The advocate., 1891-10-14

4UU GDlmu6y-DOt HUbAAuS 10 1uu nOasa
hNS roaliZing sense In if; and It Is that which
means diminishment In the volume or clrcuat
Ing money. But bank Withdrawals OF treasury
gold in redemptiOnS Of unlimited tender nOCes,
which result In treasury showing loss 9l H gOIu
and gain of silver and paper, Will be seized upon
by certain influential journals here unscrnpu
lousy. A break In the market price OF silver
(and that threatens) at such time VIII eqnal
''proOf Of holy writ" in support OF fears
The Vice President. The question Is on agree
ing to the resolution.
MIR. Plumb. wish to put the following state
ment here from the financial article OF New
York paper of the 5th day Of the present month
Persons who have made up a calculation nom
the monthly statement or the United SCaIeS
treasury claim that 1t shows that or the $S,6O9,-
600 OF new treasury notes issued In payment lOr
silver bullion, 2,?33 100 have already been pre-
scented for redempi ~ In gold, thus leaving Only
3759O0 In circulation. This statement cannot
be fully authenticated at the Sub-treaSury mere,
but the treasury officials say great part OF the
new notes have come 10 Tor redempuOn'
II that is correct, Mr.. President, and the state
ment contained In the letter which has been
read at the desk Is also correct, the nOdlts OpeT-
andi Is very simple. The checks are Issued In
the payment Of the silver bullion that Is pur-
chased, and as they can not be used at the clear
ing house as ordinry government drafts and
checks and bank drafts and individual checks
are, they 60 at once to the sub-treasury.
Mr.. Teller. should like to ask the Senator If
he can state why they can not be thus used.
Mr.. Plumb. 1 do not know the reason why
they cannot be 80 used. On the contrary, have
no doubt the entire mercantile community and
everybody interested would be glad to have 1t
done. They go to the sub-treasury. Manitestly
the person who goes there with draft to get 1t
paid will take large bills as matter OF cOnven-
Ience, IL he takes bills at all Therefore the bills
which 20 out are not Of denomination which
would naturally be made use Of in the ordinary
transactions of the people, and that Of itself
would result in very considerable contraction
Of the currency.
The Senator from Iowa and other members Of
this body will specially remember the contention
there was In this body over the question OF the
Issue Of treasury notes Of large denominations In
the redemption Of treasury notes Of small denOmi.
nations, and It was finally fixed In an apprOpria-
ton bill by provision requiring the treasury,
when 1t printed new notes in place of old notes
which were retired for any purpose whatever, to
have the new notes printed in the denOmina-
tiOns Of those retired, In order to prevent the
consolidation of the currency Of the country into
handful OF large notes.
More than that, Mr.. President, the opportunity
is presented with fatal facility to the bank or
person who presents this draft to get gold for It,
because, as stated by my correspondent, the
policy Of the treasury Is to redeem these notes In
gold In point of fact, do not suppose the notes
eUer pass Ouer the counter, because the person
presenting the draft lUOud Say: II am entitled to
million dollars of notes, but instead of OtUing
me the notes and putting me 10 the Inconvenience
of presenting them back again for the purpose of
getting gold for them, lVilI simply take the gold
direct" and while bank would not In the or
dlnary course Of business unless 1t had some
malicious intent, gather up from Its own vaults
treasury and greenbackIn0 and take them to
the treasury for redemption In gold, here Is the
very opportunity to do 1t without going out of the
way at all; and have no doubt that some evil
result will flow from 1t whether 1t is conspicuous
ly so or not. AS stated In the letter which has
been read at the desk, that which is Of no good
Is Of evil.
It seems to me that the sooner the treasury
department is confOrmed In its operations to
ordinary business principles the better 1t Is
going to be. There neuer has been in all the his
tory of this government so conspicuous an illus
trattOn Of the impOltcy of GllOlUinO the treasury
department TO hare anything to- do IOhtch OBJ
srllctS or dcceIerdtes business, as has occurred in
the past felO l0eeks. For mOnths-fOr yeGrs-the
treasury department boarded money 'Chtch lcds
needed for the transaction of the business of the
country, and during all that period Of time the
UOIllme of money Uds constantly shrinking by
reason of the retirement Of national bank notes,
and the secretary hlgged 10 his bosom the old
idea that certain amount lCds necessary TO be