People's voice. [volume] (Wellington, Sumner County, Kansas) 1890-1917, 1892-09-30

~ shOoO WIN buiuo buo uuouOoo VI buo
country, if those who by reason of their
familiarity with them and their promi-
nent relation to the subject heretofore,
are prepared to offer nothing now of an
affirmative character, calculated to give
back to the country the currency of which
it has been deprived, they ought at least
to be willing to say that where this con-
traction of the currency is now it shall
stop; that is, it shall go no further.
The Senator from Delaware Mr.. SAULs-
BURY the other day spoke with great feel
ing about the mortgaging of farms in this
country. So far as that complaint relates
to general condition, to the lack and to
the shortcomings of legislation, il is more
nearly related TO the diminished rOlume of
currency than 10 any other one thing.
For my part, l do not care to rest any
longer under the responsibility of this con-
dition. | at least shall, ain season and
out of season." and on every proper bill,
move amendments of this character until
Congress does something better, | hope,
than l propose, but at least something
which, if it does not provide for the
expanding commerce and the Increasing
population Of the country, tViH at least dc-
commodate itself 10 the condition of things
noU eristing, so that the currency shall not
be further diminished until some PROPOSE
ton which shall meet with the consent of
Congress and of the President shall be
adopted to dispose of this question for all
time to come.
Mr.. MORRILL,. If the Senator from
Kansas had noticed what was on the Cal
endar, he would have discovered that
already there are two bills which have
been reported, one by the Senator from
Ohio Mr.. SHERMAN and another, Order
of Business 1856, by the Senator from
Rhode Island Mr.. ALDBIcH
But without discussing at this time the
merits of the proposition introduced by
the Senator from Kansas-and l do not
know whether l have any hostility to it or
MOTT does seem to me that it is more
important that we shall act upon the
measure that comes to us from the House
of Representatives than to cucumber it
and embarrass it with various amend
ments. l therefore move to lay the amend
ment of the Senator from Kansas on the
table.
Mr.. PLUMB. Mr.. President, if there be
urgency it is for the passage of such a
proposition as is embodied in my amend
ment. The urgency is, or should be, to
prevent the further contraction of the
currency; to secure to the people of the
United States an ample supply of money
with which to transact their business.
On the 26th day of December, 1873, the
volume of national-bank notes outstand-
standing was $34l ,32O256 1t is now less
than $170,00e,000. In other words, about
$lS0,0O0,000 of national-bank circulation
has been retired, has absolutely disap-
peared during the past IA years.
Mr.. President, the pending bill is JUST.
fed on the ground that in the event the
Secretary of the Treasury should conclude
to obey its mandates the surplus in the
Treasury will be thereby depleted and the
currency in circulation be increased in vol.
ume by the amount of the surplus thus
paid out. But, as / have before said, no
one can tell, not single member of the
Finance Committee will even guess-that
is, he will not guess out loud SO as to be re-
sponsible for his guess-as to the amount
that will be added to the circulating me
dunn of the country by the purchase o.
bonds which may or can be purchased IN
der the provisions of this bill.
lam told upon what l believe to be goot
authority, and it is accessible in the rec
ords, that the national banks of thi
country hold about $60,000,00O in bonds a
security for currency beyond the amour
they need to hold in order to maintain
their charters. For instance, many bank
requiring only $4,000 in bonds to retail
their charters have $4,000 and sometime
100000 bonds in addition, on which cur
rency is issued and outstanding. Sucl
banks can sell the excess of bonds abov
$25,OOO by retiring their circulation baset
on such excess, or by depositing an equiv
alent amount of greenbacks the Treasur,
will retire them, which is the same thing
This contracts the roIume of currency out
standing, but it may slightly increase tn
amount actually in circulation, that is, b,
10 per cent, the difference between tn
face of the bonds and the currency baset
on them.
If this bill should become q law and th
Secretary of the Treasury should act upol
the theory which has heretofore controlle,
him, it is not probable that he would bu,
more than $6O,0OO,00O of bonds, and if b
did not it would be possible, if not prob
able, that these bonds would all com
from national banks now holding them a
security for circulation, and thereby ther
would be practically no increase Of tn
amount of money in actual circulation b
reason of the purchase of bonds require
by this bill.
We are urged, therefore, to pass bill q
matter of emergency which no one wi
say what the effect of will be, except th
one effect of putting the money out of th
Treasury into the hands of the holders o
bonds, without any reference to the effec
it may have upon the volume of the cul
rency.
But, Mr.. President, it may have snoths
effect of an injurious kind. The Tredsur
Department is in actire partnership tUith d
national banks. The Secretary of th
Treasury has loaned TO these banks orer IS 1
900, 900 Of the public funds instead Of buyin
bonds and saring interest. He has chose
to do this, and up to date the banks hay
been willing to receive the money. II Co
them nothing and they could loan il to q
people for current rates Of interest b
now the banks have got to point wher
they are declining, l understand, to recei'
any more public money on deposit, becau;
they believe the money liable to be Gale
for at any time, suddenly and in bulk, an
those of them who have read history kno
that in tho only other period when such