The weekly clarion., 1881-05-26

National Bank notes are caneeilel "ntO"
were not received in exchange foI thes
Treasury notes, then an amount OF tnes
Treasury notes equal to the bank hoteS can
celled shall be placed in the treasury OF IN
United States to be paid out as othef iuiiOs
therein.
SEC. ). Whenever any National Banl
shall redeem its notes in legal tender money
such money shall be at once applied 70 Tux
REDEMPTION or purchase of United states
bonds. and all bonds procured under tne
operation of this act shall be canceied IL
the manner now provided therefor.
SEC. 6. As soon as the National BANK
notes have been so far cancelled that not
more than ten per cent. OF the issue oI any
one bank is outstanding the holders OF tue
treasury notes here provided for may De
mand and receive payment thereof IN iegai
tender money from the Treasurer OF tue
I United States and thereafter no person snail
! be compelled TO receive from any omcef %
( the United States the treasury notes shaii
! continue to be legal tender IN payment oi
| all debts and demands due TO the Unlted
States in the same manner and &c the same
extent that National Bank notes no" are oy
law.
SEC. :. That 800 000, 900 treasury certlh-
Gates bearing three per cent interest snail Dc
prepared for issue maturing in twenty years
and PAYABLE at the option of the Govern
ment. two wears after date, not less tan one
third to be in sums of ten dollars and the
remainder in multiples thereof, and TO De
funded at any time in coupon bonds OF the
United States bearing three per cent. inter
est, PAYABLE tri-ennially, maturing IN twen-
ty and payable at the option OF the Govern
ment two years after date, provided no cou-
pom bond shall be for a less sum than one
hundred dollars and no bond bearing high
er rate than three per cent interest shall
hereafter be issued by the United States
Treasury.
SEC. S. The Secretary of the Treasury
shall make all needful rules and regulations
to carry this act into effect, but nothing
therein shall be construed into authority to
increase the public debt.
This bill is Intended to accomplish three |
purposes:
1st. To enable the government to pay
about $2jOOOO 900 of its bonded debt with |
bearing treasury notes, and this |!
Is to be accomplished by offering relief from
certain taxation to banks to induce them to
exchange notes issued Indirectly by the |
government through and for the benefit of
National banks, for notes of precisely the |
same character, but issued directly by the |
government and for its own benefit A
distinguished private banker who examined
the BILL said he would gladly enter in ito
contract to make the exchange, for said he,
credit floats paper circulation, and the
party that gives the credit should have the
benefit of the circulation. The government
credit float the bank notes and the govern
nent should have the benefit of the circu-
alton"
I'd. 1t proposes to restrict banks to their
legitimate business-discount and deposit
lnd takes from them the power to contract
,r initiate the currency at will and for their
private interest.
Sd. 1t proposes to maintain what expe
,ience has proved to be useful-two classes
If paper currency-One absolute legal ten
Ter limited in amount by law-the other a
ender to the government but optional with
he citizen-the circulation of which after
)ank notes are retired will regulate itself,
because its power to circulate will be limited
~ the demand for it.
The only valid objection to such currency
5 that its Volume will depend on the will
# Congress and the President This OBJ
ection was fully answered by that great
nd good man, Allen q. Thurman, in his !
Hamilton county speech, for
which he was derided by monied corpora
ions and their allies, until the unthinking
mass, which is ever sWayed more by passion I
nd ciamor, than reason, forsook him. He
aid, 'In answer TO this objection, and adj
hitting it is not without force, and [ have
0 say in the first place it is equally potent
Thether our paper currency be greenback
or National bank notes exclu- :
ively-f0r let it be one or the other Con-
ress will have power to expand or contract {
t at will. For instance, were Congress to i
epeal the tax on State bank circulation, a I
of banks would spring up under ,
tate laws and great imitation of the cur I
ency would take place. On the other hand I
hould Congress retain that tax and retire '
ireenbacks as the Republican fiuanciers
emand a frightful contraction would result
n brief, if Congress should have neither {
ense nor honesty, it might for the time be-
lg ruin the country-but to assume that ;
would do so is to condemn our form of
overnment" That speech so much de-
ded by enemies and deprecated by timid !
lends, and which it is said lost him the l
for President, will yet be appre-
lated, and will place him by the side of )
efferson and Calhoun, the great leaders of '
thought. I