Year: 1873

vailing want among the lanoring people o. ING
Committee on Finance OF the Senate Is reported
to have said that nobody had been injured out
those who mad unduly expanded their business
would Ike to know whether


THE LABORING PEOPLE


who, depriving themselves OF what we regard as
OF dollars in savings banks the victims OF the
expansion OF their trade and buslnessf would


se 70 know wnesef son 1ae peGps an q o
and each contributes to the monthly payments
made TO the Building Association in order that the
family may own the roof over their heads, and who
all having been thrown out OF employment ind
their property about 10 be sold by the Shern under
the mortgage on which they cannot pay the sepn,
expansion OF business Iwould ike any one 10
tell me whether the farmers OF the West and the
prices OF the past year and are selling them under
the prevailing shrinkage OF values are hurtY Ana,
II so, whether 4 Is the result OF their ex- @
travagance and their expansion OF business be-
yond its just limitY These working people
these farmers and planters-are the people OF
the country. and 1t Is they who have been robbed
OF their earnings and their accommodations by the
fact that Congress withh0lds from the country cur
rency enough with which 10 make the exchanges OF
legitimate trade and production. Mr.. Bagehot, In
his recent work on lombard Street." asserts that
THE PRoxMATB CAUSE OF EVERY FINANCIAL PANIC
that has occurred within this century in London
has been the apprehension that parties holding
good securities would soon be unable to get money
on them, and that therefore the holders OF sucn
securities seized the opportunity while 1t might be
had TO get and hoard IT, and in this he is correct
Therefore 1T is that said, so long as the whole
people shall know that whoever holds 3.65 bond
can go to the Treasury and get currency Tor it.
great commercial crisis VIII be impossible and as
to greater interest tempting funds 70 other invest
ment, should be sorry to think that 1t would not
do So for would not check the enterprise OF the
country. But there are large class OF our people
rate OF interest," and these would trust the govern
ment at least, wiz enough OF their funds to make
them feel that II they lost what they had ventured
in railroad and other mortgages they would still be
in comfortable circumstances.


PROSPECTS OF JUDGE KELLEY'S BILL.


CORREsPONpENT-Can you give me any idea as to
how your committee is likely to act on this subject
and whether the same proposition Is not before
the Committee on Banking and Currency, and
what view they take OF itY


Judge KELLEY-The question Is before both the
committees you have named; indeed, my bill has
been referred to each OF them. Mr.. Field, OF
Michigan has bill before the Committee on Bank
ing and Currency involving the same principles,
and there are other propositions kindred TO 1t
tee ON Ways and Means will take cannot venture
TO suggest. brought my bill to the attention OF
the committee on Friday and requested that IT
should be taken up for consideration Immediately
alter the holidays. think that after an investiga-
tian Of its provisions and the consideration OF the
the replies the Secretary OF the Treasury shall
make to my call for information 1t will be reported
to the House. Whether majority OF the commit
tee will support 1T on the floor am quite unable
to determine in my own mind. AS to the opinion
OF the members oil the Committee on Banking and
Currency know still less than do OF those OF
my colleagues on the Ways and Means The
merits Of the proposition appear to me
to be so great that do not see how either COM
mittee can resist 1t, especially now that it is
shorn OF the suggestion that 1T is novelty and an
experiment, and shown to be an original and es-
sential part OF our system Of inconvertibe paper
money. A few days after the reassembing OF
Congress will determine it's fate in both commit
tees. The recent experience OF France in reviving
her business and paying the German indemnity SO
soon after the war is a powerful argument in sup
port OF this measure. The French government
declared the notes Of the Bank oil France to be
legal tender, and receives them in payment OF all
dues to the government and the difference be-
tween gold and paper in that country has never
reached one per cent Industries revived almost
magically, and the story OF how France paid the
German indemnity Is familiar to all. So too, the
example OF England pleads for 1t. The English
people hold the Edglish debt at q low rate OF in
terest because consols are always convertible into
money at slight depreciation. If the immense
debt Of England can be borne by aid OF machipery,
which sometimes falls lew per cent below par,
by b0nds always redeemabe at par IN the currency
OF the nation by the Treasury of the countryi