Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1880-01-22
FORTY-SIXTH CONGRESS.
The Senate
Second Session.

qaulity of United States notes was taken up
and Senator Beck made bis promised
speech in opposition. He showed
that during the financial legislation
of 1878 Senator Bayard offered as an
amendment to bill then passed the identical
resolution now pending, and it was voted down
by large majority in both houses-in the Sen
ate by IL TO IS, SIX of the forty-two being
members of the finance committee at that
time. None of the capitalists of New York
and elsewhere who now send gilt-edged
petitions to Congress s5soring the measure saw
danger in the reissue of greenbacks. On the
contrary, their reissue met with universal
approval. If any objection was ever
to be made to the power Of Congress to
issue notes IN time of peace that WAS the time
to make it. The notes could then with reason
be denounced. They were not redeemable.
Since then the secretary of the treasury has ac-
cumulated s235, 000000 in gold and silver,
Sl60, 900 900 of which is available for all pur-
poses. In his report the secretary shows that
we have reduced the public debt since 1866
S761 100000. We have on hand more than can
possibly be necessary for the purpose OF the
sinking fund. If one-half the money collected
from the people by taxation had been retained
the treasury and legal tender notes had been
allowed to perform the functions of money at
the custom house, if silver had not been stricken
down-resumption would have come of itself
years ago, without anyone suffering from 1t.
Nobody was demanding the principal of the
debt 1t was diminishing every day and we
were growing in prosperity and numbers. The
secretary says he is holding the money thus
acquired for assurance that the notes will be
paid. 1t cost the people by double interest
and percentages SIS 100000 to get the money
into the treasury, and we are holding it at an
annual cost of $4,000 600, and in addition to
hat tho claims tho =; uht IN sell =
cent. bonds in any amount to get
on demand No Sdf but '"v ezhau sG,sa
of the credit of the country can make their
payment doubtful. The people don't ask gold
for greenbacks, yet New York petitioners
claimed that greater confidence in business
would follow the passage of this resolution.
He denied it. What greater confidence was
needed? Oar bonds at a premium.
Greenbacks were at par No man was cheated
by receiving them They are amply secured.
Can there be greater security than that implied
in our declaration that they shall be reissued
and stand at their full value.
Prior to the introduction of this resolution
what petitions against United States notes had
ever been presented! He had seen none. 1t
is always safe and generally wise, said Mr..
Beck, to let well enough alone. 1t is not wise
to disturb the currency, except in extraordi-
nary exigencies. The people were just rallying
IrOm stunning DlUNS. hc uOpeu Inc prosper
ty now being entered upon would prove per-
manent, but it might be temporary, for we have
no commerce. We are paying enormous Sums
to foreign ship owners. We are iso-
lated by our tariff from the
markets of the world. We are
prosperous because God in his providence has
seen fit to bless us and visit other nations with
calamity. Reverses may come and our pros
perity vanish as quickly as it came. He was
one of those who believed that one of the
greatest evils we labored under was official
meddling. If the people we're fit to be free;
if this was government by and of the people,
they had the right to use their energies as best
suited them, free from the Intervention of any
interested body of men who sought to crush
them, as he had no doubt the great money
power of the country sought to do. The cur
rency of the country was not redundant 1t Was
arrogance for any body of men to say they
knew better than representatives, of the people
how much money was needed. If all the
money issued were now in existence it would
only amount to $75O,0O00C0 or S900OOO, OOO,
including the gold in the treasury. That was
only fifteen or eighteen dollars per head of the
population. France had 81, 900, 900 900 in gold
and silver and S4G0, 000, 600 of bank notes in
circulation making sixty dollars per head
Yet France was remarkably prosperous coun-
try. There was no complaint of redundancy
there. Belgium was tariff coun-
try, rich in commerce and man.
ufacturing. Her circulation was $l32,-
100000, SAP dollars per head. Ger
many has $7I4,000, 0C0, or Sl7 per capita She
had in an unfortunate hour attempted to
demonetize silver, but, as shown by Judge
Kelley's interview with Bismarck, at which
our minister was present she had been oblig-
ed in the interest of business, to stop selling
silver and begin its reissue. Great Britain
has circulation of 1905, 000000, or $50 per
capita, nearly double what we have. Yet, in
face of these facts, said Mr. Beck, he, and those
of his opinions we're denounced as in
iudicious, fools and knaves, by the many
newspapers so well paid by the bankers and
brokers of New York. He went on to show
that owing to losses by accident and natural
wear and tear, the amount of greenbacks out
standing was probably less than showed by the
comptroller's report; that $4,000, COO of this
was held by banks and the treasury on May l.,
1879, and though the amount thus held differed
at different times, that was probably good
average, andq it left only SI67,000,0O0 in
actual circulation, assuming the whole
SS46 000000 issued to be in ex-
istence, or if his theory were correct only
1920, 0G0. He also referred to the fact that
800, S55 coo of this was in bills of 500 and
upwards, practically no better than bonds, es-
pecially the largest denominations of $1,000,
$1,000 and $4,000. In protesting against this
measure Senator Beck wished it understood he
did not believe the original issue of notes was
constitutional. He had always denied it was.
but the supreme court had decided otherwise
We had them upon us, and he
was determined to make the most of
them-use them for the benefit
of the people and not destroy them in the in
terest of bankers. Senator Beck continued by
expressing the belief that Congress- and not
the supreme court, was under the constitution
the Judge of what constituted an exigency such
as would warrant the issue of notes Assum.
ing that war was such exigency the conse
auences of war had the same Importance, and
SO long as we were taxed for the interest on the
war debt, and for pensions to disabled soldiers,
these were exigencies requiring the preserva-
ton of these notes. The high tariff and the
loss of their shipping trade were like
exigencies, resulting from the war.
The national banks could, by forming
a ring, avert the payment of gold,
they could send their notes to places distant
from the place of issue. and it would be impos-
sible to get them redeemed promptly. There
was but one place in the United States to-day
where gold could be legally demanded, and
that was in New York. If the legal tender
quality of greenbacks We're withdrawn, no con-
tract could be enforced where the offer of pay
ment was a condition precedent to its full
fllment. If man bought house for
$4,000, and called at the appointed day to
pay for it, the owner say the property
has gone up. l want Sl2 600. The buyer CAM
get gold, and greenbacks not legal tender.
This was scheme to make national bank notes
only available money He EOuld oppn=a