1882. CONGRESSIONAL ltECORD-SENATE. 4059

By Mr. BLANCHARD: The petition of citizens of Bossier Parish, and 542 of the Revised Statutes of the United States, relating to the Lfmisiana, for an appropriation for educational purposes-to the District of Columbia.; which was read twice by its title, an(lreferred Committee on Education and Labor. to the Committee on the District of Columbia. By Mr. DOWD: The petition of citizens of the counties of Robe­ Mr. CAMERON, of Pennsylvania, asked and, by unanimous con­ son, Cumberland, and Moore, North Carolina, for the establishment of sent, obtained leave to introduce a bill (S. No. 1900) grantin~apen­ a post-route-to the Committee on the Post-Office anu-Post-Roacls. sion to Nichola.s Simons; which was read twice by its title, and lly 1\Ir. ERRETT: The resolutions of the councils of Pittsburgh, referred to the Committee on Pensions. Pennsylvania, for an appropriat-ion for constructing pavements in He also askeu n.nu, by unanimous consent, obtained leave to in­ front of Government builuings in that city-to the Committee Oll troduce a bill(S. No.190l)granting a pension to Edward Schendel; Appropriations. which was read twice by its title, anu, with the accompanying papers, By 1\ir. HOGE: The petition of 0. S. Feaster and others, citizens of referreil to the Committee on Pensions. Gra.llt district, Grant County, \Vest Virginia, for an appropriation Mr. GEORGE (by request) askeu and, by unanimous consent, for euucational purposes-to the Committee on Euucation and Labor. obtained leave to introduce a bill (S. No. 1902) to quiet land titles By 1\Ir. HOUK: Papers relating to the claim of A.. P. Buruett and in the State of Mississippi; which was reatl twice by its title, and James Fisk-to the Committee on War Claims. referre«l to the Committee on Private Lanu Claims. By 1\fr. KETCHAl\1: The petition of J. H. Van Vert and 52 others, lrlr. PLUMB asked an

t, .4060 CONGRESSIONAL RECORD-SENATE. MAY 18,

antl the statement of A. J. Nellis as to the manufacture, price, and from New York to Philadelphia and back again. There is a large sa.le of forks. That, I suppose, has nothing to do with this case. amount going out; four and a half millions went yesterday, and a :\1r. PLATT. That belongs to another case. very considerable snm the day before. · . .Mr. COCKRELL. I will senti it to the Senator. Then I fintl a 1t1r. INGALLS.· llow many millions are now in possession of the petition accompanying tho bill for the relief of these parties, the Government in bars i prip.ted brief of tho parties, and a private letter to the chairman. 1t1r. MORRILL. Between forty and fifty millions, I understand, Those are all the papers I find in the case. in gold ba.rs. :\1r. PLA'rT. I tlo not know that all the papers went to the files, The PRESIDENT pro temJJore. Tho question is on agreeing to but as I remarketl we had a large number of resolutions of boards of the amendment of the Committee on Finance. trade, a resolutionpassetl by the house of assembly of New York, and The amendment was agreed to. from various cities, I think that all tho papers which have been men­ 1'he bill was reported to the Senate as amended, and the amend­ tione~cu tho value of the property captured anu d.e- Coke, Ilawley, Mitchell, stroyed as follows : , Davis of illinois, Ingalls, Morrill Cotton burned belonging to the Uniteu Statr.s ...... $1, 000 00 Davis of '\Vest Va., .Jackson, Pendleton, .Arms and camp equipage belonging to the Unitou States...... 8, 180 00 ~.AY&-::!1. Total belonging to tl10 United States...... 5, 080 00 .Aldrich, Dawes, .Johnston Slater, Cotton belonging to priYate persons ...... lR, 171 36 Blair, Fair, .r ones of Florida, Van co, Railway property ...... :...... 3, 500 00 Butler, Garland, Laphrun, Walker. Uall Grover, ::norgan, Grand total ...... 20, 751 86 ca.II{eron of Wis., Ilampt()n, Platt, Chilcott, lloar, Rollins, "Upon this report being made Colonel Haynie ord.ered an assessment of this amount to be leTieu upon the rebel sympathizers in anu about Henderson, which .A..BSENT-30. action Wll.'J approved at the headquarters of the di1:1trict of .Jackson, in the Depart· Anthony, George, Logan, Saulsbury, ment of Tennessee, llrigadier·General Sullivan commanding, on the 12th dv.y of Bayard, Groome, McMillan, Saunders, December, 1862; and an order bearing date on that day was Issuetl from said last­ named headquarters directing the collection of tl.le tax. Beck1 Hale, Mahone, VanWyck, 11 Camaen, Hill of Colorado, :lliller of Cal.. Vest, Colonel .Haynie proceetled in the execution of the ord.er, anu collectell of the­ Conger, Ilill of Georgia., Miller of N.Y., Voorhees, saiu assessment the sum of $23,325.10, leaving a deficit of $:$,426.20 not collect.eu, Edzriunus, .Jones of Nevada, Plumb, W illi:uns. by reason of the absence of' the persons against whom the same was as ossed. .And Farley, Kellogg, Pugh, thereafter, but at what precise date does not appear, Colonel \V. W. San ford, Fo1i.y· Frye, Lamar, P..ansom, eighth Illinois Volunteer Infantry, commanding post at llethel, made an adJi. tional and supplemental assessment for $4,326.20, to make up such deficit; anu of So the bill was postponed indefinitely. this amount tltere was collected $4,026.20, making the total amonnt collected tore· pair losses anu damages sustained by said raid$27,351.36; all of which sum was paid EXCIIA....~GE OF GOLD DAnS. by the persons now asking relief by this petition. "The right of the military commandant, in time of war, to order anti enforce Mr. MORRILL. I ask unanimous consent to report at this time assessments upon hostile communities by way of re:prisal, and to prevent tho giv· from the Committee on Finance the bill (H. R. No. 5540) to author­ ing information aml encouragement to enemies onts1ile his lines by enemy sympa· ize the receipt of United States gold coin in exchan~e for gold bars, thlzerR within his lines, is well settled and allirmed by all writers upon tho laws of war, and is a. most salutary check upon predatory incursions, by making the which has been passed by the House of Representatives and agreetl frienus of those wl1o commit the damage bear the brunt of the injury suffered. to by the Committee on }'inance, with an amendment. It seems to .. .At ti.J.e time of the appraisal of the damages aml ot'the levying and collecting be important to have the bill passed this morning. those assessment.s it was supposed to be untler and in execution of an order of By unanimous consent, the Senate, as in Committee