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the whole. The amendment that I asked to be just this: taking as an illustration the firm of three Senate pension bills which have been reput upon that bill was not put upon it; so that Secor & Co., I believe they constructed either turned from the House of Representatives with the Senate voted to appropriate to the parties seven or nine iron-clads; I think every one of amendments. The amendments are similar, mentioned in the proviso the whole sum pro those vessels was in battle and did efficient and are not concurred in by the Committee on vided by the board. Now, here is a joint reso. service. This board has allowed upon either Pensions. The committee report them back lution which offers to them the same oppor: two or three of those vessels. The plans and adversely. I therefore move that the Senate tunity to sue in the Court of Claims that it specifications were changed regarding the disagree to the amendment of the House of provides for these other contractors who did others, but they have had no allowance upon Representatives to one of the bills, say the bill not have anything from the naval board. I them. Now, my amendment proposes that in (s. No. 181) granting a pension to Mrs. Corthink, as the parties named in the proviso have | regard to the vessels upon which an allowance coran, and ask for a committee of conference taken one judgment from the Secretary of the was made by the board they shall not go before on the disagreeing votes of the two Houses; Navy and taken another from the board con- the Court of Claims; but in regard to the ves- and the others can lie on the table. stituted by the Secretary of the Navy and sels upon which no allowance was made they The PRESIDENT pro tempore. The Senaapproved by the bill which passed here the shall stand just like the other contractors. tor moves that the Senate disagree to the amend. other day, that, so far as those suitors are con- The question being taken by yeas and nays, ment of the House of Representatives to Sen. cerned, there should be an end of litigation, resulted-yeas 23, nays 18; as follows: ate bill No. 184, and ask for a committee of and if this resolution passes at all it should YEAS-Messrs. Anthony. Buckalew, Cragin, Davis,
conference on the disagreeing votes of the two pass only for the relief of those who did not Doolittle, Drake. Ferry, Fowler, Harlan, llendricks, Houses. get a judgment for anything from the naval
Johnson, Nye, Patterson of New Hampshire, Pat- The motion was agreed to. board.
terson of Tennessee, Ramsey, Sherman, Sprague,
Stewart, Sumner, Van Winkie, Vickers, Wade, and Mr. VAN WINKLE. I move that the comMr. HENDRICKS. I move to amend the Willey-23.
mittee of conference be appointed by the chair. amendment by adding the following:
NÄYS-Messrs. Cameron, Cattell, Chandler, Cole,
The motion was agreed to; and the President Upon any vessel upon which an allowance was Morgan, Morrill of Maine, Morrill of Vermont, Mor- pro tempore appointed Mr. Van WINKLE, Mr. made by the board organized under the act of March ton, Pomeroy, Truinbull, Williams, Wilson, and
TRUMBULL, and Mr. EDMUNDS. 2, 1867.
Mr. VAN WINKLE. I move that the other Corbett, Dixon, Edinunds, Grimes, Henderson, Nor- bills with the amendments lie upon the table. Provided. That no claim shall be so referred under ton, Ross, Saulsbury, Thayer, and Tipton-13.
The motion was agreed to; and the bill (S. this act in favor of Secor & Co.; Perrine, Sccor, & Co.; Harrison Loring; the Atlantic Works, of Boston;
So the amendment to the amendment was No. 425) granting a pension to George BenAquilla Adams; M. F. Merritt; Tomlinson, Hart- agreed to.
nett, and the bill (S. No. 280) granting a pen. upee & Co.; or to Messrs. Poole & Hunt; or any or The amendment, as amended, was adopted. sion to Michael Hennessy, of Platte county, either of them, upon any vessel upon which an allowanco was made by the board organized under the Mr. DRAKE. There is a verbal amendment | Missouri, with the amendments of the House act of March 2, 1867.
which ought to be made in the joint resolution. of Representatives thereto, were laid on the The amendment which I propose to the The resolution undertakes to set out the title table, amendment of the Senator from Wisconsin will of the act of March 2, 1867. It says, “An act
MESSAGE FROM THE HOUSE. make this legislation agree with the bill that for the relief of certain contractors, and so
A message from the House of Representapassed the Senate the other day. forth.” I wish to have the title set out in full.
tives, by Mr. McPherson, its Clerk, announced Mr. HOWE. I hope the amendment of the I move to strike out the words and so forth,”
that the House had passed a joint resolution Senator from Indiana will not be agreed to. in the fifth line, and to insert “ for the con- (H. R. No. 291) giving additional compensa. The effect of it is to just divide the bill of par- struction of vessels of war and steam ma
tion to certain employés in the civil service of ticulars which has been tried by this naval chinery:" That gives the title to the previous | the Government at Washington, in which it board. Each of these parties mentioned in act in full.
requested the concurrence of the Senate. the proviso has had a judgment there, a judg- The PRESIDENT pro tempore. That amendment in their favor. That judgment only in- ment will be made if there be no objection.
NATIONAL BANKS. cluded a part of their claim; but so far as the The joint resolution was reported to the The PRESIDENT pro tempore. The special judgment was in their favor they have taken Senate as amended, and the amendments were order is now before the Senate. the benefit of it. The judgment was upon
concurred in. The joint resolution was ordered The Senate, as in Committee of the Whole, some of the items in their claim, and the judg. to be engrossed for a third reading, and was resumed the consideration of the bill (S. No. ment went against them upon some other read the third time.
440) supplementary to an act entitled An act items. The Senator proposes that they shall Mr. WILLIAMS. I ask for the yeas and to provide a national corrency secured by a stand by the judgment upon those items where pays on the passage of the resolution.
pledge of United States bonds, and to provide judgment was in their favor and that they shall The yeas and nays were ordered ; and being for the circulation and redemption thereof,'' go into the Court of Claims under this resolu- taken, resulted-yeas 24, nays 14; as follows: approved June 3, 1864, the pending question tion to recover for those items on which judg. YEAŞ--Messrs. Anthony, Cattell
, Conness, Cragin, being on the amendment of Mr. MORRILL, of ment went against them before the naval board. Davis, Drake, Ferry, Fowler, Hendricks, Johnson, Vermont, to the amendment proposed by the If the Senate agrees to it of course I cannot Morton. Nye, Patterson of Tennessee, Ramsey, Sher
Committee on Finance as the fifth section of man, Sprague, Stewart, Sumner, Trumbull, Van help it.
