NATIONAL BANKS. 487 



been raised against it; not a move has been made to remedy 

 the evil or to rebuke the crime. On the contrary, efforts 

 have been made to extend the privileges of the banks. I 

 denounce it, and trust I shall be pardoned by my Democratic 

 brethren for my Jeffersonian and Jacksonian eccentricities 

 on this subject. I think we ha've reached a time when the 

 Democratic party can afford to be Democratic. 



Now, Mr. Chairman, I have already indicated that 

 this money is not in the treasury, but in the banks. The 

 banks are simply the lenses through which, like a radia- 

 tion, this money reached the people. It is now in circula- 

 tion and the business of the country has adjusted itself 

 to it. 



Now, I repeat the question: Why has this money 

 been placed in the banks in the first place ? I know the 

 answer, and the only answer that can be given. It was 

 done to avoid a panic then pending. Let us grant that to 

 be true. I assert here and now that if you recall that 

 money as this bill is intended to do, you will inevitably 

 precipitate a panic, and nothing can prevent it. You can 

 not take it from circulation again through the banks with- 

 out serious embarassment 



This bill .will not have the effect which is desired, nor 

 will the secretary of the treasury undertake to carry it out. 

 He dare not. He may undertake to buy a few bonds with 

 the surplus actually in the treasury, and not in the banks, 

 or which may hereafter accumulate. He will not take the 

 responsibility of calling the money into the treasury in 

 the present stringency in the money market. The banks, 

 sir, are the masters of the situation, and not the secretary; 

 but, you will answer, we can demand the money of the 

 banks or compel them to sell their bonds held for deposits. 

 You can do nothing of the kind. They will say to you: 

 Our bonds are valuable and w 7 e do not want to sell. If 

 you want your money we will call in our loans and pay, 

 but you, Mr. Secretary, must take the responsibility of a 

 panic, which is likely to follow. That is what they will 

 say. Another fact, Mr. Chairman: The secretary has 

 increased the premium on these bonds by this enormous 

 system of deposits, and this bill proposes to authorize him 



