The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-02-15
PROCEEDINGS OF CONGRESS-.
THE SENATE.
Debate on the MCPHERSON Bill Providing for
National Bank Circulation.

Debate on the MCPHERSON Bill Providing for
National Bank Circulation.
WASHINGTON, Feb. 14.-The Chair laid before
the Senate the testimony taken by the committee
to investigate the official conduct of ex-Superyis-
ing Architect Hill Referred.
Mr.. Voorhees, resolution, requesting the Secre-
tary of the Interior to suspend approval of the
indemnity lands selected by the Northern Pacific
Railroad Company, was referred to the com
mittee on public lands
The Senate took up the bill making all public
roads and highways post routes
1t was debated by Messrs. Plumb, Hale,
Maxey and Sawyer, and, after a slight amend
ment, it passed.
The Senate took up the bill for the relief of
the Louisiana State Bank, permitting that bank
Notwithstanding time of limitation, to pre-
sent to the Court of Claims its claim for cotton
taken by the United States in 1865.
Mr.. jackson, who reported the bill, said the
claim was for 367 bales of cotton, worth 800 000
After debate the bill passed-32 to 10.
Mr.. Beck called up Mr. McPhersOns bill rela-
five to the national bank circulation and spoke
at some length in its favor. The banks were out
OF politics now, he said, and nobody opposed
them This was q measure necessary for the
country. As the United States government only
expected to pay par for its bonds, there was no
hardship in the provision of the bill limiting the
issue to par values We are prosperous now,
Mr.. Beck said, but may not always be so, and it
would not do to base the circulation, as had been
proposed by some amendments to the pending
bill upon the market value of the bonds We
might have wars or panics, which might depress
bonds 10 per cent in a week, and currency
would be contracted just to the extent that
the bonds would fall. So the United States,
when called upon most loudly to sustain its
credit, would be compelled to contract the cur
rency at a time when we ought to be maintain
ing our credit higher than ever.
! Mr. Morrill, offered the following bill as sub
stitute:
That upon the deposit of United States bonds,
as required by law, any national banking assocla-
ton making the same shall be entitled to receive
from the Secretary of the Treasury circulating
notes of different denominations in blank, regis
tered and countersigned as provided by law, as
follows:
On United States per cent bonds deposited prior to
Jan l. 1870 an amount equal to 1OO.lOper cent. of
the value of such bonds provided the issue of circula
ing notes upon the per cent bonds deposited or held
in the first year succeeding JAN 1890, shall not
coed 100 per cent. of the par value of such bonds
and that the issue such 4 per cent. bonds de-
posted held in each succeeding year shall be per
cent less than in the year preceding until the limit OF
the issue or circulating notes is reduced to par
and provided, further that on the deposit of any
bonds of the United States now authorized by law
except as herein otherwise provided,
amount not exceeding the par value of
such bonds and at no time shall the total amount of
|
amount at such time actually paid in of its capital
stock that associations organized for the purpose of
issuing notes payable in gold under the provisions of
section 5185 of the Revised Statutes of the United
States shall be entitled to receive circulating notes
in amount and in the manner prescribed in this act
for other national banking associations.
Mr. Vest offered an amendment, which he
asked and obtained leave to have printed, pro
vlding that the Secretary of the Treasury shall
have treasury notes engraved. of various demon
nations, payable on demand at the office of the
ant of bn off pf
standard gold or silver coin, when presented in
sums of not less than 800; and whenever any
bonds of the United States become subject to
redemption, and are deposited with the Treas
urer of the United States as security for the cir
culating notes of any national banking associa-
ton the Secretary of the Treasury is authorized
to exchange the abovedescribed treasury notes
for such bonds at their par value and accrued
interest, or may exchange such treasury notes,
at par values, for standard gold or silver coin,
and redeem the bonds Herewith
Mr.. Morgan asked and obtained leave to have
printed an amendment providing among other
things. that when any bonds of the United States,
deposited in the treasury by banking assOcia-
ton to secure circulation, are called and paid
by the government, such banking associations
shall have the right to substitute
in place thereof bonds issued by any State; and
the bonds so deposited shall, as to their assign
ment management control, sale or disposal, be
subject in all respects to the laws which govern
such banking association and the officers and
bonds fer which such State bonds are substi
tuted so far such laws applicable but said
bonds of States shall not be received for bonds of
the United States socalled and paid at a rate
not exceeding - per cent. of their face value,
nor shall the bonds of any State be received on
deposit unless the interest thereon is accrued on
the same for period of five years previous to
the time such deposit shall have been duly paid,
nor shall any such bonds be so received or de
posted when the same are worth less than par
in the city of New York. The interest accruing
on such State bonds after the same are assigned
and deposited in accordance with the act is to be
received by the Treasurer of the United States
and placed to the credit of the banking associa-
ton that has deposited the bonds and shall be
paid over to the banking association unless the
Secretary of the Treasury shall direct it to be
tanned in the treasury to make good any depre
citation in the bonds deposited by the assoca-
ton
After an executive session the Senate ad
journed.
THE HOUSE.