Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1892-09-29

III announcer way, 1 very cheerfuily yielded;
and shall, therefore, most cheerfully sup
port the amendment of the Senator from
Kentucky, as it has been amended by his
suggestion and that of the Senator from
Iowa.
If there were anything necessary beside
what has been offered to show how very
important this amendment is, would ask
Senators to turn to Senate bill 1853, Calen-
dar No. 1856, reported from the Finance
Committee, and which that committee has
been talking about taking up to-day. l
believe suggestions have been made that
if anybody wanted to amend anything
which came from that committee he could
amend that bill. Section of that bill, as
reported, reads as follows:
That hen any national banking association shall
deposit with the Treasurer Of the United States in
the provided by law, the q per cent. bonds
authorized by this act, or any bonds Of the United
States bearing higher rate of interest, as security
for its circulating notes, the association making
such deposit shall be entitled to receive circulating
notes, in manner, form and denominations author
lied by law not exceeding In amount the par value
of the bonds so deposited, etc.
If that should become a law, national
DOuQb VI Ill uouOuluhblOus anu IdICo VI
interest would be enormously appreciated
in value. The Senator from New Jersey,
who sits facing me, will remember the
debate we had on a similar proposition in
this body, think two years ago, in which
I said then, in regard to a proposition
which he introduced, and which the Sen
ate finally, on his motion, passed, that if
it became a law the result of it would be
to add at least 8 per cent. to the value of
every dollar of United States bonds out
standing.
Mr.. SHERMAN. What is the number
of the bill?
Mr.. PLUMB. Senate bill 1863. 1t might
fairly be entitled "a bill to increase the
premium on national bonds outstanding"
But while that is true, no one could tell
what other effect might follow OF course
the primary design is not to increase the
premium upon the bonds, but it is to in
duce the national banks to take out more
circulation, and thereby increase the vol
ume of n8tiOnal-bank notes outstanding.
But it might have-it would undoubtedly
have in some cases precisely that effect,
for the very moment that the bonds began
to appreciate in value, as they would as
soon as they began to be purchased for
this purpose, there would be the tempta-
ton on the part OF the banks to realize
the excess of premium created by this
very act and throw them upon the market.
AS said, no one can tell what the effect
of that might be upon the volume of the cur
rency. 1t might immensely reduce it. 1t
undoubtedly would in some cases. There
vouId ha parioda uhau tho Currapcv uOuld
60 down, and other periods perhaps when it
would go up. 1t would induce fuctua-
ton of amount beyond anything that has
been known under existing law. For the
purpose of that stability which ought to
be the principal object in all legislation
concerning currency, such a proposition
as the Senator from Kentucky has now
made, or the one similar to it which l
made the other day, and which the Senate
voted into the bill, ought undoubtedly to
be the accompaniment of this legislation,
or at all events of some legislation.
There has been another gain, too, by
reason of this discussion. The Senator
from Ohio is not now so solicitous that
there shall not be silver certificates. He
is willing to admit that there could be
more without improperly, and that it is a
great gain. But he wants to have them
based, not upon coin but upon bullion, and
there he has made no progress. He is
willing that there shall be an unlimited
amount of gold coin, and that certificates
shall be based upon gold coin alone, not
upon gold bullion; but he insists that there
shall be a distinction between gold and
silver, applicable whenever and wherever
this question of the relative merit comes
up, whereby one shall be stigmatized, one
shall be placed in relation inferior to
that of the other; and that, 1 take it, will
be the only outcome of his suggestion
that the amendment shall be so modified
as to require the issuance of certificates
upon bullion and not upon coin.
1t is true, Mr.. President, as true of gold
as it is of silver, that the people of the
United States rant neither for actual use
as currency, for manual delivery in any of
the processes of trade which equire the
use of money. have before me the last
report of the Secretary of the Treasury,
showing that $120,4S6,S17 of gold certifi-
Gates are outstanding, and $145,543, $50 of
silver certificates are outstanding The
excess of silver certificates is not great.
This statement shows that the people of
the United States do not want coin as a
circulating medium, that for the purposes
for which they use money they want paper.
whether it be the actual representative of
coin or not, at all events, it is to be paper.
As applied to the uses made of gold and
silver certificates, it is plain that the peo-
nile of the United States do not want