Los Angeles herald., 1890-04-15
A NEW FINANCE SCHEME.
Senator Plumb Introduces a Bill to Pu
More Money in Circulation.

Senator Plumb Introduces a Bill to Put
More Money in Circulation.
WASHINGTON, April 14.-In the Senate
today Plumb introduced bill for the
disposition OF certain funds in the treas
ury, and asked that it be read, as he de-
sired to call the attention of the finance
committee to its provisions. Itprovides
that the money required to be deposited
for the redemption of the national bank
circulation, be carried into the treasury
and treated as funds available for the re-
duction of the public debt, and for the
current expenses of the Government !;
that all funds held for the payment of
matured debt and interest due and un-
paid, be similarly treated, and hereafter
no funds available above the sum of ten
millions be retained in the treasury.
This is not to be construed, however, as
permanently diminishing the fund of
$100.000,000, now held for the
redemption of treasury notes. He
said there was at present less than
500, 100000 of circulation for the use Of
the 65,000,000 people of the United
States-prabably not more than $40 per
capita. The system of finance that had
been built up and maintained had
brought about that result. 1t had its
merits and it's great defects. One of the
greatest defects was the compulsory
holding in the treasury of a very large
sum of money on the theory that it was
needed, and on the further theory that
the Secretary of the Treasury was to be
the arbiter of the financial questions of
the people. 1t had been stated in the
public prints that in pursuance of his
policy of controlling the finances of the
country, the Secretary of the Treasury
had contracted currency during February
of over ten millions. He (Plumb) be-
lieved the retention of the money in the
treasury, and the assumption on the
part of the Secretary to do what might
have been at the time proper,
but which now constitutes a men
ace to the business of the country,
ought to be prohibited by law. A Sena-
tor sitting near him had asked him for
what nominal purpose 50,000,OO0 was
held in the treasury. He would tell
him. One hundred millions was held
in assumed obedience to the law of
1882, to provide for the redemption of
legal tender treasury notes. Sixty odd
millions was held for the redemption of
national bank notes, of banks that had
gone out of business, or that were re-
firing portion of their circulation. Be
tween five and six millions was held for
the redemption of such notes of national
banks as from time to time came into the
treasury and were found to be unfit for
further circulation. About seven
millions was held for the pur-
pose OF payment OF coupons
due and not presented, and
of debt which had matured from time
to time, but the evidence OF which had
not been presented, and some which
probably never would be presented, AS
to the remainder, it was impossible to
tell why it was held. The confusion OF
subjects and of amounts was such that
it was impossible for any one to tell
about it; but the whole sum retained
was about $3.50, 100000. During the last
year nearly $40, 100000 of national bank
meet that reduction there was coinage
of silver of two millions monthly and
a coinage monthly of gold; but
experience showed that not only
were these two agencies needed,
but there was also needed
paper money. The business OF the
country was languishing; new enter
prises were withheld, old enterprises
were struggling to keep on their feet
That state of things would continue
until a remedy was attained, and that
remedy could only come by legislation,
because legislation, combined with
executive action, had brought the