Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1888-04-05
THE NATIONS SCAPITAL.
Gold, or Silver or Both as a
Currency Basis?
Weighty Questions Preeipitated
by the Discussion Of the
Bond Purchase Bill
Teller, Sherman, Allison and Others Make
Able Arguments Against the
Democratic Policy.
The House Fillibusters All Day Over
the Senate Direct Tax Bill Oates
and Breckenridge Leading
the Opposition.
WasHISGToS, April 1.
Senate.


! WAsHIsGToS, April T.
| Senate.
/ On motion of Mr. Sherman the Senate con
! sldered the bill to reimburse the depositors
of the Freedmens Savings and Trust Co.
for losses which they incurred by the com
panys failure. When the bill was last be.
! fore the Senate, Mr.. Vest objected to the
| provision to pay the illegal representatives
of the depositors. Considerable debate Ell.
sued on the question of limiting the number
OF persons to whom the claims be paid. Mr.
Plat insisted on taking upas unfinished bus
iness the Bond purchase bill 80 the Freedmen,
! bank bill went over without action. The
Senate resumed the consideration of the
| Bond bill, the pending question being on Mr..
, Beck's amendment. Mr.. Teller criticised
the statement made by MIR. Mcpherson, yes
terday and the day before, in regard to the
silver, as to the country being within sixty
| days, if the amendment should become a
| law, on a silver basis with gold at premium.
/ He read figures to show that the use of silver
coin and silver certificates in the payment of
! import duties is inconsequential, and de-
| clared that there was nothing in the financial
experience of the country or of the world 10
| Justify the statement that if $3.50 ,000, 900 in
silver coin were put on the market, any diff
ference would be made in the relative value
of the silver dollar and silver bullion. He
| said that the great trouble with she people
who prophesied financial distress, was, not
! that they were not honest, but that they were
| ignorant The men who had not studied the
A B c of finance, Immediately assumed
when they came into Office, executive or
! otherwise, to lecture those who had given a
life long study to the question SO the coun-
| try was suffering from the ignorance of self
constituted guardians of its finances. He
further said that the silver question did not
cut any particular figure ON the pending bill.
! The amount of silver that could be coined
under Mr.. Becks amendment would be in
significant and would have little or no intiu-
ence on the value of silver.
The question being on Mr.. Beek's amend
ment, Mr.. Allison desired TO offer an amend
ment to it, to extend the time from thirty
days to sixty days, but was informed by the
presiding officer that Mr.. Bcck's amendment
was one in the second degree, it being al
amendment to Il substitute. The question
was called for and Mr.. Beck's amendment
was agreed to by vote of yeas, 81, nays
/ l3
Mr.. Reagan offered an amendment direct
/ ing the purchase and cancellation of bond.
with the Sl00, 900 900 gold in the treasury
for the redemption of legal tender notes
! Mr.. Farwell asked him whether he meant by
| his amendment to suspend the specie pay
ment for that was the way he 1Farwell) un
derstood it.
Mr. Reagan replied that the question hac
no application at all to his amendment, ant
he proceeded with his argument to show the
easiest, most direct and least injuriou;
way to reduce the surplus was tt
adopt his amendment. Mr.. Beck said the
bill with his amendment was simple propo
stion to allow the use of the surplus in pur
chasing bonds and at the same time to take
care that the present volume of the currency
was not contracted. He appealed TO the sen
ator from Texas to withdraw his amendment
stating that he wonld have an opportunity to
offer il to the bill for the investment of 3
certain sum in the treasury"
Mr.. Reagan, relying on that assurance
with REV his amendment.
! Mr. Sherman moved to amend Mr.. Beck,
amendment by the substituting of silver bul
| lion for silver coin. over two million month
ly.
/ The presiding officer ruled that it was ou
of order as the Senate hai already agreed tt
Mr.. Beck amendment.
Mr.. Sherman said that he knew his amend
meut was not in order but he wanted to show
that the Senate was forced to act upon mat
ter which had not been carefully examined
by the committee. The great distress spoker
of by the Texas Senator was due to the fall
ure of the democratic administration to pur
chase bonds. and of the democratic House tt
pass the Mcl'herson bill, allowing natioDa
bank currency to he issued 10 the full
amount of the bonds deposited to secure
their circulation. lie said that the banks
had been forced to reduce their circulation
because they couldn't afford TO deposit
bond rcpre>, ntug the value of Sl3t
for every $40 of currency issueC
as the law required. Since the democratic
a lministr ton came in, the national bank cur
rency had been reduced one hundred and
seventy millions The banks had deposite,
in the treasury Sl02 ,000, 900 in L. 5. notes,
which was the only way they could reduce
their circulation. That amount was now tied
up as the result of the faulty action of the
House. The democratic policy had brought
on the present financial distress. This dis
tress could be easily relieved by continuing
an efficient banking system and rem iis
the restrictions on the issue of national bant
currency. Notwithstanding the contra elton
the clrEuldIlbD WAS one DlillOD. HFt Huiltltt
million or more than the national debt
The balance of trade had been with us for Il
or II years Gold had been flowing into tn,
treasury ever since specie payments as tn,
result OF that sound policy. The democrats
would like to overthrow the national bank
but the national bank currency was the bes
the countr, ever had. The various propo
sitions offered to the bill were attempts t,
overthrow the National banks There ha,
been efforts to undermine the banks eveI
since the democratic party came into power
not from the President. but from the south
ern States, representatives mainly. The
price of silver had steadily gone down urde
the coinage act 1t cost | andI-2 per cent Il
coin silver. besides the cost of transportation
while the national bank currency cost tn
government nothing. Yet the Senate wa
asked TO substitute the one system for tn
other. 1t was unwise. Twelve or hfteel
wears hence the national banks woult
disappear, because there would b.
no government bonds on which t.
base their circulations. The banxs woult
become bands of deposit. The governmen
would have TO provide some other form o
paper money. He was not opposed TO silver
as some thought. If his policy had bee
adopted silver would never have depreciate
in market value as il had. If 1t couldn't b
) brought to that standard an approach to
could then be made. Then by a conventio
with the European nations new ratio NIGH
possibly be established aad gold and silve
placed side by side as in the past. II
desired TO see the two metal
put side by side with each othel
Instead of coming silver dollars, silver bu
lion should have been made the basis OF ell
culation. He had no objection to the issu
of silver certificates on bullion in the treas
ury at its market value. The United Stat.
should have done as France did and as ever
latin nation has done, not to coin more silvt
than is needed for ordinary traussction'
On the balance of silver bullion, silver ce
tificates should have been issued. Thei
was no objection at all in the minds of II
financial men of this country to the issue q