, 1890-09-25
SENATE PRooEsDINas.
Plumb aud Sherman Diseuss the
Financial Situation.

1IoouCtbh 6ttu8tions
WARRINGTON. Sept 1s.-In the senate
to-day the resolution offered yesterday
by Mr.. Plumb to recommit the bank
ruptcy bill went over until tomorrow.
Mr.. Plumb offered resolution direct
ing the secretary of the treasury to in
form the senate whether the rule or pol
icy of his department which requires the
payment of checks for silver bullion
over the counter of the sub-treasury,
instead of through tho proper clearing
house, does not result in the paying out
of notes of larger denominations instead
Of those suitable for circulation and use
in ordinary business transactions, and
whether such method OF payment does
not result In the payment of gold in
stead of treasury notes. AS his reason
for Offering tho resolution, Mr.. Plumb
sent TO the clerks desk and had read q
letter from a member of New York
banking-house, stating the facts as 20
the payment of such checks, and
venturing the prediction that the silver
question was not finally settled, and
that New York speculation threatened
to arouse 1t. ''Bank Withdrawals of
treasury gold" the writer said, will be
seized upon by certain influential
journals here unscrupulously. The
break in the market price of silver that
threatens at such times will equal the
proof of holy writ in support OF these
fears"
MIR. Plumb then spoke of the conspic-
uous illustration that had taken place
within the last few days of the policy of
allowing the treasury department to OBJ
struct or accelerate the business of the
country. For years the treasury depart
ment had boarded money and during all
that time the volume of the currency
was constantly decreasing on account OF
the withdrawal of national bank
notes. The secretary of the treasury
had seen the business of the country
hampered ON account of that lack of
money, but he had waited until panic
was mpending-not stock brokers
panic, but stringency of money that
affected the banks OF all the cities, ana
seriously interfered with the operations
of ordinary business--and then the sec
rotary had given money to the holders
of government bonds. under such cir
cumstances as to enable them-and not
him--to control the money supply of
the country during their pleasure. The
money which q few days ago had been In
the treasury, ana which could have been
put out at the will Of the secretary,
was to-day in the hands of the
men who owned bonds to the amount of
$40, ZOO, 600 1t was perfectly safe to say
that these men, having that money,
would use II to benefit themselves, and
not in the interests of the people.
Nothing but an overwhelming calamity
would ever divorce the treasury from
such malicious interference with the
business of the country.
Mr.. Sherman said that while he had
no objection to the resolution, that
which had been done had been done in
strict execution OF the law. The secre-
tary of the treasury had no right TO pay
for silver bullion in anything but treas
ury notes. Those treasury notes had
been issued in large denominations.
There had been only short time TO pre-
pare Tor the execution of the law, and a
sufficient amount of treasury notes
OF small denominations could
not be prepared Those large
notes did not necessarily enter into the
general circulation of the country. He
(Sherman) doubted the policy of paying
years interest on tho bonds in ud-
vance. The financial scuro was u man
ufactured scare. II had been gotten up
by the brokers, BY the bulls and bears
and various kinds of animals who prac-
ticed their trade on the exchanges of
New York. There was. lac admitted, q
great demand for money now ior the
moving Of cotton and grain crops, and
perhaps 10 pay for the Increased guam
tity OF foreign goods imported, in order
TO evade the higher duties un-
der the tariff law. All these
things Mr. Sherman said, would settle
themselves IN u little while. There was
no real serious financial disturbance in
the country. 1t was confined to the city
OF New York. He thought the secretary
OF the treasury should be- permitted to
use his discretion.
Aiter further discussion Mr.. Plumb
resolution WAS agreed TO.
The vice president then announced