The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1879-01-16
XIV CONGRESS.
HOUSE.

the certificates convertible with accrued
interest after six months into lawful money
and at any time into four per cent bonds
Mr. Wood called attention to the bill as
introducing q novel feature into the affairs
of the government. So far as the produ.
cling classes are concerned it would afford
the poorer classes an opportunity OF ln-
vesting their small earnings where they
would be safe and secure and not subject
to the instability of private corporations.
1t was proposed by this bill to make
national sayings bank where there would
be positive and absolute security for every
dollar deposited by the poorer classes, and
the result of which would be to make
these classes Of people co-partaers 10 the
government itself. Another effect OF 1t
would be to cement traterual concord
throughout the land.
MIR. Kelly said the only provision IN
the bill which was characteristic OF a
savings bank was that the government
would receive deposits as low as So
There was no other. The United States
government proposed to engage laboTing
people in the game of chance, of which
the law was heads | win, tails you lose.
No laboring man could have any benefit
from the bill. 1t would ,lrn that class
into a game for the shylocls that concen-
trated about the stock exchange of the
country. Suppose poor man had depos-
tied $40 and was unable to deposit any
more. He would have to wait 1913 years
and four months before he would be en-
titled to interest. That was the redemp-
ton proposed by the United States when
it established savings bank. 1t was said
that the certificate might be sold. What
would ten certificates bearing three per
cent. interest bring when a $50 bond at
four per cent. could be had for par. The
laws of trade would put them far below par
whenever they had to be sold In the mar
ket, That was the savings bank offered
the poor Of America by g mognanimous
government. His amendment proposed
shat those certificates should be convertl-
bic at the end OF six months, with accrued
interest, into lawful money. Without that
amendment the bill was snare and trap
for the poor aud a disgrace to the govern
ment. With it the bill would be safe for
the people and beneficial in its affects on
the funding operations OF the government.
The banks, he said, would be in favor of
the general provisions of the bill, sbut if it
went into operation its first effect would be
TO induce depOsitors in savings banks to
withdraw their deposits. They would con-
pel savings banks to 20 to their securities.
They must foreclose their mortgages and
this foreclosure of mortgages aud sale OF
real estate would take from remaining de-
positors nearly the whole security they now
had in savings banks that were sound.
Mr.. Burchard said that though the bill
was not very Objectionable so far as it
went, he should prefer the measure that
has been reported last session for the es-
Enlistment o. a government savings bank.
He argued in favor of the latter measure
and suggested that the pending bill was
lacking 10 the very essential principal Of
the savings bank system, and that was the
removal from the poorer classes Of tempta-
ton to spend their money. The certificates
or bonds under the proposed bill system
would be convertible to money and would
be liable to loss, destruction aud theft
Mr. Butler opposed the bill as delusion
aud a snare. The effect of it would be that
poor man might spend day every month
10 pI curing $40 bond that when he got
FIVE 1T them together he could change
into q four per cent bond and that for that
privilege be would have fifty days aud
would have saved Just 35! cents in inter-
est that was all there was OF it. There
was no element of savings bank 10 it. 1t
had no safety and when a poor mau
wanted money for his bond he would
have TO 90 to broker and submit to
shave greater than the interest II there
was anything else ia it he failed to find it,
The object OF the bill was, he intimated, TO
withdraw Ereenbacks from circulation, for
there was no way OF paying them out when
received foe this purpose. 1t would be a
further contradiction Of the currency, which
has already depressed labor. stopped bust.
ness and brought the country to its present
condition and the result of that condition,
which was said to be necessary was the
heaven born boon of resumption at New
York and no where else.
Mr.. Hewitt, Of New York, spoke against
the bill.
Mr.. Garfield said that the less legisla-
ton there was on the finances the better.
The country was getting on we'll and he
would not favor any radical change in the
present order of the currency Law, but here
was bill that was generally understood
In the work of refuDdiug. the present Sec
rotary OF the treasury had abandoned the
syndicate and invited all national banks.
marked by all depository banks, to take
hold of the work and aid him n transfer
ring the six per cent bonds into Jour pet
cent bonds. He now believed that he
could make the work of retunding proceed
yet more rapidly by going beyond the banks
and dealing with the people directly. This
bill proposed just that thing 1t was not
a proposal 10 make a savings bank of the
treasury. The amendment OF the gentle
man lrolI Pennsylvania kelly put saw
ings bank feature into il, but not one
broad enough to fill the idea of.a savings
bank, while it substantially took away the
purpose. If the sum shall amount to $40
1t shall be converted into certificates proyi-
ded for by the bill
Mr.. Wood declined to yield for the
amendment.
Mr. Townsend, of Ohio, favored the
bill,
The debate having closed, Mr.. Burcbard
offered an amendment that In lieu of the
certificates provided for, the secretary
shall. it desired, enter on the books of the
treasury TO the credit of any one present
ing or forwarding it to the treasury any
sum not less than 500, and shall allow in
terest thereon and credit the same quar-
terly at the rate of three per cent per au-
nun, and shall establish rules and regula-
lions for withdrawal on payment of such
deposits; provided, that when the sum of
SO shall have accumulated to the credit
OF any person, tour per cent bond shall
be issued in discharge and payment of it.
The previous question was seconded aud
the uain question ordered-yeas 1872, mays
90
The 6Tst vote was taken on Mr, Kelly's
nfufNit.cDt TINT tho /