National Republican. (Washington City (D.C.)) 1872-1888, 1884-02-21

facts OF the situation, and II the senator from
Iowa lMr. Alisonl was willing to keep the ma
uonal bank system while basing its elIcnlauonh on
the bonds Of the states, he was evidently wiling
TO Keep the system in name merely anu not IN
substance
Mr. Morgan moved an amendment to the pro.
vision of Mr.. Plumb so to limit the issue OF tho
treasury notes to cases wherein the Circulation
should he surrendered In consequence of the call
and payment Of bonds pledged 10 secure such cir
culation. In the course OF his remarks on this
amendment Mr.. Morgan said IL was the purpose
of congress to give the people the very best Imam
cial system possible. lie thought the country
was to be congratulated that the present system
was not the outgrowth Of any one mind or the pet
scheme of any one parry, but had grown up out
OF the institutions oil the people and the neoessi;
ties of their trade, as the constitution OF England
had grown up in adaptation TO the idio,yncraGles
Of the people. the last banking act mad modin We
Morgan preferred II TO the proposition Of the gem
tleman from Kansas as II now stood. MIR. Morgan
did not think we should prescribe TO the people OF
the United States that they should have no more
money in circulation aud no less than given
amount If we do that we put Chinese iron
shoe upon the commerce Of the country, render
ing Its proper growth impo .sible Whatever his
personal predictions may have been he would
regard himself as simply insane to argue against
the oOnstitutonality Of the national btnk system,
for he did not know Of Il decision OF any court de-
nying that. lie should, therefore, proceed on the
theory that the system was u legitimate one, which
no man could break down otherwise than By IN
argument against its tyrannical power, or by the
Presentation Of evidence against its usefulness.
Inc DhnkS were inVOrlteS WIN tnB people, Dub
we would never live to SEQ the day when the gov.
eminent which had by ifs Legislation at various
times, substantially assumed the obligations IN
volved in the bauk circulation, would have
In Its coffers enough in gold or silver to redeem
the paper circulation dollar for dollar. Some
thing must be done, therefore, TO keep the circua.
ton ailuat. As we grow In numbers we must
have a larger per capita of money, and not cir
culalion commensurate merely with our numeri-
cal increase, but Commensurate with our indus
trial developments. Had anything ever been seen
or even suggested TO the fancy Of men like the de-
velopment Of the United states2 In that respect
we were not astonishing the world, but astonish.
pay off the debt, and it must be paid
In tho nature of things, therefore, bank sys.
tenn with circulation based on the debt
would be affected by the abolition OF the debt.
1t was not easy to say how best to shape the fnan-
cial policy OF the future. He had thought II might
and issue bonds running fifty or a hundred years,
without dollar OF interest. 80 that they would
not DO burden on the taxpaying power OF me
people; and then, on the other hand, make the
currency as simple as possible by removing all
taxes from bonds, circulation, deposits, and from
the capital stock of banks. The people, he
thought, would be satisfied with that, aud tho
banks would retain the principal privileges they
now enjoy; they would retain the confidence OF
the people, and would become even more yalu-
able fiscal agents than they were now. The
securities Of the several states whose securities
we're at par or over, and the interest on which
stitute, IN Mr.. Morgans opinion, perfectly safe
security for circulation. The bond of Mdssachu-
sets, Connecticut, or Pennsylvania would be as
good security as could be wanted.
If circulation, based on such bonds, In the pro-
portion of perhaps 10 cents for every dollar, were 70
be issued, it would be perfectly sale ana perfectly
satisfactory TO the people of the country. The
confidence and good feeling which would be en-
Outraged by this plan would aid in inducing
states, whose securities were not at par, to bring
them to that point us soon as possible. and would
invest the state securities with a dignity and ma
uOnal importance which would produce excel.
lent results. The states would emulate each other
in the development of their public credit. He
could see no possible harm to come OF such a
proposition. There was less readiness shown by
congress to-day TO override the rights OF the states
than there had been shown on the part Of the
states TO surrender their rights for compensa-
ton or for an easement OF their burdens. The
currency suggested by him, Mr. Morgan con.
cuded would be one which the people OF the
United States could have without silver OF ex-
penBe.
After further debate the modification suggested
by Mr.. Morgan to the amendment Of Mr.. Plumb
was not agreed to.
Mr.. Plumb's amendment was then rejected Dy q
vote of 10 yeas to 80 nays.
The next amendment to the bill OF the commit
tee was that offered by Mr. Morrill,, which gave To
the per cent. bonds higher rate OF circulation.
and alse gave the banks which had been organ
lied on a gold basis the same privileges us other
national banks.
This amendment was also rejected, the vote
being 20 yeas to Sc nays.
Mr.. Morrill, moved separately the amendment
relating to what he termed the gold banks ana
which had been just disagreed TO. Unless they
were included in the committees BILL he said
they could only receive so per cent. on the bonds
that might be deposited. The amendment II
separate form was ngred to. 1tIeads94 follows
THAT asso iations Organized for the purpose o
issuing notes payable in gold under the provis ON
Of section 5S5 OF the revised statutes OF the Unitec
States upon the deposit OF any United States bond
bearing interest with the treasurer of the UniteC
States, shall be entitled to receive circulating
notes to the amount aud in the manner prescribed
in this act for other national banking associa
tons"
Mr. Morgan then introduced the amendment
Tod hy ifftg IA
bonds to be received on deposit Hs security, pro
vided the int thereon for five years prior &c
their deposit shall have been paid, and provided
about to address the senate on this p oposition
Mr.. Morgan gave way for motion Of Mr.. Harris
that the senate 20 into executive session.
The senate then at $3.50 p. m. went into execu.
tive session. and, when the doors were reopened
adjourned.