The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-03-09
THE F0RTY-NINTH CONGRESS.
Senator Bowen Points Out What He Consid-
ers Defect in the National Bank System.


ers Defect in the National Bank System.
WASHINGTON, March 8.--Prayer was offered
by Bishop Bowman, of st. Louis
The Chair laid before the Senate letter from
the Secretary of the Senate transmitting
statement showing the names of the private
secretaries of the Senators.
Among the petitions presented were a large
number from local assemblies of Knights of
Labor, favoring the building of the Hennepin
canal
Mr. Plumb. In presenting some OF these petit
tons, said they all seemed to emanate from some
central source, as they were printed, and hand
somely printed, and, while greatly respecting the
bodies that sent the petitions, he presumed there
must be some strong private interest behind this
movement in the interest of the Hennepin canal
Mr.. Cullom thought it was rather great pub
lie interest
Mr.. Logan took pleasure in introducing these
petitions. The canal. he SAID, was great public
work. and would cheaper food
Mr.. Henderson presented a petition setting
forth that, owing to the hopeless restitution pre-
valing in Illinois, that canal should be built by
the government All the petitions were appro
priately referred.
Mr. Vance offered a resolution directing the
committee on clvilservice reform to report forth
with the bill before them providing for the repeal
of the civil-service laws The resolution, at Mr..
Vances request, was for the present laid on the
table, He said he would soon take opportunity
to address the Senate the subject matter of
the resolution.
A resolution offered by Mr.. Van Wyck was
agreed to- calling on the Secretary of the Treas
ury for list of claims filed with his Department
by the United States Labor League, under the
act of June, 1873, making appropriation for
payment of workmen in the District of Co
iumbia
The morning business having been disposed Of
Mr. Brown, at l o'clock, obtained unanimous
consent to address the Senate on the subject of
his bill "To provide new basis for the circula-
ton of national banks"
1.-THE bill provides that banking associations
shall deposit with the United States Treas
urer silver dollars, gold dollars and
United States bonds to the amount of seventy
per cent or the circulating notes, as desired by
such association; in lieu of these they 20 get
United States notes, 800 for each $40 so Gepos-
tied; the actual circulation of the United States
shall be $50 per capita of population, and the
Secretary of the Treasury shall assume the popu-
latlon to be 10000 600, the volume of currency to
be increased yearly at the rate of 81 per cent;
the COVE rnment shall have first lien on the
bank as further security for the notes issued
and individual stockholders shall be liable to the
extent of twice the par value of their shares
The per capita of circulation shall not be held to
include the bank reserve fixed by law or gold
and silver that may from time to time be in the
Treasury. The new notes are to be legal tender
for all debts, public and private, except customs
dues, and the principal and interest of United
States bonds made payable in coin The bill
also gives the Secretary of the Treasury, with
the approval Of the President, authority to sus
pend and resume specie payments by the gov
eminent from time to time, whenever, in his
opinion, the same will be conducive to the safety
and to the business interests of the country.
Mr. Bowen did not claim for his bill perfection
in details, but said the principle contained in it
was sound. He would launch it on the leeisa
tive sea- not knowing where it might cast an
Choir, but with abiding faith that some day,
he hoped before it was too late, the wisdom of
its provisions would be appreciated. The fact
that legislation on tho subject OF our currency
necessary. he said admitted of no doubt
Our national banks had furnished the best bank
currency that the country ever had, and, next to
silver AID gold coin and United States notes, the
best we could ever hope for There de-
feet in the svstem-a defect of so serious ma
ture that he would rather let the whole system
60 than retain it with that one defect remaining;
rather forego its many advantages than risk the
disasters that confronted the country through
that one defect. The defect was the power
given by law to the banks to regulate the vol
ume of money. After careful irvestiga-
ton, Mr. Bowen had failed to find any
reasons sufficient to satisfy his mind
thatethe country needed national bank notes at
:
the conclusion that the government, and it
alone, should emit the paper currency of the
Nation. Recalling what he had seen in the past.
Mr.. Bowen asked whether there not danger
that the banks would contract the currency
when it was to their interest to contract it, and
initiate 1t when it to their interest to inflated
Would they not use this power to their corporate
advantage, regardless of the disaster which
might follow from one end of the country to the
other? Could anything be palmer than that the
power to control the circulating medium should
never be placed in the hands of any class, or be
controlled by any special INTEREST," power
whose existence affected so intimately the COM
monwealth-the power to make or unmake at
will the vehicle of our exchanges-should be
kept precisely where organic law had
lodged it. The power to expand or contract their
circulation meant the power to reduce or increase
the prices of all property and of all labor-the
power to produce either stagnation or
unhealthy activity in every branch of industry.
IT, from any cause, the national banks should
suddenly retire their circulation, crash would
follow that would shake the country, financially,
from center to circumference. No set of
having private interests of their own to subserve
should be Entrusted with such q power. Con-
gress representing the whole population, could
hold this all important power with unyieding
grip. The mere statement of the fact that Con-
gress had delegated this power to a lot of banks
was sufficient to startle and fill with consterna-
tion the mind of every man who comprehends
the disastrous effects that would follow con-
tfactlon or the clrculatlOn TO the extent posi-
BILE under existing law. Mr.. Bowen continued, at
considerable length, to discuss the features of
the bill, and the silver question generally; and
when, at 1920 p NJ, his remarks were concluded,
Mr.. Stanford announced to the Senate the death
of his colleague, Mr.. Miller, of California, and,
out of respect to his memory, moved an adjourn
ment The motion was agreed to, and the Senate
forthwith adjourned.
Proceedings in the House.
nj Mo- II tba NJ
Henley, of California, offered for reference a
resolution for the appointment of sub-commit-
tee to inquire into alleged evasions of the Thur