The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1888-03-22

New York, IN which Daniel y Day, the
general manager Of the Standard Oil
Pipe Line, and j. j. Vandergrift, the
president Of the Standard Oil Pipe Line
are prominent stockholders has SOLO,
900 of government money.
The president and treasurer of the
American Banker Association are pre-
siding over national banks which have
been designated rs repositories. and
twelve out of the twenty-One members
Of the executive council Of that trust
are also connected with banks that are
repositories and are using government
money.
Mr.. Chairman, it is true that one
and all Of these trusts that are to-day
choking the very life out of the people
of this country are, through their ma
tional banks. using 10 greater OF less
extent the government money, and are
using it to Cypress the people. say
this is public outrage and yillainons
shame. Here Congress has been sitting
for nearly three months and not a half
dozen voices have been raised against
it, not a move has been made to reme
dy the evil or to rebuke the crime. On
the contrary, efforts have been made to
extend the privileges of the banks. |
denounce it. and trust | shall be par
doned by my Democratic brethren for
my Jeffersonian and Jacksonian eccen-
tricities on this subject. think we
have reached time when the Demo-
cratic party can afford to he Demo-
cratic.
Now, Mr.. Chairman. have already
indicted that this money is not in the
Treasury. but in the banks. The banks
are simply the lenses through which.
like radiation. this money reached
the people. 1t is now in circulation
and the business of the country has adj
| justcd itself to it.
Now. l repeat the question: Why
was this money placed in the banks in
the first place. l know the answer, and
the only answer which can be given.
| II was done to avoid 4 panic which
was then impending. Let us grant
| that to be true. | assert here and now
that if you recall that money rs this
| bill is intended to do. you will in
eyitably precipitate panic, and moth
| ing can prevent it. Yon can not take
it from circulation again through the
| banks without serious embarrassment.
| This bill will not have the effect
which is desired. nor will the Sccreta-
ry of the Treasury undertake to carry
| it out. He dare not. He may under
! take to buy few bonds with the sur
plus actually in the Treasury and not
/ in the banks, or which may hereafter
accumulate. lie will not take the re-
sponsihility Of calling the money into
the Treasury in the present strisgency
in thr money market. The banks. sir.
are the masters Of the situation. and
not the Secretary; but. YOU will answer.
we can demand the money Of the banks
or compel them t. sell their bonds held
for deposits. You can do nothing of
the kind. They will say to you: Our
bonds are valuable, and we do not
want t.. sell. If YOU want your money
we w. call in our loans and pay, but
you, MI. Secretary. must take the re-
sponsiblity Of a panic, which is likely
to follow. That Is what they will say.
Another fact. Mr.. Chairman: The
Secretary has increased the premium
on these bonds bs this enormous sys-
tenn of deposits. and this bill proposes
to authorize him to buy the bonds at
the premium to which his wretched
policy has doomed them. This is
something worse than folly. BY this
policy he doomed the price of the
bonds in the hands Of the bondholders.
and now YOU propose to buy these
bonds back at the increased price.
Well. indeed. may the Secretary OF
the Treasury hesitate. He was author
lied, if he saw proper. to buy under
the law of March }. 1881, but he was
never authorized by any law to first
boom the bonds and then buy them
back 1T the increased premium.
If this proposition passes and the
Secretary undertakes to call i'm this
money, l say . the business men of the
country they better prepare to stand
from under. You all know that rs well
as l do. What shall be done, thcno
All. will tell YOU the remedy. What
power have We over these bondholdersa ?
! wish had every tax payer of the
country within sound of my voice
What have we power to do? More
than $2,4OO. 100000, Of interest have
been paid BY the people TO
bondholders since the close of the war,
and more than 81 ,6oo. .ono. 900 Of princi-
pal, making !. 600, 100000, a sum as
great as the present national debt OF
England!
What is the present propositions? II
is that we shall compel the people Of
the United States to pay over % per cent
premium on the bonds held by these
bondholdcrs. Why. that is not s:atu-
tory obligation. Have we ever con-
tractel to pay it? We have the money
in the Treasury and we have the moral
right to insist on payment 1T par under
the sovereign power possessed by the
government.
England at one time insisted upon
this right and exercised the power.
You will find the whole matter ably set
forth i'm Senator Sherman 5 speech on
the credit act and the
funding bill previous to the issue oi
these very bonds.
Mr.. Chairman. ut the proper time
give notice | will move rs substitute
what | ask the Clerk 10 read.
The Clerk read rs follows:
Be it enacted. etc. That tho Secretary oi
the Treasury - hereby authorized and di.
reeted to APP ly the surplus money now IL
the Treasury. and slch surplus money a.
may here otore ba in the r.a>usy and not
otherw Sc appropriated. t. the redemption
of United States bonds ut par until all o1
sal boa dis, toget Ter with the accrued inter.
est thereon, are ca led AMI paid; and iron
and after the dat tiXad II the cal Of the
Secretary OF the Treasury or the pre- enta
tion and payment Of sa bonds. a interest
thereon sh II cease. And in ma<ing call,
for ,nds for reia npton, as aforesaii the
Sec etary shall iirst cal the bonds he'd t
secure government deposits.
Mr.. Mills. l do not yield to have
that pending. only yielded the