Winkle, Vickers, Wade, Willey, and Yates--24. the bill. The amendment of the committee is Mr. CRAGIN. I hope the amendment to
NAYS-Messrs. Buckalew, Cameron, Chandler, in these words:
Cole, Doolittle, Fessenden. Frelinghuysen, Harlan, the amendment will be adopted. If it is
Howe, McCreery, Morgan, Morrill of Vermont, Wil- Sec. 5. And be it further enacted. That section adopted, it leaves all parties standing upon an liams, and Wilson-14.
twenty-two of the act aforesaid be so amended that equal footing. Secor & Co. built about one
ABSENT-Messrs. Bayard, Conkling. Corbett,
the maximum limit of national circulation, fixed fourth of all the iron-clads built for the GovDixon, Edmunds, Grimes, Henderson, Howard, Mor
by said act, is hereby increased the sum of $20.000.000, rill of Mainc, Norton, Patterson of New Hampshire,
which amount shall be issued only to banking a880ernment. By the bill that passed the other Pomeroy, Ross, Saulsbury, Tbayer, and Tipton-16.
ciations organized in States and Territories having
a less circulation than five dollars per cach inhabday they were allowed on three vessels; on So the joint resolution was passed.
itant, and so as to equalize the circulation in such the others they were allowed nothing. There
Mr. HOWE subsequently said: I ask unani
States and Territories in proportion to population. are reasons why they should be allowed on the mous consent to correct an error in an amend.
The amendment of Mr. Morrill, of Verothers just exactly as good as there are why ment made to a joint resolution passed this mont, is to add to the amendment of the comother parties should be allowed. The reason morning for the relief of certain contractors
mittee the following words: for referring this subject to the Court of Claims
for vessels of war and steam machinery. I And upon the issue of any increased national ciris this: these claimants came before the Commoved a proviso intended to exclude from its
culation provided for in this section the Secretary mittee on Naval Affairs and asked us to ex.
of the Treasury is hereby authorized to permanently amine their claims; but they told us at the bill which had passed the Senate. I omitted operation all that were included in a previous withdraw an equal amount of United States notes.
Mr. SHERMAN. The Senator from Calisame time that they were aware we had not the names of Messrs. Harlan & Hollings. || fornia (Mr. COLE] has the floor on that ques the time to investigate these matters ; that they | worth, who were introduced into the previous tion. involved the examination of large numbers of
bill by an amendment. I had not the bill as Mr. MORTON. Is it in order to offer an witnesses, and of long and continuous accounts,
it passed the Senate before me. To put that amendment to the amendment of the Senator and it' we would allow them, if we had not the firm on the same terms as all the other con
from Vermont? time to examine them, to go to the Court of tractors they should be inserted in the proviso. Claims to institute and prosecute this examin.
The PRESIDENT pro tempore. Not just The only regular way, I suppose, is to move a
It would be an annendment in the third ation, they would be satisfied, and the Commit. reconsideration. tec on Naval Affairs agreed to this. It is just
Mr. SHERMAN. I suppose the correction Mr. MORTON. I will ask to have my and right, in my judgment, and I hope that
can be made by unanimous consent. course will be taken.
amendment read for information. The PRESIDENT pro tempore.
Mr. HOWE. I hope the Senate will consent The Chief Clerk read the proposed amend.
unanimously to insert the name of Harlan & tion is on the amendment of the Senator from
ment, as follows: Hollingsworth in the proviso. Indiana [Mr. HENDRICKS] to the amendment
Provided, That the United States notes so retired
The PRESIDENT pro tempore. The amend- shall not be obtained by the sale of bonds, but shall of the Senator from Wisconsin, (Mr. Howe.] ment may be made by unanimous consent. Is
be taken from the funds in the Treasury, collected in Mr. HOWE. On that question I ask for the there objection? There is no objection ; and
the ordinary way. yeas and nays. the amendment will be made.
Mr. COLE. Mr. President, I could hardly The yeas and nays were ordered.
persuade myself to allow the vote to be taken Mr. HENDRICKS. To illustrate the force
upon this part of the bill without tendering a of the amendment, I will state to the Senate Mr. VAN WINKLE. I hold in my hand I few suggestions to the Senate upon it. This
fifth section provides for the issuance of sto population. I do not contend that it should the people from furnishing this needed circu$20,000,000 of additional circulation for the be distributed according to population entirely; lation. It is a specious cry. If there is a lia. use of those States and Territories in which but that there should be some reference to bility to intlation by the issues of more bank the amount of banking, circulation already | population I think a very clear proposition. circulation, certainly there must already be issued is less than five dollars per capita. It | But if this be absurd it is an absurdity into inflation in New England and New York, is intended in some degree to equalize the cir. which the Congress that passed the law fell; where they have greatly surpassing their proculation under the laws of the United States for in the seventeenth section of the act of portion of that already issued; but they at the authorizing the issue of national bank currency. February 25, 1863, authorizing these national North and East do not complain of inilation. I do not wish to commit myself to the system banks, we find the following provision :
They are full of money and bank circulation; of national banks by anything I shall say in "That the entire amount of circulating notes to be
they have it in abundance, and they wish to favor of this amendment. I look upon it only issued under this act shall not exceed $300.000.000, retain what they have, but are at the same as some relief for a portion of the United $150,000,000 of which sum shall be apportioned to time unwilling to furnish those portions of the States from the great embarrassment under
associations in the States, in the District of Colum-
Union that are in want of it with a small prowhich that portion is at present suffering. tivo population, and the remainder shall be appor- portion, such as may afford some accominoThe South and West, as is well understood I tioned by the Secretary of the Treasury among
dation to those sections. The people of the associations formed in the several States, in the Disbelieve by all Senators, are greatly in need of trict of Columbia, and in the Territories, having due
West and the South of these twenty-four money. This addition of $20,000,000 to them regard to the existing banking capital, resources, and States and Territories, if furnished these in the form of banking capital or bank issues business of such States, District, and Territories." $20,000,000 of circulation, would be in some will afford them only slight relief. It will not Thus it will be seen that by a provision of || degree independent of their more wealthy entirely meet the emergency. It will not relieve the law half of it was to be distributed accord- neighbors at the North and East; and to put them to any very great extent, but it will afford | ing to representative population; and if that them in this condition will not result at all in some relief provided they avail themselves of be an absurdity clearly it is one into which an unfavorable inflation of the currency. It the offer and take this circulation. Mr. Presi- Congress itself fell.