of the Whole, General Grant, then commanding the troops in that uepartment. But it appears from the papers filed that General Grant disavowed the construction pnt upon his proceeded to consider the bill. general oruers by the local officers, and declared the purpose and intent of Ius gen· The bill was reported from the Committee on Finance with an ernl order to be that reprisal shoulu be made by way of levy anu assessment in amendment, in line 6 to strike out the word "hundred," before" dol­ case of raids within our lines like the oue at Ileuuerson only to repay such loRses lars," and to insert "thousand;" so as to make the bill read: as the Government might sustain in its property thereby, and. he refused to reo· ognize the right of private claimants to reimbursement by such levy and assess· J!e it enacted, &c., That the superintendents of the coinage mints, anu of the meut; and on the 2:.lu day of .January, 1863, ord.ered the proceeds of such assess­ Umted States assay office at New York, are hereby authorized to receive United ment anu collection to be turned over to the provost-marshal-general. A..nd it States ~olu ~in frOm any holder thereof, in sums not less than $5,000, anfl· to pay appears by the p;ipors filed that his action in denying the rightofprivate claimants and deliver m exchange therefor gold bars in value equaling snob coin so received. to reimbru·sement for losses sustained by the ra.iu out of tbis fund was approved by the Secretary of War, on the report made thereon by General M. C. Meigs; Mr. 1\10RRILL. I desire to say that the Director of the Mint which report maintains tho law to be that the power existed to levy and collect an appeared. before the Committee on Finance this morning, and he is assessment to pay private losses in the discretion of the general comma~ding; but very anxwns to have the bill passed. The whole .l?urpose of it is to as against such general's construction of his own order anu purpose, no nght what· ever could accrue to a private claimant for reimbursement. allow gold bars, of which we have forty or fifty millions on hand, to " The loltical sequence from these facts, and this declaration and construction be sent abroad, instead of gold coin. It will save transportation by GenerafGrant of !Jis orders, seems to be that the subordinates, in the execution 1882. CONGRESSIONAL RECORD-SENATE. 4061 of tlle oruers of the commanding general, should have made an assessment only for The claimants in no way forfeited their claim to this measure of protection or the lo:;ses sustained by the Government, viz : exemption. It is distinctly shown that they had no connection whatever with the For cotton burned belonging to the United States ...... $1, 900 rebel raid of the 25th of November, 1862, which came across the Tennessee River .Arms anu camp equipage belonging to the United States...... 3,180 from Miudle Tennessee at nigllt. They gave no aid. sanction, or support to this raiu, and were in no way responsible for the basis it occasioned. Fielding Hurst, Total ...... 5, 080 (late colonel of the Sixth Regiment, Tennessee Cavalry, United States .Army,) an intensely loyal man, who raised his regiment in that locality and deroted himself "Hall tlle Government rebuilt or repai.reu the injury to the railway property, to the cause of the Union wit!'t a zeal and energy unsnrpa.~sed by any soldier of the as an essential for their use of it, that also should be ).nolnded as a proper item war, states that for the la..'!t forty-seven years lle bas lived among this people and for aRsessment; but the evidence shows that the railway company repaired their knows them and their antecedents well and intima.tel:v. injuries at their own expense. He says furtller: "I know the ill (the cL'limants) to 'be honorable, just, and. good " D educting this amount for which the assessment was authorized from the men, who were at home in the peaceful pursuits of life when the assessment and total amount collected, there remains a balance of $22,271.26 taken from the peti­ collections were made. I know of no gentleman wl10se character for gootlness is tioners unuer a misconstruction of the oruor of the commanding general, as cer­ better than that of the claimants. I think they a.::e as justly entitled to that titicd to by his own action anu the eviuence of an officer of his staff. money as I run to reap the reward of my daily labor." 'Vb.ile your committee U.o "This committee have maintained, and still adhere to the doctrine, that no not question the power of the military commanuer in time of war to make assess· nation is liai.Jle for the willful torts of its soldiery. ments upon the citizens of the enemy's country subject to his control and author­ "llut wa!l this assessment a tort within the meaning of such well-established ity for tile purpose of supplying his military want-s and necessities, or to preserve· do trine1 It is sui.Jmitted that this wrong is clearl.vwitb~ut the rule, bec..'1.nse this order, pun1sh m Ruborilination, anu redress J?Ublic wrongs, it sboulu, however, be assessment was collected by an officer of higH rank, commanding a military dis­ uorne m mind that by the mouern laws roperty" or land, Chancellor Kent says the rule losses and pay a reward of (I think) $500 to tbe woman who extinguished the fire. may now be regarded as.xcluding in ~eneral "the ~eizure of the private property General Sullivan collected a much larger sum than was required for these pur­ of pacific persons for the sake of gain. '£he Supreme Court of' the United States poses anu 1·eported the·excess to General Grant, with a statement that parties has approved this statement of the modern rule. The Government only intended who bad bad cotton destroyed by guerrillas claimed that he, General Grant, in­ to secure indemnity for public losses in making the assessment. It has, by mis­ tended their losses should be made good to them out of this fund. General Grant ~ake, received a large sum in excess of that amount, to retain which now from those in reply stated that it was not true that he so intended; that the .Army was not who paiu itunderduressfinds no sanction in the laws of war or the forum of public an insurance company to indemnify cotton speculators for losses in their oper­ morals. It would be unjust. ations, and that no part of this money rightfully belonged to them nor should be In view, then, of the fact (already stated) that the raiding party which captured paid to them; that lie did not intend that any assessment should be made in excess Henderson on the moming of November 25, 1862, were not members of that town ()fan amount sufficient to indemnify the Government and reward the woman, and or community; that if their offense attached to that community, so as to make it that his orders had been misunderstood or exceeded. a proper case to resort to retaliatory contribution as a means of redressing the * * * * * * * damage done, such assessment under the general laws of war should have been Yours, respectful.lJ", made upon the entire community, instead of levying the same upon particular in­ WM. S. HILLYER. dividuals thereof; that by this discrimination the claimants were made to bear General T. M. VINCENT, not only the burden of reimbursing all the P.ublic lo!