The Indianapolis journal., 1890-12-12
Free Coinage Senators Endeayor to Have the
Elections Bill Laid Aside and Financial
Measures Considered in Its Place.
Plans Suggested BY Secretary Window
and House Committee on Banking.
How the National Silver Association WouId
Solve the Problem-Congress Urged to Put
the White Metal on q Par with Gold.
THE FINANCIAL SITUATION.
Congreas Urged to Drop All Else and Pas
Bills to Relieve tho Striugency,

posed to the adoption of the elections bill
10 side-track that measure with financial
proposition of some kind The most ar
dent advocates of free coinage of silver ara
among those opposed to the adoption OF
the elections bill. but these men are not re-
spoLsible alone for the effort being made
90 give precedence to q bill intended to re-
iieve che financial situation. During the
past week probably one hundred of the
leading moneyed men of the East have Wis.,
tied Washington and urged q number of
propositions affecting national banking,
coinage and the surplus, and these men
have insisted that the elections bill should
be laid aside for some kind of measure
which will increase the circulating medium
OF the country. The fact that the Repub-
hcan senatorial caucus last night failed
to reach any definite agreement
as to what should be done to bring about
vote upon the elections bill is pointed to
as evidence that the visit of the financers
has had effect. and that there is proba-
bility of the elections bill being side
tracked. Only appeals from business COM
munities and the people at large, who are
markes. could have any influence upon the
fdends of the elections bill to the extent of
weakening them in their position. The de-
termination, however. of the Republicans
to begin the debate upon the elections bill
at 10 o'clock IN the morning, and TO con-
tinue it until IL O'Clock at night. with only
short intermissi0n for dinner. is by many
taken as stronger evidence of renewed
determination to finally adopt the measure
than any movement which may be going
on to displace the elections bill with any
thing else. In accordance with instruc-
tions of the cacus, last night, Senator Ed
munds has appointed Senators Plumb.
Hale, Mitchell, Mcmillan and Power as
members of the caucus committee to act
finance committee in framing scheme of
financial legislation to be submitted by
the caucus.
There has beed greal of talk around the
Capitol to-day about the financial situa-
tion In connection with the consideration
of various measures, and especially the
elections bill. On the House side the ac-
tion of the committee on banking and
CURRENCY in determining to push the bills
glssrs nstiopal banks the full par value of
circulation upon bonds deposited, reducing
the minimum of, circulation required for
each national bank to 81 900. and authoriz-
ing the States TO tax national bank notes.
is regarded as evidence that at least the
committee is determined to have some
kind of action upon the national bank
question at this session of Congress. These
are old bills which have been acted upon
favOrably by the Senate committee on
finance, and indorsed by Senator Sherman
especially. There is very, little doubt now
this session, but just what step will be
taken toward free coinage. and what Will
be done in any direction to make money
more plentiful is left for the Senate. The
House awaits the pleasure of the upper
branch of Congress, and expects 1t to take
the initiative
lt is probable that Secretary Window
will make a proposition to Congress in
tended to give material relief to the money
market. There are now idle III the treas
ury about five millions of the old trade dol
lars, which have been retained as part of
the bullion surplus. and about fifteen
millions worth of subsidiary silver coin,
most. if not all, of which are so much worn
or mutilated as to be unit for current use.
The Secretary is thinking of recommending
to Congress the passage of a bill authoriz-
ing him to place these twenty million dol
lars IN tho treasury as bullion. and issue GER
titcates against the amount, the latter to be
circulated as surplus. It is believed that
S25, ,OO0. 600 thrown into the surplus at this
time would go great way towards tiding
over the financial stringency. If some-
thing is not done to increase the surplus it
is feared that the national banks having
OopOeltS Oh tuo ROVtIumouC Will De aSkeQ
to give up 10 per cent. or more of their gov
ernment funds.
ACTION OF THE HOUSE COMMITTEE.
When the House committee on banking
and currency met this morning there was q
general discussion of the situation. There
was considerable difference of opinion man.
ifested. Several members thought that the
great need was @ restoration of public con-
fidence, and that with this secured, fnan-
cial affairs would right themselves. Mr..
Walker and one or two other members of
the committee were in favor of additional
legislation in the interest of the national
banks. and Mr.. Walker will draft a bill to
meet his views of what should be done to
permanently better the financial situa tiOn,
The result of the discussion was the adOp-
tion of a resolution to request ths House to
set apart a day for consideration and dlspO-
sition of Chairman DOrsey's bill to reduce
to $1,000 the minimum amount of United
States bonds which national banks shall be
required 10 keep on deposit, and to permit
the issue of circulating notes by national
banks to the full amount of the par value
of bonds deposited This would, it was
culation almost immediately by S1S.000000,
and would result in q freer issue of ma
tional bank notes by making the loss on
circulation insignificant, or perhaps moth
lUg 1T 6li. w ucU tuc VII cOtQtS up THO
House, Chairman Dorsey, IN behalf of the
committee, will move an amendment to
provide for the issne of greenbacks when
ever the national bank circulation falls be-
low S1S5, ,000. 900.
Mr.. Morrill, of Kansas was authorized
to report favorabiy on bill to subject
national banks and United States treasury
notes to State taxation. In his report On
this bill Mr.. Morrill, says: ''Your commit
tee can see no good reason why one form of
currency should be exempt from taxation
while another Is liable to be taxed. Gold
and silver are taxable. and certificates or
treasury notes redeemable in gold and sill
yer ought to be placed on the same basis. !"
Mr.. Dorsey. in speaking of the situation,
said: "rho circulating medium of the
country is too small. Nearly every one ad-
mits that. But we could get along as We
did before IL confidence could be restored,
and we hope to do that and TO increase cir
culation by the bill we will call MP. The
banks all have more money in their vaults
than they ever had before. All the West
ern members concur in that. Our little
banks have twice as much money In their
vaults "a they formerly carried The big
banks will not rediscount our bills, and we
have to protect ourselves. Then q great
deal of money has been taken out of banks
by people who have become alarmed at the
course OF legislation and have locketi their
money in safe-deposits. A great deal OF
money has been sent abroad TO buy consols.