National Republican. (Washington City (D.C.)) 1872-1888, 1884-02-16

The senate then resumed tho consideration OF
inc b TO provide for the issue oil circulating ho'es
MI Plumb addressed the senate at some length
upon H.. lie regarded the sentiment OF the people
Of the United States against the maintenance OF
the public debt for any longer periOi than IS
absolutely required by the terms OF the bonls as
fixed ana irrevocable. SO fur as he was concernGu
he had no desire to appeal from That decision. lie
believed II 10 be not only the fixed sentiment OF
the people, tut also the highest wisdom, that the
national debt should AT the earliest pTacu Uf ,hS
nation combined to make that end
desirable. Because, in The first place, ,,. he
up in the banks put back into the indus
tri of the country, setting the wheels oil com
me ce in motion, and giving employment tolaoor.
With that done we should havc opened To US the
broad avenue In commerce, in tue shape OF SHIPS
OH the high sens, which we cannot pro lably have
until moneyis cheaper and more abundant than
now and by that he meant more abundant COM
pared with the opportunities for It's profitable in.
vcstment. He waited to see the national DEBT
disappear, because Its disappearance would be the
practical resolvent Of many disturbing questions.
We could not consider the tariff question to-day
us 1t ought to be considered, eth as I'm abs racL
or practical question, without belug met by the
necessity of prOYiding-in large .um OF m ney-
in some way for the payment OF the interest and
principal Of the public debt.
1t would enable us to settle this question of the
national currency unembarrnssgd by the existence
OF the national debt. If we had no national debt
now we would not be discussing these bills, nor
be Concerned about the premium on bonds, nor
the effect on TIE currency o. the desire OF DahkS
70 realize that premium. The debt was tho only
thing which to-day stood in tue way OF some
definite, rational settlement of this question o. the
currency. The gentleman from Rhode Island
(Mr. Aldrich) had said yesterday that the debate
had exhibited great unanimity of sentiment In
favor of the national banks, and the inquiry, as
that senator rad put 1t, was now mainly how We
could best maintain that system. Mr. Plumb
thought that IL had developed some other things,
but especially IL had developed the fact that there
was the utmost contrarioty of opinions as TO pos l.
tinuanco OF the national bank currency. lie WIS
himself willing TO go as far rs any one in COM
munding the national bank system Tor all that was
good in II. 1t wa, wise ut tho tiiuo OF its inocp
| tom 1t had periormeda useful funotion-not only
In supplying bonds for sale, but also in.supplying
rency and took that place at a time when tho
country was perhaps not ready for more radical
| measure.
1t had also given the country useful system of
| banks for discount purposes. Ithud served wise
and benetcent purpose. lie hoped the national
| banks would continue. But If they wero to con-
any function ofproviding II currency for the coun-
try. That function had not been attended with any
great profit to the banks, and IL was not the most
useful function which banks could exercise.
The steady dminution of the national debt
| Mr. Plumb said, had brought us face to face with
| the grave consideration as to what, with the dis
appearances of the debt we should do to prevent
| u contraction of the currency, The senator from
| New Jersey [Mr. MGPhcrsOnl had proposed a
remedy but that senator did not believe Il would
| hold good very long. The senator from Vermont
| Mr. Morrill, Il friend of the national banks too,
|
| remedy but neither did that senator believe that
his own remedy would hold good very ong In
iact 1t provided sliding scale to secure the very
reduction which we were now legislating TO pre-
vent. SO did the proposition Of the gentleman
from Ohio MIR. shermanl aud the other
| Propositions submitted When doctors of such
eminence disagreed, Mr. Plumb inquired what
| wus to DO done by laymen like himself. He had
found on his desk this morning-and so probably
had o. her memOcrs-what he might almost de-
nominate an angry protest from the president OF
the Mercantile National bank of the city of New
York, about these bills now, before the senate,
saying they were all bad, all in insufficient, and
that no one of them would afford any remedy
whatever for the evil now sought TO be guarded
against. Mr.. Plumb confessed that he quite
agreed with that bank president A system Of
| currency which should rise and fall with the de-
| mands of business-which would give plenty oil
| money in the fall months, when the crops were
to be moved, and would contract in the summer
| months, when 1t was not needed: which would
from time TO time and year to year respond prop:
erly 10 the legitimate interests OF the country with
| reference to volume-would be very desirable
| thing but 1t was something which the national
Gs"N 4saso System nheenS the gste
and which would inhere In Il
so long as it was based on United States bonds
Referring TO the argument that capital should bI
ENCOURAGED to go into oanktng In order to aid IL
the circulation of monty, Mr.. Plumb said Their
with gross capitol of SjO,SjOOJO, utthey had an
GU standing circulation Of only sl5,7ol,2 Oo. II
other words, in the city Of New York the ratio o
currency to capital was less than one to three
If those banks did not take up a greater ratio O
currency to capital than that 1t was plainly he
cause there was no ratio OF currency TO capita
that any cody cared about. Under the bill uB 70
ported by the committee, however, these fit!
