The age-herald., 1898-04-24
Th8 Origin and History Of National
 Banking SDSt6nl.
By H. K. WHITE.

The bank bill, described in the first in- stallment of this article, in opposition to which, unless it should contain the legal tender clause, Thad. Stephens made his great speech, from which have quoted, passed the house and passed with the legal tender clause, went to the senate and there on Feb. 10, 1862, the finance committee re- ported 1t to the senate with amendments, as follows:
 1. That the legal tender note should be received for all claims and demands against the United States of every kind, "except for interest on bonds and notes, which shall be paid in coin"
 ?. That the secretary of the treasury might dispose of bonds at the market value thereof, for coin or for treasury notes.
 3. Deposits should be authorized to be made in the sub-treasuries at per cent. for not less than thirty days, to the amount of $25,OOO,OOO, for which certificates of de- posit might be issued.
 4. That all duties on imports, and pro- ceeds of the sale of public lands, should be set apart to pay coin interest on the debt of the United States, and to provide for a sinking fund.
 February 14, the bill, as amended passed the senate and was returned to the house.
 February 19, in the course of debate on this bill, which, as amended, was again before the house, MT Spaulding, of the ways and means committee, in the course of his speech on the bill, said:
 "Mr. Chairman, I desire especially to op- pose the amendments of the senate, which requires the interest of bonds and notes to be paid in coin semi-annua1ly, and which authorizes the secretary of the treasury to sell per cent. bonds at the market price for coin to pay the interest The treasury note bill as reported first from the com mttee of ways and means as necessary war measure was simple and prespicuous in its terms and easily understood. It was so plain that everybody could understand that 1t authorized the issue of $150,OOO,0OO of legal tender notes to circulate as a national currency among the people in all parts Of the United States, and that they might at any time be refunded in per cent. twenty year bonds. The passage of the measure in this house was hailed with satisfaction by the great mass of the people all over the country I have never known measure receive a more hearty approval from the people. Nearly every amendment to the bill since 1t was matured has rendered It more complex and difficult of execution. regret to say that some of the amendments of the senate render the bill incongruous, and ten dto defeat it's great object, name ly, to prevent all forcing of the government to sell it's bonds In the market to the high est bidder for coin. It might be very pleas ant for the holders of the 3-10 per cent. treasury notes and per cent. bonds to re- ceve their interest in coin semi-annually, but very disastrous to the government to sell it's bonds at ruinous rates of discount every six months to pay them gold and sll- ver while it would pay only treasury notes to the soldier, sailor and other creditors or yn ination? Who asks to have one class or creditors placed on a better footing than any other class? Does the sailor, the farm CT. the mechanic, the merchant, ask to have any such discrimination made In their Ia yor? No, sir; no such unjust preference Is asked for by this class of men. They ask for A legal tender note pure and simple They ask for a national currency which shall be of equal value in all parts Of the country. Thy want a currency that Will pass from hand to hand among all the people in every state, county, city, town and village in the United States. They want a currency secured by adequate taxation upon the whole property of the country which will pay the soldier the farmer, the mechanic and the banker alike for all debts due. They ask that the government small stand upon its own responsibility, US own rights. and exert it's vast powers, preserve its own credit, and carry us sately through this gigantic rebellion in the shortest time with the least possible sacrifice
 MT. Pendleton, representative from Ohio, offered an amendment to the senate amend ment. recurring the interest on bonds to be naid in coin. which provided "that the off, cers soldiers and marines engaged in the military service of the United States should also be paid in coin, but this was voted down.
 great speech closed the debate on the amended bill. quote some of 1t;
 "Mr Speaker: have but few words to say. I approach the subject with more de- pression of spirits than l ever before ap- nroached any question. No personal motive or feeling influences me. l hope not, at least have a melancholy foreboding that we are about to consummate cunnlngly devised scheme which will carry great ln- jury and great loss to all classes of people, throughout the union,' except one With my colleague (Mr. Spaulding) I believe that no act of legislation of this government was ever hailed with as much delight through out the whole length and breadth Of this union by every class of people as the Dill was passed and sent to the senate Con- cratuations from all classes, merchants traders manufacturers, mechanics and la borers, poured in upon us from all quarters
 s'It is true; there was doeful sound came mn from the associated banks Their cash iers and agents were soon on the ground, and persuaded the senate with but little de- liberation to mangle and destroy what 1t had cost the house months to digest, con- sider and pass They fell upon the bill in hot haste, and disfgured and deformed it so that its very father would not know it. h. stead of being benefcent and invigorating measure, it is now positively mischievous. It now creates money and by its very terms declares it depreciated currency. It makes two classes of money; one for the brokers and bankers, and the other for the people, It discriminates between the rights of diff ferent classes of creditors, allowing the rich capitalist to demand gold, and com polling the ordinary lender of monew on in- dividual security to receive notes which the