The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-03-06

respect to state-bank issues 1.-THE state
banks" said he. within few years nearly
doubled their original number. were greatly
enlarged in their powers and nominal re-
sources. and made TO pour forth with prodi-
gal hand their spurious issues OF paper
money-those pictured shadows that be-
wildered the brain. intoxicated the hearts
of the people, and drove them into maddest
schemes of speculation and extravaganza.
Never did any nation in the same space OF
time make more rapid advances in degen-
eracy or approach nearer a total aban-
donment of that great moral law which
constitutes the well-being OF the civil socie-
ty and substitution in its place OF those
time-serving expedients of interest and sell
fishness which never fail to end in fraud,
oppression and ruin"
Control of Currency by Banks.
We have witnessed the usual Democratic
and Populistic assault upon the national
banks We have heard a familiar protest
against turning over to them the power to
issue and to control the volume of cur
rency in the country.
An examination of the record will dis
close the fact that our friends not.
after all, really opposed to the control of
the volume of currency by the banks. for
they have already, in the most emphatic
manner possible, expressed themselves in
favor of granting such power 1t is true
that they sharply oppose national bank
currency, which has been emitted for near
ly forty years. and which is absolutely
good throughout every State and Territory
and is equivalent TO gold in many foreign
countries. But they deliberately propose to
give state banks the power to issue cur
rency, and thereby enable them to control
the volume of the circulating medium of
the country.
Sir, they are against national currency,
a single currency, but are in favor of as
many currencies each of the forty-five
States of the Union may see fit TO outhor-
ize.
Funding the Debt.
The provision of the pending measure for
funding 5. and per cent. bonds. matur-
Ing respectively, in 1904, 1907 and 1908,
amounting to sS49. 332 $50. into per cent.
bonds. payable at the pleasure of the gov
eminent after thirty years. will result. in
the option of the committee. If the con-
version is complete, In an annual saving of
interest Of SIS 973, $685.
1t is doubtful IL any government in the
world has ever been able to borrow such a
tremendous sum of money at so low rate
of interest. If the secretary of the treas
ury can effect the refunding of the bonds
mentioned in,o per cent. bonds, as pro-
posed, the result will be high testimony
to the credit of the government and to the
virtue of the gold standard. No such con-
version could be effected. with an. annual
saving to the government of nearly
Sl60C0,O00. with the country upon the silver
standard, or if we were to incorporate i'm
the pending measure free silver coinage,
as proposed by the opposition.
Clothed with the authority conferred by
the pending measure, the secretary of the
treasury will undoubtedly be able to effect
an immediate conversion of several
hundred millions of the hgh-interest- bear-
ing bonds into the per cent. bonds
authorized.
United States Bonds.
Mr.. President, the senior senator from
Colorado IMr. Tellerl expressed his fear of
bonds, and the senior senator from Mis-
souri, [Mr. Cockrelll perceives in the pres
ent movement the effort to perpetuate the
national debt.
There is, sir, in our past history no basis
for the intimation that the party in power
is predisposed to increase or In any man.
Ter unduly to extend the bonded debt
Under the administration of that party we
have witnessed the reduction of the inter-
est-bearing public debt from s.. 1888, 033 3l5 at
the close of the civil war to $5S5, 037, 100 at
the close of HarriSOn'S adminiStra ton, and
with the reduction of the principal has
gone a reduction of the interest upon what
remained. With the exception of some
ninety millions of bonds issued preparatory
to the resumption of specie payments in
1879, no Republican administration ever in
creased the bonded debt except for the
purpose of war. Contrast with this record
tie Issue Ol SzOlUUJ,UUU u DOnuS Dy the last
Democratic administration to meet peace
requirements.
The addition of $500, 600, OG0 of bonds to the
national debt by the present administration
for the prosecution of the Spanish-Ameri-
can war needs no word of justification.
1t has been a familiar assertion and as
sumption of the advocates of free silver
that there exists a collaborating class;
that the holders of the bonds of the gov
eminent, who are assaied as If they were
enemies of society, exact gold in their pay
ment, and that the advocates of the gold
standard seek to promote their selfish in
tereSts.
Like many other propositions which have
been advanced, this is without the slight
est foundation in fact. The truth is as /
had occasion to show in the debate upon
the war-revenue bill, that the holders of
bonds rarely exact gold; that they are usu-
ally paid by checks and drafts and not i'm
any specific money, either paper, silver
or gold, and that whenever currency Is
paid IL is paid, as rule, Unfortunately
In the current practice, checks are drawn
to the holders of the bonds and are by
them deposited In bank. as other deposits
are made, subject to check or draft. The
desire for gold in the payment of govern
ment we'll as other obligations will
, of certain items relating I'm the countrv,s a.