The advocate and Topeka tribune., 1892-10-05


country, if those who by reason of their
familiarity with them and their prom1-
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 1t SHAH
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 a general condition, to the lack and to
the shortcomings of legislation, it Is more
nearly related to the diminished UOtitTEle Of
currency than to any other one thing.
For my part, do not care TO rest any
longer under the responsibility of this con
ditiOn. l at least shall, g in season and
out of season." and on every proper bill,
move amendments of this character until
Congress does something better, hope,
| than I propose, but at least something
which, if it does not provide for the
expanding commerce and the Increasing
| population of the country, GOiU at least dc-
conanOdGte ttself to the condition Of things
Roto ectSting, so that The currency shalt MOI
be further diminished until some prope%
! tion which shall meet with the consent Of
! Congress and of the President shall be
adopted to dispose of this question for ali
| 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 1876, by the Senator from
Rhode Island Mr.. ALDRICH
But without discussing at this time the
merits of the proposition introduced by
! the Senator from Kansas-and l do not
know whether have any hostility to it OF
| 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 il
| and embarrass it with various amend
ments. 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 6
proposition as is embodied in my amend
ment. The urgency is, or should be, tC
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 $341, 1876, 1856. It is now less
than $17O,OO0,000. In other words, about
$1SO,OOO,OOO of national-bank circulation
has been retired, has absolutely disap
peared 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 it's mandates the surplus in tht
Treasury will be thereby depleted and th'
currency in circulation be increased in vol
ume by the amount of the surplus thu
paid out. Butt as I have before said, nC
one can tell, not a single member of Abt
Finance Committee will even guess - tka
is, he will not guess out loud so as to be Sc
sponsible for his guess as to the amour
that will be added to the circulating me
dium of the country by the purchase o
bonds which may or can be purchased un
der the provisions of this bill.
I am told upon what 1 believe to be gooC
authority, and it is accessible in the rec
ords, that the national banks of thi
country hold about $6O,OOO,OOO 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 retain
their charters have $4,000 and sometime
100000 bonds in addition, on which cur
rency is issued and outstanding. SCcl
banks can sell the excess of bonds abov
$4,000 by retiring their circulation basei
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 UOLlne of currency oitt
standing, but it may slightly increase tn
amount actually in circulation, that is, b.
10 per cent, the difference between th
face of the bonds and the currency baset
on them.
If this bill should become a law and tn
Secretary of the Treasury should act upOl
the theory which has heretofore cOntrOllet
him, it is not probable that he would bu,
more than $60,O00,0OO of bonds, and if h
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 req quire
by this bill.
We are urged, therefore, to pass bill a
a matter of emergency which no one wi
say what the effect of will be, except tn
one effect of putting the money out of tn
Treasury into the hands of the holders o
bonds, without any reference to the egS'
it may have upon the volume of the -
rency.
But, Mr.. President, it may have anotke
effect of an injurious kind. The Treasrr
Department IS IN actire partnership tOith .Es
national banks. The Secretary of th
Treasury has loaned to these banks oreY s6f
100000 Of the public funds instead of baslJi,a
bonds and saving interest. He has chosen
to do this, and up to date the banks hav
been willing to receive the money. It COS
them nothing and they could loan 1t to th
people for current rates of interest. Bu
row the banks have got to a point wher
they are declining, I understand, to receiv
any more public money on deposit, becaus
they believe the money liable to be calIet
for at any time, suddenly and in bulk, an,
those of them who haveread history knol
that in the only other period when such
partnership was entered upon it proves
disastrous to the banks, disastrous to ia
Government, and disastrous to the peopie
Meanwhile the Secretary has given to tn
banks the use OF funds which has yielde.
them not less than $5.0OO,OO0 which Is.