The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1874-08-04

wa, sd rni tied by the advocates. could
sol ame'of currency. without going inio a his
% ~ ofShe discussions, which lasted throug hont
April a currency bill passed both houses: con-
taissng but tv o sections The first declared tnat
the maximum amount OF legsi 81 tent, teloel h0aes
By Secret aries Mccullough, Bou well anu fSlcn
arxiSon and by the president himself but which
had been disputed vehefnently in Congress and
cut of it. 1t simply declared the law 10 be W nat
the president and secretary nau a.suineu II 70
1t did not me n the precise amount, out SIMPLY
the amount beyond which the issue could le not
retary TO issue another United States note, and /
left hls discretionary power just what he had
Tne 5 eond sscticn provided for the issue of
Sl6G00,0o0 of additional national bank notes, 10
be apportioned To the States of the West and
tional bank currency, to be issued under the
same conditions, limitations and security as
those already provided by law. AS the law then |
stood the Issue OF this am unit OF national bank
serves 10 the amount OF not less Than ten mill |
lions. which would have been Withdrawn from
circulate n; so that II the Whole additional for
the actual expansion of currency ia circnla-
tion would not have exceeded thirty six
millions. A large portion OF this forty
six millions would have been apportioned To
Southern states that would have taken II up
very slowly; so tha any danger 10 have result
ed from a sudden expansion of the currency was
of the most visionary character. The bill was
vetoed by the President.
TIE BILL THAT BEDAME n LAW
lust before the close of the session bill was
passed by a vote of more than two-thirds of each
House and signed by the President, fixing the
amount Of legal tender notes at $50 millions for
/ pernas nent circulation, and taking from the
secretary Of the treasury the power to retire the
twentv-six millions of such notes. which had
been issued after the commencement of the PAN
ic, as part of the legal tender re -erye, ana
which it was asserted by the secretary he had
the power to retire and should do so, out of the
/ fiuy-iiTe millions of nati0pal bank currency
from the Eastern States having excess over
iaTyi 10 6e disIribaied TO the states OF the west
AID South that had less than their proportion.
Il further provides for abolishing the legal ten
/ law 10 keen on account of their circulation.
/ heir bills were amply secured by he deposit of
bonds: and from the first the reserXe on cfrcula-
| tion had been regarded as absurd and unneces-
sary. This would set free and throw into circu-
lation not less than forty millions OF legal ten
der notes which before were required by law to
! be locked up in the vaults OF the banks, and is
| Under the vetoed btll the expansion depended
upon the establishment of new banks, which
some of the southern states but under the pres
ent bill il is immediate, or so soon as the de-
mauds ofbuSiRes require the use gilmore money
| 1t is not expansion by creating new currency,
but by putting into circulation some forty mil
lions OF exiSii < currency which had been locked
up In the vaults Of the banks. The effect OF this
bill in expanding the volume of currency in cir
culation was distincly recognized by all who
voted for IL, and those who voted against it did
so for tnat express reason. The bill eXtin-
guished the threat OF con ntraction which hung
ed sword, and is an explicit declaration against
that policy.
/ EFFECT OF THE DEBATE.
From the day Of the introduction OF the res
Olution by the finance committee, in Deem
Der, until he final action upon the last bill,
which is now the law, the vote in the senate
In, oFf
of the currency as was necessary to the res
toration of confidence and business, was con =
stantly increasing, Notwithstanding the litter
assaults made by a portion of the press upon
members of Congress who advocated these
views.
The specie payment ftiror that started out
with a demand for immediate contraction and
resumption has dwindled down into a harmless
jingle of phrases about resumption 10 be eff
fected without contraction" and "after the eff
feets of the ranies have passed away" and
"when it can be aecomp ished without injur Y
to the business of the country" or las soon as
wise staiesmaRship can safely reach that re-
In the first debate on the subject in the Senate
this winter, defined my position on this ques-
tion as follows:
The question first presented issxhether IL is
the duty OF Congress at this sessio1o take defi-
mite measures Tor the redemption of United
states notes in coin for that is The pledge given
in the act of 1886. agree that the faith Of the
government is pledged 10 redeem what are called
4 greenbackS In coin. agree 10 that as fully and
as strongly as anybody; and further agree tn t
we are to keep steadily in view urn to specie
pay yinents but the question is, whether il ts our
duty at this session of Congress- tniS time, in
the present condition of the country, to look 10
ana adopt such measures; and at this point 1
, "There is a wrong time todo right thing: and
IN my opinion this is not the time in which we
notes in coin, unless the time be put OFF so far
that IL will not increase the present embsrrass-
fha4cf of 10
This position maintained throughout. and
DeleVel IL was the one substantially occlpied
/. by those IN the Senate with whom acted and
r rived.
NATIONAL BANKS.
The third section of the platform, adopted at
the democratic State convention, is in these
words:
"We arein favor of the repeal of the national
banking law, and the substitution of green.
, backs for the national bank currency"
While this section does rot declare In favor of
the restoration of the old State bank system
we know very well that it would result in that
Thepeople will have some system of banking
and when the national banks are broken down
, state banks willspring up and take their places
and we shall agaia have upon all the evils OF
: a local, unsecured, unreliable currency, which
: does not ciTculates5eyOnd the limits of the Stale
in which ii is created, which from year TO
! year perishes in the hands<of tn. people,
and uAder which the tates of the West and
South paid constant tribute to the Eastern
D States in the form Of exchange. To the older
membe my audience L need address ar
gcanents upon the evils and di ,aSters which at
tended the state bank system. Their recOlleG-
I tions upon the subject are but teo Vivid.
The national banks afford a currency that is
perfectly secured, in which everybody has en-
tire confidence, that is-ofuniforR value in every
part the United States; that is easily coun-
| terfeited, and Is unquestIOnably the safest and
most satisfactory bank currency Enis country
! ! has ever had. TIE proposition to destroy this
banking system in wolves radical change in the
finances AMI business of the county, the col
lection nd withdrawal OF more than 5000 600
of loans which these banks have made to the
people, tke vast arrangement, contraction and
distress which such an event must produce up