Year: 1874

vour census tables demonstrating the un-
precedented growth and prosperity of the
country under this policy-more devel-
opment and growth in twelve years than
in seventy-one years before the adoption
of this policy.


Now, Mr.. Speaker, that which am
specifically in favor of is this: In the
first place understand that the Commit
tee on Banking and Currency have re-
ported that the permanent quantity of
greenbacks in the country shall be $40O,-
100000 l dc not care to increase that
description of currency just now. am
aware that here l will differ with some of
the friends of expansion. There are
those who believe that the entire circula-
ton ought to be greenbacks. They may
be right. But it seems to me that our
present system has merits in it, and that
it ought not to be abandoned unless for
paramount considerations. 1t also seems
to me that our dual system is better than
a sole system of any kind; that in the
system of national banks regulated by
law the Government retains sort of
supervision that it could not very well
do if greenbacks were to constitute the
sole currency. 1t is true we would save
money in the way of interest, but is 1T
not also true that the people would lose
largely in the way of local taxation?





to taxation by local or State governments
in the hands of the holders, because they
are Government credit


Mr. HOLMAN. Will the gentleman
allow me to ask him a question


Mr. BUNDY. Yes, sir.


Mr. HOLMAN. For several years
after greenbacks were first issued in 1862
they were subject to taxation. They
were subject to war tax l think as late
as 1864, when they ceased to be the sub
iect of taxation. Congress having yield
ed the right, might not greenbacks be
made the subject of local taxation


Mr. PUNDY. 1 am not casuist in
that particular, and hence do not know.
| But ! think not, as a greenback has
been determined by the State courts to
be a token of Government credit, and
hence not taxable The courts in my
State have decided that greenbacks, in
the pockets of the individual, are not the
subject of taxation at the time or on the
day of the assessment. The Federal
courts have affirmed these decisions.


Mr.. HOLMAN. Was not the decision
made under a law enacted exempting
them from taxation


Mr. KELLEY. l must protest against
the gentleman from Ohio Mr. BUNDY]
being interrupted. He has said over and
over again that he has no notes, and
does not wish to be diverted from the
line of his argument


Mr. KELLOGG No one would have
thought of interrupting him had not the
gentleman from Pennsylvania Mr..
KELLEY first interrupted him.


Mr.. BUNDY. / have but few more
remarks to make on this branch of the
subject. L hold that the volume of
greenbacks ought to be at least $400 0000,
900, and fully Justify the Secretary of the
Treasury in emitting the reserve held in
his vaults.


As to whether the national banks
should be supplanted by the sole system
of greenbacks or not is an open question
with me. l was, and am still, in favor of
the three sixty-fve bond payable in law
ful money, and convertible at the option
of the holder into currency; and that
such bonds shall be held and treated by
the national banks as their reserve in
place of their own notes and greenbacks,
thereby releasing the latter, giving them
the power of mobility to circulate, which
would add more than one hundred and
twenty-five millions to the volume of cur
rency. have been staggered little In
the practicability of issuing these bonds
to take the place of currency, and to act
as an element of elasticity of the curren-
cy. l was talking with a gentleman who
seemed to understand better than l did
the arts and powers of the New York op-
orators. He expressed the opinion that
in some way they would manage to get
possession of and control these bonds
when they would and could not be con-
Verted into currency, as contemplated by
their friends. If this could be done
am not certain that would be in favor
of issuing such bonds, but had rather
risk some other expedient to expand
IL ~ - I4
Mr.. KELLEY, the author of the bill intro
Sluced by himself, on that subject, can
probably dissipate any doubts l may
have. If so, l shall favor his PROPOSE
| ton.


1 am in favor of another thing, and
that is that the national banks shall be
prohibited from paying interest on cur
rent deposits or daily balances and that
they shall not be compelled by law to
keep q reserve of 25 per cent. of their
deposits in the banks to pay depositors.
Let the banks and depositors fight their
own battles. As | said some time since,
the banks of England only hold one
hundred and sixteen millions in reserve
on line of deposits, and circulation of
So, 500, 100000, less than 4 per cent. of the
aggregate. There is no reason why our
banks should be compelled to hold more.
In conclusion, we want sufficient cur
rency, and want it good. The latter at
tribute we have secured in a greater
measure and for longer period than
any country ever did, following so closely
upon destructive war The better way,
and in my judgment the only way, to
appreciate its quality is to enlarge its
quantity to such a volume as, if endowed
with the requisite elastic powers, will
keep all the productive industries OF the
country in active and profitable opera
ton; for from these and these alone
must come all the means to pay the in
terest on our public debt, the pensions of
the widows and orphans, and ordinary
expenses of the Federal Government.
The full and successful tide in the opera
tions of these will give us the resumption
of the specie payments that will come
to stay. The converse will bring bank
ruptcy of the people and Government
and ultimate practical, if not formal and
actual, reputation. The untarnished
credit of the Government at home and
abroad can only be maintained through
the prosperity of its people in all the de
partments of their industries.


newspaper, published in Western
State, speaks of telegraph operators as
jerking the forked lightning"