Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-09-30
MORE TREASURY NOTES..
Mr.. McLaurin Explains the Provisions of
His Joint Resolution.
How He Believes the Proposed Issue
Would Aid People of the
South and West.

The House committee on banking and cur.
rency today continued its hearings upon the
measures pending on its calendar. Repre-
sentative McLaurin of South Carolina spoke
In favor Of his joint resolution providing for
the issue Of Sis, 100000 Of additional treas
ury notes. the preamble declaring that $25,-
100000 of the previous issues are lost or de-
stroyed, and are to be charged on on the
books Of the treasury.
The speaker began by a long account Of
the situation in his own state, which had
suffered from lack of currency In the
course Of this part Of his statement he pre-
sented for the Information Of the committee
IS certificate issued by the Columbia clear
ing house and based upon securities ap-
proved by the clearing house committee Of
the value of $3.50. deposited with them for
the redemption OF the certificate.
Cause of the Recent Stringency.
He said that the recent monetary strin-
gency was due to the sale Of United States
securities held abroad. This being true, he
asserted. 1t was unwise and dangerous for
the United States to invite investments of
foreign capital.
The remedy for the trouble, Mr.. McIau-
rim argued. was to give to the people a suf-
nclent volume OF domestic money to do busi-
ness and maintain values without depen-
ueHCc upon any foreign investor.
Mr.. McLaurin devoted a consid arable por-
ton or the time to an argument intending
to show that the fear that the volume Of
paper money. including the increased is
sue proposed by himself. would be dan
gerous to the financial interests Of the coun-
try Is unfounded The gold reserve he
claimed. was II per cent of the whole
amount proposed to be issued. and that was
as great a ratio Of reserve as that upon
which the national banks did business.
How the Increase In to He Avnilab BILE.
Mr.. McLaurin said, in answer to a ques-
tion by Mr.. Warner as to how this money
was to be made available that the idea he
had when the resolution was introduced
was that the Secretary of the Treasury
should deposit 1t in the banks Of the south
and west SO as to assist them in the move
ment OF the wheat and cotton crops That
idea had originated in his knowledge of
the fact that In cases Of money famine in
Wall street the government had deposited
funds in the New York banks to relieve
their Distress and he could see no reason
why the other sections of the country
should not be favored in the same way
Upon this point Of finding a use for the
money Chairman Springer suggested that
official adviceS were that there would be a
deficiency in the treasury this year of s5O,-
100000. and that $4,000, 900 of bonds ar now
due. payable at the option of the govern
ment. making place for $75,0O0.00O of the
money. Besides this the Secretary of the
Treasury. Mr.. Springer said, has testified
before the committee on ways and means
that the balances in the treasury were too
low for a successful administration Of the
government finances. There ought to be-
he said $50, 900. 900 Of cash at the disposal Of
the treasurer.
Mr.. Sperry. by questioning Mr.. McLaurin
as to the manner in which the cotton
grower was to be benefited by this proposed
increased volume Of currency, precipitated
discussion among the members Of the
committee. especially Messrs. Sperry. Cobb
and Hall (Mo.), as to the distinction be-
tween price and value. In the midst of
which the hour of noon arrived The COM
mittee then adjourned until Tuesday next
when Representative Davis (Kan.) will be
heard upon his bill to issue treasury notes
In amount equal to national bank circula-
ton retired. and to issue fractional cur
rency.