in 



CONGRESS, UNITED STATES. 



ing of thi* Uw, the option being left with the 

 Secretary of the Treasury to issue either bonds 

 or coin in redemption of note*. 1 have my 

 doubt* M to the practical result of forcing 

 paper to an equal value with gold; but I have 

 no fear* that there would be a stringency 

 created in money by the adopter >{ this law. 

 On the contrary, is it not plain that it will 

 prevent such a stringency, because, in the first 

 place, the purchasing power of money would 

 necessarily be increased I In the next place, 

 it would add the coined money of the country 

 to the bulk of the currency of the country, 

 by that means giving ease. And in the third 

 place, the money then being honest money, of 

 value in itself, we should have the coinage of 

 the world to draw upon as other nations have 

 now, and the money of the United States be- 

 ing of value in coined metal would not, as our 

 present note* called money do, shrivel up like 

 dry leaves the moment it comes in contact 

 with the currency of value of any other 

 nation. 



' I cannot doubt that the bulk of currency 

 would be increased just as much as the coin 

 added to it, and not only that, but, as I said, 

 being a money of value it would hold its own 

 with the money of other nations ; and, being 

 money of value, that would cure any result 

 that might come from any apprehended strin- 

 gency on account of the contraction in the 

 value of commodities. 



Then this bill contains another provision 

 which I think would remedy that entirely; 

 and that is in section two, the free banking 

 feature of the law. These new banks would 

 have not only the effect of preventing any 

 stringency in currency, because of course their 

 {sues would come to be redeemed, but they 

 would have another effect most desirable at 

 the present day, of equalizing the amount of 

 currency between the different sections of the 

 country, which at present is most inequitably 

 and unjustly distributed. The South and West 

 are suffering to-day, as they have been for the 

 last nine years, under a grossly inequitable 

 distribution between them and the New Eng- 

 land State*. The free banking feature will 

 have at least the effect of remedy ing that in- 

 justice and equalizing the distribution of cur- 

 r. i.. v. 



" Such would be, in my opinion, stated very 

 plainly, some of the practical results of tm 

 passage of the proposed law. There is an ob- 

 jection in my mind to it that it looks too 

 much t<> the interest of the national banks, 

 never at any time a favorite of mine, and not 

 more so as I perceive the practical results of 

 the system. The effect of bringing the bank- 

 ing system of the country entirely under tlio 

 control of the central Government, and espe- 

 cially under the control of the Secretary of 

 the treasury, tends to further tlu< creation of 

 that which I believe to be a growing vi 

 our system of government, and that is the 

 habit of bureaucratic government, instead of 



government by law. \Ve had from the honor- 

 able Senator from Ohio (Mr. Sherman) the 

 statement yesterday that it was in tlie JMIW.T 

 of the Secretary of the Treasury to derange 

 and utterly crush the business interests of tin- 

 country, should he, from caprice, or inu-rrM, 

 or corruption, feel disposed to do it. It is tor 

 that reason that I do not favor, and cannot 

 contemplate with any degree of sut^taction, 

 the continuance of a system which tends to 

 throw this power into the hands of the cen- 

 tral Government, and at the same time equal- 

 ly to deprive the people of the States au<l of 

 the local districts from that control over their 

 own finances which their own convenience, 

 their sufferings, or their profit, would teach 

 them themselves properly to regulate." 



Mr. Morton, of Indiana said : " I feel, Mr. 

 President, a deep interest in regard to this bill, 

 as it is one which must affect the people for 

 weal or for woe very seriously. I differ with 

 great reluctance from the chairman of the 

 Committee on Finance and from the judgment 

 of the distinguished Senators who are on that 

 committee. I do not pretend to have \<-ry 

 much faith in my own judgment on the sulject 

 of finance ; but I think it my duty to express 

 the opinions I have. 



" In the first place, Mr. President, this bill 

 does not carry out the theory which has been 

 announced by the chairman of the Committee 

 on Finance in regard to greenbacks. That 

 theory is that they are a promise to pay a 

 dollar in gold for the dollar expressed on the 

 face of the greenbacks; and I think that is 

 true. This bill does not carry out thnt prin- 

 ciple, because it authorizes the Secretary of 

 the Treasury to pay in gold or to pay in five 

 per cent, bonds, giving not the bill-holder, 

 but giving the Secretary of the Treasury the 

 option to pay in coin or to pay in other prom- 

 ise which may or may not be equivalent to 

 coin. Therefore it does not carry out the 

 theory that is maintained in regard to the 

 obligation of the Government created by green- 

 backs." 



Mr. Scott, of Pennsylvania^ said : "Will the 

 Senator permit mo to coll his attention to the 

 fact that the bill does not impose any obliga- 

 tion on the holder of the greenback to take a 

 five per cent bond in case the Secretary of 

 the Treasury is not able to pay in gold, and 

 therefore he would be in no worse position 

 than be is at present ! " 



Mr. Morton : " I agree to that. The bill- 

 holder is not bound to take the coin, nor is he 

 bound to take the five per cent, bond, bat you 

 cannot coll that bill a bill to resume specie 

 payments which gives not to the bill-holder 

 out to the Secretary of the Treasury the privi- 

 lege to pay him in a bond or not to pay him 

 at all. Therefore, I say that this is not n hill 

 -iime specie payments, but it is a bill to 

 give the Secretary of the Treasury the option 

 to pay in coin or to pay in another promise, a 

 five per cent, bond, and does not approach the 