cannot have that result; it cannot produce that dent, those States and Territories of the West But this circulation is not to be distributed effect. and South are the poor portion of the Repub- || in accordance with wealth. It is to be dis- But the statement that is made for the purlic. They are the laboring portions, the pro- tributed for the accommodation of the people pose of preventing this addition to the circuductive portions. The other parts of the Union, and in accordance with the business require- lation is that it will impair the public credit. the North and the East, possess nearly all the ments of the people. A larger proportion | Let us for a moment examine that. The pubcapital of the nation. They are the manu. of it is required in new countries in accord- lic credit does not depend upon the amount facturing portion, the trading portion, the ance with the amount of business than in old of circulation ; it depends upon the success of wealthy portion.
countries or well-established communities. In | business, upon the productive industry of the There is at present a very great inequality | the commercial centers, as, for instance, New country, upon its growing wealth ; and everyin the distribution of this bank capital; and York and Boston, there are such institutions || thing that tends to check the productive industo this I wish to call the attention of the Sen. as clearing-houses. Banks are abundant there try of the country, everything that has for its ate. In New England at present there is up- through which the business is done by a sys- object the suppression of labor and industry, ward of one third of this banking circulation. tem of checking, a system of credits. I pre- must affect the public credit unfavorably. The total amount issued under the law of sume not one tenth of the business in the The Secretary of the Treasury has made a 1863 authorizing these national banks is $300,- | city of New York is done by the actual use recommendation that this circulation be fur000,000. Of this the New England States have of money, but, on the other hand, by the use nished at the South. I believe at some time he $104,959,981. That amount is apportioned to of credits and checks. It is very different in has recommended also that a portion of the the people of New England, who constitute only the new States, where the population is scat- circulation that has been furnished to the East about one twelfth of the total population of the tered, where people are strangers to each other, or North, particularly to New England and nation. New England and New York, which to- and have but little credit upon which to rely. || New York, shall be withdrawn and furnished to gether contain only about one fifth of the total There business has to be done upon a money these more destitute sections. In a letter of population of the country, have at present up- basis. There is need, therefore, in nearly the Secretary, dated in 1866, I find the followward of seven twelfths of the entire circulation every transaction, of money with which to ing paragraph: issued to these national banks. The twelve | perfect it. There is, therefore, much differ. "I also think it a matter of great importance that States comprising New England, New York, ence between the older communities, these provision should be made to meet the wants of thoso New Jersey, Pennsylvania, Ohio, Indiana, and business centers, and the new States and Ter
States which have been in rebellion. Banking facili
ties are necessary to develop the industrial interests Illinois possess of this $300,000,000 of bank ritories in this respect.
of the South, and to stimulate the production of circulation some $265,000,000 ; and those The proposition that is pending here is not those staples which enter so largely into the financial States contain a population, according to the to withdraw any of this circulation from the
interests of the country. At the same time it would
be wise policy to afford the people of that section last census, of less than sixteen millions, cer: States which now possess it. It is conceded an opportunity to become pecuniarily interested in tainly at this day less than half the population by this bill to be proper that the States which
the successful maintenance of the Governinent of of the Republic. In all the other thirty-two now possess this circulation should retain all
the United States; and, inasmuch as Congress has
assumed entire control of the currency of the counStates and Territories, including the District | they have. There is no disposition at all to try, and, to a very considerable extent, of its banking of Columbia, which must contain a population || interfere with them. The proposition is to
interests, prohibiting the interference of State govof about nineteen millions, perhaps at this time || provide some circulation, a small amount, for
ernments, it would seem to be the plain duty of Con
gress to make adequate provision to meet the business twenty millions, there is distributed of this cir. this portion of the Union, where it is at present wants of all sections of the country in the way of culation only about one niuth, or $35,000,000 exceedingly scarce.
banking facilities." all told.
