Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-01-04
THE HOUSE.


Speaker laid before the House the resigna-
ton of Representatives Paynter. from the
fifth Kentucky district, to take effect to-
morrow, when he assumes his new duties
as judge of the Court of Appeals.
On motion of Mr.. Hermann (Ore.), bill
was passed granting an increase of pension
to Hosea Brown, aged 1O3, survivor OF the
war of 1917; and. on motion of Mr.. Page
Or. L.. to grant American registry to the
steamers Clarbel and Athos.
The Currency Debate.
The debate on the currency bill was
then resumed. and Mr.. Hendrix IN. ",
banker, took the floor.
The situation that confronted the treas
ury and the country, he said. had not come
suddenly upon Us nor without ample warn
ing. finance minister of France had
once remarked sarcastically that God was
good to drunken people. little children and
the people of the United States.
Was the United States at last to go out
of the business of furnishing currency for
the country as a bank of issue? Mr.. Hen
dirk asked; If not, what was it going to do
in order to avoid the financial bad lands?
Were the people of the United States to
keep on trahs2ressing every law OF finance.
defying the world and continue to do what
every other nation had failed to do? To
illustrate the result of the present system
Mr.. Hendrix pointed to the large acces-
siCns of gold made by the Bank of France
and the Bank of England at our expense.
The former yesterday held 100000, 900
gold francs, the latter 100000 in gold.
The capital and the gold bullion of the
world was resting in these great pools
waiting to see what this country would
do; whether it would become a bankrupt
unable to meet It's obligations.
Wonder the Peril Had Not Come
Sooner.
ri
glance at the frank statements of the treas
but marvel that ii had not been sooner con-
fronted with great peril.
Mr.. Hendrix depicted graphically the
present anomalous situation, the credit of
the United States excellent. money idle. the
banks full, enterprise at the lowest ebb,
men living from hand to mouth and the
treasury lighting to keep its head above
water. TIE question now presented (wneth-
er the government was going out of bust
ness bank of issue) was, MIR. Hendrix
said, an important practical one in the
financial world, we'll as political one.
Transgressed Its Proper Function.
The government tIansgressed its proper
function when it became "A bank of issue.
1t was not in position to issue when it
lacked reserve. When the revenues were
large the reserve ample, ii could maintain,
as it had maintained, d large body of
promises to pay, but the situation was
greatly altered when 3i6,0OoOj0 greenbacks
and $3.50, 900 $50 Sehman notes could be
used to drain the treasury of gold. MI
Hendrix described, at length, the process
by which gold was withdrawn by specula-
Tors for shipment abroad and then proceed
cd to contrast this with the situation IN
France, where the bank OF france refused
to pay, except where actually necessary,
more than five per cent of gold on It's de-
These
our gold reserve, Mr.. Hendrix said, en-
phatically must be stopped, and II the
pending bill would stop them. afford reiief'
take the government out Of the banking
business, as it had been taken out of the
silver business, he would vote Tor IT,
MIR. Hepburn's Questions.
Does the action of the Bank Of France
(refusal to pay more than per cent i'll
gold)" asked Mr.. Hepburn Qowa), impair
the credit of that bank?
NO"
"Then would the credit of the United
States be impaired if the United States
should exercise its discretion and redeem
the Sherman notes in silver?'
Yes, l believe it would at this time.
replied Mr. Hendrix.
why
Because of the general distrust of the
governments ability to pay gold. S119,0OO.-
600 of Sherman gold promises-to-pay can't
be met without gold.
But the notes are redeemable In coin, not
gold" was Mr.. Hepburn'S parting shot.
Mr.. hendrix, continuing, said that the
pending bill was open to the vital objection
that it would not do what it set out to do.
1t would not relieve the treasury of the
aggressions on it's gold, it would be a fall
ure as a banking bill, because it would
superimpose an uncertain body of public
credit currency much longer, and more
uncertain body of private credit currency
without sufficient founda ion under the
former.
Mr.. Hendricks conclusion was that the
wise, practical and patriotic thing to do
was to retire the demand obligations of the
government If we did not do it now those
obligations would cost us four or five times
what they do now. There was no compro-
missing with the memorable laws Of finance
There was only one way to pay debt-to
pay it, Ii the debtor had not the money
he must get some one to carry the debt
until he could discharge it.
Mr.. Hendrix spoke over an hour, and was
given close attention He was literally ap-
plauded when he took his seat.
MIR Caruth ,Qky), who was then recog-
nized in support of the measure. yielded to
Mr. Sperry Comm to formally present his
substitute to fund the greenbacks with 3
per cent gold bonds for the information of
the House.
Mr.. Caruth eulogized Secretary Carlisle,
commended the efforts of the administra-
ton to solve the. currency problem and re-
leye the treasury and Endorsed the pend
ing measure