The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1892-09-30

country, if those who by reason OF their
familiarity With them and their promi-
nsnt relation to the subject heretofore
are prepared to OHsr nothing nov of an
Affirmative character calculated to give
back to the country the currency of which
il has been deprived, they ought at least
to be willing to say that where this con
traction OF the currency IS nov -t snail
stops that is, it shall go no further.
The Senator from Delaware Mr.. 5AUL5-
EUzT she other day spoke with great feel
ing about the mDrtgaging of farms IN this
country. So far AZ that com plalut relates
to a general condition to the lack and to
the shortcomings of legislation, &c IS more
nearly related to the diminished U0LuHLG Of
currency than to any other one thing
For my part, do not care TO rest any
longer under the responsibility OF this con
diUion. I at least shall, " in season and
out Of season" and on every proper bill
move amendments OF this character until
Congress does something better hope
than 1 propose, but at least something
which, if it does not provide for the
expanding commerce aud Lls Increasing
population Of the country, JUiN at least &c
comHlodate itself to the condition Of things
a0lg eristfHg, so that The currency shat not
be further diminished until some PROPOSE
tion 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
endaF, he would have discovered that
already there are two bills which have
been reported one by the Senator from
Ohio Mr. SHEHlIAE J, and another Order
of Business 736r by the Senator from
Rhode Island Mr. ALDEICH
But without discussing at this time the
merits of the proposition introduced by
the Senator from kansaz-and do not
know whether j have any hostility to IL OF
mott does seem TO me that 10 is more
lam aHr mt
measure that comes to us from the House
of Representative than to cucumber it
and smbarrsss it with various amend
ments. I therefore move to lay the am end
meut of the Senator from Kansas on the
table.
Mr.. PLUMB. Mr.. President, if there be
urgency it is for the passage OF such
proposition as is embodied iu my amend
ment. The urgency is or should be- to
prevent the further contraction of the
currsnCyi to secure to the people of the
United States an ample supply of money
with which to transact their business
On the goth day of December 1873 the
volume OF uational-banE notes out5taud-
standing was $34Is 82O,256. 1t is now less
than $4,000 900. In other Words about
SI8O,OOO,OOO of nstiouaI-bank circulation
has been retired, has absolutely di5ap-
pearsd during the past IA years.
Mr.. President, the pending bill is Justi-
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
ums by the amount of the surplus thus
paid out. But, as / have before said, no
one can tell, not a single member of the
Finance Committee will even gue6s-that
Is, he viii not guess ont loud go as TO be re-
BpOuslbie for his guess as 60 the amount
that viii be added to the circulating me-
dium of the country by the purchase of
bonds which may or can be purchased IN
der the provisions OF this bill.
am told upon what believe to be good
authority, and il is accessible in the rec
oEds, that the national banks of this
country hold about S6O-OO0,OOO in bonds as
security for currency beyond the amount
they need TO hold in order to maintain
their charters. For instance many banks
reg hiring only $4,000 in bonds to retain
their charters have $4,000 and sometimes
100000 bonds in addition on which cur
rsuCy lis Issued and outstanding such
banks can sell the excess of bonds above
$4,000 by retiring their circulation based
on such excess or by dspositIng an equiv
alent amount of greeubacEs the Treasury
will retire them which Is the same thing
THIS contracts the U0tUHe Of currency out
standing, but it may slightly increase the
amount actually Ia circulation, that is5 by
10 per cent, the difference between the
face of the bonds and the currency based
on them
If this bill should become a Law and the
n
the theory which has heretofore controlled
him, it is not probable that he would buy
more than $GCl0OO,OOO OF bonds. and if he
did not it would be possible if not prob
able that these bonds would all come
from national banks now holding them as
security for circulation and thereby there
would be practically no increase of the
amount of money in actual circulation by
reason of the purchase of bonds required
by this bill.
We are urged, therefore, TO PGzs a bill as
matter of emergency which no one viii
cay what the effect OF viii be, except the
one eject Of putting the money out OF the
Treasury into the hands OF she holders Of
bonds, without any reference TO the eject
10 may have upon the volume of the cur
rency.
But, lIr. President, it msy have another
sszact of an injurious kind The Treasury
Dsd1a----s55 IS 10 uciius partnership JJiEh tlle
national lzr-s- The Secretary of the
Treasury Hus ldf----i p these banks ousr 90 D.
0Q0g9J9 cf the 1ll5iie f--as instead Of btfYfl-5
bonds lud sUuigg Interest. lll-las chosen
to do thiss and mp TO date the banEE have
been willing 20 receive the money. Vi cost
people for current rates ~ interest But
nov the banks have got TO a point where
they. are declining understand TO receive
any more public money on deposit because
they believe the money liable TO be called
for at any time, suddenly ana i'm bulk. ana
those OF shem who have read history know
that in the only other period when such
disastrous 80 the banks, disastrous to tine
Government, and disastrous 90 the people
AIeauuhile the Secretary has given TO the
banks the use OF fuEdz which has yielded
them not less than s5oogCO1 which the
people have PAID and has failed TO save