It is well understood that business is very That recommendation has been entirely disThis, as will be seen, is a very great in- much impeded in the West and South for the regarded thus far, and always upon the plea equality in the distribution of this circulation. want of money; and if capitalists are found that there would be something wrong and det. The $20,000,000 that are to be authorized there who can invest in United States bonds rimental to the country in adding to the circu. under this fifth section of the bill are to be dis- to the amount of $20,000,000 and deposit them lation. tributed among some twenty-four States and with the Treasurer and draw ninety per cent. The proposition contained in the amendment Territories, and they are the States and Terri. of bank notes, which they may in turn lend to of the Senator from Vermont to withdraw an tories that lie west of the Mississippi and south their neigbbors for such security as the neigh- | equal amount of greenbacks to the amount of of the Ohio and the Potomac, including the bors can furnish in the particular localities, bank circulation which is allowed to be put State of Wisconsin. These twenty-four States why should not they be allowed to do this? It forth, is not one that meets my approval. It and Territories, all of which possess less than is a privilege that is now only enjoyed by the would be necessarily adding so much to the five dollars per capita of this bank circulation, people of the East and the North. At present || interest-bearing debt of the country, unless the will be the States and Territories among which the South and the West depend to a very great amendment proposed by the Senator from Inthe $20,000,000 additional will be distributed. extent upon the East and the North for the diana should prevail with it. We have not the These States and Territories possess at pres- money with which to prosecute their business ; || greenbacks or United States notes with which ent only about $20,000,000 of banking capital; | but the business capacity and wealth of the to make the exchange, or with which to sup: and I think it will be ascertained by referring people of the South and the West are not || ply the deficiency; they must necessarily be to the censusthat their total population, includ understood at the North, or where these banks | raised by issuing interest-bearing par bonds; ing the blacks, is about half the population of are located ; and so they bave no credit there, there is no other way we have for raising them, the whole country, and if this bank capital or and, as a consequence, if money is borrowed and it would therefore be a conversion of circulation were distributed according to the where they have no credit a larger interest is to $100,000,000 of non-interest-bearing securities population they would be entitled to $150,- | be paid, and it is not an unusual thing for the into so much bearing interest. This, in my 000,000. It will appear from these figures that people of the West and the South to pay enor. judgment, would be a proposition most unfavorthese States which possess nearly all of it mous interest, often as high as two per cent. a able to the Government, and it would not at enjoy a great money monopoly, for such it month, a ruinous rate.
all relieve the country from the stringency in really is. This remark is particularly applicable But whenever the proposition is made from the money market. It would leave the amount to New England and New York, which possess any quarter to furnish these people with circu- || of money in the country precisely as it is. It upward of $177,000,000 of this currency. lation, which they so much stand in need of, || would afford some little relief in this point of
But we were told on Friday, by the Senator the cry of inflation is raised. This is a sort of view; it would allow this banking circulation from Massachusetts (Mr. Wilson) that it is | hobgoblin or bugbear brought forward for the to be taken in those Territories and States absurd to distribute this circulation according Il purpose of frightening the representatives of where it is now scarce, but that is all the relief taken up.
that would flow from it; and as the drainage who issue it to redeem the money that is put section where this banking capital has been of money is from the West and South to the afloat. In such a case it is an object on the East and the North, there would, in a little part of those who have the issuance of the I believe, Mr. President, that there should while, unquestionably be the same dilemma money to put forth as much as they can, as be no hesitation on the part of the Senate in under which those sections of the Union are much as they can persuade people to receive. affording this little measure of relief to these now suffering.
It is a gaining operation with them. But if | destitute portions of the country. It will add The amount of money afloat at present is they are to leave on deposit the value of the to their productiveness. At present they are much too small, as I believe, for the business money which they receive, it will be different in a withered, decaying condition ; they are requirements of the country. The total amount if the deposit can be of more value to them, | paralyzed for the want of circulation ; they are of circulation is something less than seven hun- can be used in some way better than in the unable to move their crops for the want of dred million dollars; the amountof United States form of money, they will so use it, and there | money; and if this relief is not permitted, notes is about three hundred and fifty-six mil. is no danger whatever of the country ever they will decline in wealth, they will continue lions; the amount of fractional currency about becoming flooded with good money.
in their present condition of poverty and disthirty millions; the amount of national bank The banking system we now have I believe | tress, and after a while will become even less circulation is $300,000,000; the amount of gold to be the best that has ever been adopted in productive, and as a consequence less advanperhaps on the western coast would bring it this country. It is the safest we bave ever had. tageous to the wealthy portions of the Union, up to about seven hundred millions. If the It is not a new system; it had been adopted in the East and the North. Wbatever is done to population is thirty-five millions, this would many of its features in several of the States of encourage industry, whatever is done to add be only twenty dollars per capita to the whole the Union. It had been recommended by to the productiveness of the South and the population, and this in a depreciated currency writers on political economy long before it was West, will but add to the general prosperity of which is equivalent to gold or silver to only adopted by the United States Government. I the nation and improve its credit. I hope about fourteen dollars per head. This is less find in a work published in 1852 on the Pro- || therefore, Mr. President, that this amendment by far than is used in the other civilized and gress of Nations by an author of considerable will be acquiesced in. commercial countries that compete with the notoriety, Mr. Seaman, the exact plan of the Mr. MORRILL, of Vermont. Mr. President, United States in business and wealth. In present national banking system of the United | when a gentleman sets out with an unsound England, I think, the amount per capita is at
States laid down in detail. I believe it to be | principle at the start and claims that paper least twice that. In France it is as much as the very best system that has thus far been money is just as good as gold and silver coin, in England, or more. I have not before me adopted, but it is defective in maliy respects. you may expect that fallacy to run through his the figures, but, if I remember well, such is It would be better, in my judgment, if there entire argument. Now, I am surprised at the the fact.
could be great freedom on the part of all the disinterested generosity of the Senator from In my opinion it is the duty of the Govern- citizens, who have the securities that are re- California. If there is a Senator on this floor ment to provide the kind of money that is quired by the Government, to surrender to the who ought to be a stickler for a speedy restorneeded by the people. That a sovereign || Treasury and receive in lieu of them United ation of specie payments, it is the Senator from power. It is provided by the Government in States notes, rather than to leave the bonds to California ; for by an irredeemable paper curnearly all the civilized countries. The Gov. draw interest for those who deposit them as rency the relative power of gold is lessened, ernment takes it upon itself to fix the value security. This would result in withdrawing the purchasing power of it is vastly diminished, and denomination of coins. The Government from our interest-bearing indebtness at least, and this is an evil under which the people of does not furnish the gold and silver ; it issues the $300,000,000 that are now issued as na: California and all other gold and silver prothe gold and silver in the form of coin to those tional bank circulation and replacing them with ducing States and Territories have been groanwho bring them to the Government for the
a like amount of non-interest-bearing green- ing for years, ever since the introduction into purpose of being reduced to coin ; and there backs. We should thus save at least $25,000,- the country of this unusual flood of paper has never happened such a thing in modern 000 a year interest. The interest that is now money, and yet the Senator from California times as a Government refusing to coin gold | paid in gold on this amount is $18,000,000, | proclaims here that paper mouey is just as and silver for those who have gold and silver equivalent to $25,000,000 in greenbacks or good as gold or silver. to be thus converted. There has never been United States notes.
