National Republican. (Washington City (D.C.)) 1872-1888, 1884-02-20

lOT Lne purpose oil ululnk III WIZ hlsbOsAFiOh " |
the bonds. so far as the currency OF the
banks was concerned, however WIS
the best currency attainable then or since nc
did not believe that 1t was the duty OF TINS gem
Grafton to pay the public debt. Our people had in
one generation lost in lives, property, ana pro.
ductiye industry more than any other people ON
the face of the earth, and the true principle was
to let posterity pay part OF the deDt, we nnu n
pension debt amountngto hundreds Of miillons
OF dollars aud the pensioner Will not live always
Hr had claimed that 1t was our duty to pay the
pensioner and extend the payment Of the public
debt to time which would allow OIL poS'eri'S
Mr. Vest inquired what the senator proposed to
do with the Sl00,0OOOOO that were every, year
posed That the senator from New Jersey proposed
to keep It as q sort of financial brc-a-brae for tho
inspection Of the country at large: Mr.: Sest 1id
stand here and state that be wanted to perpetugte
the public debt OF the United States would make
that statement in defiance of the overwhelming
public sentiment Of the country. NO other sen.
ator except the senator from New Jersey Wouln
say that he was In favor Of such Perpetnstoh ioT
to hear that statement He also criticised the
action and vote OF Mr.. Mcpherson in relation TO
Mr.. Mcpherson did not deem It necessary to
answer everything which the senator from MIS-
souri, might say, but since the question OF tne
tariff had been brought up he did not have any
apologies to make for his action In that matter.
Mr.. Allison said that the debate had taken
wide range, and he would occupy a lew moments
by way OF explaining the vote which he would
give. He was not troubled by the fear that any
disturbance would be created by the bill reported
by the finance committee nor disturbed by any OF
the amendments proposed III the way OF enlarg-
ing the authority given to national banks. lie
did not share any of the fears OF some gentlemen,
and did not believe there was going to be any
panic In connection with the currency. lie saw
no reason for II, because of the deposit OF the
per cent. bonds, and of the probability that they
may DO withdrawn from circulation by reason of
their payment There might be ~ temporary DIS
turbance Of the currency on that account
but he could SEQ no general tendency
in that direction Our circulation did not depend
wholly on the national banks. True, the bank
ing system was an important element IN tne clr'
The only fixed element in the circulation was the
greenback. That could neither be increased nor
diminished. But with reference to every other
species OF paper money there was no reason why
II might not be increased or diminished. Were
not the silver certificates an important element IN
the paper cirCulaton2 They amounted now, in
round numbers to Sl00,00OO00. They might DO
diminished by their deposit i'll the treasury. Our
gold certificates, amounting TO another slOO'OV9,
certificates were diminished by their return TO
the treasury and the taking OF gold from the
treasury, which might be boarded or might SO
into circulation. A bank in Iowa or missouri
might return its 100000 of circulation or IL might
deposit greenbacks Tor 1t in the treasury, aud TO
that extent there would be withdrawal of $780,
900 of circulation, but while that was being done
in Iowa or Missouri u bank in Indiana might be
taking out 100000 Of circulation upon capital
already in existence or new capital winch 1t pur-
posed To use in banking, SO that our currency was
day flexible with reference TO everything ex-
eminent, Mr.. Allison continued, had TAKEN INTO
its hands the entire matter OF paper circulation.
There was no power in state TO issue paper
money. We had imposed 10 per cent. tax on
state bank circulation, 80 that the United states
had taken charge of the currency OF the country.
That being admitted, what was our duty1 Our
duty was to manage the currency as to give the
people u suiiciency of the circulating medium to
transact from time TO time the business Of the
In managing the national bank circulation we
made an iron clad rule that the security upon
viii CHI Il should be based should be United States
bonds only, and that they should be deposited
with the treasurer and circulation Issued accord.
| ing TO the deposit. What was the result OF that
ruler We had, during the last few years, been
paying national debt the rate OF SlO0 100000
| per annum. 1t had now been 30 far paid that 1t
was difficult for banks to purchase bonds IN order
| TO make them security for circulation. While we
| had nominally made national banking free, we
had, by this arrangement, restricted IL; ana While
| the bonds of the United States were being paid,
| Mr.. Allison would be willing to vote Tor the bill
| reported by the senator from Delaware Mr. Bay
ardl. or for the amendments proposed respectively
| by the senators IRON OHIO Mr.. sherman and
| Vermont Mr.. Morrill,, He was willing 70 open
up to the largest possible degree the circulating
security of the bonds for the benefit, not OF the
banks, but of the people; Tor the benefit of the
circulation of the country. which we had required
by our laws that these national banks should
difficulty for either of the amendments indicated.
