The midland journal. (Rising Sun, Md.) 1885-1947, 1893-12-29
QUESTIONS OF THE DAY.
A FINANCIAL HISTORY
Course and Effect of Legislation
Since 1861.
BY N. A. DUNNING,
From The Nationa Waterman.

BY N. A. DUNNING.
From The Nationa Waterman.
VI.
Mr. James Gallatin, of New York,
made the principal speech against legal
tender, and on behalf Of himself and
the bank committees from New York,
Boston and Philadelphia, the members
from boards of trade associated with
them, submitted the following plan for
raising money to carry on the war, viz:
l. A tax bill to raise, in'the different
modes of taxations, 1926, 100000, over
ane above duties on imports.
2. Not to issue any demand Treasury
notes, except those authorized at the
extra session in July last.
g. Issue 500, 100000 Treasury notes
at two years, in sums of five dollaos and
upwards, to be receivable for public
dues to the Government, except duties
on imports.
4. A suspension of the Sub. Treasury
act, so as to allow the banks to become
repositories of the Government of all
loans, and to check on the banks from
time to time as the Government may
want money.
5. Issue six per cent twenty year
bonds, to be negotiated by the Secretary
of the Treasury, and without any limi-
tation as to the price he may obtain for
them in the market.
6. That the Secretary of the Treas
ury be empowered to make temporary
loans to the extent of any portion of the
funded stock authorized by Congress,
with power to hypothecate such stock.
and if such loans are not paid at ma
tur'ty, to sell the stock hypothecated
for the best price that can be obtained.
These propositions having been read,
the Secretary and Finance Committees
of the Senate and House expressed
themselves favorable to the first propo-
sition to raise by taxation $l25,OoO 900
year, over and above duties on i'm
ports. It will be observed that this
plan did not include the national cur
rency bank bill, recommended by the
Secretary of the Treasury in his Annual
Report, and was not, therefore, in this
respect. satisfactory to him.
The meeting was somewhat CONVEX
sational in character, but there appeared
to be general dissent by the Secretary
and Committees from all the other
propositions. Mr.. Hooper expressed
very decidedly his dissent to them, and
was in favor Of the legal tender act as
the best mode of providing the means.
The only remarks Gun find reported
as being made by any member of the
Committees of the Senate and House
are in the New York Tribune, Jan. 13:
s.The Sub committee Of Ways and
Means, through Mr.. Spaulding, object
ed to any and every form of shining
by Government through Wall or State
streets to begin with; objected to the
knocking down of Government stocks
to seventy five or sixty cents oa the
dollar, the inevitable result Of thro wing
new and large loan on the market
pithout limitation as to price; claimed
for Treasury notes as much virtue of
par value as the notes of banks which
have suspended specie payments, but
which yet circulate in the trade Of the
North and finished with firmly refus-
ing to assent to any scheme which
should permit speculation by brokers,
bankers, and others, in the Government
securities, and particularly any scheme
which should double the public debt of
the country, and double the expenses
of the war, by damaging the credit of
of the Government to the extent of
sending it to shin through the shaving
shops of New York, Boston and Phila-
delphia. He affirmed his conviction as
a banker and legislator, that it was the
lawful policy, as we'll as the manifest
duty of the Government 10 the present
exigency, to legalize as tender its hfty
million issue of demand Treasury notes,
authorized at the extra session in July
last, and to add to this stock of legal
tender, Immediately, one hundred mil
lions more. He thought that this
financial measure would carry the
country through the war, and save its
credit and its dignity at the same time
we should insist upon the taxation
abuadantly ample to pay the expenses
Of the Government on peace footing,
and interest of every dollar OF the pub
lie obligation, and to give this genera
tiou clear show of speedy liquida-
ton of the public debt"
This conference did not result in
devising any plan or arrangement which
received the assent of either the
Finance Committee of the Senate or
the Committee OF the Ways and Means
of the House. and the conference
adjourned.
The bank delegates and others had
further consultations with Secretary
Chase, continuing through two or three
days, and which finally resulted in an