Year: 1874

The House, as in Committee of the Whole for
debate only, having under consideration the
national finances


Mr.. Bundy said:


Mr.. SPEAKER: Not having any written
speech, and in fact having had no time to
write one, do not know how much time
l may occupy in the discussion of a sub
iect of more interest than anything else
to the House just now. No subject COM
mands so large share of public consid-
Grafton, and about which there are so
many shades of opinion, as the general
subject of the finances in this country.
There are almost as many theories for its
adjustment and settlement as there are
members of this House. And therefore,
it is to be expected that l shall be in full
accord with perhaps but very few gen.
tlemen here.


According to certain financial writers
on the subject, there is only one view to
be taken. The assertion made by their
followers is that we have but one cur
rency, or we ought to have but one; that
gold and silver constitute the currency
of the world and therefore that it is the
duty of the Government of the United
States, by appropriate legislation, as
rapidly as possible, and without regard
to the effect upon the great interests of
the masses, to get back to what is called
the worlds currency; and the road by
which they intend to reach it is through



propose for short time to consider
what the currency of the country, or of
the world, if you please, is. l am not
unmindful of the fact that the books are
full of disquisitions on this subject. And
4
that is toward specie. Now, Mr. Speaker,
it seems to me that the people of the
United States ought not to be asked, and
we should not be compelled to adopt the
theory of any government or any people
who have gone before us, unless that
theory should be specially applicable
and should be the best for us if adopted
The sovereign power of the country in
establishing by law what shall be the cur
rency of the country is the Federal Gov,
ernmeut. That power has acted 1t has
interdicted all the States, and prevented
all the States by one means or another
from furnishing any part of the currency
for the people of this country. 1t has
taxed out of existence all the State banks
so far as power to issue paper money is
concerned. Owing to the peculiar cir
cumstances by which it was surrounded
at the time, it is declared that there is a
certain description of paper money which
shall be the recognized lawful currency
of the country, clothing it with the at
tribute which distinguishes it from all
other paper issues, that of legal tender
do not understand there is aay pre-
valling disposition on the part of any
considerable portion of our people to gel
rid in any form of that currency. The
same power has established by legislation
that which constitutes a dual system ot
currency, one the United States notes
and the other the nationalbank notes
| and it has provided that these national
bank notes may be and shall be redeem
able in the legal tender notes. Now, one
of the main things to be accomplished
in this direction by the Government ma.
been effected; that is, whatever the ma
tional circulation shall be- it shall be o
such quality as to entitle it to universe
circulation, and have uniform value
throughout the country. Now, sir, two
things, therefore, have been accomplished
one is that the sovereign power of the
country has determined what the circu
lating medium in the United States shall
be, and the same power has clothed i
with such attributes that it has uniform
value all over the country; and in thes,
!
fortunate in providing for its people
currency of such value and stability fol
so long period.


The remaining question, so farsas tha
feature of the subject to be discussed i
concerned, is as to its quantity; and here
perhaps, is the only debatable question
that is connected with it. 1t is affirmed
on the part of the contractionists that w
not only have a sufficient quantity bu
that we have a redundancy. Now, tax
it that there are two modes by which W
can determine, and by which the peopl
themselves can determine, as to tn
proper condition of this branch of tn
question. The first is by comparison;


comparison instituted as to the quantit,
of the currency or the circulating med


UNI of this country established by law
and that provided by other government
for their people. The country that W


have, perhaps, more to do with in a con
mercial sense than any other on tn


globe is that of Great Britain; and in tn
solution of this branch of the question


is but natural that we should look an


see what she has done in tn


way of providing capital an
currency for her people. In lookin


at that, sir, we find that she hs
circulation of 100000 in roun


numbers, and she has population to b


accommodated with that circulation
thirty-two million people. But that doe
not constitute her only banking capita
because here is distinction betwee


currency and capital. Her banking cap


tai is not six hundred millions, but it


thirty five hundred millions; because I'll


deposits in the banks of Great Britai


constitute her banking capital as muc
as her gold and silver does. The deposi
in the banks of our country is part
our bank capital, and the capacity of I'll


banks to loan or to discount is dete
, mined by the quantity of their deposi


as much as by their capital, includir
their circulation.


Now let US see how we compare. Gre


Britain having a circulation of six -hu


dred millions and thirty-two million pc


pie has an aggregate deposit of twent


nine hundred millions in her banks P
d. the two together and they make the a


gregate $3, 800, 100000 Her bank reser'
z = for that large amount is only SIG, 100000
= or less than per cent. of t he whole sur
:. Taking the reserve out that has to