~ses caused by the belligerent Asst. .Adjt. Ge1teral, Washington, D. 0. forces and the casualties of war, bnt in add1tion thereto were, by mistake of subor­ dinate officers, required to pay in excess of the Government's losses the sum of Your committee, through its chairman, recently called General Grant's atten­ $22,271.26, which the present bill proposes to have refunded to them, your com­ tion to this statement or report of Colonel Hillyer and inquired of him whether the mittee considers this an equitable and meritorious claim, which it would be ~~:gainst same was substantially: correct, and also whether in ordering or directing the as­ justice and good conscience to deny. They therefore report back the biu with sessment ho intended 1t to cover and embl"J.ce private losses. To which he replied, the recommendation that it be passed by the Senate. under date of February 25, 1882, a..s follows: "a'eneral IUllyer's letter as printed above is no doubt entirely correct. I cer­ Mr. INGALLS. It appears from the report which has been read tainly nev~r intended any collection for the benefit of cotton purchasers. that there was a rebel raid made upon the military post at Henderson, •· U. 8. GRANT." Tennessee, on the 25th' of November, 186~, by which a large amount It thus clearly appears that an amount in excess of what the general in com· of llrOl)erty belonging to the Uniteu States Government and to the manu contemplated and directed was by mistake forcibly collected of the clainl· loyal citizens thereof was carried away or burned, anu destroyed. auts. The assessment directeu was a sum" suftioient to make good the Govern­ ment losses anu p,ay a reward of $500 to the woman who extinguished the fire" It comprised the entire arms and camp equipage of a company of the ancl saved the br1dge. The assessment actually made and collected, by mistake Forty-ninth Illinois Volunteers; the station building and water-tank or inadve-rtence, embraces private losses and exceeded by the sum of $22i271.26 were also destroyed, together with about one hundred bales of cotton, what was intenderl. or was necessary to make good the Government osses. a portion of which belonged to the United States Government, and Upon what princi~le of right or justice can the Government retain this excess 1 It shoulu unquestiOnably be either returned to those who were forced to pay it the remainder to the loyal citizens who had hauled it there for ship­ or be applied to tho reimbursement of the private losses which formed in part, ment. Tho entire amount of property that was lost and destroyed though erroneously, the basis on which the assessment was maue. There can be on that occasion was, as appeareu by an inquiry subseqently made, little or no doubt as to which of these classes hitve tho superior legal or equitable $26,751.36. right to the fund. Wbile the parties (Johnson and others) from whom this collection was made By order of General Grant an assessment waR directeu to Le made are described in the oruer of the local commander (Colonel llaynie) as ·• rebel upon the U.isloyal residents in the district for the purpose of reim­ sympathizers," it is clearly shown that they were paaceable citizens, who re­ bursing the Government for its losses, and the loyal citizens of the mained quietly at home attending to their prlvate affairs and submittmg without noighborhoou who lost their property for what was deRtroyed. Of the leru;t resistance to the autbontv of the United States, whose lines of military occupation hau oxtendeu over and held exclusive control of that section of the the entire amount assessed, $2:3,325.16 was collected, leaving an State since May 1, 1862. This occupation was not "illusory, not imflerfect, not amount not paid of $3,426.20 to make good the losses that were tra:n&ient or temporary, but substantial, complete, and permanent,' and under ascertainetl to have resulted from this raid. the proclamation of the President and the decisions of the Supreme Court drew Tho commission made a report on the 8th of December, 1862, in after it, at lca-l!t, such measures of protection to persons anu property within the lines as was consistent with a necessary subjection to military government and which they found that the value of the cotton belonging to John the supplying of military wants and necessities. Aldreuge and Smith J. Patterson, who were loyal citizens, was 4062 CONGRESSIONAL REOOltD-SENATE. MAY 18,

$9,G06.36; of the cotton belonging to ·w. De Silver, who was also a call them up when the Calendar was taken up, and this bill is now loyal citizen, $2 565; of the cotton belonging to Wallace W. Arnold, before the Senate. After this is disposed of the Senator can make a loyal citizen, $6,000; of the cotton belonging to tho United States his motion. The Senator from Kansas objects to the further consid­ that was destroyed, $1,900; the water-tank that had been builded eration of this bill, and the Senator from Tennessee moves that the by the United States near the railroad station wasvalued at$1,500; Senate proceed with its consideration notwithstanding the objec­ the Enfield rilles belonging to Company B of the Forty-ninth Illi­ tion. If the Senate takes it up on this motion it will not be subject nois Volunteers were valued at $G80; these rifles were carried away. to the five-minute limitation of debate. The question is on the mo­ The camp equipage belonging to the same company, which was de­ tion to take it up notwithstanding the objection. stroyed, was valued at $2,500; and the depot-house, the property it Mr. INGALLS. I ask for tho yeas and nays. was found of the Mobile and Ohio Railroad Company, which was The yeas and nays were ordered, and taken. burned, was valued at $2,000. And the