National Republican. (Washington City (D.C.)) 1872-1888, 1884-02-15

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10 sustain Its credit, would be compelled 70 con-
tract the currency at a tmo when we ought 10 De
maintaining our credit higher than eyer. -, At,
Mr. Morrill, opposed me bill. IIs said the the
amount Of good IL would do would be Bmnlli
something more was absolutely necessary rho
fact was that men Of capital did not una Tue pahk
ing business profitable. The question WAS Wnc.nor
we should perpouate and give stability 70 ays-
tenn tet i ior The benefit OF lhe s1 n1 Soo weeS
or 500 900 600 or $50 600 year from our clrgu
lation. No currency In the world, ne salu na u
better foundation than ours. we had DOnu ,nns
sold at PREMIUM and, I'm addition, every Stock |
holder was held responsible in his prVate capac.
ity to the extent of his stock In the bank for the
Mr.. Morrill, would not say that he would not
favor the proposed bills as they were. He would
vote for any one of them that would commend IL
self to the majority OF the senate: but the bill he
would offer as substitute was much better thantho
others. 1t was as follows: THAT upon deposit
of United States bonds, as required by law, any
national banking association making the same
shall be entitled to receive from the secretary OF
the treasury circulating notes of different denom-
nations, in blank, registered and conntersigned
as provided by law, as follows On United states
per cent. bonds deposited prior to Jan. l. 1890 an
amount equal to ITO per cent OF the par value OF
such bonds provided, that the issue Of oircuiat'
ing notes upon the per cent bonds deposited or
not exceed 100 per cent of the par value of such
bonds, and that the issue on such 4 per cent.
bonds deposited or held in each succeeding year
shall be per cent less than in the year preceding
until the limit of issue Of such circulating notes
as reduced to par; and provided turtner. that on
tho deposit OF any bonds OFT United states now
authorized by law, except as herein other
wise provided, circulating notes may DO
issued TO an amount not exceeding the par value
of such bonds; and Mt no time shall the total
amount of such notes issued 10 any association
exceed the amount at such time actually paid in
Of It's capital stock. That associations organized
for the purpose of Issuing notes payable in gold
under the provisions of section 5lS5 Of the revised
statutes Of the United States, upon the deposit OF
any United States bonds bearing interest payable
in gold, with the treasurer OF the United States,
shall be entitled to receive circulating notes to
the amount aud in the manner prescribed 10 this
act for other national banking associations"
No one could contend, Mr.. Morrill, continued,
that there was the same security in n 3 per cent
bond, payable at the option of the government,
that there was in a per cent. bond payable
twenty-three years hence. Whatever was done
should be done with the view OF imparting
stable character to the currency TO induce men to
purchase a long bond and not have fluctuations
Mr. Aldrich followed. He said that it was
subject for congratulation that the minds Of sena-
tors were united upon the idea of preserving the
national hank circulation. He submitted a
variety of statistics bearing on tho condition Of
the currency and the various classes of outsand-
ing bonds. Instead of suffering from contrac.
ton of the currency at present we might be said
imitation of the currency. The country IL not
suffering for money. What we need is some meas
prevent pre- possible conracton. I He believed That
| no party would now be willing to substitute any
other form Of security for that which we have
the currency by the withdrawal OF bonds, and not
only that, but We were liable to a withdrawal of
gold by an adverse balance of trade. The condi-
ton of trade in European countries ut the present
| time rendered us liable to an adverse balance of
| trade at any time. The New York money market
was lower than any other in the world. That fact
increased the tendency aud temptation to with.
| draw gold from this country, and the Withdrawal
of slO0.oOO0OO in gold and S750Oo0Oo of bonds
within tue next year would produce very
alarming condition of affairs in the United States.
Mr.. Aldrich favored Mr.. Morrills amendment
because 1t give an inducement to the purchase Of
/ 4 nprc cent houdg
Mr.Vest offered an amendment, which he asked
and obtained leave to have printed. providing
that the secretary of the treasury shall have treas
| ury notes engraved of various denominations
which shall be made payable on demand at tho
office Of the assistant treasurer In the city OF New
York, in standard gold or silver coin when pre-
sented in sums OF not less than Sl00, and that
| whenever any of the bonds of the United States
with the treasurer OF the United States as security
| for the circulating notes Of any national banking
association, the secretary OF the treasury IL author
| lied to exchange the above described treasury
notes for such bonds at their par value and &C.
crued interest, or may exchange such treasury
coin and redeem the bonds herewith, and the de-
| post of lawful moneyato redeem the outstanding
circulation OF such banking association may be
made in legal tender notes or In the notes do.
| scribed. and thereafter the circulating notes of
such bank shall be redeemed Mt the treasury of the
United states and when SO redeemed shall be can
celed. The treasury notes referred to are made
receivable for all dues aud demands OF the United
States and at par.
| MT. MOIRuu dSkeu dIlu ODthlHeu leuNC 10 nave
printed an amendment, providing, among otner
things, that when any bonds of the United States
deposited in the treasury by banking associa.
ton 10 secure its circulation, are called and paid
by the government. such banking association
snail have the right to substitute In the place
thereof bonds issued by any of the states. and
hDiIds so deposited shall, us 10 their assignment,
management, control, SALE or disposal, BIO subject
IN all respects to the laws which govern such
banking association and the officers and agents oil
the United States with respect TO bonds for which
such state bonds are substituted. so far as such
laws are applicable; but said onds of the states
shall not be received for bonds ofthe United States
SO called and paid II rates exceeding blank per
cent of their face value, nor shall the bonds
of any state be received Oh deposit unless the in
teTest Heretofore accrued on the same for the
period of five years previous to such deposit shall
have been duly paid; nor shall any such bonds be
so received on deposit whom the same are worth
less than par in the city OF New York. The inter
est uccruing on such state bonds after the same
are assigned and deposited In accordance with
the act, Is to BE received by the treasurer of tn,
United States and placed TO the credit of the bank
ing association that has deposited the bonds, anC
shall be paid over to the banking association, un
less the secretary of the treasury shall direct II tc
be retained in the treasury to make good any de.
fclency in the bonds deposited by the associa-
ton.
Mr.. Plumb was about to address the senate upon
the bill reported from the committee when, upon
motion OF Mr. Harris, the senate went into execu-
tive session, and when the doors were reopened
at 5.45. the senate adjourned.