He was not disturbed about the value OF tho
| national bank note. That did not depend abs)-
| lutely Oh the bond deposited. The United States
| government stood by every one OF those notes,
aside from the security which It held. There was
/ not such q note in the country which the govern
| ment was not obliged to meet rs to meet the
| greenback notes. II the bonds should fall by l
| or or 10 per cent. the noteholder would not be
| disturbed. In case of default Of the bank the
| notehoder would receive his money by applying
TO the treasurer OF the United States, the govern
ment having bound itself TO pay that note II the
bank Jailed the government itself looking to the
| bank for its security. There was, therefore, no
danger Of aucLuation in the value OF circulating
notes 80 far us these amendments were concerned.
That value was as secure rs that OF the silver GER
tifcate, gold certificate, or greenback.
| Mr. Allison agreed with the senator from Kansas
| mir. Plumb that this bill was Il makeshifl-a
| temporary nakeshitt. 1t was only question Of
time for the national banks 10 go out of existence.
so far as the power to issue circulation was con-
| cerned, because they could not last beyond the
period when the national debt should be paid. 1t
| was, therefore, our duty to devise some other
method whereby the circulation may be main
With reference to the preservation of tho ma
| tional banks, Mr.. Allison said lie believe they
were the most valuable institutions that our
| people had ever had for the purpose of making
moneyed exchanges. He, was therefore, in favor
of maintaining the system, aud would Yor Il
method by which they could be maintained.
Mr.. Allison criticised the amendment Of Mr..
| Plumb, stating that he would not go Into de-
tailed argument in reference to IT, because all his
tory was against the proposition OF that amend;
| ment. He knew OF no government that had
undertaken to issue currency III the form pro,
posed by that amendment Treasury notes had
| been issued, but always in limited amounts, anu
| he believed that almost universally (us exchequer
| bearing notes. While we were bound 10 address
ourselves in the future TO the question of
shutting some other security for the notes II the
| national banks, Mr. Allison had 10 doubt that II
| measure could DC devised which would be per
leCy safe TO the billholder and safe TO the country
| After some discussion between Mr.. Allison and
| Mr.. MaXey with reference to the financial policy
| and course of the Bank of England, Mr.. Beck
| stated that he had been criticised by the gente-
man from Missouri mr. Vest with regard 10 this
| bill, but he did NOT think that anybody owned
| him Mr. Beckl or that anybody would suspect
| him of belonging to u national bank. The qu,s
| ton In this emergency was how we could, with
| the least possible harm or with the greatest
amount OF good, continue the present system UNI
| I'll another could DO devised.
| The majority of the finance committee had
agreed upon tile bill reported, and 1t seemed to
| him to he u measure that would do nobody any
particular HARM and he favored it,. That was
about the head and front of his offending, and he
| did not think that In doing that he was looking
| TO the interest OF any bank.
| Afer some discussion between Mr., Beck, Mt.
! Coke and Mr.. Pugh, with reference u the SEQ o
of the Plumb amendment, Mr.. Morgan SAID mat
| he proposed 10 offer an amendment to the amend
Inent of the senator from Kansas, 50 vs. 10 provide
that "wueneVer any portion of the circulation OF
| n national bank shall be surrendered in c0nse.
| quenCe of the cal and payment of the bonds by
| the United States government, AN equal amount
| of treasury notes Shall be issued by tue govern
ment in lieu thereof, SO as 10 prevent shrnkage
of the circulation" Mr.. Morgan stated that his
| understanding was that that was the
| real purport Of the amendment of the sem
ator from Kansas, but that If there
should be any dJubt about 1t, he would ~
l0l.. Ia had Il