Mr. COLE. I am sure the Senator from an attempt to restrict the amount of hard Besides, this system of banking is liable to Vermont does not intend to misrepresent me. money in any country. There has never been many abuses. It is a very great privilege to I spoke of paper money well secured, secured any complaint on the ground that there was those who can avail themselves of it. It cer- by the value it represents. too much good money afloat, and why should | tainly amounts, on the part of those who Mr. MORRILL, of Vermont. I understood there be a distinction between the money that receive it, to a privilege of drawing double the limitations which the Senator laid down, is made of gold and silver and that which is interest upon their capital. They take their and he evidently meant that the kind of paper issued by the Government as representatives bonds to the Treasury, leave them on deposit, money which we have issued is just as good as of the value of. gold and silver ?." There is, in and receive ninety per cent. of circulation gold or silver and just such as he is ready to my opinion, no good reason to be urged why which they loan out upon interest. Thus the issue $20,000,000 more of without conditions. the Guvernment should not take it upon itself bankers receive interest not only upon the Does not the fact stare him in the face that to issue the representative of money which is $100,000 deposited with the Treasury, but also gold is forty per cent above paper? Is not in the form of paper the same as it takes upon on the $90,000 of circulating notes which they that a significant showing of the fallacy of his itself to fix the value of coins and the descrip.
Then, why may not a man who re- argument ? Have we not enough of that kind tion of money when we are without paper. ceives his $90,000 in circulation immediately | of circulation? If we had not too much of it, The only duty on the part of the Government convert that again-less the amount to be kept || it would be at par, or else we have destroyed is to see that the money which is issued as the on hand-into United States bonds in some the credit of our country-an idea that I do representative of gold and silver shall be well other bank, or invest it in some other banking not admit; but I will say that we are in danger secured, and this plan has been adopted by operation, and receive circulation again to the of destroying it when we take steps in the direethis Government in the banking system that is amount of, perhaps, seventy odd thousand tion of expansion instead of contraction. in vogue. The Government has required secur- dollars? After he has received his new circu- But the Senator goes on further to state that ity to be deposited in the Treasury; upon that | lation, why may he not again invest it in Uni- when this paper money is issued by a party who this representative of value is issued. As long || ted States bonds and receive ninety per cent. manifests no purpose of redeeming it, then it as this money is well secured why should not again, and so multiplying his interest until he is of less value. Here is an example: there the amount that is to be issued be left to the receives thirty or forty per cent. on the original || is a proposition before us which proposes not requirements of business? If any person or investment of $100,000? To be sure there is
to redeem any ortion of this paper money, any section of the country has the security to a provision in the law that the persons receiv- but to increase the amount of it by the sum of tender to the Government for this represent. || ing the circulation shall not use it in a way $20,000,000, and yet the Senator from Califorative money why should not that section of to increase their banking capital; but that nia is one of the earliest opponents of an country or that individual, if it be needed by prohibition applies only to the bank to which amendment offered by me providing that if the the requirements of business, be permitted to the circulation is issued, and what is to hinder national banking circulation shall be so in. put his securities in that form in which they a person receiving the circulation first issued
creased, we shall retire an equal amount of sball be available to him? The whole duty of from making the same disposition of it in some United States notes. the Government will be to see to it that the other bank?
But the Senator from California has iterated securities are perfect and abundant. The laws The fact is, Mr. President, this banking and reiterated the idea that the North and the of trade can safely be trusted to fix the amount privilege that is granted by the laws of the East possess the wealth of the country, and of good money that may at any time be re. United States is an exceedingly advantageous are opposing this measure for increasing the quired.
one, one of immense value to the people who circulation. Why, sir, a Senator from New The only danger that has ever manifested have so hastily and early availed themselves of England [Mr. Wilson) has proposed to initself of too much money in a country has been it. It is of great advantage to the people of crease it five times the amount proposed by the of money that has not been properly secured New England and New York, who have ab. bill of the committee. Only one of the Senaor money of low value. There is danger of sorbed so large a portion of it; and I do not tors from New England, the Senator from Coninflation when coins are reduced in value by wonder very much at their extreme anxiety to necticut, has shown any disposition to oppose the addition of alloys. There is danger of an prevent any addition to the amount, or to pre- the proposition, although I think the whole inflation of the currency when the securities vent the people of the South and the West, Senate will be justified in opposing it if it comes are inadequate, when there is no disposition, where there is more poverty and more destitu- in the shape of a naked expansion of paper it may be, oç no purpose on the part of those li tion, from adding to their independence of the money. Why, then, does the Senator from
California come out here with a statement that I obvious that our United States notes are con- people of New York were content; a system New England and New York are particularly sidered worth less in the market than any other guarded against inflation, for, although bankaverse to this increase of banking circulation, securities that we have? Why should we not ing circulation was based upon mortgages of or averse at all to allowing other parts of the either retire them or refuse to put out anything real estate, and so far unchecked in volume, country to enjoy the same privileges which more akin to them, or anything to compete it was also based upon State stocks to the they enjoy? Fix your laws as you please, and with and depress them still more? Our bonds extent of one half, which stocks could never the North and the East will try to endure it; | sell for one hundred and ten or one hundred be increased a farthing without a popular vote but the evil of an intiated currency is not a and twelve, making them ten or twelve per of the people of the State cousenting to the local one; the whole country has an interest in cent. above our national bank note circulation. increase. getting out of the present quagmire, not in Our people believe one will be paid and fear In this way it will be seen the basis of bankplunging deeper into it.
