Year: 1862

80 e~~ ~ PstS anu too next p8yeDlo III currency
effect would be, that government would pay out 70 ito
creditors the deprecated Of nOnspecs paying
banks and as there is probability that the pledges
could be redeemed when due they would be thrown into
the market and sold for whatever might choose
to pay for them The folly Of this scheme needs no il
lustraton Another plan to strike the legal tender
clause and make them redeemable for public
dues. But it is not proposed to make any provision for
redeeming them in coin demand. do not believe that
such notes would circulate anywhere except at runous
Discount. No notes not redeemabe demand, and not
made legal tender, have been kept at par The
knowledge they were provided for by taxation ard
that they would surely be paid twenty years hence would
not sustain them The Secretary Of the Treasury in his
report recommended a scheme to produce uniform ma
tiona currency and furnish good loans pfo-
poses then that the banks shall receive their circulation
from the TO the amount Of bonds


pledged with the Treasury for their security and that no
notes should be issued than the par value Of such
bonds should be redeemed the banks AZ general
system Of banking, ordinary times this plan might be
very useful in regulating the currency and by the sale OF
the bonds the government might command coin But
while the banks in suspension it is not easy to SEQ
how it would relieve the government If the notes were
procured, it must be by accepting payment BY the
government in deprecated circulation These would not
be better than the notes The security
Of the government equal that Of the banks and would
give much currency TO the banks. can see its ad
vantage They would have the whole benefit Of the cir
cuiaton, without interest, and at the same time
would draw interest the government bonds
from the time they got the notes. 1t Is very
plain that il the United States issued those notes deet
they would have the benefit Of the whole circulation In
other words would be equal to loan without interest
the full amount OF the circulation This project there
FORE however desirable banking system, oou1
d{afa would Afford
no sale for additional bonds the banks have already
as many as would form basis Of their operations
Having think shown the impossibilty Of carrying
the government in other way than that proposed
by the bill, will notice Of the objections urged
against it. Is 1t constitutional? Mr.. Stevens pro
ceeded to sustain by arguments the conEttu-
tionaty Of the measure. In the course or his
remarks he sad,-Now il is for Congress TO determine
whether this bill necessary raise IN support armies
and naves money, and provide for the gene
raj welfare 1t for those who think that it is not me-
cessary useful proper for those purposes 10 pro-
pose some better bill, and vote against ths If ma
ority support the BILL its constitutionay esta blhsd
The next question is if constitutional s IL expcdientf
The necessity Of these notes is admitted but
objection is taken to them being made money. II not
easy to perceive how notes. issued without being made
Immediately payable in specie, can be madc any worso
by making them legal tender.


This IL the whole argument 80 far expediency 10
concerned It is contendod that the bill would impair
contracts, by making debt payable IN other money
than that which existed at the time Of the making of hs
contract and this ground that II Is unconstitutional
Mr. stevens proceeded shsw that this provision Of tho
bill would tend TO impair contracts and that mere
was no prohibition to the power Of regulating paynehts
in connection with contracts, contained in the con-
stitution Contracts, he said, are made, not only
with view TO present laws, but subject 70
the future legislation Of the country Al to the aieed
of OF the currency from making these notes


legal TENDER do gentlemen expect that issuing the
same amount Of without the legal tender Will In


fate the currency ess II will take the same amount Of
Millions with without legal tender, 70 carry on the
war except thss in one they would be below par'
and in the other par No instance can be given Of


currency not redecmable demand in gold, that did
not Immediately deprecate but made legal tender,
and not a redundancy Of IL emitted, II will keep NJ
mar Mr.. Stevens quoted McCullOch in support Of
his argument this head, contending from this,
that during the suspension Of specie payment
nv the banks, which would continue during
the war bank paper would greatly disappear before th
mar paper of the Having reviewed tho pro-
posed substitutes his BILL emAnating from the MI
nory of the committee and those Of Messrs Conklin
and vallandg gham and commenting on their eciency 70
meet the emergency, Mr. Stevens continued nas'er
myself that have demonstrated, from reason and un
authority that these notes. made legal tender
and not issued Of the demand, will remain Mt
par and pass all transactions great and SMALL IN full


value OF their will say in concluson tnat unless
this bill is TO pass with legal tender clause in. will


not be desirable its friends or TO the administra
Il ion. and those who think as do will have
% vote against IL IL IL shall be mutiated
and emasculated If il is TO be defeated, should DO
clad II we had the power which the British Parliament
uosscsses TO resign places on the Committee Of
Ways and Means and leave IL 70 those who oppose this
bill TO mature other measure. so Tar as am con-
cerned shall be modest enough not 10 attempt any
o,bor scheme. The Committee Of Ways and Means have
,abored anxousy and TO the best Of our poor abilities
We are not nfablc-wc do not come near IL. We have
given IL our most anxious consideration and have con-
suited those whom believed 70 be best qualified 70
advise us We have sought to harmonize conflicting
views on the substitute which the majority Of the com
mttec have prepared, and we hope viii
pass We believe that tho credit OF tho
country will be sustained BY IL, that aD
classes will be paid in money which all classes can use,
and that we will confer no advantage on the capitalist
over the poor Iaborng man. tho bill pass shall hail
Il as the most auspcous Of this Congress-
should fail the result will be deplorabe than any
disaster which could befall us.


Mr. CAMPBELL (rep.) of Pa, said no was for The BIZ
with the legal tender with him the only question
was the necessities Of the TO put down tho
rebellion He would not be controlled by very u'co
scrupes when the constitution and the Union were both
in danger.


The committee proceeded 70 consider Mr.. Girls.
fields amendment, TO strike from the bill thai
part which proposes TO make the notes lawful
money and . legal tender in payment Of all
debts public and private within the United States.
Incidental debate had, during which Mr.. MoRRnL,


ep) Of w. mentioned the fact that the pending BILL wsr
reported by only ouehaf Of the Committee or Ways and
Means. Tho other four wished TO be understood that
they cordially united their own project the
others were theirs The substitution proposed by him
was not his particularly but had been modified in order
10 meet the views Of those who had submitted amendments


Mr.. IrcKMASc, (ep.) Of Pa, desired to have the bill
committed with instructions frame one with clause
driving back to their homes all deprecated bank notes.
There should be paper currency easily and readily