commission also found that ~fr. :FRYE. On this question I am }Jarred with the Senator from the owners of all property destroyed except that belongin~ to the Georgia, [Mr. HILL.] Government "are loyal citizens of the United States." Tne com­ :rtir. RANSOM, (after having voted in the affirmative.) I am mission consisted of \V. J. Stephenson, captain Company B, Forty­ paired with the Senator from Dlinois [Mr. LOGAN] upon all political ei~hth Illinois Volunteers; L. W. Moore, Company G, l<'orty-ninth questions. Perhaps•! ought to withdraw my vote, but I do not Illinois Volunteers; and A. B. Smith, Company E, Forty-eighth Illi­ think so in this case. nois Volunteers. The PRESIDENT pro tempore. The Chair would inform th'> Sena­ It appears from the testimony that was taken before a committee tor that the pair does not extend to a case of this kind. of the House of Representatives at the second session of the Forty­ Mr. RANSOM. Let my vote stand. fourth Congress, document No. 184; that an opportunity was given The result was announced-yeas :35, nays 19; as follows·. to all those who were assessed to prove their loyalty and get exempted, if it were possible, from the operation of the assessment. The evi­ YEAS-35. dence of one of the witnesses, Colonel William W. Sanford, on this Bayard, Davis of W.Va., Hoar, Morgan, Bock, Fair, Ingalls, Pendleton, point is, that- Brown, Garland, Jackson, Plumb, Any man who felt aggrieved bad an opportunity to come in and say, "I am Butler, George, Johnston, Ransom, wrongfully included in this list;" but none of them availed themselves of it that Cn.ll, Gorman, Jonas, Sln.ter, I know of. If anybody bad come in and said, "I am wrongfully included in this Camden, Groome, Laphant, Vance, list," I would at once have heard his testimony and referred it to headquarters, Cameron of Pa., Grover, McPherson, Voorhees, but I do not remember a single protest being made. Cameron of Wis., Hampton, Maxey, Walker. Coke, Hams, Miller of Cal., The allegation upon which it was attempted to secm·e the reim­ bursement of this money to thoso who were assessed is that the NAY8-19. Government retains it, not having refunded it to any of those per­ Aldrich, Ferry, McMillan, Sawyer, Anthony, Hamson, Miller of N. Y., Sewell, sons who suffered losses, but it appears that John Aldredge, who was Blair, Hawley, MoiTill, Sherman, one of the parties for whose benefit the assessment was made, in 1875 Con~er, Jones of N e•a.ua, Platt, Windom. received from the Secretary of the Treasury in consequence of the DaVIs of lllinoitt, McDill, Rollins, losses incurred by this raid the sum of $7, 795.08, which I understand ABSENT-22. it is not proposed to deduct from the aggregate amount that is to be Allison, Frye, La.ma.r, Saunders, paid by this bill. Chilcott. lla1e, Logan, VanWyck, I read from the testimony of Martin L. Noew, who was examined Cockrell, Hill of Colondo, Vest Ma.hon~1 1 at the time of the inquiry to which I have called attention. This Dawes, Hill of Goorgia, Mitcheu Williruns. witness was employed by the Department of Justice, and acting tem­ Edmunds, Jones of Florida, Pugh ' porarily under the direction of the Secretary of the Treasury. Farley, Kellogg, Saulsbury, The PRESIDENT pro tempore. The Senator's time is out. So the motion was agreed to. Mr. HARRIS. I hope there will be unanimous consent that the The PRESIDENT pt·o tempore. The bill is before the Senate as in Senator may finish the statement he is making. Committee of the Whole, and is under consideration without limit Mr. INGALLS. This bill involves very important considerations. of debate. The PRESIDENT pro tempore. Is there una¢rnous consent Y The Senate, as in Committee of the ·whole, proceeded to consider ~ir. INGALLS. I will not ask unanimous consent. I do not wish the bill (S. No. 4&3) to pay Hiram Johnson and other persons herein to intrude on the rules of the Senate; but it is obvious from what I named the several sums of money herein specified, being the sur­ have said that this involves a very important question, whether or plus of a military assessment paid by them and accounted for to not the Government is to Le held responsible for.the reimbursement the United States in excess of the amount required for the indem­ of assessments that were made upon disloyal parties for the payment nity for which it was levied and collected. of losses incurred in rebel raids during the war, and particularly Mr. JACKSON. If the Senator from Kansas has concluded his when it appears that the Government never received the money in statement I will make a statement to tho Senate in reference to this part of the cases, and in other portions that the parties for whose bill. benefit the assessment was made have received money that was levied Tho PRESIDENT pto tempore. Does the Senator from Kansas wish for them. I will therefore object to the consideration of the bill, to occupy the floor 'r and the Senator from Tennessee can move to take it up and exempt Mr. INGALLS. I will yield to the Senator from Tennessee. I have it from the operation of the Anthony rule. further observations to make, however. :Mr. HARRIS. I hope the Senator from Kansas will withdraw his ~ir. JACKSON. Mr. President, the single purpose of this bill is objection, after the somewhat rem:>.rkable statement that he has to return to the petitioners the amount collected of them under a made, until my: colleague [Mr. JACKSON] can have an opportunity military assessment in excess of the Government losses and beyond of explaining It, as "the Senator has consumed something over five what the commanding general authorized or directed. The facts are minutes in attacking the bill. Then if the Senator sees proper to simply those: there was a small force of Federal troops stationed at interpose his objection he can do so. Henderson, Tennessee, and on the night of the 25th of November, Mr. INGALLS. I said that for the purpose of enabling the friends 1862, a detachment ofconfederate cavalry crossed the Tennessee River of this bill to get it before the Senate exempt from the operation of and captured that post without these petitioners havin~ had any the Anthony rule. I objected to it in order that ·they might move connection with it, or even knowing of the contomplatea raid. In to take it up. capturing that small Federal force at Henderson the confederates Mr. HARRIS. It will not be in order for my colleague to debate destroyed three or four buildings and some private property stored the merits of the