The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-02-20


s ss g nm ~ he es o.
They irss that the eoTenmsns was customer for nearly
four years q. the rate q 20 g $1,000 Per asE
get that the number Of eutomerAWas continually enagng
that the number Of producers By the cause
tnaay growing less: and shss thus vas presented on
familiar alike the political economist and the village
s e IN he Ss ss Rs .Ss
H. 10 the s a US snS ss
price Of labor and ss 81, the value q soE% ned. ySSa
paper.
Yes the gentleman correct In saying the rise OF
prices Of labor and commodities in gold would under
the circumstances have been for the time as marked
ply and demand and not the volume or the quality Of
our money that so increased the prices OF mercnan-
disc and pause here TO ask whether, the million OF
laborers who wasting their lives IN lnvolun-
tary dleness permitted to work at their respec
tive avocations their wages would not pay for and
their consumption create demand As great as that
created by the wary But it the $500 600 or
any other limit that saved the legal tenders from per-
ishing like French assignats and Continental money!
The law limiting the volume OF legal tenders ito
$3.50 600 600 900 OF which were 10 be held in
reserve for emergencies was approved March 1865
and ms have shown the volume OF legal tender notes
steadily increased until about August 81, 1865 and
stood for year thereafter above $500 900 900 The
volume outstanding the Both OF June of each the
shall refer TO In order 70 test this question
Mr. Kelley here quoted from the report OF the Treas
urer OF the United States that the volume OF legal
tender notes in circulation continued to increase until
1865 and from the Bankers Almanac show that the
price OF gold and other commodities vastly lower
during the year 1865, when the volume OF legal ten
ders at its maximum than 1t previously or in
1866, after Mr.. hcCulochs scheme of resuming
specie payments by contracting the lawful money of
the country had been naugurated Continuing, and
referring Mr. Blaines defence OF the national banks
the speaker SAID
Very far from making fair statement OF the position
of those he denounces intatonsts the gentleman
when he speaks OF "he confusion, the distress, the
ruin that would result from forcing 100 banks sud
denly wind their affairs with nearly 81 COO 600
due them" 'The commercial fabric" says he srests
upon the bank credits, and nothing short of financial
lunacy would demand their rude disturbance Who,
/ ask, would rudely disturb the banksf Not or any
OF the million republicans who sympathze with me on
this question OF currency and finance. We do be-
eve that their existence depends upon the profit they
make on circulation Does the gentleman mean 70 i'm
laton be Withdrawn they must suddenly wind up and
go into bankruptcy or liqudaonS Do they not assure
us that the profit on circulation is inconsderable
that induce them TO maintain 1t must repeal
tain taxes now imposed on them? fe f3a ~
-Y fr, .
The plan and my colaborers suggest could produce
shock and could initiate the currency IL is
this-The United States Treasury IS the redemption
agency for the banks and would have 1t retafn all
bank that until those Of any bank should
reach the amount of 5000, when instead of returning
its notes the bank the Treasurer should carry
the books and vaults Of the treasury $500 IN legal
tender notes of like denominations with the bank
cancelled and destroyed and return TO bank
instead of 5000 in It's notes in its bonds deposited
TO secure the payment OF lis noteA Thus would the
government assume its prerogative of issuing the
money the country without disturbing the business
OF any bank, banker or merchant IN the country The
operation would neither initiate nor contract the
enough and deposit bonds the special privilege
of dividing with the government its highest preroga
tive that of coming money and regulating the value
thereof and the $40 600 900 in gold paid them
exercising the privilege
MT Kelley here quoted largely from the statistics to
demonstrate the truth of this proposition among them
from table of the loans and discounts the capital and
surplus the individual deposits and the legal tender
OF the national banks the LIST Of October
each year from 1865 to 1873
Gentlemen will do well TO examine other features OF
this table than those which then referred. They
will that in 1866 the condition OF the business
men OF the country prosperous that while tho
loans and the discounts of the banks
$4S7 600 COO they held individual deposits the
of s549 100000 The deposits OF individuals exceeded
the loans and discounts by SCI OOO and the legal
tender about $3.50, 000 900 Reference
the columns for 1875 shows that the loans had
very nearly doubled being then $944 600 000 that In
divdua deposits Notwithstanding this great increase
of discounts but S622 600 0O0 and that the legal
tender had with this increase OF RESPONSE
billy part the banks shrunk from $3.50 600
to $ll3 000 900. The crisis was not as the gentleman
would have us believe the result Of full volume of
paper money. II was have said the result OF
due imitation Of corporate and individual credit which
imitation the inevitable result OF proracted con-
ton of volume OF money which the business OF
the country had listed itself He said suffer-
ing from zone OF those periodical revulsons in trade
no wisdom OF legislation has been able 70 avert The
remark is too broad. 1t is not true Of all commercial
nations. .t| ~
have been confined to Great Britain and the United
States and result in each country from tho govern
ment restricting the volume of money and forcing
business 10 trade private credit France has
never been subject TO such periodical and
Germany is now for the first time experiencing ono
the result Of her reckless OF silver aud
her suppression OF all bank for less than f5
SOS in order to bring gold into use. Caught BY the
oil nj %
she las attempted TO improve the quality OF her
money, the tool Of trade, and has disturbed
contracted the legal money the Empire that her
industries are as PROSTATE Her revenues
fall of and her laboring people for the first time know
what those OF Great Britain and America suffer
periodical revulsons consequent upon the collapse
OF inflated credit lfoi at5 n.- ~.
THE cosDIrIos OF CALIFORNIA
Referring to California, Mr.. Kelley depicted in glow
ing language the advantages OF SOIL natural production
and geographical position of the State and after
quoting the figures to show how far behind such
States as Iowa. Minnesota Wisconsin she Is in ma
terial growth, he said:- ....... W ... -. y
Why is she thus laggard In the race for civil SUI
premacyf II Is because she has preferred maintain
as money currency composed OF a commodity which
other nations need and the volume Of which cannot
increase debtor state nation and thus 20 make
all enterprise depend on the use Of private credit; has
maintained monetary SYSTEM by means OF
sweat Of the laborer's brow, together with
the results OF all productive industries California re-
jected our national system OF money, which, though
called into being by the exigencies OF the war was
have shown abundantly authorized by the terms of
the constitution, and doing deprived herself OF
that agency-a cheap medium OF exchange-whIch
made the progress In wealth and all the blessings
tendant upon wealth, such churches schools, gall
leries of art improved Of transportation and
other commercial facilities throughout the North and
East remarkable than had ever taken place in any
decade In the history OF this any other country
Who in view Of the facts have presented will claim
that metallic money has been blessing 10 Californian
In concluding hts remarks Mr. Kelley said'--
Mr. Speaker Mr.. j. w. Truckers who was connden-
tiai secretary TO Salmon p Chase during HIS admins
traon OF the finances OF the country published about
year ago a pamphlet entitled, "The Finances Panics
and Specie Payments" with the motto, "Fac,s
speak IL contains many Instructive bits OF history
with sage deductions therefrom And, II conclusion
borrowing my language from this little work.
/ say 10 the House, / SAID 70 my
constituents on the 18th OF May last when
promising 10 carry tho agitation for currency reform
into every hamlet OF Pennsylvania That the party