Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1897-02-26


The bill WAS sent back to the house
in that crippled condition, and that
grand old commoner, Thaddeus Stevens
Of Pennsylvania, made a speech OBJ
jecting to the senate amendments, and
explained to the house Of representa-
tives the effect that would follow If
the amendment Gripping the legal
tender quality Of the money was al
allowed to attach to the bill.
The news came to Washington OF the
Bull Run disaster, indicating a posi-
bility that the confederates might
march to Washington, and money was
needed and there was no time to parley
over the exception clause, so the act
was passed as It came from the senate,
providing for the issue of the money at
cnce, and in that crippled condition.
Immediately Mr.. Belmont wired Drex-
ell, Morgan & Co., OF Philadelphia, and
the leading bankers in New York and
Boston, to hold on to their coin, that
now they had bonanza. etc.
Gold and silver made leap from a
dollar to dollar and a half. At that
time state bank currency was in circu-
lation, and when this crippled govern
ment money was put into circulation,
gold and silver, with the first issue of
$60,000,000 of demand notes, went out
of circulation; was boarded by bank
ers and spectators, for they could
plainly see that it would go to pre-
MUM, as importers would have to
have 1t to pay Import duties, which, at
that time or soon after, amounted to
$3.50, 100000 per annum.
Soon after this another batch of cur
rency was issued with the exception
clause on its back. Importers had to
buy coin to pay import duties and had
to pay $1.50 of crippled paper money for
every 81 of coin.
Following this the national bank act
was passed which enabled those who
bought bonds to pay for them in green
backs, and by depositing them with
the treasurer of the United States could
go into the banking business. The
government would issue to said bank 80
per cent of currency signed by the Sec
rotary of the treasury Of the United
States, stating on said currency that:
This note is secured by the deposit of
government bonds with the treasurer
of the United States" which made the
currency good. At about the same
date the government passed an act stat
ing that all private or state banks is
suing notes and putting them in circu-
lation should pay to the said govern
ment tax of ten per cent annually
on such of their notes as were In cir
culation. The act virtually compelled
all banks of issue to go out OF business.
State banks were turned into national
banks or had to bank on what genuine
money they could command.
AS the war progressed and the large
volume of currency increased in circu-
lation, prices of everything Increased.
Prices went up. 1t was great time
then to make money for labor and the
products of labor were going up III
price. Shrewd people got out OF debt
and had plenty of money to do Dusi-
ness on cash basis.
About the year SO or ga A. T. Stew
art, that great importer, had great
cargo of costly goods come to New
York from Europe, the import duties
upon which was 100000. Mr.. Stew
art took $500, 900 in greenbacks to buy
metal money with which to pay import
duties, as the government would not
accept the same kind of money that
it had paid to the gun holder and pillow
holder.
Mr.. Stewart went straight to Wall
street. to that great bank, Smith &
Co., and they asked him 1884 in
greenbacks for one Of coin. Stewart
said he thought he could do better
with Gillmal & Co. All right, Mr..
Stewart, that is your privilege. When
Stewart left the office, Smith wired
Gilman G Co.: Stewart is coming.
I asked him $2S4." Stewart stepped
into the bank of Gilman & Co. just
as Mr.. Gilman turned from the instru-
ment. Good morning, Mr.. Gilman
said Mr.. Stewart, Il want 100000 OF
something the government will accept
for import duties" you can have
metal money for $2S5 on the dollar"
LET me have it," says Stewart, 81
see you gentlemen have it in your pow
er to put it up or down at your pleas
ure." Gilman said to his cashier:
Charlie, you may let Mr.. Stewart
have $4,000 of the first ISSUE" Gall
right, SIR" So he counted out $780,
600 in 500 gold pieces and $4,000 of the
first issue of demand notes. Mr.. Stew
art asked why he had to give them
$2.S5 of one kind of paper money for
$1.OO of another kind, both issued by
the same government. why, Mr..
answered the bland cashier,
81 give you this, sir, as courtesy, so
you will not be hampered with the
heavy metal money" Turning over
one of the demand notes, he continued,
''You see, Mr.. Stewart, this the gov
eminent will accept for import duties,
as there is no exception clause upon
the back of it." Stewart said he could
not see why the government did not
Iccra oil that kind Of monev Tho