proposition on a motion to take up. Hence I ask there for shipment. The commanding officer levied an assessment the Senator from Kansas to withdraw his objection. upon the e particular persons, individuals of that community, as Mr. INGALLS. I will vote to take it up. rebel sympathizers, to make UJ? not only the Government loss, but l\1r. HARRIS. I ask the Senator to withdraw his objection until also the private loss of the pnvate individuals who had cetton at my colleague can explain the bill, and then his objection can be in­ that point for shipment. terposed, and I shall move to take it up when the objection is inter­ Mr. INGALLS. And who were loyal citizens of the United States. posed. ~ir. JACKSON. And who were stated to be loyal citizens of the Mr. INGALLS. I am not throu~h with my statement in regard to United States. The petitioners had no opportunity to review that the merits of the bill, and I therefore object to the consideration of assessment; they had no oppqrtunity to correct it in any shape; and it for the purpose of enabling it t{) be taken up not subject to the the orders that are before me gave them no such privilerre. They Anthony rule. wero arbitrarily selected to pay that assessment, not on'fy for the Mr. HARRIS. Then I move that the Senate proceed to the con- Gov~rnment loss, but also the ~oases of private individuals .. That sideration of the bill notwithstanding the objection. portion of the assessment to reunburse the Government for 1ts loss Mr. SHERMAN. Is that question debatable t went into the hands of the proper officer, and then came a question The PRESIDENT pro tempore. No, sir. as to whether there was turned over to the private individuals that Mr. SHERMAN. It is manifest that if we do this in regard to pri­ portion of the assessment which was assessed for their benefit. Gen­ vate claims it is the end of the Anthony rule. eral Sullivan referred that question to General Grant and ~oneral 1\Ir. CONGER. I gave notice that I should ask the Senate this Grant said, "You have misconceived my orders as to covenng the morning to take up in their order the public-buildings bills. private losses." And General Grant refused to let the fund be a-p­ Tho PRESIDENT pro tempore. But the Senator was not here to propriated for the reimbursement of those individuals who had lost i882. CONGRESSIONAL RECORD-SENATE. 4063 cotton by that raiu. So that this money collected is in excess of the This is corroborated by the t estimony of G. \V. Keen and S. L. authority that General Grant directeu, and p;re:.ttly in excess of the Hays, who say that­ amount needed to reimburse the Government. Here is what Colonel We, G. W. Keen and Samuel L. Hays, residents of Henderson County, Teunos­ Hillyer, the provost-marshal, states in reference to it: see'-upon oath declare we were present and hea.rd the foregoing affidavit of Asa. N . .Hays carefully read over to him, and that be signed his name thereto in our General l::)ullivan collected a much"larger sum than was required for these pur­ presence, and was sworn to the same ; and that we have long known him, and poses and reported the excess to General Grant, with a statement that parties who lived near neighbors to him; and that his veracity for truth and reliability has had bad cotton destroyed by guerrillas claimed that he, General Gram, intended never calied in question. their los!.'es shoulu bo maue good to them out of this fund. General Grant in reply stated that it was not true that he so intended; that the Army was not an G. W. KEEN. inRurance company to indemnify cotton speculators for losses in their operations, S. L. HAYS. nnpplied to the Hardeman, justice of the peace for Henderson County, whose signa­ paym~nt of prtva~ losses an~ damages. ture and a-uthority are attested by A. H. Rhodes, clerk of the county While it was within the military authority and ~ower of a general in the field to court of Henderson County, Tennessee, and these were also peace­ levy and collect moneys as fines and whi.W he mtght have paid the proceeds to able, law-a,biding citizens attenuing to their own business, whom it thoRo who had been injured by the enemy, it appears that General Grant refused is proposed to reimburse out of the Treasury of the United States to do this, and I know of no law by which any officer of the United States can now take this money from the Treasury and apply it to the payment of these losses and the money that was assessed upon them for paying the loyal citizens damages. whose property was destroyed by their act. Unless there is some evidence going to contradict the affidavits or General Grant corroborates that under date of February 25,1882. these reputable citizens of Tennessee, I think the Senator from that It is true that in the Forty-third Congress a bill passed to relieve State will be compelled to qualify his statement that this lovy and Aldredge, but the report under which that bill passed stated that assessment was made upon peaceful and law-abidin~ citizens who this levy was made by order of General Grant for tho express pur­ had no connection whatever with the destruction of tnat property. pose of indemnifying private individuals. It proceeded u11der a But, l\lr. President, one thing further. John Aldredge was confess­ false statement, under a mistake as to the facts in the case; :md edly a loyal citizen. He was not a cotton speculator. He was a. res­ under that special act Aldredge has received $7,700 of this fund. ident of the neighborhood who bad been engao-ed in planting and At ·the time this report was ma,U.e it was not known to the member who ha.d drawn the product of his labor to this railroad station for the who drew the report that that bill had been passed for Aldredge's purpose of shipment or sale, and his property was destroyed ~o ~he relief, antl upon ascertaining that fact I again called the case up amount of $9,606.36, and on the 3d day of March, 1875, the followmg before the Committee on Claims and called their attention to the act of Congress was passed : facts I have just stated about tho bill for Aldreuge's relief. But That the Secretary of the Treasury be, and he is hereby, authorized and re­ that does not affect the merits or the rights of these parties. The quu:ed, out of any money in the Treasury not otherwise appropriated, to pay to Government of the Uniteeace for the county and State aforesaid, Asa N. Hays a resident amount lost by De Silver, and the amount lost by Arnold. of Henclerson County, Tennessee, &nd, after being duly sworn accordmg1 to law, dcclaros on oath that on the 25th of .March, 1864, that A. D. Crook- As far as ascertained, it appeared that $23,325.15 had been collected and had gone into the hands of military officers, which appear to have been properly used Whom I l::mppose to be the same party nameu iu this bill- uy them for the purposes of the Government. The Secretary decided that of this amount the ~roportion collected for the damages incurred by the United State.s a citizen of Henderson Ceunty, and living near Henderson Station, Tennessee, should be sattsfied in full, IUld that .Mr. Aldredge could only properly claim a pro· did state to me that he did lay the plan andlead the rebel army on the night of the portion of the balance; anu there was accordingly paid to him $7,7115.08. 