as to the other. It seems to me that it is per: ing while flexible was sate from undue expanI have sometimes thought that some gentle | fectly plain we have got too much currency of sion. men in the West, if they could get a measure some sort out already; and if gentlemen in the Thus the people of the State of New York before the Senate that would confiscate the West or in California or in any other section | had provided for themselves a banking systein property of the widows and orphans in the of the country expect to make bank note cir. ever within their own control, ever secure in Kasi, for they own a pretty large share of what culation available in their localities until we its workings, under which they had a currency there is there, would be willing to do it. Why, resume specie payments they are very much and banking facilities adapted to their wauts. sir, the wealth that has been accumulated in mistaken. While there is a suspension of spe- When the war broke out the banking interest New England and the North has been the
cie payments the capital will flow to the Atlan- like all others were asked to come forward and slow gr. wth of two centuries. Can gentlemen | tic coast-to the money centers of the country. lay their offerings upon the altar of the country. expect that new States like California, Nevada, will flow to places where you can find room Which interest was it, I ask, that leaped for: and other of our western States, as prosper. for all sorts of trade and speculation ; you can
ward with a bound sooner than the banks and ous and flourishing as they may be-and I not find it in the interior. In ny own State | the capitalists of the State of New York? rejoice that they are-are going to jump at once the circulation runs off to the Atlantic coast; Without having the figures before me, and into the wealth and the civilization of centu. you cannot keep it in the interior; it will go il speaking only from recollection, I assert the ries? Have these States any less banking capi. || where there is the greatest opportunity for banks advanced to the Government their entire lai now than they had before the creation of speculation. When there is anything in the capital, and then, as the trustees of their de. the national bauking system? I should like interior which can be purchased at å profit, positors, they advanced a suru which surprised to know if the creatiou of the national bank then paper money will find it out, but not till the nation and the Government. ing system has diminished the amount of bank- then.
Afier this, despite all this, the banks of New ing capital of any of those western States I hope, Mr. President, that the proposition | York, in common with the banks of the other about which we hear so much. Did they not which I have presented will commend itselt' to Siates, were subjected to national legislation, help to establish the new system? The people the judgment of the Senate. If we cannot the long and short of which was to tax them of iny State when this system was adopted bad take any active steps by which we are to resume out of existence, and they were compelled to a banking sys. em with which they were con- specie payments, let us certainly beware of lie down upon a Procrustean bed of national tent, and they had a much larger circulation | taking any steps which are to retard that event. finance and be shortened if they were found 100 than they now have. It was a systein that Mr. CONRLING. Mr. President, to vote long, or stretched if they were found too short. contributed largely by the taxes imposed upon for the fifth section of the bill without amend. Without dwelling upon the history of this it to the support of the State goverument. Our ment is to favor an inflation of the paper cur. transaction, Mr. President, I think it ought at people went into the national banking system rency of the country ; and although the pro- least to exempt New York from invidious comreructantly; and it was not until aller forcibie || posed issue is limited to $20,000,000 now, still ments respecting her part in the revolution by measures of legislation were adopted, a year the proposition is to enter again upon a policy which her moneyed institutions were swept subsequent to the passage of the banking law, of expansion. I am compelled, in this view, to away, and to exempt her citizens and her repthat the North generally adopted it. They vote against the section, and the query in my resentatives from the necessity of defending went into it because they found that their capi- mind is whether the provision will be rendered their State in this behalf. tai was to be slowly but surely coutiscaled if they admissible by either of the amendments sug: It is true, sir, that the Comptroller of the did not go inw it. They went into it because gested. Before remarking upon this, 1 bave a
Currency departed and allowed others to dethey had the capital and the Government needed
word to say in reply to the honorable Seuator part from the letter and, I think, from the it. Wasthere any more reason why the western froin Calitornia.
spirit of the law in distributing the bauk cur. States should uot go in than the eastern? I Nothing that he has said, and nothing that rency; and, as far as that is true, and as far do not like to hear the eastern and northern cau, in truth, be said, will call upon any Rep. as the inequality can now properly be removed Stales reproached for stepping forward at a resentative of the State of New York to apolo- without flying to other and greater evils, un. time when the Government was in peril and gize for her part in the financial experience of doubiedly it should be done. It is proposed bringing forth their treasures--the careful sav. the country since the war began. "The State now to do it by a mere addition of $20,000,ings ut generations of inen-to the support of of New York has nothing in that regard to 000 to the paper currency of the country. the Government. Why did not the West step regret or excuse. Far from it. She has done This is the proposition as it came from the forward and avail themselves of the privilege? too much and suffered too much to be taunted comınittee. This has no objection for those, They say they have the meaus now, aud they for any shortcoming or any favor she has as the honorable Senator from Verniont says, musi have had the means then or they accumu. received. Her connection with the present
who believe that a piece of paper with the lated it during the war. They had the same banking system is no exception to the claiin stamp of the Goverument upon it is inoney opportunity luat we had, and money is worth as I thus inake for her. When rebellion raised just as valuable as a piece of coin of the same much in the West for banking purposes as in its hand New York had a banking system of denomination. I am not of these believers. the East; much more; the dividends are larger. her own, matured and perfected by long expe. I believe that coin, like a barrel of flour or
Now, Mr. President, for all the wealth that rience, which supplied the wants of her people, | any other property, the product of human is accumulated in the East and the North mer. and comported with her vast resources and her labor, bas a value which consists in the fact work there more bours per day, and their capi. || great coinmerce.
