The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1882-02-14

other citiz m and every other corpora,
ton In the country, that if they will buy
these 8 per cent. bonds they shall have
the valuable privilege of Issuing the cir
culation
/ agree with the Senator from Arksn,
sas that the amendment of the Senator
from Missouri is the logical, the legal
and the financial sequence of the bill in.
troduced by my colleague.
Now, what is the second provision oi
the amendment of the Senator from
Missouri II is that whenever banks
now existing, or those that shall hereaf
ter exist, desire to take up from the
Treasury the bonds which they have de-
posted, whether this or any other class
OF bonds, for the security Of their cir.
culaion, thev shall deposit in the Treas
ury their own notes. and not Lawful
money. That was the law of the or
gauiz alton of these banks from 1862 to
1874 1t was not deemed to be hard.
ship 1t was thought that these bonds
were the security for the particular cir
culation. The law which was passed iu
1874 interposed to give to the banks an
additional advantage, and, as T shall
show you in moment. an additional
power, which was, that it they deposi-
ted, not their own notes slfor which these
bonds were security, but any lawful
money, they might withdraw their bonds
and impose on the Government OF the
Unitel States the duty and the obliga-
ton of redeeming their own notes
whenever they might come in ! will
not dwell upon the effect Of such a la W.
1t has been stated so clearly in report
from the Treasurer Of the United States
and in the speech Of member of the
House so often quoted from that I do
not intend either to express my own
opinion or to read largely from This dis
cussion. The Treasurer of the United
States says:
An example. will better illustrate these
operations In January and February,
1875, certain hank reduced its circu-
lalion from S30S 490 TO $45 600 by de-
posits of iegal-tender notes Between
September 26, 1875 and May g.. 1877,
and before that deposit was exhausted,
it increased its circulation to S450, 900.
Between August IA and Septen ber 10,
1877, it again reduced its circulation TO
$4,000 On September 10. 1877, nine
days after completing the deposits for
this reduction, it again began to take
out additional circulation, although
S402 $50 of prior deposits remained in
the Treasury, and by the 26h OF that
month its circulation had again been in
creased to s450,0C0. July %. 1878, it
for the third time, reduced its circula-
tion 10 S45 600, and in August aud Sep
tenber, 1879, again increased il to S450-
900, at which it now remains, the bal
ance Of its former legal-tender deposit
then in the Treasury being Sll2,6I5.-
From January l3, 1875, 10 the date of
this report, s77S275 of its notes have
been redeemed, of which only $40. 700
were redeemed at the expense of the
bank, although during more than one
third Of that period it hal outstanding
and was deriving the benefit from the
full amount of circulation which its cap.
Ital author'z,d. The only assessment
which have been made on the bank for
the expenses of redeeming its notes
were s24.74 in 1875 and $3.50 in 1878.
At one time there were in actusl circu-
lation 1852, $50 of its notes, although
the highest amount ever borne on its
hooks was S4j0,000.
And then, commenting on this state
of facts revealed by the Treasurer in
his report, member of the House of
Representatives Mr.. Carlisle well said I:
Under this section the banks have it
in their power to contract the currency
and produce financial distress, involving
every interest in the country and emba;- :
RAISING the operations Of the Govern
ment itself, whenever they may think it
will promote their special interests TO
do SO If they. do not like proposed
legislation in Congress or elsewhere if
they are opposed to the success of a
particular political party; if they con-
clu lie that they ought to be exempt from
all taxation, State and Federal; if they
want additional privileges conferred up.
on them in respect to any matter con-
nected with their business; in short, if
their opinions and interests are not con-
suited in all cases whatsoever, they can
resort at once to this tremendous power
over the fortunes OF the people and thus
bring the timid to terms and ruin all
who refuse to accede to their demqnds.
This is truthful picture of what the
hanks, acting together, touching that
electric chord which runs through
them all from one end of the country
to the other wherever they may be found
Il say this is truthful picture of what
they may do.
What did they do2 In February, last
year-less than year aeo-when bill
which the Congress Of the United States
believed 10 be for the interests of the
country came before the consideration oi
these banks, they united together and
contracted the currency $4,000, ,000
They did this merely by way OF giving
a warning to the Government and warn
ing 10 the people of what they would
do II the exigencies, Of their condition
required. The eloquent language of the
representative of the people in the
House of Representatives | Mr. Carlisle
was more than rea 'iz d by the actual
operations and attempt of the banks
themselves.
Mr. President, this amendment OF the
Senator from Missouri is called an as
sault on the banks. | DENY it | ask
any gentleman upon this flor whether
or not ii is al essential part of the ma
tional banking system that these corpo-
rations, With this great power Of con.
centrated and combined operations. shall
have this immense power over the eur.
rency of the country? deny it
point to the history of twelve to four
teen years in sustenance of that denial
| point to the purposes for which thes'
hanks are orga lied. But / desire t.
go further. | say that ii that power Il
an essential part Of the being of th,
banks, / am in favor of taking it ava,
from them even If taken it away inAict
their immediate death-wound. agre
with the Senator from Missouri, that W
should be derelict 10 our duty. de-elic
to The obligation imposed on US by tn