25th of NoYember, 1862, to Henderson Station, in the county of .Madison, in the State of Tennessee, for the purpose of burning the same and to burn or otherwise This amount was paid out of the money that was in the Treasury destroy the loyal citizens' property at that place, and dtd1 both. He then boasted by virtue of this assessment; it was chargeu to the account of 11 cap­ of the act as a good act and great triumph for the rebel army, and would do the tured and abanuoned property;" and yet this bill proposes to make same a~ain if opportunity should afford 1t. And further, he did not ask the said .A. 13. Crook for his admission, it being entirely on his own part. no allowance whatever for this sum that was paid confessedly by act AS.A N . .1IAYS. of.Congress, and demands that the entire amount less what was re- 4064 CONGRESSIONAL RECORD-SENATE. MAY 18,

quired to pay the losses sustained by the United States Government aggregate so much and to be prorated among the various claimants. shall be reimburseJ to these men who destroyed the property and The amendment may be formulated in three seconds if tho Senator who paid the sums assessed upon them without protest. Now, Mr. wishes to test the sense of the Senate on that point. President, it may be that the Senate are ready to adopt the principle The PRESIDENT pro temp01·e. It is moved that the bill be recom­ .and the policy that is proposed in this bill. I have no criticisms to mitted with instructions to diminish the entire amount by the amount make and no suggestions t.o offer as to the political aspects of this paid to John Aldredge under the act of March 3, 1875. The question .question, but I submit that as a matter of law and of justice and of is on that motion . .good faith, after it is shown that amounts have ueen paid out of this The motion was not agreed to. sum to reimburse loyal claimants for their losses, to come in now and The bill was reported to the Senate without amenJment, ordered .demand that the Secretary of the Treasury of the United States shall to be engrossed for a thiru reading, read the third time, and passed. reimburse these men who were by the testimony of these witnesses WILLIAl\I H. CROOK. ~uilty of leading that raid and uestroying that property is introduc­ mg a principle that will return to plague us. The PRESIDENT pro tempore. The next case on the Calendar Mr. JACKSON. Mr. President, the affidavits referred to by the unuer the Anthony rule will be called. Senator from Kansas to show that A. B. Crook had any connection The consideration of the bill (S. No. 696) for the relief of ·william ·with this matter are overwhelmingly contradicted by half a dozen H. Crook was resumed as in Committee of the Whole: the pending of the best citizens of that community, and the proof is here distinct question being on the amendment of Mr. Co~GER, in line 12, after .and positive that he was sick in bed at the time of that raid. The the word "bein7,'' to insert ''two-thirds of;" and in the Aame line, att-ending physician who had him then under treatment swears that after the word ' same," to insert "amount;" so as to read: he was sick in bed at the time anu knew nothing of it, and half a And which services were additional to his regular dutieR as executive clerk and ·dozen other affidavits contradict the statement read by the Senator. disbursing agent, the amount being two-thirds of the same amount as was formerly In .addition to that Colonel Cox, who commanded the squadron of paid for such service. confederate cavalry that made the raid, makes an affidavit in which The amendment was agreed to. he says he withheld and stuuionsly withheld from the people of that The bill was reported to -the Senate as amended, and the amend­ ·community the fact that he contemplated.a raid. He kept it con­ ments were concurred in. cealed as far as possible and they knew nothing of it. A leading The PRESIDE:IS'T pro tempore. Shall the bill be engrossed for a lawyer swears to the same thing, and here is the affidavit of Mr. third reading Y Rhodes, who guided the raiders across the country and who makes Mr. COCKRELL. I ask for the yeas and nays on that question. the same statement, that the people of that community knew nothing The yeas and nays were ordered, and the Principal Legislative of the raid and took no part whatever in it. Clerk proceeded to call the roll. But that is foreign to the question. The merits of the case turn Mr. JOHNSTON, (when his name was called.) I am paired with .upon the fact that more has been collected of them than was contem­ the Senator from Pennsylvania, [Mr. MITCHELL.] I do not know plated or intended or ordered by the commanding officer, and it ought how he would vote, and therefore withhold my vote. "to be returned. That is the whole case. Mr. '\VILLIAMS, (when his name was called.) If this is a politi- Mr. HARRIS. Mr. President, the merits of the case when you get cal or party question, I am paired. [" Oh, no I"] -down to the facts of it are plain. During the war one of the bel­ The PRESIDENT pro tempore. It is a private bill. ligerents made a raid upon a small garrison of the other, captured Mr. WILLIAMS. I vote "nay." it, and burned the depot building that they were occupying at the The roll-call having been concluded, the result was announced­ time. General Grant, the commanding general, ordered an assess­ yeas 20, nays 32; as follows : ment upon the citizens in the neighborhood of an amount of money YEAS-20. sufficient to indemnify the Government for its losses. The order had Camden, Fair, Hoar, Morrill, that extent; no more. It was an order to levy and collect an assess­ Cameron of Pa., Ferry, Jackson, Platt, .ment of a snfficient amount