The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1874-08-12

process, especially in some Of the
Southern States, but under the pres
ent bill it is immediate, or so soon as
the demands of business require the
use of more money. i
1t is not expansion by creating new |
currency, but by putting into circula-
ton some forty millions of existing /
currency which had been locked up in |
the vaults of the banks. The effect
Of this bill in expanding the volume
of currency in circulation was distinct !
ly recognized by all who voted for it,
and those who voted against it, did so
for that express reason. The bill ex-
tinguished the threat of contraction
which hung over the business of the
country like a suspende lssword, and
is an explicit declaration against that
policy
EFFECT OF THE DEBATE.
From the day Of the introduction of
the resolution by the Finance Com
mittee, in Dece mbar, until the final
action upon the last bill which is now
the law, the vote in the Senate in IA
vor of free banking and such expan
sion of the currency as was necessary
to the restoration of confidence and
business, was constantly increasing,
Notwithstanding the bitter assaults
made by portion of the press upon
members of Congress who advocated
these views.
| The specie payment Juror that start
| ed out with a demand for immediate
contraction and resumption has dwin-
died down into harmless jingle Of
| phrases about resumption to be affect
| ed without contraction, and 'after
! the effects of the panic have passed
away and ''when it can be accom-
plished without injury to the business
OF the country, or "as soon as wise
craftsmanship can safely reach that
result
In the first debate on the subject in
the Senate this winter, / defined my
position on this.question as follows:S
''The question first presented, is
whether it is the duty of Congress at
this session to take definite measures
for the redemption of United States
notes in coin? Tor that is the pledge
given in the act Of 1869. agree that
the faith OF the government is pledged
to redeem what are called green backs
in coin. | agree to that as fully and
as strongly as anybody: and | further
agree that We are to keep steadily in
view return to specie payments; but
the question is whether it is our duty
at this sessionxef Congress, at this
time, in the present condition of the
4 country, to look to and adopt such
4 measures; and at this point / differ
with the committee.
| There is wrong time to do right
thing; and in my opinion this is not
the time in which We should adopt
definite measures to redeem these
notes in coin unless the time be put
off so far that it will not increase the
present embarrassment or, intensity
the effects of the panic upon the coun-
try"
This position | maintained through
out, and | believe it was the one sub
stantially occupied by those in the
Senate with whom [ acted, and tt
(which nearlyAall others have practic
sTs NATIONAL BANKS. III
The third section Of the platform
adopted at the Democratic State Con
vention, is in these words:
I'VE are in favor of the repeal O
the National Banking law, and tn,
substitution of greenbacks for the ma
tional bank currency, ~
While this section does not deciar
in favor Of the restoration of the oil
State Bank system, we know very wei
that IL would result in that 'Th
people vail have some system Of bank
ing, and when the national banks ar
broken down State banks will sprin
Iup and takctheir places. and We shal
again have upon us all the evils of
local, unsecured, unreliable currency
which does not circulate beyond tn
limits Of the State in which it is crea
ted, which from year to year perishe
in the hands of the people, and unde
which the. States of the West an
81 South paid constant tribute to sth
& Eastern States in the form Of { ez
: change To the older members Of m
audience l need address no argument
upon the evils and disasters which al
tended the State bank system. The
: recollectiens upon this subject are bt
!, too vivid. IT VI / i III +
The national banks afford currer
cy that is perfectly secured, in whic
everybody has entire confidence, tn;
is of uniform value in every part
the United States that is not easil
, counterleited, and is unquestionabI
the safest and most satisfactory ban
currency this country has ever ha,
The proposition to destroy this banl
ing system involves radical chans
; in the finances and business of II
country, the collection and withdraw;
II Of more than 5000. 100000 Of loal
which these banks have made 10 Il
! people, the vast arrangement, contra
. tion and distress which such an eve1
=. must produce upon the business
a the country. and years of doubt, al
experiment before another system c;
be established in its place
The principal reason which has bee
n given for this proposed change is tn
G the government is paying interest
these banks upon their bonds, VIII,
e it is alleged is an Increased burd,
2 and expenditure. This argume
!, ought not to deceive any intellige
e person. The bonds which the ban
e. deposit with the government as a S
), curity for the redemption and payne
i of their notes they have to buy in d
# market, just like anybody else, payil
It the same prices. If these bonds we
d not held by the banks they would
}. held by others, for they were alrea,
It | in existence before the banks pu
S chased them; and whether the intere
e is paid to the banks or private partit
r as the holders of these bonds, C;
o make no difference to the coyernmel
c The banks are required to purcha
{ I these bonds and deposit them wi
II the government as security for the
l. notes, thus making their notes sa
~ IL ! ~