| banks would be permitted to take out on the sam
bonds that are ALREADY deposited u million and
half more notes than they now had, ana the in
creased amount wAich ali the banks would be Ell
titled 10 would be SSj,OOO0JO 10 eiO,OOO,OOO, ain
this increased amount would go into circulation
Mr.. Bayard said the report OF tho comptroller u
the currency would show that the banks to-da
were entitled to take Si,OOOOOO more of currenc
lg.Nr Ataf NIL "A ban
, that there had been no profitable use for the iu
ratio of 80 per cent. which the present law allow
Therei ore, II the banks saw fiji they could to-dl
increase tho circulation by SlOOO,OO). The yolum
! Of the currency, whether On the ratio OF 30 pc
cent. or 100 per cent OF the value OF the bond
was a commercial question wuich the bank
would settle Tor themselves. II there should b
} need Of currency tue deposit of bonus under Tia
national system could always produce u,
l Mr.. Plumb replied that the S350OO,OO0 or $40,
900 00J referred to woud just as surely 70 into iii
! Cualon as if congress had directed the secretar
OF the treasury to issue treasury notes Tor tns
amount.
! But all the plans proposed, Mr.. Plumb contln
l ued, would be unayuiiing. The difficulty was |
the premium o. the bond. You could not get ri
] OF It, If 1t were not for the banking system tn
} bonds OF the United states would not b. sellin
, at the premium at which they were, If the
could not be made the subject OfcirCulatlng note
aud the adjunct of II profitable banking systeI
they woud decline The more uses you CIV
| them, The more people, want them the highC
, their uses You induce men 10 take more of then
! If this bill passed, the per cent. bonds ma
with certainty be calculated to go up ~ l2S. an
l If the amendment OF the gentleman from Vel
mont mir. Morrill, passed. they would go up
, $50, ana the higher tho premium rises the NOR
insecure the basis OF the currency.
. The lapse Of time would bring II shrinkage: th
; banks would DO il hurry TO realize the pre-
MUM rather than wait and lose II, ami each try
ing do the best that II could for ITSELF the
rcnry would 90 down with rush.
What was wanted in Mr.. Plumb's opinion, WI
something to take the place Of the bank circull
l ton as il was With irRwn rom time IN time. w
. could provide that for every liar Of the c culI
, ton which should be surrendered an equi
l amount OF treasury notes should he issued an
lhus maintain tue currency a. Its present staudar,
Why wait Till the trouble com $ before giving On
l government authority tn do this? Make such pr,
! vision now that hereafter there should be no iii
minution the circulating medium OF the coun
, ry.
that when the circ laton Of any nation ban
shall be surrendered the secretary of the treasuI
: shall Issue an equivalent amOuntOf treasury NOT
of the denominations now provided by law 4
national bank notes, sucI treasury notes 10 bs de
posted In the treasury ana paid out rs otht
moneys kept for the discharge IF tbs obi lPAtlons
! the government, inc uding duties on Imports; shH
be n legal tender between national banks ana 10
all debts due to any national bank shall DO re
I deemable in coin, as legal nder notes of tn
United States now are, and when received hi
the treasury shall b. relssned, aud when m II
, lated or worn shall be replaced, MS now provide
by law, for legal tender notes; the CON IN IN
treasury, on the passage OF THIS act, for the re
dem tiOn OF legal tender notes, and sucn coin n
serve may from time " time be increased in tn
discretion of the secretary OF tho treasury, but IN
! total amount OF such coin shall not be less than
per cent. nor more than 30 per cent of the tot.
! amount of legal tender and treasury notes out
standing,
Mr.. jones' orFlorida characterized Mr. Plumb
H.u Ii aa o s. N