Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1874-01-23
Discussion of the Currency Question
Resumed, Senator Boutwell, on the
FlOOr-He FaVOrs Contraction.
Susan b. Anthony Prays Release from
the Fine Imposed on Her for Voting
Petition from the Citizens
Of Elcksburg.
Propositions to Suspend Appropriations
for Public Buildings-The Finance
Business in the HOuse-Etc.

WASHINGTON, January 22.-Senator
Sergeant presented a long petition of
Susan B. Anthony, relating the circum-
\ stances of her registering and voting in
Rochester, and her subsequent indict-
ment and trial for illegal voting before
Judge Hart Of the United States supreme
court, stating that her trial was not a
fair one, and her conviction in violation
of the statute, and asking that the fine
imposed on her be remitted. Referred.
Senator Scott presented a petition Of
! Philadelphia merchants asking the
4 enactment of law to provide for the
Il issue of 3.65-100 bonds into which legal
/ tenders can be converted. Referred. .
The petition of the citizens of Vicks-
/ burg, asking to be reimbursed for ex-
/ penditures incurred in fortifying the
/ city in 1858, in accordance with, an or
/ der of the Secretary Of War. Referred.
J. Senator Sherman introduced q resolu-
4 tion instructing the committee on pub
/ lie buildings and grounds to inquire into
! the expediency Of suspending the ex-
I penditure of appropriations for all pub
/ lie buildings upon which work has not
been commenced, and to convert such
unexpended appropriations into the
/ treasury. Agreed to.
0
ton was resumed, when
/ Senator Boutwell, addressed the Senate:
He said the senator from Missouri Mr..
SchurZ had been pleased to arraign him
foropinions incidentally expressed on the
financial question in this chamber, and
perhaps more at large stated elsewhere,
and was pleased to characterize those
opinions as do-nothing policy. Those
opinions, during the past five years,
were embodied in the financial policy of
both the legislative and executive
branches Of the government. The finan-
cial difficulty through which the coun-
try had recently passed had taught
lesson; as a teacher it should be respect
ed, but as dictator demanding that a
policy tried should be abandoned, and
one not tried be entered upon, ii was
not worth attention. The number of
failures of legitimate business men dur
ing the late trouble were few. The Ia
boring classes alone have suffered, and
they alone are entitled to consideration,
and to their interests he thought con-
gress should now address itself. He
hoped to be able to show that an intla-
ton of paper currency would infiict
standing and lasting evils upon labor
ing men. He contended that there was
AAtAQC1Ul ah l4l1AaliOh VI OU4AChNl Al
New York, and its evils were disss-
trous. There is natural process by
which currency, VIII ether paper or'coin,
used for the purpose of business,
will accumulate in a particular place
when every power of legislation should
have been exhausted for the purpose Of
distributing the currency over the coun-
try. The result would be failure. Cur
rency will flow where it belongs, and
therefore naturally accumulates in the
city of New York. The banks of the
city of New York are acting upon this
practice and almost universally pay in
terest on deposits, and the result is that
the money, instead of remaining in Chi
cago, st. Louis and other points, flows
into New York. Fifty, sixty or seventy
millions of dollars are being held there
subject to call. The accumulation of cur
rency in New York by artificial means
led to the initiation of the currency in
that city, and to speculations, followed
by disaster and ruin. An imitation of
the currency of the country would, in
time, produce the same result. He was
therefore opposed to any increase in
volume Of the paper money of the
country, and on the other hand he was
opposed to the contraction of the
HuIISuENs ne uOI u
ciated currency in itself great evil. By
that he meant to say that if the cur
rency be deprecated, and the prices
and products of labor become ac-
commodated to that state of
thing, there are no substantials affecting
the general prosperity of the country.
The authority of the treasury depart
ment to use forty-four million dollars of
the legal-tender reserve ought never to
have been questioned; but he trusted
that this debate would settle the legal
right of the treasury to Use that reserve.
The department had acted upon the
idea that it was right to use it whenever
an emergency occurred, bearing in mind
always that it was not to be added to
the volume of currency when issued,
but to be restored to the treasury as soon
as practicable.
Senator Schulz understand that the
gentleman maintains that the treasury
had a legal right to issue forty four mil
lion dollars. Does he also maintain that
the department has a legal right 10
withdraw it again?,
Senator Boutwell-Keeping in view
the legislation of congress, it was the
duty of the secretary of the treasury to
do so, and dedueing from the policy of
congress, his conclusion would be that
three hundred and fifty-six million dol
lars was the amount of currency to be
kept in circulation, and when the ext
gency was passed it was the duty of the
secretary to reduce the volume of the
currency to three hundred and fifty-six
million dollars. He argued that the is
sue of forty-seyen million dollars, in his
Judgment, was consistent with public
interest in the highest degree, and the
secretary of the treasury could not sit
silent and inactive while ruin
and disaster to the country were
apparent. But to permanent increase of !
currency he was opposed. He denied
that any pledges of the government had
been violated. The act of March, 1862,
declared that holders of United States
notes might, between March and the
following July, convert their notes into
United States bonds, and they had that
time to make such conversion. He
favored a return 10 specie payments,
with such limitations as set forth in the
annual report of the secretary of treas
ury of 1772. The statement had been
made here that during the first four
wears no progress had been made to-
ward return to specie payment. This
he denied. In 1869 the average price of
gold was 329 per cent; in 1871, less than
Is per cent. in 1871, less II per cent;
in 1S72 it was II 4-10 per cent, and in
1873, I3 S4-100 per cent. Did not these
facts, by themselves considered, de-
monstrate that in these four years we
had made progress toward specie pay
ment? 4
Senator Morton inquired if the gentle
man did not attribute the decrease in the
price of gold in 1869 to the act of con-
gress passed then to strengthen the pub
lie credit.
Mr.. r.Boutwell replied that he attributed
much Of the cause OF the decrease to that
act, but the depreciation in the price of
gold was not due exclusively to the pas
sage of that act; it was due also to the
increase in the business of the country.
he looked for the ultimate and not far
distant equalization of our paper curren-
ey and coin, and until that time arrived
any policy looking to the resumption of
specie payment would be fraught with
the greatest danger. With initiation. the
Interest on money would cOntinu-
ally advance. Money grew cheap in
New York when. many of the busi-