, 1874-05-10
THE VETOED CURRENCY BILL.

THE VETOED CURRENCY BILL.
| Views Of senator Morton.
INDIANAPOLIS nay 9.-The following is sun
mary Of the letter published in this morning
| journal from Senator Morton:
There appears to be u1isapprehension on tt
part Of Il portion OF rho press in regard to Il
provisions OF
THE FRANCE BILL
which recently passed the two Houses Of Cor
grcss, but from which the President withheld
lis approval The bill is criticised as il it al
| thorized q new emission OF United States note
which would increase tie difficulty Of retur
| to specie payments, and thereby involve
breach Of national faith pledged for the redemr
| t1on OF those notes in coin.
/ THE FIRST SECTION
! Of the bill, and the only one which relates t
/ United States notes, is IN these words - Th
| maximum amount of United States notes
hereby fixed at 5400, 100000. Reference is the
made to the acts OF June 80, 1864, april Il
| 1896. March i. 1865, to sbow the effect Of thi
| provision. The right OF the Secretary to 70
iEsue any part OF this S44, ,0o0. 600. OF to
INCREASE THE CIRCULATION
of these notes ahove 1856 ,000 600, has been con
tnuaiiy denied by many lawyers, in Congress-
aud out of 1t, aud large portion OF the press
aud the question cannot be said to be free from
doubt. At tho Inst session of Congress MI
noritT Of tho Finance Committee OF the Senate
through the Chairman, Mr. Sherman. reported
to the Senate for its adoption The following
resolution:
Resolred, That, in thc.opfnion OF the Senate, th.
Secretary OF the Treasury has not the power uude1
existing laws TO issue United States notes for an,
portion Of the t44 00c 900 retired and Cancelled under
the several laws OIL that subject.
Ny first impression bad been against the e1-
istence Of tho power, but, on further e1amiua-
ton, I thought it
FAIRLY DEDUc1s1E
from comparison OF statistics. and personally
urged upon the President and Secretary tho
free use OF the S44 1000 900 reserve to check tho
progress OF the panic and aloviate it's disasters.
Cla1in and Anthony, on the 28th Of September
last, the President treats the 844, ,00U, 900 as
being
An EXISTING nEsEHvE
sum Of money already in the Treasury, az much
so as ii like sum received from taxes to bo
used at the discretion OF the Secretary Of the
Treasury for certain purposes. He regards tile
maximum amount Of United 6tatea notes as
S400, ,000.060, and treats the s44 000 600 as in ac-
tual existence. The FIRST section Of the bill de-
clares the law to be what the President and Sec
Tetary assumed it to be- It declares that tho
maximum amount Of United States notes shall
be S40n.0oo, oo0.-that is the amount beyond
which tha issue shall not be extended. Ths other
section Of this bill authorizes the increase OF
BASK-SoTE CIRCULATION
to the amount Of $4,000, 600, to be- distributed
among the States having less than their propor-
tion upon the basis Of the act of 1865, the nav
banks t. be established upon the terms, liabi-
hes. and restrictions imposed upon existing
hanks, being required to secure their bills BY
deposits Of bonds, to redeem them in United
States notes upon demand over their own
or in one Of the redemption cities,
md with the additional restriction that all banks,
I'D and new, shall keep one-fourth of tho coin
interest they receive upon their bonds depus-
ted for the security Of their notes.
This provision Looked forward, and was tho first
tep taken in that direction by Congress. The
:4G 000, 600 provided for came full 330, 900 900
hort Of e4ua1iziug the distribution among the
'tates upon the basis Of the act of 1865. Under
hat act the New England States were entitled
0 less than 0,000 600, but they received 3110,-
100000, and the other Eastern States had an ex-
ess Of nearly elao, 100000. Tie most of the
rienaa Of the bill
DESIRED FREE BANKING.
hat is, the restriction taken off as to the
mount and locality OF the circulation Of M
onal banks, 60 TINT people should be left
rec in oyery part Of the United States to
stab!ish National Banks wherever and when
yer their local wants and necessities demanded
hem. The purpose of this letter is not to enter
ito any defence OF the second section ct the
Ill. but to remove misapprehension that ap- |
ears to prevail in regard to the first. Whether |
toAuAE oE THE CURRENCY
Sufficient for the business OF the country is d !
uostion of fact about which men may honestly !
ier. During the four years preceding the
aulc there had been an actual contraction OF
'e currency, and a much larger comparative
'ntraction reen1ting from the growth Of popu-
tion and business A maiority OF Congress
ere Of the opinion that to produce
RESTORATION OF CONFIDENCE,
speedy revival Of business, and return to the
:ospetity which was 80 suddenly destroyed by
e panic, some addition should be made to the
hume OF the currency. That the bill which
10 failed to become law would hare produced
me contraction is undoubtedly true, bnt it
3uld have been almost entirely in the stock
arket IN New York. It il well-understood
ct that
THE RESERVES
the Western and Southern bante kept in New
'rs have been loaned by the New York banks
most exclusively upon call to dealers in stocks,
d hare thus contributed to stimulate unwhole-
me speculation, and have thus been OF very
tie benefit to the mercantile Or manufacturing /
The evil resulting from this fact
s strikluglv illustrated during the panic Inst !
l. The stockholders who had
BORROWED TIE MONEY
re not able to repay the New York banks, and
eT in turn wera unable to pay the country
nhs from which the money had been received, {
thus the disaster Of the panic vas greatly
gravated. This bill in effect required the {
aks outside Of the redemption cities to keep ]
:ee-fourths Of their reserve at home. and l
Md have Withdrawn some millions from the &
'ck market II Nsw York, which would strength {
the banks to which they belonged, and would !
Ve produced contraction in quarter where it !
pretty well understood that t
CONTRACTION WOULD DO no HARM.
The act Of 1869, to strengthen the public (
dit, declares that the United States solemn t
pledges it's faith to make provis- !
at the earliest practicable period for J
cmption Of the United States notes to coin. +
the debate upon this bill nobody has denied {
binding force OF TINT pledge, but the qucs- !
, as 10 the practicabilty OF the period for it's !
Torrance remains Rs open as it did upon the {
: it VAS passed. Very few members of either =
use have agreed upon method for the
RESUMPTION OF sPEc1E-PAYMEsr.
9hile the Government iB pledged to redeem
leSa1-tcnder uotea in coin at the earliest
ctical period. the purpose to do 80 should q
+ be kept in Wow, Jet that period is BY many t.
deemed to be practicaolo when there ia Il
at stagnation in business, Much labor has | y
n unemployed, the revenues have largely f
en- of, and there has been much distress and IL
eriug in every part of the country. y