The Chesterfield advertiser. [volume] (Chesterfield C.H., S.C.) 1884-1978, 1920-03-04
ween ss6,OOO,OOO and s262,ooo.-


OF January-and it is written on the
face of the report that the gentleman
Haunted here as if he was the only
man that read it-that during this
month of-January they have issued
$96,17O,000 of Federal reserve notes
and they have retired $242,112,OOO
and they have redeemed at the treas
ury $20,0O0,0OO more. Applause
from the Democratic side.) This a
reduction of $165, ,942, 900, and leaves
actually in circulation outside the re-
serve banks $2,795,O0O of reserve
notes.
Does that continue? Let us look a
little further. In 1917, when we went
into this war, we had-and he talks
about the flood of money we have in
circulation-on the 1st day of April
$45.35 for each citizen of the United
States. What have we today? On De-
cember 1st, the last statement that
1 have in my hand, we have $55.65,
Ian increase of only $40 for each
man, woman and child in circulation
during the time of the most extra
ordinary financial transactions and
the most remarkable spread
that has ever been seen. We have
increased it nearly $40 head, or
81 900, 100000.
MY friend says we are going on
increasing. Let us look for one min
ute. If he will look at some more of
the reports, he will learn some more.
On November l, 1918, the circulat-
ing medium per capita then was $685.
81; today it is $55.34. Is that an in
crease? Not only that, but let us look
at January, 1919, just IL months
ago. The circulating medium per cap
ita was then $55.76 and today it is
only $55.34-not an expansion of 81
per capita, but a contraction of about
80 cents per capita in the United
States in the IL months.
And the gentleman says expansion
is the cause of our ills. Well, our
troubles began when the war closed,
and we have not expanded but in
stead of that, we have contracted; :;
and yet the ills have arisen. There is
no expansion shown when you appeal
to the record which he commends to
us to be read.
Now, let us see. He talked about
the increase in the issue of Federal
reserve notes, and that is true. Why
was that embarked upon? Because
we had when we began about $9OO,-
100000 of gold certificates outstand-
ing, and for every gold certificate
outstanding there was IA gold dollar
to be delivered for it upon prcscnta-
tion. The gold reserves of the world
had to be cared for and built up in
order that we might have the money
with which to finance the great World
War in which we had entered, and the
government entered upon the very
wise policy of withdrawing the gold
certificates; and when you did, when
you took a $1,000 gold certificate in,
you released thousand dollars and
that thousand dollars of gold went to
be reserve against $4,000 of Fed
eral reserve notes and it therefore
enabled us to finance the war and
keep this country on a gold basis.
(Applause on the Democratic side.)
The fact that the report the gentle
man uses in the treasury report, and
charges up all Federal reserve notes
in the hands of the Federal reserve
agents and that is not in circulation
till put out by the banks. The bank
statement shows that there is in cir
culation $2,795, 900, 900 of Federal re-
serve notes, and under section GIG,
subdivisions a, b, c, d, andf, 40 per
cent. gold reserve must be maintain
ed and per cent. must be in the
United States treasury fund. Count
ing the settlement fund and general
fund, the gold in the treasury
mounts to 81 1902 or 40 per
cent. of all Federal reserve notes
ACTUALLY outstanding.
The Chairman (Mr. MacGregor.)
The time for the gentleman from
South Carolina has expired.
Mr. Black, will the gentleman
yield!
Mr.. Stevenson. Yes.
Mr.. Black. Is it not a fact also
that we are the only great country
in the world that has been able to
maintain the gold standard?
Mr.. Stevenson. That is entirely
| true.
The Chairman. The time of the
gentleman from South Carolina has
expired.
Mr.. Stevenson. May I have more
time?
Mr.. Byrnes of South Carolina.
regret very much that have not any.
Mr.. Stevenson. Very well. 1 ask
unanimous consent, Mr.. Chairman to
revise and extend my remarks. CAP