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

II those who guide the finances of the
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
1t 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 uOlume 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, sin 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 and the Increasing
population of the country, WiU at least dc-
conmodate itself to the condition Of things
no,C 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.. ALDRIoH
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 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
ard embarrass it with various amend
ments. 1 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 $341, 320,256. 1t is now less
thar $170,00e,OOO. In other words, about
$18O,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 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 I have before said, no
one can tell, not single member of the
Finance Committee will even guess shat
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 of
bonds which may or can be purchased un-
der the provisions of this bill.
am told upon what believe to be good
authority, and it is accessible in the REQ
ords, that the national banks of this
country hold about 100000, 900 in bonds as
security for currency beyond the amount
they need to hold in order to maintain
their charters. For instance, many banks
requiring only $4,000 in bonds to retain
their charters have $4,000 and sometimes
100000 bonds in addition, on which cur
rency is issued and outstanding. Such
banks can sell the excess of bonds above
$4,000 by retiring their circulation based
on such excess, or by depositing an equiv
alent amount of greenbacks the Treasury
will retire them, which is the same thing.
This contracts the uolume of currency out
standing, but it may slightly increase the
amount actually in circulation, that is, 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
Secretary of the Treasury should act upon
the theory which has heretofore controlled
him, it is not probable that he would buy
more than S6O,O00,0O0 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 pass bill as
a matter of emergency which no one will
say what the effect of will be, except the
one effect of putting the money out of the
Treasury into the hands of the holders of
bonds, without any reference to the effect
it may have upon the volume of the cur
rency.
But, Mr.. President, it may have another
effect of an injurious kind. The Treasury
Department is in dctire partnership Nth the
national banks. The Secretary of the
Treasury has loaned TO these banks orer s6f,-
100000 Of the public funds instead Of buying
bonds and saving interest. He has chosen
to do this, and up to date the banks have
been willing to receive the money. 10 cost
them nothing and they could loan IL to the
people for current rates of interest. But
now the banks have got to 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 and in bulk, and
those of them who have read history know
that in the only other period when such a
partnership was entered upon it proved
disastrous to the banks, disastrous to the
Governman4 and disastrnus IN the manila