Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-02-06
REEDS SUBSTITUTE
For the Administration Bank
ing and Currency Bill
introduced and Explained to the House
By That Gentleman.
Mr.. Simpson Leaves the Laugh on the Ex-
Speaker, Who Retreats.

Washington, Feb. 5.-rhe House went
into committee of the whole on the cur
rency and banking bill. Reed (Rcp) of
Maine, said it was possible that the
science of craftsmanship might be exhib-
tied in the bin under discussion; but the
art of craftsmanship certainly was not
What was needed was a practical measure
that would meet the crisis if there were a
crisis, in financial affairs However much
a man might approve what was in the
bill, it We're the better part for him to
oppose and criticise it if it contained any
thing that in his opinion would prevent
its becoming law.
If the President and party in power had
addressed themselves in a different man
ner to the treatment of the situation that
confronted them the conditions would
have been different. The legislation to
provide the necessary amount of revenue
to meet the expenses would have pre-
vented the present difficulties.
The cause of the present trouble, Reed
said, was not the existence of $500, 600, 900
demand notes, they Were mere bagatellc
compared with the ability of the country
to pay. The first cause of the trouble,
Reed said, was the reinsurance of green
backs after being redeemed together with
the failure of the receipts to meet expen-
ditures.
In support of this position, Reed
quoted Horace White and figures of the
treasury. These latter showed that since
this administration came into power, the
operations of the treasury resulted in the
government being confronted by an
or
for which there was no gold to meet them
In view of what we had met and van
quished in the matter of finance, Reed
remarked that this ought not to stagger
us That was not what staggered us
that was due to the mad rush of people to
exchange grcenbacks for gold
The remedy for the trouble was, in his
opinion, to separate the the two depart
ments of the treasury and give to the
business department sufficient receipts to
meet the expenditures. There was in the
accomplishment of this, he admitted, the
difficulty arising from pride, he might
call it, in the present advantageous
tariff bill. To admit that the bill could or
should be changed would involve confess
sion, and confession might be suicide
(Laughter). ).
Beside that, he continued, we must pay
some attention to the constituted au-
thorities of the land For the next two
years they would comprise the President
and secretary of the treasury, who had
decided views upon the subject. The
latter, with preScience which, Reed said,
he wished for the sake of the sinful world
had not been so complete, Qaughter) had
stated the treasury would enjoy surplus
of receipts over the expenditures in the
present calendar year Of s23, 563, 023.
Reed said he was glad the secretary did
not go into cents, as that might cast
doubt upon the accuracy of his calcula
ton. So, if the President and secretary
would not have additional revenue and
said they would have surplus, the situa-
ton must be treated on that basie4 other
wise party feeling would be aroused and
the House would come to no CONCLUSION.
The proposition to meet the dMiculty
which he had to make, said Reed, was
that to meet the deficiency in receipts,
the secretary of the treasury sho,iM be
authorized to issue per cent. certificates
of Indebtedness in sums of $50 or 800 and
multiples thereof, leaving the gold in
the banking department untouched, for
the redemption of greenbacks.
This would enable the people to
determine whether they really wanted
gold in exchange for greenbacks,. and
their possession in the treasury might be a
guide TO know what to do with them in
the future. The surplus which Secretary
Carlisle predicted. If it should come to
exist, could be used to take up the certi-
ficates of Indebtedness, which might be of
two years duration or even less, if de-
sired.
The advantage this plan presented
over the present plan of procedure--popu-
lar rumor crediting an issue of 500, 900,
90 within few days--was, said Reed,
that these certificates would take the place
of the long time gold bonds. Should the
government desire to redeem the latter,
they would go up and premium would
have to be paid for them.
"Wby is not that the solution of our
trouble in every way" asked Reed.
Penee-How do you provide for the
redemption of the certificates?
Reed-In coin, the same as all other
obligations of the government are re-
deemablc The bill which contains my
suggestions avoids all questions which
hinder the passage of the pending meas
ure. 1t avoids the argument that by pro-
yiding now for an issue of distincrively
gold bonds, distinction is thereby created
against all bond issues of the past, and
it meets the present exigeney.
Reed declined to enter into further
discussion of the bill in response to ques-
tions propounded by Coz and Springer.
The bill proposed by Reed is as fol
lows:
Section Ito enable the secretary of
til, treasury to provide for and maintain
the redemption of United States notes &C
cording to the provisions of the act ap-
nroyed Jan. II. 1878, entitled IAN act
to proyide for the resumption of specie
nayments. . in addition to the power he
now has under said ret he is authorized,
from time to time at his discretion to issue.
sell Mt not less than par in coin, either Il
the description of bonds authorized in said
ACT. or coupon or registered bonds of the
United States to- an amount sufficient
for the objects herein stated, bearing not
to exceed per centum int rest per
annum. payable semi-annually and re-
,,semoble at the pleasure of the United
states in coin, after five years from their
IContinued on I'd page.