Year: 1874

the oldest members Of tho House. said he was op-
posed to the National banking system, and to the
scheme Of the Senate. lie thinks majority OF the
Democratic side will oppose II. He is In favor OF
retiring the National Bank circulation gradually.
and says that to get back to specie payments We
must have free banking


Nc. Scudder of New-York thonght the bill Of the
Senate would pass but that. according to his ideas
1t does not 20 far enough; but it is something. He
thought 1t would occasion o good deal OF debate.
Ono objection he has to it Is that 1t takes in legal
tenders too slowly. We ought to have free banking
now and we ought to pull in all the legal tenders
possible and burn them up.


Mr.. Freeman Clarke Of New-York. formerly Con-
troler of the Currency does not think there will be
any resumption, and that the bill does not amount
to much-a mere mako-sh1t. But no thinks. never
theless, that the bill will pass. He thinks that.
the circulation is taken up. as the infationists
think, by 1879, that there will be twice as much
bank circulation as now and that there would be no
preparation by tho banks to resume because OF free
banking.


Mr.. Phelps had not seen the BILL but had heard
talk enough about it to have an opinion OF course
it was O compromise measure, and, like all COM
promises, patchwork, illogical. inconsistent, and
unsatisfactory. They had let in too many COOKS
each with favorite spice, and had spoiled the oroth


IL made Door fare for honest folk but 1t was the best
they could get and they had better take it, asking
no questions for conscience sake. He had never ex-
pected the imitation majority to offer even as much
as this Hero was square recognition that resump-
ton was desirable, possible and probable. That Is
something and what they never offered before. "of
course they saddle 1t with cOnditions, and grant
you" he said these are unpleasant. January,
1879, is q long way of, and / hate to think
that for four years trade must sit on the
ragged edge Of anxiety lest some Congress
may in the interim postpone the time
These, to bo sure, are drawbacks. but what better
can you expect in compromised Then. again, they
consent that we may retire greenbacks. This is
gain. Before they fought desperately to increase
and pcrelnptorily refused to diminish them. And
for this concession what do we givef If we with
draw 50 greenback dollars, We must let them issue
100 bank-note dollars. This looks like ination and
is undoubtedly sop for Logan and Ferry. But the
imitation under this bill docs MT begin to work soon
enough to harm. The greenbacks must be reduced
to 900 before tberei chance OF expansion IN
our paper currency and for this reason the Secretary
is gwen power to cancel the whole or any part OF
the S50OOOOO0 Of fractional currency. When the
greeubacks are reduced to $500 then tho time
of imitation draws nigh. But in my opinion
there is little danger that this Limit
Will ever be reacncd unuer thlS ohI
1t is large estimate to suppose that $90OOOOC0 Of
new bank notes will be issued in any one of the four
years. The profits of banking. as derived from cir
culation, are very small are much less than the
public suppose and the nducement to take or retain
circulation is very slight. Some banks never took
any, although they accepted National charter, and
others have in large amounts returned tho circua-
ton they took at the outset, under mistaken ex-
pectation of profit from its And we hard money
men ought never to forget that the easiest way to
get to resumption is to throw it gradually upon the
banks. We want quietly to withdraw the Govern
ment's promises. which represent nothing. and to
leave in their place the issues of the banks which
are backed by the banks capital and their stock
holders liability" Mr. Phelps thought the sil-
yer substituted for the fractional currency
would remain in circulation because Of the
necessities for its use. People must have frac-
tions Of q dollar for tho retail trade and will
pay what is necessary to get and keep them Where
they can't get paper. the demand will supply them
with silver On the WHOLE the bill was fair, as far
as il went; the only difficulty was it did not 60
very far It would pass the House unless discussion
should reveal to the imitation members OF the House
what they began to discover last Winter that their
leaders in the Senate were better in politics than in
finance, and had as usual, been overreached by the
hard-money Senators when matters got beyond the
sphere Of pure science.