New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-24

although the Senator from Massachusetts tMr
Hoar) mad said that 1t was likely or nropaDie 'hat
that officer had. in some slight ana tri'i Respect
violated the law Of the land.
Mr. Hoar denied having said anything OF the
kind.
Mr. Mapderson 49, Neb) was not prepared TO
say that the technical violation Of the law by the
National banks OF Boston, New-Nork ana Phiia-
deIpha was not perfectly justifable In The present
deplorablc condition OF the country. But he did
not agree with the Senator from Massachuset's
that It was we'll TO cover up from the knowledge
OF the people exactly what course Was D'''e P'
sued by the banks.
Mr. Mcpherson Dem. \. j. favored the REFER
ence of the resolution and said that II there hau
been technical violation OF the law by the oa"N7
the Finance Committee would investigate ana re-
port It, The arrangement Of the Controller OF the
Currency at this particular time would make ''e
panic worse; and he did not think 1t proper Inc
resolution should go TO the Finance Committee.
Mr. Wolcott Hep.. Col) opposed the relerehce
OF the resolution. because he thought tha' 'he
Finance Committee would report that II was Oh ''e
utmost Importance TO have the information, p"'
that owing to the condition Of anairs anu III.
necessity OF inspiring confidence the Senate shouio
not have It.
Mr. German Dem Md argued in favor OF 'he
reference of the resolution. For the third or ioui
time. he said. during the present monetary sys
tenn. a point had been reached where the Na''o""'
banks were a Idlure 80 Idr as iHeii P""N'
lievc the condition of the country was cohcerheu'
II had been reached in 1873 1877, 1887, 1892 ana no"
in 1890. At these periods IL utterly lmpossipV
for the banks to comply literally win the Jaw,
They had violated 1t by refusing TO pay chechs VI
depositors and had issued Clearing House cer''"
Gates. They were doing that to-day lhey hau
done 1t with the eye of the Secretary OF 'he
Treasury and of the Controller of the Currency
upon them; but the enforcement OF the law on any
of those occasions would have resulted IN 'he ue-
structon not only of the financial insu'utons' ou'
of every interest of the country. Never had there
been a period half so threatening as that WING"
confronted the Senate to-day.
Mr. Hoar-Suppose the Controller OF the Nu'-
rency shuts up these banks. will not the result De
that every one of these banks will have TO De
placed in the hands Of a receiver, and that nobody
will get any money?
SENATOR GORMAN'S VIEWS.
Mr. Gorman-The Senator states the law ne
knows that that is the law; ana the mover Vi ''ie
resolution and every gentleman or intelligence III
the United States understands that that Is 'he
fact Every one knows that there is a technicai
,o, ,,on NJ the law: but 1t is the duty of the men
In charge of the Government not to add to the
distress Under our present system OF hnance 'he
banks are powerless unless they act as they are
acting There is relief to be gwen 10 'he'l
On former occasions relief was given by the sale
of bonds. by the deposit of Government funds in
terest on the bonds But now none Oh these
remedies can be applied. The Secretary OF the
Treasury and his chief find themselves poweriess
TO give relief Bonds cannot be redeemed lot you
have left nothing in the Treasury to redeem mem
with. No deposit of Government FUNDS can De
made in the banks, because the none! Is ho' /"
the Treasury The adoption of the pending reso-
,u,;on would be understood by the country. and
nv the executive officers expression OF opin-
ion by the Senate that the law must be ehlorceu'
and that would mean destruction TO the interests
of the country We have come here not 10 pro-
duce further distress. but to give RELIEF 10 the
country in whatever form We can do So The
rule or custom of the Senate that any senator
NAV call upon the department for Information
ought to be in this violated and set aside IN
the interest of the common country
Mr. Hill Dem y. " replied to Mr. German
The only object of referring the resolution was ne
said not to act upon it. There never had been so
had a case in the history of the country that It's
advocates had not always pleaded that the matter
oonn,ained of was in the interest OF the public
welfare.
Mr. washburn Gep Minn)-What does the Sen
ator from New-York propose that the Senate
sbau do if the Controller of the Currency reports
that there has been a technical violation of the
law?
Mr. HILL have made no proposition That Is
a matter for the Senator from Kansas He must
he the Judge Of what is his duty under the cir
cumstances
Mr. Washburn-It seems to that. If this
resolution be adopted, 1t will be a notice to the
Controller of the Currency to administer the la"
literally and technically. The result of that Will be
TO close every bank in the country and place II
in the hands of receiver That is calamity
which we should try to avoid In the present de-
plorable condition of the country.
Mr.. Mitchell CRep Ore) criticised the resolution
as calling rather for a legal opinion than for the
fact nd he suggested u mOQifcdtlOn OF IL III
conformity with his views.
WANT OF HONESTY" SAYS Mr. 81 TIER
Mr.. Butler Dem, S. c. favored the resolution
and opposed its reference. He mentioned a state
ment made TO him by the president OF manufac-
turing establishment TO the effect that in order TO
draw out of a bank portion of his deposit. he
had 10 pay ~ per cent discount. 1--WE have heard
a great DEAL" said Mr.. Butler. las to the want OF
confidence in the country and as to It's beins
brought about by the Sherman act The Sherman
act had about much to do with it as the pebble
i, is a want Of honesty. We may as well speak
plainly The he, sooner the country finds 1t out the
MI. Cpllom Rep.. M expressed indifference as
should be- RETIRED fe he did not E hs
any information would be given that would disturb
public affairs, When all the facts were stated no.
Mr. Cockrell Dem. Mo)-Wn not the informa
ton rather inspire confidence on the part of de-
Mr. Cullom-If the banks of the country and the
a legal and lawful way, the information. instead OF
doing injury, will do good Whatever may have
been the course OF the banks OF New-York. Boston
and Philadelphia, there has not been an houl
West, believe and especially OF the great city OF
Chicago deposition could not draw his checl
and get the money for It, But am not disposed L
criticise the action of the New-Eork bankers OF
the question of using Clearing House checks he
cause there might be condition there which. JUS
titled 1t; and yet l am inclined TO believe that il
those banks had gone the banks of Chicago
and St. Louis did they would have been paying
cash their checks to-day. instead Of paying GU
Clearing House certificates.
Mr.. Allison Rep., Iowa. criticised the phrase
olosy OF the resolution and suggested modihca
ton of IL. As to the Clearing House certificates
he regarded them as somewhat IRREGULAR. but ye
he had been told that they did not circulate
money and were not intended. II that 80
they might be within the letter of the law, though
without the spirit of the law.
Mr.. Hill undertook to draft some modification;
of the resolution. but before he had completed
them the morning hour expired and the resolution
went over without action. IT took its place tn,
calendar whore Il can only be reached again IL