Birmingham state herald., 1896-01-05
TIE COIN REDEMPTION FUND
Speech of Hon. Oscar W. Underwood of Ala bama in the House of Representatives
 Friday, December 27.

The house having under considerable fhe bill CH. R. 29O4) to maintain and pro- tect the coin redemption fund, and to authorize the issue of certificates of in- debtedness to meet temporary deficien- cies of revenue, MT. Underwood said
 MT. Speaker, in justice to myself and my constituents, I feel it my duty to en- ter my protest against the passage of the bill now under consideration. The bill has been reported to this house by the members of the committee who rep resent the majority on this floor without first having been introduced in the usual and regular way. It is proposed to pass it tomorrow afternoon, with only few hours debate and under rule that pro- hibts any amendments being offered.
 And yet, MT. Speaker, few measures have come before the house the ef- feet of which are more far-reaching in their consequences, and which, in my humble judgment would prove more disastrous to the business commer- cial and agricultural interests of this country than those embodied in this bill.
 The object of the bill-I mean the real object. not that which appears on the face of the bill-is to retire from circula- tion $346, ,681, ,016 of United States notes, commonly called greenbacks, and $146- 0SS400 of treasury notes of 1890, amount ing to a contra ction of the currency of the country to the extent of $492, 769, ,416. According to the statement of the treas ury department the total amount of money in circulation on June 30 1895, amounted to $1, 1,602, ,1S2, 725, It is readily seen what an enormous contraction will take place if the greenbacks and treas ury notes are retired under the provis- ions of this act.
 I know that 1t is contended that this bill is merely a bill to maintain and protect the coin redemption fund, and to authorize the issue of certificates of in- debtedness to meet temporary deficiency of revenue" The first section of the bill provides for an issue of United States bonds, to an indefinite amount, for the purpose of redeeming greenbacks and treasury notes when presented for re- demption. And this section proyides:
 That nothing in this act shall be con- strued to repeal or modify an act ap- proved May 31, 1S7S entitled An act to forbid the further retirement of United States legal tender notes."
 But let us consider the effect of the bill, if actually put in operation. The secre- tary of the treasury, in his annual re- port, says there is no deficiency in the treasury. The daily statement of the condition of the treasury shows an avail able cash balance of S109, 1S3, ,928, exclu- sive of gold reserve.
 Yesterday tariff bill was passed through this house by the republican ma jority for~the purpose, so it was stated of supplying deficiency in our revenues, and we are told that under the provisions of this bill the revenues received for a tax on goods imported into this country will increase the revenues of the govern ment $40,000,000, sum largely in excess of the alleged deficiency
 Why are we, then, asked to authorize the issue of bonds to meet temporary deficiencies in the revenue?
 In my judgment, MT. Speaker, the gen tleman from Maine, the chairman of the committee on ways and means, in his re- marks threw a side light on the effect of the bill that explains the real object to be accomplished by it's passage. In refer ring to the section of the bill that pro- vides for the issue of bonds to meet tenn porary deficiencies in the revenue, he says:
 "Our object in so limiting their use is to separate as far as possible in the ac- Counts the cash in the treasury available for current expenses and the reserve that Is retained for redemption purposes Again he says:
 "A reserve is a distinct thing, and it is of the utmost importance that it should Jbe maintained without any attempt to di- Nert it to other purposes, and the most Important part of this legislation-I want to say to my friends on this side of the house-lies in the fact that if this bill shall pass it will compel the separation of Hhe accounts, and the reserve will and must be treated as a reserve. not to be frenched upon to meet current deficiencies pr revenues. And when there is any ne- cessity to have money to meet a defcien- ey of revenue, then the resort must be had to another source to supply that de- Hoiency of revenue"
 # This comes from the author of the bill, and it is but fair to presume that it is a correct interpretation of the results that 2 will follow from it's passage. With an available cash balance in the treasury of over $100000,000 with tariff law which hey say will increase the revenues $40,- 100000 year and authority given to is rue $50,000,000 in bonds to meet temporary deficiencies In revenue, with the general account and the redemption account kept separately, so that resort must be had to other sources than the redemption ac- count to supply deficiencies in revenue fryhen these treasury notes and green hacks are once presented for redemption how will it be possible for the govern ment to pay them out again so that they may once more become part of the mon- ey in actual circulation in the country? Under the provisions of this bill the greenbacks and treasury notes presented to the treasury of the United States for redemption will be locked up in the vaults of the government, and though they are not actually burned up or de- stroyed, they will no longer be available for the people of the country to use in the transaction of their business, and we will have virtual contraction of the cur rency amounting to nearly $500, 900.
 On the 12th of February, 1873, an act was passed revising and amending the laws relative to the mint, assay offices and coinage of the United States. This act, apparently good law on it's face carried concealed in it's folds the words that demonetized silver and deprived the people of this nation of the privilege of carrying their silver bullion to the hints and having it coined into money.
 The present bill, MT. Speaker. although from the title it's real purpose may not appear, in many respects will be as dis astrous to the masses of the people of this country as that enacted on the 18th day of February, 1873.
 Should this bill become law it will re- quire not only the action of this house, but the action of the senate of the United States and the concurrence of the presi- dent of the United States to get the greenbacks and treasury notes back into the hands of the people.
 If we are to be guided in any degree by the history of the past we find many monuments there to guard and warn us against the policy of contraction.
 In 1723 the Bank of England suspended.