The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1881-02-25
OUR SPECIE RESERVE.


on the Funding Bill.
Aspeech was made by Senator Plumb,
of this state, on the funding bill. from
which we copy the following touching
the matter OF our specie reserve:
MIR. PREsIDENT-The law tor the es-
Establishment of national banks fixed the
maximum fund for redemption which
the banks are required 10 keep for the
payment OF their deposits at % per cent
in what are known as redemption cities;
IN all other places it is fixed at. Is per
cent. That law is said TO crystalline The
business judgment of men upon that
particular question. In cities like New
York, Cincinnati, and New Orleans. the
amount required to be kept is % per
cent. of the sum ON deposits; in the
country banks it is 10 per cent That is
to provide for the payment of an actual
deposit; it is to provide for the pay
ment of that which men need for the
transaction of their business. That is
deemed to be sufficient for all practical
purposes and to protect the banks
against the danger OF a run, or oil any
thing except most extraordinary con
dition of things.
The law provides also for the deposit
of five per cent. of the national bank cir
States as redemption fund for the re-
demption of the national bank circula-
ton; in other words, for the 1920. 000, 600
of national bank circulation now out
standing S16,000,O00 is required to be
kept In the treasury, and that SIG, 600 900
has performed fully and perfectly not
only the office of redemption proper dur
ing the entire time it has been there, but
also the Office of the restoration of worn
out bank notes. ! venture to say that of
all the national bank notes which have
been presented to the treasury of the
United States for redemption under the
act requiring the banks 10 keep five per
cent. of their circulation there for that
purpose, not one per cent. has ever been
presented because the bill was worn out.
In other words, no man has eyer practi-
cally presented a dollar of national bank
circulation to the treasury of the United
States for redemption because he wanted
some other kind of money. And yet the
national bank note is not as good as the
greenback.
Five per cent. has proved ample when
the public knew there was only per
cent. IN the treasury TO protect and keep
at par the national bank circulation of
the United States. If my check were
just as good as q greenback, if it were
ANSObAOO4S ~ anu "CIC JUDI dS
certain to be good a thousand miles
away from where it was payable and at
all times, then l might, or any individu-
al might, draw IS per cent. more against
his account than the amount of money
he had on his check book. But the con-
dition of things in relation to the gov
eminent transactions is entirely different
When man takes greenback he has
that which performs all the offices which
money can perform. 1t pays custom
dues, pays his obligations TO the gov
eminent, pays his obligations to his fell
l0w-men; ii is equally good everywhere.
There is no inducement under the shining
| sun to him to present that for exchange
into any other thing unless indeed it
| may be that man has in his mind the
| producing of something else. The only
| inducement to anybody to come to the
| treasury of the United States with any
considerable sum of greenbacks and
| ask that he shall have gold and silver
for them, is that he may produce some
| Interior purpose to solvency and which
is opposed to the ordinary methods of
transacting business.
1t has been said that there are some
men who have the power to get together
large quantity of greenbacks and bank
rupt the treasury if the amount of gold
there for the redemption of notes is
small. There are two persons whose
names have been mentioned, two promi-
nent citizens of the city of New York,
who it is said could get together in few
minutes $50,000,000 of greenbacks.
Grant it. They can call upon the mar
ket perhaps at one time $A0, 900 of
securities but with what effect? In the
first place, the selling of those securities
In that sum, and during that period of
time, or during any other. reasonable
period of time, would be productive of
immense loss to them, not only upon the
securities sold, but upon all the other
property held and owned by them. Mr..
Vanderbilt and Mr.. Gould, or Mr.. Any
bodyelse, cannot lock up $25, 900, 900 in
the city of New York without produc-
ing business depression which would
rob him of any possible profit to be real.
lied by that kind of transaction. And
when he came to the treasury, what then I
The secretary is equally authorized TO
pay out gold or silver, and am in favor
myself Of giving to every person who
holds government obligation, whether
in the shape of contract or bond, the
kind of money he wants of the different
kinds the government issues, provided
he wants It for legitimate purposes; and
if one of these gentlemen or ANYBODY
else were to come to the treasury with
So. 000, 600 of greenback funds and say:
81 want gold" it would be at the option
of the secretary, and it would not only
be his privilege, but his duty to say:
Bring up your cart and take silver"
and that settles that question.
Mr.. Eaton. Carts?
Mr. Plumb. Ny friend fIom Connec-
ticut says "carts." He is right; prob
ably ought to use the plural term, and
will ue it; it ought to be carts
In addition. if anything of that kind
ought to be done, il must be well done
in order TO be successful. Who wants
TO try 10 break the treasury of the United
States unless he accomplishes it, unless
the ruin which he seeks TO make will
be visited on somebody else besides
himself! And who believes that with
the pc yer in the secretary OF the treas
ury, as stated here by the chairman of
the finance committe; to sell any amount
of and AZ per cent. bonds that he de-
sires, any man will ever undertake such
q job with any expectation of success?
It is just like the old Frenchman who
came with his check TO the bank and
they paid him out every dollar @Ah,p
said he, you got him, then don't want
him; you no got him, then / do want
him." If the money is there TO pay
the power OF tine secretary Is there TO
pay at all times and in ali cases every
dollar that is ouistanding-no man who
has the paper dollar wants the gold; he
wants simply the dollar which he has
got.
It Is popularity of our method OF do
ing buiness that we take hold of that
alone which we can handle the easiest
and the cheapest. All the tendency of
modern business is to the short cut. We
want that which can..be carried from one
section of the country to the other with
the least expense. Therefore, we take
the greenback in place of gold, and we
take the draft in place of either. and
there is no condition of things possible.
or At all events within the limits of any
human probability, that viii ever permit |
the presentation OF even e5,O00,0 00 of
greenbacks st any one time for redemp. |
ton 70 the secretary of the treasury, and |
for the same reason as said before, |
5 per ce1t. of the national bank circula- |
ton has been ample for its redemption. |
Here is better currency, and an equal |
amount Of money in the treasury of the /
United States will suffice for the redemp-
ton OF the greenback as well rs IL does |
for the national bank note But there /
Is no use in higgiing about aQuestiou Of