Waterbury evening Democrat., 1893-08-03
FOR FINANCIAL RELIEF.
Congressman johnson Will In
troduce a Bill.
RESULTS OF MONEY sTRINGENoY
In the East the Factories Are Closing and
the Savings Banks Are Adopting the
Time Rule-In the West There Are Fail
ures and Excitement.

Time hule-In the West There Are Fail
ures and Excitement
WASHINGTON, Aug. S-Congressman
Thomas l. johnson will present to the
coming congress a financial bill which is
made public in letttr to the Cleveland
chamber of commerce The letter reads:
Believing that the financial
pressure now existing demands prompt
and adequate relief, propose on the first
day of the coming session to introduce in
the house of representatives the following
bill:
An act TO permit the exchange of United
states bonds for treasury notes:
BE ii enacted by the senate and house of rep
resentatives of the United States of America,
in congress assembled, That any holder of
bonds of the United States may, after the pas
sage of this act deposit such bonds at the treas
ury of the Cnited States. at the office of any
assistant treasurer of the United States, and
receive therefor their face value in treasury
notes of the United States. as described in the
act of July IA, 1880. Such bonds shall be held
as special deposit to the credit of the party
depositlng them, and during the time they are
SO held shall draw no interest, and shall be re-
turned on the order of the party depositing
them on the payment OF their face value in
I nited States currency.
Sec. =. The secretary of the treasury shall
make such regulations may be necessary to
save TO the government the payment of inter
est on such bonds during the time they are
held as a special deposit, and he is hereby au-
thorized to issue treasury notes to the amount
needed and TO provide for the cancellation of
an equal amount of such notes on the return of
said bonds to their owners, and a sum suffice mt
TO carry into effect the provisions of this act is
hereby appropriated out of any money in the
treasury not otherwise appropriated.
Sec !. All acts and parts Of acts inconsistent
with the provisions OF this act are hereby re-
Mr.. Johnson's Argument
The repeal of the Sherman act, which l
confidently anticipate while it will allay
fears of any change in the measure of
values, will do nothing directly to increase
the medium of exchange. On the contrary,
by stopping the issue of treasury notes for
silver, it will lessen the supply. The only
measure looking to relief of the need for
money, yet proposed with any hope Of the
necessary consent, is that of permitting
the national banks to extend their issue to
the face value of their deposited bonds.
But this, while certain to arouse dispute
and consequently cause delay, would in
crease the currency only some 81. 900, 600.
The bill | send you, allowing all holders
of Cnited States bonds to turn them into
money, for such time as they may be will
ing to foreGo interest. offers simple, safe
immediate and sufficient remedy for the
aonoFInai scarcity OF money. Beyond the
bonds deposited to secure the national
bank circulation, there are in existence
800, 900, 900 government bonds, largely held
by financial institutions.
The possibility of at once converting
nited States bonds into money would en-
tirely do away with such danger and at
! once end the financial stringency. 1t is
not so much the amount that would be
converted that would tell. but the amount
that could be converted, il there was need.
The government would run no risk 1t
would merely exchange interest bearing
obligations into noninterest bearing obli-
cations, with a saving. for a time. of in
terest.
There would be no loss of the selling
value of bonds to the holders and no per
manent expansion of the currency, for as
soon as money. CeasinG to be boarded, be-
':'me normally abundant again, borrow
ing rates would fall. the price of bonds
would rise. and it would be to the interest
| of the holders of the deposited bonds to re-
claim them and return again to the treas
ury the money issued on them
introduced into the last congress bill
| intended to add 70 our currency system
| the elastic feature of an interconvertibility
| of bonds and treasury notes. The bill 1
| now propose puts the same principle in a
way better adapted TO meet the exigency
| that has now arisen and to avoid matters
over which there might be dispute. Be-
| hevinG that it offers simple, prompt and
unobJectionable remedy Tor most pressing
| evils, and desiring its consideration nv INV
| constituents and the general public, l thus
| lay it before you in advance Of presenta-
| ton.