that it represents the cost of production. And tai is employed at a less price, than in any other We were satisfied with it. It was, in my therefore it is, without entering into particuportion of ihe Union. 'Why, sir, the men in || belief, a better system than that under which lars, that I discard these theories of paper toe Northeast work from twelve to fourteen we are living now. Regarded in respect of its money. And because I do, without stopping and fifteen hours a day; and that is the way relations to the Government, it was free from to argue the question, I do not see how I can they accumulate wealth; they loan their capi- one contradiction found in the present system vote to increase, on any pretense, the volume tal for six per cent., and that is the way they which has not yet been reconciled to the satis. of paper currency, whether the increase at the accumulate their wealth. That is not the case faction of unbiased and discerning men. moment proposed be twenty millions or somevill the western States. There their climate
The general banking system, regarded as a thing more or something less. I believe that is such and their facilities in the way of agri- | fiscal problem between the Government and the good of the country, considered at large, culture are such that they do not work but half the people, involves an interest in coin of six and the individual prosperity and contentment the year anyhow-the winter is a holiday--and per ceni. per annum upon bonds exempt from of the people, consists largely in bringing down they work a very small uumber of hours usually | iaxation, paid by the United States to corpora- prices, in short, in restoring to wholesome when they do work; and when they loan their tions for circulating a currency for which the relationships values and the medium paid for capital their laws permit them to take ten per United States are ultimately responsible, and values; that is, in the restoration of specie ceat., and in some places permit them to take which currency they might themselves have payments. more.
issued without the expense of one farthing I content myself with assigning these reasons Now, Mr. President, in relation to the mat. beyond the paper and engraving and the cost for objecting to the provision as it was reported ter that is specially before us, it is simply a of striking it off. I ha 2 heard a great many by the Cominittee on Fiuauce. And now, Mr. plain proposition that if we increase the amount financiers deal with this point, and I have never President, I wish to ask the Senator from Verof the national bauking circulation then that heard it so disposed of as to make it appear mont and the Senator from Indiana, and also we shall reure an equal amount of United a good fiscal arrangement for the Government the Senator from Massachusetts, it he means to States notes. I think that is wise, not only of the Uuited States,
renew hereafter the amendment proposed by financially, but I think it is enniuently wise Without pursuing this I repeat that New him and withdrawn, to attend to the ques. pulau.cally, ibat we should not increase, should || York had a banking system satisfactory to tiou presented by those amendments, and see not inflate our currency at this time. Is it not l herself, a system carefully guarded, and the l whether upon the whole they help the case ?
40th Cong. 2D Sess.-No. 198.
The amendment proposed by the Senator greenbacks, and there would necessarily be a the fashion of the man who proposed to abol. from Vermont will have the effect of increasing sufficient amount of greenbacks which might ish taxes and pay all expenses out of the the annual interest account $1,680,000; it will be retired. The premium on gold, in order to Treasury." That may do in certain places; fasten that amount of interest upon us in any realize $20,000,000, would require the sale of but it will not do when put under the microaspect in which it can be viewed. The effect not less than $50,000,000 of gold. Of course, scope and examined as it will be by men who of the amendment proposed by the Senator then, there will be that amount of greenbacks on understand, at least in a homely way, inancial from Massachusetts will be to fasten upon us hand. But suppose that were not so, the Sena- || or business questions. an interest account amounting to $6,400,000 for from New York is in favor of a speedy return Now, let me come to the other suggestion a year.
I will state the process by which I to specie payments, and I ask him how we are made by my honorable friend. He appeals to reach this result.
ever to return unless we are willing to take me to know if I am not in favor of returning Twenty million dollars of national bank cur. up these greenbacks and pay interest on the to specie payments. He knows I am, because rency is to be issued. For this, and for the whole
I do not expect any other result. I for many summers and many winters he and of it, bonds are to be lodged with the Comptroller am willing to meet it now. I expect to have I have voted and labored together in that diof the Currency, upon which is to be paid six per il to meet it. Does the Senator expect that we rection. But he asks whether I expect to cent, in coin semi-annually, and in addition to should ever resume specie payments without return to specie payments if all the greenback that they are divested of the burden of taxa- doing that? Does lie expect that we shall notes are kept afloat. No, sir, by no means; tion. With gold at 140 this interest is not resumo specie payments and continue forever but the question is whether we are to intaie less than nine and a half, and I think not less United States notes in circulation ?
the currency of the country $20.000,000 on than ten per cent. How are these bonds to be Mr. CONKLING. Mr. President, can it be the one hand, and on the other at the same furnished? Are they to be issued for the pur. | possible that the statement made by my hon- time annihilate a non-interest-bearing circulapose of becoming the basis of this currency? orable friend from Vermont is satisfactory to tion of even amount, and then preiend that we If they were, the process and the effect would bis mind? If it is, let me see it it be satisfac- are doing it with a view to curtail the currency, be palpable; obviously the whole amount of tory to any other member of this body who or to approach specie payments. That is the interest upon them would be added to the will give me his attention for a moment. The proposition. If any'man can show me that by interest account. But the Senator from Ver- Senator says the Secretary, selling gold, re. puiting out bank bills for which the Governmont will say, no; new bonds are not to be ceives a large premium, which premium he ment pays interest, and in the same breath issued. Bonds already afloat, upon which the turns into greenbacks. To be sure he does; retiring greenbacks to the same amount for Government is now paying interest, are to be and when it is turned into greenbacks it is in i which it pays no interest, we are reducing the applied to this purpose, and thus no increase the Treasury, like all the rest of the revenue. volume of paper currency, or hastening the whatever of interest is to take place.
