Year: 1870

quired to pay off that debt at the end of twenty
five years. Now deduct Sis, 10000 from S2i8,25
900 and you have dead loss of Sy45OO,OOO if this
bill goes into operation.


Mr.. MoRGAN's SUBSTITUTE


Mr.. Speaker, in obedience to a large number of
petitions sent me from the people, asking for re-
lief introduced substitute for the bill of the
committee. The first section proposes to abolish


the National Banks thus saving over S2OOOO 600


annually now paid as interest on the bonds depos-


tied by the banks security for their circulation


For II moment, sir, let us contrast the scheme of


the committee with the substitute l have had the
honor to submit. The committee pronose to in


crease the bonded debt $4,000 600 thereby ad-
ding to the interest of the Federal debt nearly


seven million dollars. The substitute proposes
| to reduce the bonded debt 1872 OOO by paving


off that amount at par il treasury notes. and there
by save more than twenty millions annually by
way OF interest, ard also the further of S4l-


to the bond holder twelve dollars on the hundred


more than their legal value The scheme of the
committee Would cost the government over nine


ty-fnur million dollars TO put in operation, while
the plan OF the substitute would scarcely cost q
The bill proposes that these new banks shall


keep specie reserve of one dollar for every four


dollars OF circulation and as the paper of the new
banks would be at once "gObbled up" by the old
ones, the specie would be drawn from the new
banks as rapidly it was deposited, and a col


lapse would be RE result. ON the contrary, the
substitute proposes to redeem the treasury notes


IN IN specie when the debt is paid OF, and less
The Secretary of the Treasury and other fnan-
ciers who aid in running" the government for


the sole benefit Of the bondholders talk of spe-
Gle basis of maxim - he paper currency equal to
| gold, as if such thing were possible while we


per money shall not be equal to specie, that paper


money shall not answer the purposes of money in


the payment OF custom dues. Sir, this talk OF re-
| turning to specie basis while this debt hangs
over us is mere cheat set afoat for the express
purpose OF deceiYing the people. Suppose that
| sufficient gold were in tile country To make
one fourth reserve for all the banks, how long
~0uId the gold remain in their vaults while the


balance OF trade IS against us? While we have
tins fearful debt hanging us, while our peo-
| pie pay more taxes than any other people, we
must nave currency of corresponding amount,


and an increase of prices would be the natural re-
Sult. II We had specie payments under that state
| OF things the foreigner would sell us his goods
| for paper at paper prices and an hour afteTward
draw the gold from the bank and ship it home or
| il at an enormous discount The driving of the
gold from the banks would produce contraction
and sudden contraction would bring with il com


merclal disaster. Until we get rid of the debt we
have only one true line policy, and should only
have one currency, and that should be paper.


When the people are relieved of the burden of the
deDt, then, but not till them can We have specie
circulation. currency of gold and silver now
would double the fortune of the bondholder and
the taxes of the people.


Those who pretend to favor a return to specie
payments know that it is impossible. How do you


expect to return to specie payments, to establish
an equallty between gold and paper, when by
special legislation you have made paper currency
inferior to specie? There is another reason why
we shoulu not II we could return to specie pay
ments now. Let custom dues be paid in Treasu-


ury notes, and the interest on the funded debt be
paid IN the same currency that the interest on all


debts is payable, and then, if the foreigner wants
our gold, he must buy it like any other commod-
lty, or take our manufactures and products in
exchange for his, and instead of losing we will
largely gaiu


have a word or two to say in regard to the first


section of my bill, which proposes to abolish the
national banks, for of ali schemes of legaIized
plunder since the world began, the scheme of ma
uonal banking in the United States is the most
lndetensible and the most infamous.


THE PLUMBER SCHEME.


What is this scheme of plu-ler ofwhich sneak


A law was passed giving to a very few men COM
pared with our population S3OOOOO 900 of something
the law call money. What did they pay for it -
Now, mark you this point. How much did theV
give for these S3O0OO0oOO of bank notes. Not
one farthingi They did not even pay for the ma


per on which the note is printed. They did not


pay Tor the ink. You gave TO New England SIOI-
100000 Of this bank money, which did not cost
New England tarthing, and out of extreme gem


eroslty New England comes to Ohio and loans
S0OOOO,OOO at 20 per cent, money which cost her


and toll and industry, and in the space of q few


years makes not only $500 600 900 but 900 900


and she Will redeem her bonds at the treasury


place them IN her pockets, and have the neat lit-


tie sum of 500, 100000 clear gain.


have in my hand the statement of jaw Cooke


Co published In 1869. 1t shows that in 1864 one


dollar of gold was worth S2,O3 in paper, while one


dollar Of paper was only worth 49Z cents gold


Then, with Sl7l 236 $50 in gold, the bankers pur-
chased that value treasury notes, and invested
them at par in S342,475, 100 of bonds They have
received six years interest on the bonds which
the people owed them, and six years. interest on
the notes which they owed the people. That is
they drew'interest on the money they have bor-


rowed as well as upon the money they have lent


Right here, sir, let me call your attention to n
little account stated between the tay-paVerS in
account with the hanls.-