Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-04-04

Tennessee, IN Congress, March Is,
IS74.
From the Congressional Record, March 81.
The House having under consideration the
the several acts providing a national currency
and to establish free banking, and for other pnr-
poses
Nj. Bright said
Mr.. Speaker, 1 propose to address myself
to four propositions: First, that the currener
Of the United States is uneGually and I'M
justly distributed according to the popuIa-
ton and wealth; secondly, that it is insult
ficient in volume; thirdly, the probable
quantity needed; fourthly, the way in which
it may be supplied.
Upon the first proposition, as TO the I'M
equal and unjust apportionment OF the cur
rency, l would remark that the figures to
substantiate that proposition are not new to
this body. but the country is not as familiar
with these figures as these Representatives,
who have heard them repeated from day to
day, and have read them for themselves.
In support Of that first proposition, | beg
leave TO call the attention of this body to
TO the report of the Comptroller of Cur
rency, Dec. l, 1873, which shows that the
| six Eastern States have an excess of S70,-
690,046; the five Middle States have an ex-
cess of S9,4l6, J03; the District of Columbia
has an excess Of S1S2 ,13l; the fou. teen
Southern and Southwestern States have a
deficiency of S52,2 ,034; the nine Western
States have a deficiency of 81, A 81.
The Pacific States and the Territories have
a deficiency of S~I,926,64S. The Eastern
and Middle States together have an excess
of SSO,5S9, T42. The deficiency of Tennes-
see, my own State, is S~5,373,3S2.
rNha-a Gurrac ora annaTncfx-a Of tho r-onn
sition as l have stated it.. But i'll further
support of the proposition permit me TO call
the attention Of the House 10 another tab
ular statement of the Comptroller of the
] Currency. showing the per capita circula-
ton. The six Eastern States have q per
capita of S31.6S; the FIVE Middle States
S12.S2; the fourteen Southern and South
western States, including the District of
Columbia, S2.91; the eight Western States
S7.07; the per capita of Tennessee, my own
State, being S2.66. Accompanying these 1
have the tabular statements which l shall
not trouble this House with repeating.
Suffice it TO say, then; that the first propO-
sition is automatically established.
Now. as to the second branch of the first
proposition, that this distribution of the
currency is u~njustly made. Let us exam
inc for a mOment and see the effect of this
Establishment of the currency.
Take il in the New England States,
where il is abundant, where they assert it
is sufficient. and what is the law Of money
or of finance? 1t is that the prices of COM
mOdities are appreciated in proportion to
the quantity. What is the consequence fol-
lowing that? Where the manufacturing in
dustries have the currency TO pay high
prices for labor, there are high prices for
production. But what is the result of the
appreciated value of these productions in
the immediate vicinity? They are added
TO the cost of manufacture, and with this
accumulated cost, in addition TO transp0r-
tation and insurance, they are sent broad
cast over the land anG sold to the cOnsum-
ers who have not the advantage of those
who live in the immediate vicinity of the
manufacture. Hence labor is high, pro-
auctions are high, where the currency is
abundant; and productions are cheap and
labor is cheap where the currency is scarce.
That is one of the evils under which the
section of country from which l come is at
present laboring.
But YOU say these parties must indemni-
fl themselves by increasing the price Of their
own production. This is impossible, be-
cause the manufacturing interests have a
protective tariff as a shield TO them and are
not affected by foreign competition; and in
fact, by operation of law, the people are CO.
creed to pay the high prices which may be
fixed upon them with a diminished cur
rency. So, Mr.. Speaker, you can see the
grinding and oppressive character of the
adjustment of the currency, superinduced
in the first place by operation Of law, and
augmented, in the second place, by the
---sN - H., ~ -,a1-
not only to consolidate the currency, but to
consolidate the trade Of the country.
In the southern s-ctiOn of the country, TO
a very great extent, the productions are
bought through the instrumentality OF fac
tors. The crops themselves are pledged.
They pass into the hands Of the factors,
and from the factors TO the commercial
m~onopolists in New York and other great
Eastern cities, where the price of the pro-
auctions is applied to the Of the merchants
account. and where the currency is not dis
tributed, but kept flowing in the immediate
circle. except small balances which find
their wal South. There is the injustice of
it, and there is no remedy without Con-
grcss shall interpOse to relieve, as il has in
terposed to disturb, the financial harmony.
| propose to show that may be lone here
after. SO they are left pOwerlesS, left with
out the indemnity cf law; and while this
is 50, YOU find one section Of the country
wearing the mantling glow and smile OF
health and prosperity, and looking upon
the other picture. you see the grim, gOrgOn
features Of bankruptcy.
| do not propose. Mr.. Speaker, to break
down any industry Of the country. | pro
pose simply they should all march abreast
in the great advance of improvement.
Without dwelling further on that PROPOSE,
ton l proceed to the second, that the out
standing currency. if equally distributed, is
not equal TO the national wants, present
and prospective. This is a matter of figures.
The inquiry cOnfronts us, Mr.. Speaker, how
much currency is needed in the country:
l say candidly no gentleman can undertake
to answer the question with arithmetical
correctness. We cannot tell how much
currency exactly is in the country, nor can
we tell exactly how much currency the
country needs; but we can approximate tC
the necessities of the country, and by that
approximation the statesman must regulate
his conduct.
viii endeavor to show you that Will
the consolidated power Of your banks and
with The financial power Of your Govern.
ment to back them up, this system has not
been able TO bear the nrSt strain OF demand
upon your currency; and the terror of q
panic shook this country worse than old
Bald Mountain is now shaking the inha
bitants of North Carolina. Laughter.
I, We are all the time increasing and de
yelOping. Does it not require more to sup
port a STATE than a county; more to support
a county than a village? Now let US lOOE
a little at the history of this thing. You
attention, gentlemen, if you please. Ii
I7S2 we had one bank in the United States
IN 1890 we had four banks; in 1900 We had
twenty-eight banks; in 1910 we had eighty
nine banks: in 1920, three hundred and
seven; in 1880 three hundred and thirty; il
1870, nine hundred and seven; In 1856
eight hundred and twenty-fuuT; in 1857
r fourteen hundred; and now we have two
thousand banks; Why this increase.
Simply because your country has increased
in its resources and in its demands for cur
renCy.
Nj. Walker, in his Science of Wealth
Cpage 1917 gives the increase and fuctua
tons of mixed currency circulation and de-
p1sit, from 1884 to 1859, showing the cur
rency in 1854 to have been S~l70,0O0,O00
and in 1859, S452, 100000.
Now l ask Representatives to give theil
special attention TO a tabular statement