, 1874-04-20
CURRENCY And FREE BANKING.
SpoCCh Of the lion, Charles D. Far
we'll, OF Illinois.

no1fvnrnf1 T., +1.n N.ls.r rr..-
,, ''s'A e.o%''o
VI representatives, Nlnrch
20, 1S74.
rn.. u. ,
~ .oeo ~ rras '.,ss "noor consideration tho Dill
~ ~ W.. u,o's} ~ anlohd fho several acts pro-
slo'ns na',onal cur1onoy a'1d to establish froo
oa.Nins, ,4 m,u7q anu aqi o1ner phrpoaea-
~ ~ nen',.t hlsnGon 1n.u' ,n,'
>, Mh' orsAesn' , Inc question Of tho currency
~ 'no uoSs ,nipof,ans question now egitating
sno puono u, "lna' ~ has poen dlaouaaod BY tho
pie'e Va 'no eounsiy 'nrouBhout tho lana, and
w. snsAo s''ne ~ w ~ UNIFORM OPINION upon
suv sasus .sss,,~ 49, nos ntop'se 70 1aso up ont
o..'".' po.1tvl W 1"o @'l'e VI tAo iionao IN
"t,u, '1s.. n.'so w s"5 upon .n'n euoloot'
"nen 1oneloen p''enoo suo Nntloua. ouffehoy
Nv, s"o sAs "oIo ".s0pa ~ w uono; h1s5,
S...os ~ ',.s,., 4aaao - .no suse,"1
IT, ,,,.c ~ - ~. naps ns.;.na no ous WI WIN n, no
1o, -. t."oo y. w. 4os1ou ~ tn' nv. tne
iolaos WIS sucees6luhy "cco1npilAhoo; the latter
only In part,-in part becauso the amount was
limited under tho act. Congress assumed tho
| rf01,t tn hr Tim 1;nnit IN lin currarcv NJ +bo
! connfrv md aaid ~ lin noon1o Thrs for ~,
~,au w "na oa4e W 'Ao poop4o' -n"' 4a1 ""
anall 20 ana no taftnof. Iho act efoated
AAosorolg OF BANKERS,
nfro.1o:1 ,ass..,rnuaa ~ 49, ~. a as;aa ana .,a
Allofaoa privileges TO she 70" aod donicd tho
Rame privileges to tho many' II tho oct had
provided that a.! should h'yo tue sso prv
nronoait,on yonl1 hnvo hoor ncoonr1,shoJ
popoe.s'.,' ~ "oa'. nA,u uooA ae,oinp.i'nsu'
namely: .no pooplo "ou1o nase nao .ho privilege
Of supplying Themselves with all tho currency
which busincsB and oommoro required.
Tho hill now undcr f1;souse;on n;ma tn romodv
oono ~ ,ho dofoota ~ 49, 1,,s,a,,o,. ~.
somo ~ w ooleo'n y, VI sno currency aos' u
PROPOSES TO remoVo tno restriction upon tic vol
| urno and amount OF National Bank notes. do
not favor this proposition because 1t will in
oroaao the oiroujat,on At National nont, notoa
hnt boc,uso Il .,,rou tho nnan,o v' w.
ous .. o'.au"o !" si'o" 'ne peoplo tne
option 10 decrcaso or lncroaae tho volume
as their wants may from time to time re-
ouiro, I do not proposo to consider tho ouoa-
tlon Of inflation or contraction in conneot,on
viii ttta hi1 hut r. s.ror .,,,,, laa,,,.t;a., =.
,n W. w., p."' Dd' ~ A"'oi nucu !eBie'"t1on ~
WILL enable tho people to supply tholr wants. II
the issuing Of currency under tho National Cur
ronoy act is mado froe, tho poop1e will avail
themselves Of Just tho amount tloy want and no
more, The great INV Of supply and domnnl viii
regulate the volume; Legislation viii not and
cannot.
It is ayerrod by many tint tho proposition to
make banking FREQ will hayo o tendency to: ttl-
llato pricos. This cannot bo dono under this
hill, because, under tic third section m enny
method Of redemption is provided for, s1ld any
redundancy OF National hank notes viii b
checked BY this section. Initiation begins and
| ouds with tho legal-tondor notos. Tie
loga1-tendor notos aro the. basiB Of our
banking operations. They perform tho
| same functions TINT gold docs under
spocie.basis; and, Us thoro is no law proyidinu
for their redemption or retirement ut tile option
| Of the holders. aa s provided for National Dauk
notes. IN increase Of tleir volume would tend to
initiate prices. THO amount now Hxod by this
House should not DO increased for this roason
1t ia not necessary that tho volume should ba In
creased; in my Judgment 1t would be wl8o to
nEDuon THE yoLuan or IroA1-TsxpEn En- NOTES.
provided tho Nationnl-Danking system Is to be
continued md mndo free. At all oyonts. tho
country should bo made to understand that the
volume Of legal-sondor notes Is not to be- in
oreased ut tie will of tho Secretary Of tic
Treasury: .o do not object to the sum ot
profor that it bo fixed 1T es6s Ooo 100 with % froo
banking, and nm not quito suro but That il
would SO wiser to fix the volume at Sf0D 0}D l)0.
That amount, In my Judgment, would bo suffl-
oient Us q rodeeming agent Tor any volume Of
National Bank notes that might bo taken out
under the National Currency aos when wo hayo
removed the restriction,
Tho timo will como when the logal-tonder
notes will he retired. Thoy should noyor ho ro-
tired by an act conapel7ir,G tho Secretary OF tie
Treasury to pay tloui But m net akoujl ho
to tho National Dnnka to fund thom 1t a
small specified ratio OF intorcst. When tho timo
comes, when our exports shall excood our i'm
ports, and gold shall thoroby dow into tho conn
selves OF tho option under an aot Of tlis kind.
Until that timo arrives tho 1egal-tenlor notns
must continue to perform tue functions that
they now do, or else, If funded, t11o National
mont ~
apoote-pnyment cannot bo maintained in this
country with tue balance Of trade against ug,
This Is not only my own opinion upon tlis sub