National Republican., 1884-02-22
Is What Mr.. BelfOrd Calls the Faculty Of the
Military Academy.
Other Members Are Likewise Not Com
pIimentay in Their AIusions. .
But the Appropriation for Maintaining the Institution
Was Passed all the Same
Interesting Discussion Upon National
Banks In the Senate.
TIE eENATE-

uhy IL De ull MONDAY next tO-uhy DelnH Whhn"
ington's birthday, a legal holiday.
Bills were introduced and appropriately referred
as follows:
BY Mr.. Palmer: To authorize the erection Of q
public building at Detroit, Mich.
BY Mr.. Cullom; To improve the navigation Of
the Mississippi river by adding to and strengthen
By Mr. Morgan: 10 provide for receiving into
the treasury Of the United States state bonds as
collateral security for issues OF circulating notes to
national banking associations.
By Mr.. Aldrch: To provide for lien on vessels
Mr. Garland called up and asked the immediate
consideration OF the bill providing for the punish.
ment OF persons falsely impersonating officers and
Mr. Cockrell said It was an important bill and
ought to pass.
year ago, aud failed In the house of representa-
tves because of getting there late In the session.
He had received a letter from the commissioner Of
pensions asking him to urge the passage OF the
The bill was then read thi I'd time and passed.
1T provides that any person who, with intent TO
defraud, shall falsely personate government off,
GERS or employees, or receive any valuable consid-
Grafton or document by reason Of such persona
conviction shall be fned not to exceed 81, ,00o or
imprisonment not to exceed three years or both,
in the discretion Of the court
vices while acting as supervising architect of the
treasury during the suspension Of supervising
Architect Hill. was then taken up. The bill as in.
lroduced provided for the payment Of 81 0S6 SO as
such compensation.
An mendment proposed by the committee on
claims reducing the amount to S742.33 was agreed
10, and, Us so amended. the bill was passed.
subsequently Mr., Van Wyck moved recon.
siderauon of the BILL and the reconsideration was
agreed to- in order to await the return Of Mr. Hoar
who reported the bill, and to obtain further infor
nation. .
The bill reported by Mr.. Mcmillan. from the
committee on commerce. giving the secretary OF
war authority TO compel the alteration Of railroad
Or other bridges spanning navigable waters OF the
United States which may be an obstruction to
navigation was taken up and passed.
MIR. Mcmillan stated that provision OF this
character was necessary to be Incorporated in the
law soon possible, in order that many bridges
now building, and to be built might not interfere
with the commercial interests Of the great rivers
The senate then on motion of Mr. Mcpherson,
suspended the further consideration OF morning
business in order to resume debate on the bill to
provide for the issue of circulation to national
banking associations.
Mr.. Morgan took the floor in support of the
amendment offered by him permitting national
banks to deposit the bonds OF the separate states
as security Tor clrculation-such bonds only as
might be at par in the city OF New York. and
whose accrued interest should for five consecu-
tive years previously have been paid in full.
Mr.. Sherman here introduced Joint resolution
for which he asked and obtained Immediate con-
sderaton. appropriating $4,000 for the contingent
fund OF the senate. The immediate passage Of
this measure was necessary. Mr.. Sherman said, to
enable the committee on privileges and elections
to carry on their Investigations. The Joint reso-
luton was read three times and passed
His amendment, Mr.. Morgan said, embodied a
new proposition, and he regretted that 1t had not
had the consideration Of the committee on finance.
Had he known that the subject was so soon TO come
before tue senate he would have had his proposl-
lion referred to that committee He had this
morning presented a bill on the subject which
had been referred TO that committee, and he had
attempted to put into that bill all the guards pos
sble and necessary. he would vote for the meas
was merely intended to be an additional section
to that measure. But while he would vote for the
bill, is was impossible for him not to see that 1t
only Temporary measure, Inc country
would We ry soon overtake the provisions of the
bill. and we would find ourselves in as bad posi-
tion we were in to-day. We should have
system of finance which would enable all the in.
dustrial and commercial intrests OF the country to
safely predicate business upon II.
