The advocate and Topeka tribune., 1893-09-27

In addition to this, the power resides in the
banks, II am correctly informed as to the law
to-day, to issue notesto certain amount and
to retire them practically at their pleasure.
II 1 am wrong about that, desire to be set
right. desire to make no statement that Is
not correct. The law gives the banks the power
to control the volume Of money in this coun-
try to a very large extent. 1t gives them, in
deed, complete power over the volume OF
money in this country. Whenever it is i'm
portant to the banking interest, not to the ma
tion at large, to retire the volume Of money, as
result of the process Of contraction, the
price Of property and Of labor goes down and
whenever they see an opportunity to make
more money by swelling the volume Of their
currency, as they are doing at the present
time, they use their power to the maximum.
Is not this dangerous power to reside in
the hands Of these corporations? If any sena-
tor in this chamber is directly interested in
them, so that his fortune is swelled or is
lessened to him in consequence Of the vote he
gives here, are not the people Of this country
entitled to know that fact?
A few days ago had the honor to address
the secretary Of the treasury letter making
inquiry into the question of the violation by
the national banks Of the national banking act.
desired to know whether they were engaged,
as it was charged they were, in issuing clear
ing house certificates. received August Is q
letter from the secretary Of the treasury, and
will read that portion Of it which bears upon
this question:
81 have no official knowledge on the subject
of the issue of clearing house loan certificates,
my only means Of information being the news
papers. According to the latest statements
have noticed, there were outstanding $37,O15,-
600 in New York and $1O,85OOOO in Boston.
AZ understand that in New York these certif-
Gates are secured by deposits of bills receiva-
BILE and other securities, to be approved by the
clearing house committee, the amount Of GER
tifcates issued not to be in excess Of IS per
cent. Of the market value of the securities de-
posted. Substantially the same plan, 1 under
stand, also has been adopted In other cities.
at has not come to the knowledge Of the de-
partment that any clearing house has refused
to receive silver certificates in payment Of
balances. In New York, which is the only
place where the treasury has any relations
with the clearing house, 1t is the custom to
settle balances otherwise than by the use Of
silver certificates"
There is q declaration of at least two viola
tiOns Of the statute Of the United States. In
the first place, these banking institutions were
engaged in the unlawful practice Of issuing
clearing house certificates. 1t is common in
formation on the subject, and has been,
think, for some weeks, that the national banks
in New York, and probably elsewhere, were re-
fusing to pay their depositors.
Many of them were engaged in the nefarious
practice of discounting the obligations they
owed to their depositors. Yet, whenever this
question has been broaohed in the senate
chamber, when my friend, the distinguished
senator from Kansas MT Pefierl, introduced
resolution of inquiry, 1t was pocketed by the
finance committee. II am informed correctly
it has been almost the universal custom In
this chamber to pass resolutions Of that kind
without sending them to committee, but
when that resolution was introduced, the mo-
ment the senator sought information upon the
subject Of the violation Of the statutes OF this
country, that moment there were senators
upon their feet in the chamber endeavoring tC
pocket the resolution, and eventually 1t was
sent to the finance committee, and presume
il will sleep there for some time.
Now, why should any representative Of the
people of the.country, at this end of the cspi
toll or the other, undertake to secrete the VIC
lations of law2 Why should these open anC
notorious violations Of our statute go unre
buked? Why not say to these corporations tina
they must observe the laws Of this nation, anC
that the senate Of the United States is no place
for them to undertake to cloak their viola
tions Of the law? If senator's had been look
ing at the interest of the people Of this countr!
i .uo,,1a Ahnro n,nA hnun hnan inkrndnnad harI