National Republican. (Washington City (D.C.)) 1872-1888, 1874-08-05


the redemption Of the United States notes IN
CON-"
THE VETOED BILL.
Upon this resolution the discussions began,
and II was strongly argued that there should
be an immediate return 70 specie pEymentd,
which, # was admitted By most Of the Ndvo,
Gates, could be accomplished only BY largely
contracting the volume Of currency. Without
going into . history Of the discussions, which
lasted throughout the winter months, It Is suf-
hcient to say that In April currency bill passed
both Houses, containing but two sections. The
first declared that the maximum amount Of
legAl-tender notes should be 900, 900, OOo-just
what had been claimed BY Secretaries hcCul
Tough, Boutwell, and Richardson, and BY the
President himself, but which had been disputed
Tshsmently IN Congress and out Of Il. It sim
ply declared the law to be what the President
and Secretary had assumed It to be. TheWord
"maximum" means the greatest. It did not
mean the precise amount, but dmply the
amount beyond which the Issue could not 20 /:
and did not make It obligatory upon the Score
tary 70 Issue another United States note, and
len bis Discretionary power Just what be had
claimed II 70 be. l..
The second section provided for the Issue OF
SO, 900 900 Of additional national bank notes,
to be apportioned 70 the States Of the West and
South having lees than their proportion Of ma
tional bank currency, 10 be issued under the
same conditions, limitations and security as
those already provided by law. As the law
then stood, the Issue Of this amount Of national
bank currency would have required legal-ten-
der reserves to the amount Of not less than
SIC, 900 900, which would have been withdrawn
| from circulation 50 that II the whole addi-
tional $40, O00, 900 had been taken up and is
sued the actual expansion Of currency In circu-
lstion would not have exceeded ESQ, 900, 600. A
large portion Of this SO, 000, 900 would have
been apportioned 70 Southern States that would
have taken 1t up very slowly, so that any dan
ger to have resulted from sudden expansion
Of the currency was of the most visionary char
acter. This bill was vetoed by the President.
THE BILL THAT BECAME LAW.
Just before the close Of the session bill was
passed by vote of more than two thirds Of
/ each house, and signed by the President, fixing
the amount of legal-tender notes at $685., 900,
900 for permanent circulation, and taking from
the Secretary Of the Treasury the power to re-
tire the tWenty-siX millions Of such notes, which
had been issued after the commencement of the
panic, as 9 part Of the legal-tender reserve,
and which It was asserted BY the Secretary he
had the power TO retire, and should do so, out
Of the first surplus revenues. II provided for
taking hfty-fve millions OF national bank cur
rency from the Eastern States having an excess
over the proportion theywere entitled to under
the law, to be distributed 70 the States Of the
West and South that had less than their pro-
portion. It further provided for sbolishing the
| legal-tender reserves which the banks were
required by law to keep on account Of their
circulation. Their bills were amply secured BY
the deposit OF bonds; and from the first the
reserve on circulation had been regarded es
absurd and unnecessary. This would set free
and throw into circulation not less than forty
millions Of legal-tender notes which before
were required BY law TO Be locked up In the
vaults Of the banka, and Is an expansion Of the
circulation TO that amount. Under the vetoed
bill the expansion depended upon the estab-
lishment OF new banks, which would have been
q slow process, especially In some Of the South
ern States, but under the present bill It is i'm
mediate, or % soon as the demands Of business
require the use Of more money.
It is not expansion BY creating new currency,
but BY putting into circulation some forty mil
lions 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 distinctly recog-
niEed by all who voted for &c, and those who
voted against It did 90 for that express reason.
The bill extinRuisbes the threat of contraction
which hung over the business of the country
like & suspended sword, ard Is an explicit de-
clsratiop against that policy.
EFFECT OF THE DEBATE.
From the day Of the introduction Of the res
olutiOn by the Finance Committee, in Decem-
Der, until the final action upon the last bill,
which is now the law, the vote in the Senate In
favor Of free banking and such expansion Of
currency e. was necessary to the restoration Of
confidence and business was constantly increas-
ing, notwithstanding the bitter assaults made
by portion Of the press upon members Of
Congress who advocated these views.
The specie payment furore that started out
with demand for immediate contraction and
resumption has dWindled down into harmless
Jingle Of phrases about resumption TO be ef-
fected without contraction" and latter the
effects Of the panic have passed away" and
"When Il can Be accomplished without injury
TO the business Of the country" or ''as soon as
wise stateSmanship can safely reach that re-
suit"
In the first debate on the subject in the Sen.
ate this winter ! defined my position on this
question a. follows:
1.-THE question HrSt presented Is, whether Il
is the duty Of Congress at this session 10 take
definite measures for the redemption Of United
States notes in eolni for that e the pledge
given in the act OF 1869. agree that the faith
Of the Government ls pledged TO- redeem what
are called gresnbseks IN coin. agree 10 that
as fully and e. strongly ~ anybody; and
further agree that we are 10 keep steadily In
view q return 10 specie payments; but the
question is whether It is our duty at this SEES
sion Of Congress, at this time, IN the present
condition Of the country, to look to and adopt
such measures, and Al this point differ with
the committee.
''There Is wrong time to do right thing,
and, IN my opinion, this is not the time In
AEoh NITaa k M AaNn lfa a.,
redeem these notes In coin unless the time Be
put Of 80 far that it will not increase the pres
eut embarrassment OF intensity the effects Of
the panic upon the country"
This position maintained throughout, and
believe It was the one substantially occupied
by those in the Senate with whom acted, and
TO which nearly all others have practically ar
rived.
NATIONAL BANKS.
The third section Of the platform, adopted
at the Democratic State convention, e in these
words:
ave are In favor Of the repeal Of the ma
tional banking law and the substitution Of
greenbacks for the national banking currency"
While this section does not declare in favor
of the restoration OF the old State bank system,
we know very well that Il would result in that.
The people viii have some system of banking,
and when the national banks are broken down
State banks Will spring up and take their
places, and we shall again have upon Us all
! the evils of local, unsecured, unieliable cur
reney, which does not circulate beyond the
limits Of the State in which It is created; which
| from year to year peTishes in the hands of the
people, and under which the States Of the
| West and South paid constant tribute to the
Eastern States In the form Of exchange. To
the older members Of my audience need sd-
dress no arguments upon the evils and disasters
which attended the State bank system. Their
recollections upon this subject are but too
vivid.
The national banks afford currency that is
perfectly secured, in which everybody has en-
| tire confidence, that is Of uniform value IN
every part Of the United States, that Is not
easily eounterfeited and is unquestionably the
safest and most satisfactory bank currency
this country has ever had. The proposition to
destroy this banking system involves radical
change in the finances and business of the
country, the collection and withdrawal Of more
than SeOO, 600, 900 of loans which these banks
have made TO the people, the vast arrangement,
4 contraction and distress which such an event
must produce upon the business of the country
and years Of doubt and experiment before an
other system can be established in its place.
/ The principal reason which has been given
| for this proposed change is that the Govern.
ment is paying interest to these banks upon
their bonds, which It is alleged is an increased
burden and expenditure. This argument ought
not to deceive any intelligent person. The
bonds which the barks deposit with the Gov
: