The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1874-05-28


Tho facts connected with his escape which
he can clearly recall are that he floated
very near to the embankment. but before
he could make landing he was carried
into the current. When finally taken from
the water he was stupened BY exhaustion,
but soon recovered, and is now in his
usual health.
Senator Aorton's Views On the Cur.
rency Question.
In recent letter to the Indianapolis
Journal Senator Morton gives his views
upon the vetoed Currency bill and the
fresidents veto message. We give the
following extracts from this letter, as
probably embodying the views Of those
members of Congress who sustained the
bill in opposition TO the Presidents veto: :
Mr.. Morton says there appears to be mis-
apprehension In regard to the provisions Of
the bill from which the President Withheld
his approval. He says the bill is criticised as
II 1t authorized new emission Of United
States notes, which would increase the difi-
Guilty Of return to specie payments, and
thereby involve breach Of the national faith
coin.
The first section of the bill, and the only one
which relates to United States notes, is In
these words: "The maximum amount Of
United States notes shall. be four hundred
million dollars"
To understand the effect of this provision
reference must be had to previous legislation.
the United States notes in circulation, or to be
circulated, shall not exceed the sum Of $780,
10000. BY the act Of April IL, 1866. Il was
provided that "of United States notes not
more than SO, 600 900 may be retired and can
celed within ak months Of the passage Of this
act, and thereafter not more than q. Oo0. 600 in
any one month" On the 4th of March, 1868,
another act was passed forbidding any further
reduction Of United States notes. At thattim
the amount outstanding was $3.50, OOO, OOO and
that is the limit below which the United States
notes cannot be reduced without Congressional
enactment. Under the operation Of these
statutes successive Secretaries Of the Treasury
have assumed the right to reissue at their dis
cretion ~ 900, 600, that is, the difference be-
tween $3.50, 600 GOO and 500, OOO, 600, and to
withdraw the same again from circulation,
Since the LIST of October last there have been
issued Of these notes by the Secretary of the
Treasury $06, O0O, 600, making the whole circu-
lation Of United States notes $685., OOO, 600.
The right of the Secretary to reissue any
part Of this forty-four millions, or to increase
the circulation of these notes above three hum
dred and ffty-six millions, has been continually
denied by many lawyers in Congress and out
OF 1t, snd large portion of the press; and the
question cannot be said to be free from
doubt.
In his veto message, and in his letter to
Messrs. Claflin and Anthony on the 18th of
September last, the President treats the forty
four millions as being an existing reserve, q
sum of money already In the Treasury, as
much 80 as like sum received from taxes,
to be used at the discretion of the Secretary of
the Treasury for certain purposes.
The first section of the bill declares the law
to be what the President and Secretary have
assumed it to be. It declares that the maxi
mum amount Of United States notes shall be
&4OO, OOO, 600, that Is, the amount beyond
which the issue shall not be extended. The
word "maximum" means the greatest. It
does not mean the precise amount, but sim
ply the amount beyond which the issue cam
not 90.
The section relieved the Government from
the exercise of . doubtful power, which had
been the occasion of severe animadversion.
1t was the wish and expectation of the
friends of the bill that the Secretary should
put into circulation the remaining sis, OOO, 600
OF the 100000, and it was proposed by
be 80 changed as to require that amount to be
put into circulation and kept outstanding.
But 1t was determined otherwise, and that the
bill should simply declare. the maximum
amount OF circulation, and leave the power
and discretion OF the Secretary what they had
The other section of the bill authorizes the
increase Of bank-note circulation to the
amount Of &C, O0O, GOO, to be distributed among
the States having less than their proportion
upon the basis Of the act Of 1865, the new
banks to be established upon the terms, liza
bilities and restrictions imposed upon existing
banks, being required to secure their bills BY
deposit Of bonds, redeem them in United
States notes upon demand over their own
counters or In one Of the redemption cities,
and with the additional restriction that ali
banks, old and new, shall keep one-fourth Of
the coin interest they receive upon their
bonds deposited for the security Of their
resumption Of specie payments, and was the
first step that had been taken in that dircc-
ton by Congress.
The S46,5oO,O 600 provided for came full
90, 600 900 short Of equalizing the distribu-
tien among the States upon the basis Of the
act Of 1865. Under that act the New England
States were eHtitled to less than $4O, OOO, 600,
but received $11O, 600, 600, and the other East
ern States had an excess Of nearly S12, OOO. 600
Whether the volume Of the currency is suf-
fcient for the business Of the country il q
question Of fact about which men may hon.
estly differ. During the four years preceding
the panic there had been an actual contraction
Va VIC VulIC1CyS 0A1U u mUCu 181KEE COmO8x&e
tive contraction resulting from The growth Of
population and business. A majority Of Con-
gress were Of the opinion that, to produce q
restoration Of confidence, . speedy revival Of
business and return to the prosperity which
was so suddenly destroyed BY the panic, some
addition should be made to the volume Of the
currency.
That the bill which has failed to become
law would have produced some contraction Is
undoubtedly true; bu. It would have been
almost entirely In the stock market In New
York. It is q well-understood fact thar the
reserves Of the Western and Southern banks
keptin New York have been loaned by the New
York banks almost exclusively upon call to
dealers In stocks, and have thus contributed to
stimulate unwholesome speculation, and have
been of very little benefit to the mercantile or
manufacturing community. The evil resulting
from this fact was strikingly illustrated dur
ing the panic last fall. The stockholders
who had borrowed the money were not able
to repay the New York banks, and they in re-
from which the money had been received, and
thug the disaster Of the panic was greatly ag-
gravated. This bill in effect required the
banks outside of the redemption cities to keep
three-fOurths Of their reserve ct home, and
would have withdrawn some millions from
the stock market in New York, which would
strengthen the banks to which they belonged,
and would have produced contraction In .
quarter where u Is pretty well understood
that contraction would do no harm.
The act Of 1860, to strengthen the public
credit, declares that "the United States SOL
EMMY pledged its faith to make provision at
the earliest practicable period for the redemp-
ton Of the United States notes in COIN" In
the debate upon this bill nobody has denied
the character or binding force Of that pledge,
but the question as to the practicable
period" Tor It's performance remains rs Open
g 1t was upon the day It was passed. Very
few members Of either house Of Congress
have agreed upon any method for the resump-
tiOn OF gDecio Davmenta A few ara In favor