CONGRESS, UNITED STATES. 



173 



realization of the principle which it is claimed 

 the greenback involves. 



" Now, Mr. President, I wish to examine for 

 a moment the provisions of this bill. In the 

 first place, the notes of the United States are 

 to be redeemed only in the city of New York. 

 Whenever the Government begins the resump- 

 tion of specie payments, there ought to be 

 other places to redeem aside from the city of 

 New York. If it is important for the people 

 of the West to have the right to convert their 

 greenbacks into coin, they ought to have that 

 advantage without going to the city of New 

 York. That requirement gives superior ad- 

 vantages to that money centre, already having 

 advantages enough in that way, and places it 

 oat of the power of the holder of the green- 

 backs in the remote parts of the country to get 

 either coin or five per cent, bonds without 

 sending his bills to the city of New York a 

 great inconvenience. It is objectionable on 

 that score. Whenever the Government begins 

 the work of resnming specie payments, there 

 ought to be facilities for redemption in the 

 West and in the South, and not confined sim- 

 ply to the city of New York, which would 

 give advantages to the brokers and the bankers 

 in that city which can be very readily compre- 

 hended, and increase their business. 



"Then again it is provided that they may 

 have a right to demand redemption by pre- 

 senting the sum of $1,000 or any multiple 

 thereof. Is that right? Whenever the Gov- 

 ernment begins the work of redeeming green- 

 backs, tliey ought to be redeemed in any 

 amount that may be presented. It may be 

 just as important for the poor man who can 

 raise but $500 to get the coin for his $500, as 

 it is for the rich man to get the coin upon his 

 $10,000. Therefore, no man ia entitled to 

 the benefits of this bill, at all, who has not 

 greenbacks to the amount of $1,000. I think 

 the statement of that proposition is sufficient 

 without a single argument upon the subject. 



"The Secretary is authorized to pay in five 

 per cent, bonds instead of the coin. Let us 

 assume for the sake of the argument that this 

 bill will have the effect to raise the greenbacks 

 to par in the course of eleven months from 

 this time, by the 1st of January, 1874. If it 

 does have that effect, it has the effect of 

 increasing the value of every debt that is now 

 owing in the country twelve per cent. It 

 makes it twelve per cent, more difficult for 

 every debtor to pay his debts, and adds twelve 

 per cent, to the value of every debt that has 

 been contracted in the ordinary way, and 

 which may be paid in the currency of the 

 country. I know something of that kind must 

 take place whenever we resume specie pay- 

 ments ; but I suggest to the distinguished Sen- 

 ator from Ohio that it is too sudden ; the time 

 is too short ; the country cannot endure such 

 a change as that in the short period of eleven 

 months. It must result in producing great 

 derangement and disturbance in the financial 



affairs of this country. You cannot make 

 such a change as that in the short period of 

 eleven months without interfering vastly with 

 all the business of this country ; without great 

 danger of financial panic and convulsion. 

 Therefore, whenever this plan is adopted, the 

 time ought to be extended. I respectfully sug- 

 gest to the chairman of the Committee on 

 Finance that it ought not to be less than two 

 years ; that this change of values should not 

 be more than six per cent, in the course of 

 one year. 



" What is the effect of this proposition ? If 

 it has the effect of making the greenback equal 

 to coin in eleven months, hoarding greenbacks 

 is the most profitable business that any man 

 can engage in in this country for the next 

 eleven months. Legitimate business will not 

 pay twelve per cent, in this country. I know 

 some men make more than that, but legitimate 

 business does not pay twelve per cent, as a 

 general thing in this country. Therefore, the 

 most profitable thing that any man can do, 

 should this bill pass, in view of the effect in- 

 tended by it that greenbacks are to be made 

 equal with gold at the end of eleven months, 

 is to hoard the greenbacks, because they will 

 be worth twelve per cent, more at the end of 

 eleven months than they are now. 



"If greenbacks are hoarded, .what is to be 

 the consequence? The contraction of the 

 money in circulation, all those consequences 

 that ordinarily result from contraction. We 

 make it the interest of men who have money 

 not to loan it out ; we make it their interest to 

 hold on to it, not to invest it in property, be- 

 cause that money at the end of eleven months 

 is to be worth twelve per cent, more than it is 

 now. 



" The Senator from Connecticut (Mr. Buck- 

 ingham) talked and I think I have heard the 

 Senator from Ohio (Mr. Sherman) talk about 

 an elastic currency, a flexible currency. I 

 have never believed in such a currency. I 

 have always regarded it as a financial fallacy. 

 I think it is one of the worst things that can 

 happen. I believe the strongest element in 

 the financial stability of this country for the 

 last few years has been the fact that our coun- 

 try has had a fixed amount of currency an 

 amount that everybody knows. We all know 

 how much currency there is in circulation, 

 how many greenbacks there are, how many 

 bank-notes there are. Every commercial man 

 understands that, and he knows that that 

 amount cannot be increased except by an act 

 of Conjress. It does not depend now upon 

 the will of private persons. Speculators in 

 New York, bankers and brokers might, for 

 the very purpose of making a financial panic, 

 run in $50,000,000 of greenbacks and get five 

 per cent, bonds and be prepared to take ad- 

 vantage of the contraction and of the neces- 

 sary depression following it. It is another 

 mode of making a corner in money, and would 

 have precisely the same effect, only it furnishes 