to indemnify and pay the Goverllliient Cameron of Wis., Frye Lapham, Sawyer, Chilcott, Hawley Mahone, Sewell, for the losses sustained by reason of that raid and the burning of Conger, 1Iill of Colorado, Miller of N. Y., Windom. t.hat depot. Dy a misconception of the order-for the losses to the -Government were only about. $2,100-there was an assessment of NAYS-32. Aldrich, Davis of W. Va., Jonas, Ransom, about $26,000 made upon the people of that neighborhood. Upon Bayard, Garland, McDill, Rollins, this first assessment there was about $23,000 collected, but a subse­ Beck, Gorman, McMillan, Slater, .quent assessment was made to make up the deficit, and some five or Brown, Groome, McPherson, Vance, .'tiix thousand dollars more were collected, making in the aggregate Butler, Grover, Ma;xey, Vest, Cockrell, Hampton, Morgan, Voorhees, about $28,000 or $29,000 that was collected off the people of that Coke, HarriS, Plumb, Walker, neighborhoou. General Grant himself, in construing his own order, Davis oflllinois, Ingalls, Pugh, Williams. .confines it strictly to the losses of the Government. Such was his ·construction at the time, for after this collection was made and the ADSENT-24. Allison, Farley, Jones of Florida, Mitchell, money demanded of him to distribute between these p1·ivate prop­ Anthony, George, Jones of Nevada, Pendleton, -erty-holders he utterly refused to allow a dollar of it to be paid to Blair, Ht>Je, Kellogg, Saulsbury, the owners of private property that was actually destroyed at that Call, Harrison, Lamar, Saunders, .depot. His recollection up to February of this year is reiterated Dawes, Hill of Georgia, Logan, Sherman, that it was a misconception of his order that led to the excessive col­ Edmunds, J'lhnston, MillerofCal., VanWyck. •lection. Tlle whole sum and substance and purpose of this bill is to Mr. CONGER. I move that the bill be recommitted to the Com- -;refund to these citizens from whom this money was collected in ex­ mittee on Claims. e referred to by the Senator from Kansas, and that was Mr. CONGER. I move that the bill be recommitted to the Com­ .evidently paid under a mistake of fact that secured the passage of a mittee on Claims. private bill through Congress, and the report conclusively shows it. 1\fr. DAVIS, of West Virginia. It is a claim that I think has been The only question for the Senate to determine is whether the Gov­ thoroughly ventilated1 and the Senate knows what it is. I move to ernment will keep this money that was extorted from these people, amend the motion by mdefi.nitely postponing the bill. private citizens having no earthly connection with or knowledge of Mr. COCKRELL. Is the motion in order Y I rise to a question of ··the II'aid that 'Yas m.ade by the confederate cavalry as is shown by order. the .affidavit-of the colonel commanding the raiders and as is shown by The PRESIDENT pro tempore. The bill is rejected. ·one of his soldiers who resided in that neighborhood when at home, 1\Ir. COCKRELL. Certainly, and a motion to recommit is not in who was the guide of the raiders. It is clearly and conclu ively es­ ortlor. tablished by their testimony, and the same fact is corroborated by a The PRESIDENT pro tempore. The bill is rejected by the refusal ·dozen or more of the uest citizens of that community, citizens who to order it to a third reading. had no earthly connection with or knowledge of the raid. The whole Mr. COCKRELL. There IS nothing to recommit. question is will the Senate order that the money collected in excess The PRESIDENT pro tempore. A refusal to order to a thil'd read­ ·of the order ·of General Grant and that is now in the Treasury shall ing is a rejection of the bill. be :Fefunded to these people from whom it was extorted. I am will­ Mr. INGALLS. I think the ruling of tho Chair, with great defer­ ing to abide the judgment of the Senate upon the question. ence, is wr'Jng. The refusal to order to a third reading does not Mr. INGALLS. Mr. President, I move to commit the bill with finally dispose of the bill. It remains on the Calendar and is sub­ instructions to diminish the entire amount to ue reimbursed by the ject to a motion to commit or to amend or to inde.fir\itely postpone . .amount that was paid to John Aldredge under the act of .March 3, Mr. DAVIS, of West Virginia. I move to postpone indefinitely. 1875. 1\Ir. INGALLS. A motion to indefinitely postpone would take pre­ Mr. HARRIS. There certainly can be no necessity for the recom­ cedence of n motion to commit under the rule. mittal. 'l:he Senator can offer an amendment. 1\fr. HOAR. When the vote is "no" on the question Shall the bill Mr. INGALLS. It is impossible to o1l'er it, because a separate pass to a third reacting, is it not a rejection of tho billY computation must be made to calculate the sum that will be due to The PRESIDENT pro tempo1·e. The Chair so supposes. .each individual claimant out of the aggreg&te. Mr. FERRY. That is a process to amend. On the final passage a 1\lr. HAJRR.IS. Tho amendment can be so drawn to diminish the rejection settles the bill, but a negative vote simply on the third 1882. CONGRESSIONAL RECORD-SENATE. 4065

reading permits a motion to reconsider or to indefinitely postpone or The PRESIDENT p1·o tempote. The hour of two o'clock has ar­ to commit. Certainly there can be no question of that. rived. The PRESIDENT pro tempore. Tho Chair will entertain the mo­ Mr. COCKRELL. Let a disposition be made of this bill. It will tion to indefinitely postpone. It is moved that tho bill be indefi­ only take a moment longer. nitely postponed. Mr. HOAR. It is one very simple point, ami it will only take two Mr. CONGER. I call for the yeas and nays on that. minutes to deal with it. I hope, as the re.Port has been r ead, the The yeas and nays were ordered; and being taken, resulted-yeas bill will be finally acted on. . 