The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1888-04-17
MONETARY MATTERS.
The Senator's Discussing FL
nancial Problems.
STEWART ON NATIONAL BANKS.
For Public Building In
Salt Lake-Etc.
SENATE:

WASHINGTON, April 16.-Stewart in
troduced bill granting a pension of
$4,000 a year to the widow of Chief
Justice Waite.
At the close of the morning business.
Senator Farwell delivered speech in
favor of the maintenance of the ma
tionel banking system, aud was fol-
lowed by Senators Stewart, Beck and
Reagan ia a general financial discus
sion.
Hoar offered resolution (Which was
adopted) instrucling the select COM
mittee on the operations of the civil
service to inquire and report whether
there has been, within two years, any
fraud or maladministration in the New
York custom-house in regard TO the i'm
portation of sugar.
Rlddleberger offered a resolution of
the suspension of the Senate rules as to
the executive sessions during tho con-
sideretiou of the fisheries treaty. The
resolution went over under the rules.
The conference reports on the bills to
divide the great Sioux reservation into
separate smaller reservations, and to
ratify and confirm the agreement with
the eros Ventres and other bands OF
the Blackfeet Indians in Montana, were
presented and agreed to.
On motion of Farwell, the bill proVid-
ing for the investment Of certain funds
in the Treasury, was taken up, and
FarWeIl proceeded to address the Sem
ate on the financial question. He gave
notice of his intention to offer two
amendments to the bill. One of them
directs tbs Secretary of the Treasury
to issue and sell to national banks,
at par, for United States note,
United States IN per cent. bonds, re
deemable after fifty years, to De used
by the banks as security tor their cir
oulating 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 amolnt to be received
from these bonds in the purchase OF
any United States bonds in open mar
ket, and repeats al this sinking funds.
The other amendment authorizes the
Secretary of the Treasury, in order to
enable the national banks to maintain
and increase their circulation, and to
prevent the ultimate destruction of the
banks by the purchase or payment of
the national DEBT, to receive from the
banks, to secure their circulating notes,
C. ~
which the interest has been hereto
fore promptly paid, and whose market
value is bearing interest at not less
than per cent. Such bonds, however,
are not to be received by the Treasurer
at more than IS per cent. of their par
value, nor until the approval OF the
Secretary of the Treasury OF the United
States ami Comptroller of Currency
shall be endorsed upol them. Farwell
went on to say the bill was good
enough as far as it went. 1t did not
include the whole financial question,
which he regarded as OF permenent
interest, but only proposed to temper
izs with it. 1t simply reduced the in
terest on the 4-per-cent. bonds to 215
per cent. These bonds amounted to
over 500 100000 and matured in 1907,
and it authorized the national
banks to receive circulation at
par upon this and upon all other United
States bonds. The Dill did not remedy
the evils of the present financial condi-
ton. The 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 tine best ever devised) should
be continued. His amendments, if
adopted, would enable the national
banks to use the present debt of the
United States. If that debt could be
continued at its present value, the legis-
lation proposed by him would be
adequate to the maintenance 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 differences to any
body in this country was to accept the
inevitable and make readjustment at
once. Ii it were desired to make
the silver dollar equal to gold, the
requisite quantity of silver should
be put into it. Then nobody would be
cleated. In conclusion, he said: "Un-
der these amendments, or Dy some other
similar legislation, L would refund the
present public debt at 81 per cent. at
banks to receive circulation at par for
such amounts as thew might use for
th It purpose. W q d IeIute the
Secretary of the Treasury to invest this
surplus in the purchase of any indebted
ness of the government in open market,
from time to time | would have spent
the requirements of the sinking fund,
because if the Secretary is authorized to
buy the public debt 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 without the interference on the
part of the government, l would allow
them to maintain the volume OF the
national bank circulation up to
the amount of the national debt,
by State. county and municipal bonds,
as provided for in the last amendment,
which 1 proposed. If such legislation
can be passed. we will hear no more of
money stringencY or panics.
Reagan said his wish was to see the
country relieved of the bonded debt
So early as possible. He did not deny that
national banks had subserved very
valuable purpose, both during and
since the war. but he had not regret
that the time was approaching when
al ar shortfd boo0ne extinct They had