Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-02-25


cial means TO aid them. Imitation would
still more depress the agricultural interests
of the South and West, and that interest
was the chief source of wealth TO those sec
tions. II is true the New England States
had an excess of the National bank circu-
lstion, but the establishment of additional
| National bsRks in the South and West
would not remedy the ;eEil. The Senator
from Indiana had argued that the oTganiza-
tiOn of new National Banks would be TO
increase the currency, as money would De
loaned by them, and returned to the bank
every 90, 60, and 80 days. That argument
was bl
A FaIIaey.
| Persons TO establish these banks must
buy bonds in New York to deposit in the
treasury, in order to get circulation. A
thousand dollar bond would cost eleven
hundred and twenty dollars, The money
to buy this bond would be taken out OF
home circulation, and for that $1,000 bond
they would get just nine hundred dollars
circulation. So that itwould cost eleven hun
dred and twenty dollars to get nine hun
dred dollars. Establish free banking and
it would be worse for the South and West
than ever. New York and New England
had the capital, and having the bonds
there already could send them to Washing
ton and get The circulation without taking
any money from. their circulation to buy
bonds. The free banking proposition would
strengthen the grasp Of New York ana
New England upon the South and West.
He did nOt-WaRt to be understood as Oh
posed to free banking entirely. de would
vote for snch a system if there should be
coupled with it some practical system Of
Redemption.
He argued that any imitation of currency
would increase, not diminish the rate of in
terest, and said lie had lately received a
letter from am old friend in Europe who
wanted to retire from business. He stated
4 he cOuldtake three Orfour hundred thousand
dollars from his business, and asked the
advice of him (Schurz) as to investing the
money in the United States in mortgages
which would pay from s to 10 per cent in-
! terest, but his friend feared to make the
| investment on account of the proposition TO
| initiate the currency. He (Schurz) would
inquire of the Senator from Indiana (Ior-
tom what answer he would have made to
that letter.
Mr.. Morton said he would reply to the
| Senator.
| Mr.. Schurz said as an American citizen.
he believed it to be his first duty to be
honest and he could not advise any one to
| invest money, knowing it was to depreciate |
| in value. But let us lOOktO specie Tesump-
tiOn and he would say 10 his friend 'send |
| on your money, get your neiShbOrs to DO |
| it. Heap i up and invest 1t here"
Mr.. Cameron said the gentleman (Alr. |
| Schurz) would dePTeciate the credit of lis |
| country by such an answer. Real estate |
was increasing in value constantly.
! Mr.. ScluITz-YeS, but an increase in the |
value of real estate don't increase the value |
of 4 mortgage on it as every child knows. |
| Applause in theE galleries.
The Chair gave notice that upon a repi- |
| tiOn of any demonstration he would order /
| the galleries cleared. ......
Mr.. SehurZ, resuming, said he thought |
the remedies proposed fer our evils by those |
who favored imitation were quack medi- |
cines and worth nothing. JnO. Stuart |
| Mill, Aadm Smith, our own Thomas Jeffer- |
son, Mr.. Hamilton and other political |
economists were thrown aside and new
school had risen up here, who would throw |
all theories to the days. He would remind |
the Senators that in throwing theory to the
dogs, they would throw the honor and credit |
Of their country TO them rs well. The rich
men had means TO take care OF their own
interests, but it was.
The Poor Man,
who lived from hand to mouth, on his daily |
earnings, who would be injured, and TO in
fiate the currency OF the country would be
TO rob tlse poor of portion Of their hard /
earned property. He denied that tie
American people wanted imitation. They /
might be led away for a time but would
soon recover their senses. He warned those
who desired to commit the Senate in favor
of their schemes for initiation, to make
haste, or public opinion would be against
them. If any man expected TO ride into /
the White House on the imitation scheme /
he would be mistaken, as the bubble would /
burst before 1876. In conclusion he said /
he had spoken longer than he expected and /
he hoped his remarks would not be without
influence upon the vote about to be taken.
He would reserve his views as to other
points until a more matured bill should be
reported.
Mr.. Morton said, at the close of & long
debate. the Senator had come forward with
carefully prepared and written speech.
OF course, he could not reply to it now,
point by point, but thought, to take it al
together, it might be characterized rs a
gross exaggeratiOn. He (MOEtOn) denied
that he had set aside any theories, except
those which did not apply to our country.
The cheapest Of all learning was that OBJ
tanned from cramming. He lad known of
men as ignorant as a horse, who would get
three or four old political speeches and
cram themselves, and then 90 upon the
stump and make a flaming speech.
Many Of the doctrines of TIE old |
countries of Europe were not suit
ed to ours, as we are rUpidly
growing and developing. The Senator
(SchuTz) didn't seem to comprehend the
country in which he lives, bat was what
they called in France political literateur.
The Senator was mistaken in surprising
others had not read and studied as well
as himself. Free trade, small volume of
currency, low wages and direct taxation
went hand in hand together. He didn't
understand what answer the Senator had
sent to his friend in Europe in regard to
the advice he sought as TO investigating
100000 or 100000 here.
Mr.. SchuTz said he had not answered.
but would tell his friend so long as there
was prospect of imitation, to wait, but As
soon as there should be steps taken to re-
turn to specie payments to pile mp their
money, mountains high, and send i,OVer.
Mr.. Morton-Well, his friend will be
much enlightened when he gets that reply |
i 0c ctlEttOf tOciitfL) Was lglOI2lit OF the |
country in which he lived, aud hal done
him honor. As the business of the coun- |
try increased, currency should increase also.
The Senator had read from travels in China |
as to the ends of paper currency. That
country was finished thousand years ago
and a wall built around it. Should the |
doctrines of the Senator prevail, this cOun- ;
Try would soon be finished. He denied !
that speculation flowed from currency, be
cause it was irredeemable, but said it had /
been caused in places by money being
suPerabundant. The greatest speculation 1
which ever took place happened in England I
on this basis. He (MortOn) wanted some /
reforms in the national banking system by I
which banks should be compelled to keep 5
their reserves at home, and not send them TO {
New York. Our currency was the best the {
world ever saw of its kind. He argued {
that specis payment could not be main j
tained, as we owe about thirteen hundred I
millions in Europe, nine hundred millions ]
in Government bends and four hundred i
millions in Railroad and other securities. I
The interest on these honfS ba1 IN ha Daid