What is it then? Has it any peculiariiy sepa- day when specie payments are to return, I Let us examine that for a moment, in con- rating it from the rest of the public money? should be glad to learn the arithinetic or the nection with the amendment of the Senator Is it more saving to use that particular money process by which that result inay be arrived at. requiring the cancellation of “greenbacks," than any other? Is it not of the first import- I do not understand it. It would be like my so called. Bonds are afloat, no doubt; the ance that all money not required for current taking up a check of my own, dated ahead and identical $20,000,000 to be employed are afloat, expenses should be devoted to paying off the bearing no interest, and replacing it with my the currency is to be given upon them; and public debt, the interest on which never stops? note bearing interest, with a view to diminishthen $20,000,000, the corresponding amount, Interest is the grievous, blighting feature in all ing my liabilities ! of United States notes, commonly called public debts; in our case it 13 doubly hard to be
Alr. President, this will not do. The Senate "greenbacks,” are to be annihilated as an off- borne, because our rate of interest is unknown is brought to the deteat of this proposition to set, to the end that the volume of the currency to the national debts of Christendom, except increase bank circulation, or else to an intlamay be preserved exactly where it was betore. in a single other case. Is it not, 1 repeat, for tion of the currency to the amount proposed, or How are these “greenbacks" to be obtained ? the interest of the Treasury and of the people
else to taking up $20,000,000 of inexpensive Are bonds to be issued and sold to obtain them, that the Secretary should use this surplus fund currency to the end that $20,000,000 may go out as the honorable Senator from Indiana fears, and every surplus fund to extinguish the inter
which bears an interest of nearly ten per cent. and offers his amendment to prevent? If they est-bearing debt? Is not this as clear and as These are the three alternatives. Now, sir, are, I need not stop to argue i hat we have the true whether the fund arises from the sale of as matter of right, I have no doubt what should direct, simple transaction of adding the interest | gold or the premium on gold as if it came be donc, if it can be accomplished. The of $20,000,000 at six per cent. seini-annually Trom any other source? Is there any distinc- localities and the banks which have received in coin, besides the iminunity from taxation. tion between funds? Is there any magic about without law an excess of circulation, should
But ibe Senator from Vermont will say again, $20,000,000 received from one source rather be called upon to relinquish the small percentperhaps, as the Senator from Indiana seeks in than another when it is once covered into the age asked for now by the localities who have his amendment to say, no; bonds shall not Treasury? The moment it is there one thing | not received their share. The banks enjoying be sold to obtain greenbacks, but as green: is certain : if it is not demanded by the cur. more than their rights should be scaled duwit backs flow in as revenue the Secretary shall rent expenses of the Government, if it is not until a recall of currency has taken place suff. subtract the amount and retire or annihilate an absolute necessity to devote it to paying | cient to supply this demand. That has been it as circulating medium. Is this proposed as current requisitions, the place where it should proposed repeatedly. I understand from the the mode of avoiding the assumption of in- go in honesty, in bookkeeping, in legislation, Senator from Ohio that he on one occasion terest? If so, will some Senator answer me and in fact, is to the payment of the interest. introduced a bill looking in that direction, this: if the people are to be taxed to raise this bearing debt, to the payment of that portion
which was dropped. parcel of the revenue, this $20,000,000 above of the matured or redeemable debt, whatever A bill was introduced in the other House, the necessities of the current outgo of the Gov. it may be, upon which the largest interest is which I have before me, with a provision apparernment, are we not bound, economically and running. Is not that palpable to every Sen. ently well considered, which, it it were thought properly, to take these $20,000,000 of green: ator? And does it help the case at all for the well to take it up, would enable us, no doubt, backs and with them pay off $20,000,000 of Senator from Vermont to say that $20,000,000 to reach a conclusion upon the theory I sug: interest-bearing indebtedness? If we do not of greenbacks, in place of extinguishing $20,- gest. But not wishing to interfere with this do so, but allow this $20,000,000 interest- 000,000 of interest-bearing debt, are to be bill, but merely to assign the reasons for the bearing indebtedness to run, it will be allowed destroyed because these greenbacks have been vote I shall give, I do not feel inclined to offer to run oniy because although we have in our received from selling gold rather than from the such an amendment or to make more than a coffers the greenbacks with which to extinguish taxes paid by the people of the country, or from suggestion on the point. I only say in passing it, we are compelled to cancel and annihilate any other source? If destroying thein was the that, as an original question, if we could get at them, because in the mean time we have put whole transaction it might be said that the vol- it, all must agree that all parties should be put out $20,000,000 or national bank bills, which ume of paper currency was thereby reduced ; somewhat in statu quo, they should be brought they must antidote and offset. Am I not right | but destroying them for the purpose, and as
back toward where they were. As a simpler in saying that in the result you either add to ihe part of the transaction proposed, deteats tkis mode, this proposition is before 18 ; but it interest account the interest upon $20,000,000, result.
involves the question whether we ought on the or, if it is more accurate so to state it, you Mr. MORRILL, of Vermont. It meets the one hand to intlate the currency, or whether retain an interest account upon $20,000,000, objection about taxation.
on the other, as an antidote to that, we ought with which otherwise you might dispense? The Mr. CONKLING. The Senator says it meets to strike down the corresponding amount of mode of statement is only a phrase or technic- the objection about taxation. Does it? Let non-interest-bearing circulation, to the end ality in bookkeeping.
me turn to that. Is it true that if you take it is that we may substitute for it these $20,000,000, Mr. MORRILL, of Vermont. Will the Sen- out of one pocket and put it into another, you upon every pevny of which interest is to be nor give way for a moment?
gain or lose anything? Is it true that if you paid, either by a further issue of bonds, which Mr. CONKLING. Certainly.
lake from the Treasury $20,000,000 derived would create a further interest account, or by Mr. MORRILL, of Vermont. The Senator from premium on gold and devote it to a cer. annihilating greenbacks received in the collecbas conjured up unnecessary lions in the track, tain purpose, and then take $20,000,000 from tion of the revenue, which can be spared, and I think. By the statement of the Secretary of another place and devote that to the purpose then by withholding those greenbacks from the the Treasury it will be seen that be anticipates i for which the first $20,000,000 should have cancellation of a corresponding amount of & revenue from premiums on gold 10 the ex- gone, you have saved anything in the opera. interest-bearing debt, and thus puuting an end tent of about twenty million dollars. If he tion?' That may do on the stump; it may do to them for the mere purpose of obliteration receives any such amount as that from prem- to say to some people, “Oh, no; you are not as the debit entry in the account of the circa. iums on gold, of course be sells his gold for taxed for tbis; we are going to do this after lation of the country. It seems to me we can.