Mr.Morgan explained the method Of operation
Of bis propositions.
Mr.. MoPherson criticised IT, saying that state
bonds would not be reliable, because their SOL
vency could not be relied on, and II the idea was
to create demand for bonds of states that were
not solvent, that was another question. The
market value of such bonds would no doubt be
materially increased. Again, combination of
capitalists might combine to buy up lot of bonds
worth only 40 per cent to be used az security for
circulation. .'
The capital of this country, If united for given
purpose, could, MIR. MCPHERSON said, accomplish
anything upon which il should determine.
At the best, no material benefit could result
from the amendment OF the gentleman from Ala
bama Mr.. Morganl while great risk would be
Sir. Morgan read from the provisions of his
amendment to show that bonds which were not
at par could not be used for the purpose, and the
interest must have been paid Tor five consecutive
years prior to their deposit as security for crcua'
tion.
After some debate between Mr. Maxey, Mr..
Morgan, Mr.. PLUMB, Mr.. Coke, and Mr. Butler as
10 the result which would ensue in case u state
defauted in the payment OF tne interest, or should
altogether repudiale its bonds, Mr.. Allison said
the debate was getting wide OF the mark. We did
not seem to bear in mind the character OF the
national banking system. No banking system
had ever been so thoroughly guarded with refer
ence 10 the circulation. 1t had not been estab-
a.
tect those who should hold the noles. TIE gov.
ernment reports showed that the aggregate capt
tul of al the national banks that had been forced
int Liquidation III twenty-our years was only
slS,OJO0JO, and nearly one-iaf of the whole
number Of those banks not only redeemed
creditors 100 cents on the dollar Every possible
safeguard had been thrown around the circulation
by additions from time to time "a tue emergencies
suggested, The government OF the United States,
too, stood benind that circulation, and whenever
the government ceased " guarantee to the holder
OF the note the absolute pay ment OF II, he or one
would wrnt to see the sy TEN deslro ed utterly
and forever; Tor II there was any one thing which
the government wanted to do II WAS TO see thaI
The note holder should not suffer. The question,
therefore, WAS, what would be sufficient security
70 enable the government to recoup itself in case
IL should have to pay these notes2 Although he
INF, Allison had remarked Wednesday that II
limited to u choice between the amendment of
ihe senator from Kansas Mr.. Plumb and that Of
va senator from Alabama Mr.. Morganl he would
prefer tnat OF the gentleman from Alabama; yet
he did not favor the proposition contained in that
amendment, because he did not think we should
make SO great departure from the present sys.
TEN. The question of the substitution of securi-
ties should be carefully considered by committees
OF congress. who should inquire into the propO-
siuOn OF the senator from Alabama, among others
But the state debts did not amount TO much over
500 OOv J0 all told and of that amount Sll5 00O-
600 belong 10 the southern states, and very few OF
those states paid the interest on their bonds. Vir
ginia, Tennessee, and Louisiana had an aggregate
debt of more than SI6.0JO,O0O, on which they did
not pretend to pay the Interest.
Mr.. Allison was of opllliou however, Uhough
for he had not given the subject nature consider
atom that we would, sooner or later, be Obliged
TO depend upon the individual responsibility of
the stockholders of banks by some well-guaTded
sy'tem. He did not believe that we could rely
on any state or national securities that would be
the bill reported by the committee should be
passed as II stood, which would give us q few
years to consider the question OF what would az
teTward be best.
Mr.. Butler inquired why specie may not be re-
lied upon as security,
Mr. Allison replied that 1t could be.
Mr.. Butler said IL would seem 10 be practical
plau that when the bonds were called in gold
and silver bullion might be substituted.
Mr.. Allison said that might do II enough OF II
could be had, and If people could be got TO take
stock in banks and deposit dollar for dollar
Mr.. Butler said the complaint now was that
there was too much silver here 80 that there
should be no difficulty in getting'silyer.
Mr.. Allison knew that that was the complaint
Of kome people who did not thoroughly know
what they were talking about,
Mr. Butler was very glad 10 hear the senator
say so. "
by any government on earth. In other words, we
were stranger in the basis of our circulation than