.GUESS, UNITED STATES. 



170 



when it comes to the question whether we are 

 saving any money by the redemption of the 

 greenbacks, it resolves itself into this : U this 

 great Government to go on forever and i 

 resume! Are we to confeas our utwr imbe- 

 cility in relation to a paper currency, and have 

 it fastened upon our country ! upon the 

 business of the country now and forever? 

 Then there is the argument that the . 

 backs are better than the national bank cur- 

 rency ; but would they be better if we were 

 to double- the amount i Who does not know 

 that the rery moment we substitute green- 

 backs for the national bank currency the value 

 of the greenbacks would fall, inevitably fall, 

 both on account of the amount that would be 

 issued and the proclamation that it was not 

 only not the intent of the Government to re- 

 deem greenbacks but to issue them indefinitely. 

 "Now, Mr. President, there is this other 

 point in relation to the reserve : the hill does 

 not provide that the banks shall be released 

 from keeping a reserve until they arc n im- 

 pelled to !HT in specie or in green- 

 backs. The very moment they do that, on the 

 day prescribed, they arc to be relieved from 

 keeping any reserve. 



" The idea of a reaerve does not amount to 

 any thing except in this, that the banks have 

 so much leas in circulation ; they cannot nse 

 it if they shall be compelled on the 1st 

 of July, 1874. to pay their bills either in coin 

 or in greenbacks, that will cause a henltliy cir- 

 culation of the currency nnd it will not nil of 

 It be dammed up nt New York. It will bo 

 held by the banks where they are located, and 

 the banks will be compelled to make discounts 

 in their localities at home in order that they 

 may have funds to redeem their bills when 

 they come to the place of redemption or at 



counter. 



I'nder the circumstances, I do not believe 

 that it is wiae for us to keep up this reserve for 

 another reason. We do want some elasticity 

 about our circulation, and a bank may be able 

 at certain times to trench a little upon this re- 

 serve, and to do it with entire safety if tl 

 vision shall be repealed. They may have funds 

 that they can command that are specie funds, 

 and yet arc not greenbacks. TV 

 the purpoee of having our currency more clas- 

 nt time, in my jiidg- 

 i-ion ought to be repealed, and 

 -honld be made obligatory upon all the 

 > pay in coin or in greenbacks, 

 or be wound up, and under the present law 



.vollld 1*. ' 



The question recurred on the amendment of 

 Committee on Finance a amended, to 

 strike out all of thi> original bill after the enact- 

 ing clause, and in lien thereof to insert: 



That the 1st day of January. 174, the Secretary 



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UMnof, la exchange for such not**, so equal amount 



of the Bold coin of the United States ; or, in lieu pf 

 coin, ns way, at hii option, issue in exchange for 

 said notes an equal amount of coupon or 

 bonds of the United 8utc, in such form asM may 

 prescribe, and of denomination! of fitly dollar*, or 

 some multiple of that sum, redeemable in coin < 

 present standard value, at the pleasure of the United 

 states, alter ten yean from tie date <<!' their issue, 

 aiid bearing interest, payable quarterly in such coin, 

 at the rate of nvejwr cent, j er annum. And the 

 Secretary of the Treasury may reiuue the United 

 States notes so received, or, if they are canceled, may 

 iaiue United States noU-B to the same amount, cither 

 to purchase or redeem the public debt, or to meet 

 the current payments for the public service. And 

 the said bonds sod the interest thereon shall be ex- 

 empt from the payment of all taxes or duties of the 

 United States an well as from taxation in any form 

 by or under State, municipal, <>r ! oal authority ; and 

 the said bonds shall have ret forth and expressed 

 upon their face the above specified conditions, ai.d 

 shall, with their coupons, be made payable at the 

 Treasury of the United States. 



Sxc. 2. That, from and after the 1st day of July 

 next, the limit of the aggregate circulation of na- 

 tional banks now prescribed by law is rcpeuKil. 

 And all banks thereafter organized shall deposit as 

 security for their circulating notes bonds of the I i.i- 

 :'tes, issued under this act, or under the act en- 

 titli (1 " An act to authoriie the refunding ol the ns- 

 tioi.ol debt," approved July 14, 1870. 



Sic. J. That ull banking associations shall, on end 

 after January, 1874, redeem their notes at such lo- 

 calities as arc now or may be hereafter designated 

 by law, either in coin or in United States leyal-u i.- 

 der notes, and shall be exempt from the requit. 

 under existing law as to holding a reserve of lawful 

 money of the United States : ftvtided, That nothing 

 herein contained shall authoriie any nationul 

 bank cstiblUhed under an act entitled " An act to 

 provide for the redemption of three per cent 

 porarv 1< i.n certificates, and for an increase of i.a- 

 tionof bank notes," approved July 12, lS70.toredeim 

 their circulating notes in any thing but gold coin of 



tul States. 



Sic. 4. That section six of an act entitled "An set 

 to provide for the redemption of the three per cent, 

 tcnipeirary loan certificates, and for an increase of 

 national bank notes," approved July 12, 10, be, 

 and is herebv, repealed. 



Sir. 6. That banks without circulation may be or- 

 ganised under the provmc us of an act entitled "An 

 set to provide s national currency secured by a 

 pledge of United States bonds, anel to provide for 

 the circulation and redemption thereof.' 1 approved 

 June S.18M, upon the deposit with the Treasurer of 

 nited States of not less than 110,000 of United 

 States nfristrred bond*, sa provided in section six- 

 teen of that act. 



Mr. Thurman. of Ohio, said : " I move an 

 amendment: in line sixteen of section one I 

 to strike out tin- word 'five' nnd in-ert 

 'two.' A the bill now stands it proposes that 

 the greenbacks may ! redeemed either in 

 gold or in bonds of the Tinted States, bearing 



ill!ere-t lit five percent. I Wi.*ll to te.-t wl/etlier 



the Senate is willing to convert the greenbacks 

 with which the people are perfectly satis- 

 fled, and which this bill treats as better money 

 than the bank-notes that the bill pre. 

 shall be Issued into an interest-bearing debt 

 at five per cent, or whether it will not be 

 content with two per cent. For the purpose 

 of testing the sense of the Senate on that 

 question, I move to strike out 'five ' nnd insert 

 'two, 1 so that the bonds which may be issued 



