The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1874-05-19

t ass re tst eonres shall set ihese
auestions az rest by z distinct enactment.'' 1t
was The wish and expeetation Of the
- ~ FRIENDS OF THE BILL
that Che secretary should put into circulation
the remaining sls,0O0.eoO of the s44oooooO, and IL
was proposed by some that the language OF the
section should be so changed rs to require that
amount to be put into circulation and kept out
standing. But IL was determined otherwise, ana
that the bill should simply declare the maxi
a mT% seSion o. e sesy Sas they had
been claimed to be. Had congress taKen
from the secretary the enormous of pi H@
States notes up TO IO0OOoOO0, or reduce 1t to
sS569Oo,N0, by fixing 1t at s90e0ooooQ, the act
of the people, who believe that power so vast
should not be reposed in any public omcer: S ut
that was not DONE ana TIM ef e%aty OF the power
which had been claimed, and the exercise OF
which had been declared BY many 70 oe IA, gr e,
tnorizes the increase Of bank note circulation 20
the amount OF s48eoo, 900 70 be distributed among
u hs stains sse Sas ies Of the act
the new banks to be established upon tne
terms liabilities and restrictions imposed upon l
existing banks, being required 70 secure tneir
bills by deposits of bOnds redeem them In y nj
ted States notes, upon demand over tnen
cities. and with the additional restriction that
all banks, old and new. shall keep d dl
the coin interest they receive Upon oss This
provision looked forward to the resumption OF
specie payments, and was the first step that nd
$1,000 OOs provided for came fun sD0e'ooo short
of - ~ f'loi ~ ~ iadi illlg .aaosia4.I
..a EQUALIZING THE DISTRIBUTION irse
among the states upon the basis Of the act OF
1855. Under that act, the New England states
were entitled to less that ssoOo,ooo but received
silo 100000, and the other Eastern states had an
excess OF nearly sl20oeoo. The most Of the
hos. Inn a.
the restriction taken on as to the amount ana
locality of the circulation OF national banks, SO
the United States to establish national banks
wherever and whenever their local wants ana
necessities demanded them. The pront upon
two per cent. and they win not be established
and maintained anywhere unless there be q
local demand which will give to them
liberal line OF deposits. But the purpose Of this
letter is not to enter OF the secs
section OF the blu put TO remove msss " re
first. Whether the volume OF the currency Is
sufficient for the business Of the country, Is
diner. During the four Years preceding the
panic there had been an actual contraction OF
the currency, and much larger c1mP pa ,,,
latios and business. majority OF congress
were OF opinion that 10 produce restoration OF
confidence, speedy revival or business, ana
return to the prosperity which was so suddenly
destroyed by the panic. some addition should be
bill which has failed to become law would
have produced some contraction. Is undoubtedly
the stock market in New York. Ii is a wen
understood fact that the reserves OF the
WESTERN AND SOUTHERN BANKS
kept in New York have been loaned by the
New York banks almost exclusively upon call
to dealers In stocks, and thus contributed to
stimulate unwholesale speculation, aud have
been of very little benefit 70 the mercantile or
manufacturing community: The evil result;
during the panic last fall. The stockholders
who had borrowed the money were not able TO
we're unable to pay the country banks fIom
which the money had been received, and thus
This bill In effect required the banks outside OF
| the -demption cities to keep tnree-fourths OF
wi raWn some millions from the stock
| market in New York, which would strengthen
| the banks to which they beiong, and Guild have
pretty well understood that contraction would
| do no harm. The act of 1862 TO strengthen the
public credit, declares that "the United States
the earliest practical period for the redemption
bate upon this bill nobody has denied the char
acter or binding force of that pledge, but the
question as to the practicable period for its
performance remains as open as IL was upon the
day it was passed. Very few members OF either
house of congress have agreed upon any method
AZ few EVE are in favor Of boarding the 1 gold
| in the treasury until enough has been
4 acquired TO begin the redemption OF the notes.
| Others have proposed to acquire the requisite
| amount of gold by selling our bonds in Europe;
others to fund a portion OF the legal tender
notes in bonds bearing five per cent. interest,
and retire them in that way, TO bring the rest 10
par by contraction; others to fund them into a
| bond bearing five per cent. interest, to be re-
issued and again funded. While the govern
ment is pledged to redeem the legal tender notes
in coin az the earliest practicable period, while
| the purpose to do so should ever be kept in
view, yet that period is by many deemed TO be
practicable when there is great stagnatiOn oil
| business, much labor unemployed, the revenues
largely fallen OF, and much distress and suffer
ing in every part of the country; Very truly
| yours o. p. MORTON.