption Of specie payments
at once, by force Of legislation, have not afTo-
Gated. know too well the stride the nation took
away from the specie standard when the legal
tender policy was adopted to suppose that stride
may be suddenly measured backward now. Free
banking, however. might be made-1 think 1t
should be made-an instrument for removing the
currency from the arena Of political and Congress
s!onal agitation, and also an instrument for the
gradual and ultimate return Of specie payments.
Many plans for such free banking have been pro-
posed. Some of them are before the two Houses
now. None Of them have been adopted. None OF
them can now, it seems command q majority in
the Senate.
In their stead the bill before US has now been
perfected" we are told. For such q bill can
not vote.
1t adds a. 900 900 to overdue and IN paid legal
tender notes, and so 900 900 to irredeemable bank
paper now outstanding; and it declares perma-
nent II not final departure from honest and solv-
ent principles. 1 say it adds forty -four millions
to the legaltender notes because II requires all
that sum to be put out and kept afost. Twenty
six millions have already gone out from tho
Treasury, but not gone in fact into actual circua
ton, and It can all be gradually brought back
where the residue still is. The payment out Of
legal-tepder notes last September and October,
amounting to thirteen millions or whereabouts,
was in purchase OF bonds-the bonds came from
savings banks and the legal-tender notes received
for them were boarded to provide against run"
Since October the currents of enterprise have
been too sluggish to take up the increased issue,
or even TO take up the amount which had been
active before. In fact, therefore, nothing Of the
fortyfour million reserve, and little Of the legal
tenders paid out by the Treasury Just before the
reserve was encroached upon, has ever been felt
In the channels OF trade or exchange. This ap-
pears clearly from the large increase Of bank de-
posts Of late, and from the glut Of money at
money centers Since December the increase Of
deposits in the banks Of New York, Philadel-
phfa, and Boston, is S62, e3O, o7o-and Of legal
tender notes 81, loO,o7o.
As to the issue by the Secretary of the Treasury
Of the tWenty-six millions, make one remark.
have doned that the Secretary stupidity or wanton-
ly violated the law In paying out these notes.
deny It still. Two Congresses, with the fact
brought to their notice, chose to leave open door;
and when, in 1871 s5 900. 900 Of the same reserve
was issued, still Congress refused to close the
door. Having myself insisted at the time that
the Secretary would, by non-action, be left to
construe doubtful statutes, open TO the eonstruc-
tion since given them by two Secretaries in sue
cession-having myself moved and urged an
amendment 70 remove the doubt, viii not now
turn round and blame the Secretary, instead OF
blaming Congress for an Interpretation given in
good faith and acquiesced in, negatively at least,
by both Houses. regret the use made Of the re-
serve, or rather the action Of which that use was
9 part think 1t was not wise or well; but that
the law plainly forbade 1t do not believe.
The action now proposed, however, puts out all
the forty.four millions, and keeps 1t out perma-
nently, and adds iorty-sx millions Of bank paper
besides thus swelling the paper money 800 900.
Coupled with this is nothing-nothing even in the
distant future, iusuring tolerating any serious
step toward final redemption and resumption.
This il imitation, utter and hurtful Spasmodic
relief may come from 1t, temporary and apparent
prosperity may come from It, but It takes no heed
Of the future except to smooth the way to degrs-
dation, disaster and distress. .ar.
Without necessity or even sore temptation 70
extenuate It, such policy spurns the experience
OF all epochs, tramples on reason and right ana
violates the pledged faith Of the nstion % at
tested by solemn and repeated acts Of the Ameri-
can people in Congress assembled, by the avovals
Of every Department OF the Government and BY
the declaration. in national convention Of the po-
litical party which chose most Of rs TO the SEATS
We hold, and chose also Chief Magistrate,
bound by his word against every scheme and de-
vice of Reputation and dishonor. ! mean 50 to
vote that by my act the record Of Congress shall
not pslter in double sense, and shall not be
stained By trace Of bad faith. Q So
MONEY THE CREATION OF LAW.
From the New York INDEPENDENT
Hon. Horace Maynard, in his speech OF March
%, Is74, told the House OF Representatives that
"money Is the creation Of Law. That IL, money
which the law declares to be money" If by this
statement Mr. Maynard means to say that money
is wholly the "crestion Of law" and hence that
Law can give 10 anything the practical properties
Of money, then the statement is not true. IL 10
the duty Of Law to enforce the payment OF debts,
and, in dseharging this duty, It must necessarily
define the medium in which IL will make the en-
NV an IL. ma