Butte semi-weekly miner. [volume] (Butte, Mont.) 1886-1890, 1888-04-18
FUNDS AND DAKOTA.
|sPEEcHEs ON 10th IN THE SENATE
YESTERDAY.

The Financial Question Handled by Sen
ators Farwen, Reagan and Stewart
spooner Argues In Favor of the South
Dakota Admission Bsil.
WAsHlNeToN, April 16.-Stewart intro
duced bill granting pension Of So, 900 :
year to the widow Of Chief Justice Waite
Referred.
Hear offered resolution, which wai
adopted. instructing the select COMMITTEES
ON operations OF the civil service to in
quire and report whether there has beer
within two years any fraud or maladmin
istration in the New York custom house ID
regard to importation OF sugar.
Riddleberger offered resolution Of fsus,
pension 81 the Senate raIes as TO axeentixs
sessions during the consideration OF thu
fisheries treaty. The resolution went ovel
under the rules.
Conference reports on the bills to divide
the great Sioux reservation into separate
smaller reservations and to rafify and con
6ut dKIcCLlCnb W1uA oAO oAoc Oh " CS
and other bands OF the Blackfeet Indiansi in
Montana were presented and agreed to.
On motion Of Farwell the bull providing
for the investment OF certain funds in the
Treasury was taken up, and Farwell pro.
ceeded to address the Senate on the fnan.
cial question. He gave notice OF his inten-
tion TO offer two amendments to the bill.
One of them directs the Secretary OF the
Treasury to issue and sell to National banks
at par Tor United States notes, United States
2h per cent. bonds returned after fifty
years to be used by banks as security
for their circulating notes, notes to
be issued to the full par value
of the bonds. It also directs the Secretary
of the Treasury to invest the surplus funds
held in the treasury, including the amount
To be received for these bonds, in the pur-
chase OF any United States bonds in open
market, and Iepeals all sinking funds. The
other amendment authorizes the Secretary
OF the Treasury in order to enable national
banks to maintain and increase their cir.
cuIation and to prevent the ultimate de-
struction of the banks by the purchase or
payment OF the national debt to receive
from banks to secure their circulating
notes, state, county or municipal bonds
upon which interest has been heretofore
promptly paid and whose market value is
equal to or greater than their par value
bearing interest at not less than 4 per cent.
Such bonds, however, are not TO be re-
ceived by the treasurer at more than 70
per cent OF their par value, nor until the
approval of the Secretary of the Treasury
of the United States and Comptroller
of the Currency shall be indorsed
upon them. Farwell went on to say the
bill was good enough as far as it went. 1t
did not include the whole financial ques-
ton, which he regarded as of permanentin-
terest, but only proposed to temporize
with it. It simply reduced the interest on
A per cent. bonds to ~ per cent. These
bonds amounted to over seven hundred
millions and mature in 1907, and it
authorized national banks to receive circu-
lation at par upon them and upon all
other United States bonds. The bill did
not remedy the evils OF the present finan-
cial condition. Two amendments which he
proposed to offer would, he thought, cure
those evils. He would, If he could, SO
amend the financial legislation OF
the country that the national
banking system (the best ever
devised) should be continued. His amend
ment, il adopted, would enable National
banks to use the present debt OF the United
States, il that debt could be continued, at
its present value. Thele legislation proposed
by him would be adequate to the mainte-
nance OF The National banking system, but
he recognized the Fact that the American
people were anxious and determined to pay
the debt.
There could be but one standard. In his
Judgment the thing that would make no
difference to anybody in this country was
to accept the inevitable and make a read
justment at once. If it were desired to
make the silver dollar equal to gold, a
requisite quantity of silver should be
put into it. Then nobody would
be cheated. In conclusion he said
that under these amendments or by some
other similar legislation / would refund the
present public debt at 2k per cent at so
and authorize National banks to receive
at par for such amounts as
they might use for that purpose. | would
require the Secretary OF the Treasury to in
vest this surplus in the purchast OF any in
debtedness OF the Government in open mar
ket from time to time. | would dispense
with the requirements of the sinking fund
because il the Secretary is authorized to
buy bonds with the surplus from time to
time the requirements OF the law creating
that fund would be no longer necessary.
For the purpose of enabling the people to
manage their affairs observation-disclosures on
the part OF the Government would allow
them to msintaIn the volume OF National
bank circulation up to the amount oil the
national debt by state, county and munic-
ipla bonds as provided for in the last
amendment which I proposed. Ii such
legislation can be passed we will hear no
more money stringency or panics.
Reagan said his wish is to see the country
e Al L JaIr n JoIH& av.vy fNftE
sible. He did not deny the National banks
had subserved a very valuable purpose,
both during and since the war, but he had
no regret that the time was approaching
when they should become extinct. They
had shown themselves to be guided by a
policy purely their own, and it was not
with the best interests of the country. He
would allow the charters OF National banks
to expire .and he would refuse to recharter
them as banks of issue. For National bank
issue he would substitute the issue OF GER
tain certificates based on gold and silver in
the Treasury, and if that were not enough
he would authorize the issue OF Treasury
notes, but not as legal tender. He would
protest against the policy of continuing the
bonded debt for fifty years and against the
policy OF psrpetuating National banks.
Stewart protested against the reduction
OF silver in interest of that mushroom
stuff, J" which had already brought distress
upon the country. The national bank cir
culation ought not to be fostered any
longer. The precious metals should be
used for circulation, and when tttey we're
not sufficient, paper money should be
issued, not by private corporations, but
by the Government of the United State !.
The greatest enemies OF the country were
those who managed the circulation OF the
country SO as to make hard times or
good times to suit their speculation. Under
his a endment banks would have new
lease OF life and would be able to furnish
i he country with all the circulating medium
required, limited only by the amount OF
the natioual debt. If it were desired their
permanent existence should be secured and
the necessary volume of currency furnished
bought by them, authority should be given
to them to furnish other bonds as a
basis for their circulation according as the
national debt was reduced and retired.
Without that authority as the national
debt was paid, banks would be compelled
to give us circulation secured thereby and
that circulation would of course be de,
stroyed. The real trouble was in the want
OF legislation enforcing all the commercial
interests OF the country to base it's medium
OF exchange on the national debt and II
the retirement of that debt without sub
stitute Of some other basis OF circulation
Bank circulation was necessary and could
not without detriment to trade be re