The Olneyville tribune. (Providence, R.I.) 1893-189?, 1893-10-07
Talking ABOUT MONEY
House Banking Committee
Begin to Listen.

Congressman Davis OF Kansas Argues
for More Currcncy-FinanciaI His
tory and Prccedcnts Citcd-Kansas
Mortgages and Their Foreclosure.
WASHINGTON, Oct. An interesting
session of the committee ON banking and
currency was held yesterday. Represen-
tative Davis. OF Kansas, was catechiEed by
the several members cf tho committee as
he unfolded his arguments In support OF
his bills TO issue fractional currency and
to replace retired national bank currenc y
with green6acks and TO reissue lost and
destroyed treasury notes, and several lively
passages occurred between Messrs. Sperry
and Warner, and the populists particularly.
In the course OF his argument Mr., Davis
said paper currency issued by govern
ment was just IA good as tho government
itself. IL was no better for II must die
with the government that issued II and
this being true, IL would fight for tho pres
ervation and existence OF its government
while gold would not. but at the appear
auoe of danger would hide or fec away.
"No paper money was ever issued In tho
world" said Mr.. Davis, whether IL main
tained its power or failed, until after gold
had first failed as the money OF the coun-
try issuing it."
Numerous illustrations of this were cited
by Mr.. Davis.
Mr. Davis maintained that as a general
thing an increase In the volume Of currency
was followed by nm increase In prices and
vice versa. Pressedby Chairman Springer
he admitted that dou bling Of the amount
of currency would not increase prices In
Kansas nor In tho United States more than
10 or Is per cent.
"If IL were an independent matter, IL
would" he said, "but IL is complicated
with debt and other matters"
He quoted the late Senator Plumb to the
effect that n contraction Of five per cent.
In the currency necessitatcd the sale OF
three billions more of the products of the
country to pay debts than would have
been necessary before determination.
Chairman Springer--"How do you nc
count for the reports that tho farmers OF
Kansas, your own state, are paying OF
their mortgage indebtcdnessf'
Mr. Davis-"I will tell you. The
mortgages are being foreclosed. The
mortgagers lose their property and tho
NOR tgagees are being cheated because tho
security won't pay the debt. In my own
county % mortgages were foreclosed by
the transfer OF the property and there are
$50, 600 of personal Judgments against the
mortgagers. An investigation made by
the leading republican paper In Kansas
showed that 5000 mortgages "A year were
being foreclosed in that state"
As TO the necessity OF the additional
currency provided for In his bills, Mr..
Davis said money was conditional and
final In It's nature. Final money was that
which had the hat OF the government be-
hind itand which was the basis OF all COM
merclal transactions Statistics showed,
ho said that 80 per cent. OF the business
OF the nation was done upon conditional
money Cheeks, drafts, and the like, there
fore the withdrawal OF dollar OF final
money meant the loss Of twenty dollars OF
trade or business Congress made THIS
final money and IL was the constitutional
duty OF congress TO issue enough paper
money in addition 10 gold and silver, 80
as TO maintain level prices. IL was ad-
mitted, he said, that there was not enough
money ia the treasury to transact the
business OF the government. The present
volume OF paper money could 6e In
creased, according TO good democratic nu
thority Senator Beck TO 100000, 00o
upon the existinng gold reserve withou
danger. He himself did not ask for 50
much. He asked that only so much be is
sued IA would replace the green backs lost
and destroy ed and the national bank cur
rency retired. That would not take into
account all the growth OF the business and
population OF the country. Certainly
$500, 900, 900 could be added and should
be. Paper money with the quality OF final
redemption had always been preferred TO
coin, and he quoted from the message Of
President Hayes In 1879 10 prove his ms
sertion that the resumption act OF that
year was n resumption Of paper and not OF
gold In the first eleven months Of that
year the deposits Of gold and silver for ex-
change into paper exceeded by 30, 000, 900
the amount Of notes presented for redemp-
tion.