29, nays 25; as follows : Mr. COCKRELL. Let the time be extended a moment by unani­ YEA.S-29. mous consent. Aldrich, Davis ofW. Va., Ingalls, Vance, The PRESIDENT p1·o tempm·e. Dy unanimous consent the morn­ Bayard, Dawes, Jonas, Vest, ing hour will be considered as extended until the pending bill is dis­ n eck, Garland, McPherson, Voorhees, Brown, Gorman,. Maxey, Walker, posed of. Butlor , Groome, Morgan, Williams. The bill was reported to the Senate without amendment, ordered Cockrell, Grover, Plumb, to a third reading, read the third time, and passed. Coke, Hamt>ton, Pugh, D a vis of Illinois, llarns, Ransom , PUBLIC BUILDL~G AT :Z.."EW CASTLE. NAYS-25. The PRESIDENT pro tempore. The Chair lays before the Senate Anthony, Fair, Lapham, Rollins, the unfinished business. Call, Ferry, McDill, Sawyer, Mr. BAYARD. The Senator from Kansas, [Mr. PLU.MB,] in charge ·camden, Harrison, Mahone, Sewell, Cameron of Pa., Hawley Miller of Cal., Windom. of the bill which is the unfinished business, in view of a statement Cameron of Wis., Hill of Colorado, Miller ofN. Y., I have made to him that I shall be· compelled to be absent tu-mor­ Chilcott, Hoar, Morrill, row, has consented that I should ask the Senate to lay aside in­ Conger, Jackson, Platt, formally the pending bill in order to consider Senate bill No. 1776. ABSENT-22. It is a bill that will lead tone debate. A similar bill has already ..Allison, Hale, Lamar, Saunders, passed the Senate more than once. Blair, Hill of Georgia, Logan, Sherman, Mr. PLUMB. I have no objection to yielding to the Senator from Edmunds, Johnston, · McMillan, Slater, Farley, Jones of Florida, Mitchell, VanWyck. Delaware if the bill does not lead to debate or bring up other bills Frye, Jones of Nevada, Pendleton, of a similar character. George, Kellogg, Saulsbury, Mr. DAYARD. I think it will not lead to debate at all. So the motion to :postpone indefinitely was agreed to. By unanimous consent, the bill (S. No. 1776) to provide for the erection of a public building at New Castle, Delaware, was consid­ Tll\fOTHY E, ELLSWORTH. ered as in Committee of the Whole. The bill was reported to the Senate without amendment, ordered The bill (H. R. No. 1143) for the relief of Timothy E. Ellsworth to be engrossed for a third reading, read the third time, and passed. was considered as in Committee of the 'Vhole. It directs the Secre­ tary of the Treasury to refund to Timothy E. Ellsworth, late collector PRESIDENTIAL APPROVALS . .of customs at the port of Suspension Bridge, New York, $2,580.50, A message from the President of the United States, by 1\lr. 0 . L. being the balance of moneys paid into the Treasury of the United PRUDEN, one of his secretaries, announced that the President had, :States by mistake by him during the :fiscal years 1870 and 1871. on the 17th instant, approved and signed the following acts and Mr. HOAR. Let the report be read. · joint resolution: The Acting Secretary read the following re11ort, submitted by l\11:. An act (S. No. 455) granting an increase of pension to Mary J. lloAR the- 29th of March: . West; The Committee on Claims, to whom was referred the bill (ll. R. No. 1143) for the An act (S. No. 108) granting an increase of pension to .Abagail S. xel~£~{ th~~!~~ ~l~~~~~h~~ea;~~o!~i~::t: t!~~~:· ::td:fe~t:o~KJ~~r;~ Tilton; .Claims of the House of Representatives made during t~e present session, which An act (S. No. 891) granting a pension to EarlS. Rathbun; :.i s hereto annexed: An act (S. No. 915) granting a pension to Jesse F. Phares; "[Forty-seventh Congress, first session, House Report No. 75.] An act (S. No. 526) for the reliefofLouisa Bainbridge Hofl'; and "The Committee on Claims, to whom was referred the bill (H. R. No. 1143) for the A joint resolution (S. R. No. 67) authorizing the Secretary of War :relief of Timothy E. Ellsworth respectfully report as follows : "Timothy E. Ellsworth was collector of customs at the port of Suspension Bridge, to loan one hundred flags to the mayor and committee of citizens of New York, from March 5, 1870, to 1878. Enterina ul>on the duties of his office, Charlotte, North Carolina. ihe totmd a letter from the Treasury Department, dl.l'ecting that all mone~s, of .every description, received by the collector not received by warrant on the Treas. ORDER OF BUSINESS . ury should be turned over to the United States or that they would be charged against him. By law he was entitled to retain for his own compensation as col· Several Senators· addressed the Chair. iector out of his receipts from storage a sum not exceeding $2,000 per annum and Mr. COCKRELL. Regular order. sufficient to make his yearly compensation from all sources equal to $4,500. The PRESIDENT pro tempore. The Chair lays before the Senate "Not being fplly advised of h1s rights, and unwilling to enter into contest with 'his superior officers, Ellsworth obeyed instructions. The result was that during the unfinished businelils, which is Senate bill No. G7. ·his entire term .of office he received less than $2,600 per annum, when he was Mr. CONGER. I ask nnanimpus consent to take np House bill .entitled by law to $4,500 for each year he served. No. 4701. "At.or near the close of his term of office he brought suit in the court. of claims The PRESIDENT p1·o tentpore. The Senator from Kansas [Mr. for moneys exacted from him by the Treasury order. That court rendered a unani· · mons judgment iD his favor for the moneys so paid by him subsequent to June 30, PLUMB] has control of the business. He permitted the Senator '1.871, this being all that was within their jurisuiction to consider or render judg­ from Delaware to call up the bill which bas just been passed be­ ment for under :the statute of limitations applicable to actions in that court. (See cause the Senator from Delaware is going away to-day. 14 Court of Claims Reports, 382.) The case then went to the Supreme Court and Mr. PLUMB. That bill was taken . up with the distinct under­ .the decisiG~n of the court below was unanimously affirmed. (See 101 United States R~ports, 170.) The Supreme Court, Mr. Justice Clifford delivering the opinion, standing that it should not lead to other legislation of a similar ~ md: . character or lead to debate. 11 P eremptory instructions were given to the officer that all moneys of every de· l\fr. COCKRELL. Letthe Senatorfroml\!ichigan give notice that .scription not receh:ed by warrant on the Treasury must be actually depositeu. he will call up the bill to-morrow morning. * * * His compensation .as received 'vas derived wholly from the other statutory sources of emolument, the findings of the court showing that he was not paid Mr. CONGER. I ask unanimous consent that to-morrow morn­ .anything out of the yearly amounts collected from rent and stora~e. * * * ing the bills for public buildings on the Calendar be taken up and The payments in question made under the peremptory order of the Commissioner considered. .cannot be regarded as voluntary in the sense that the party making them is thereby Mr. HOAR. Let the question come up then. . precluded from maintaining an action to recover back so much of the money paid .a s he was entitled to retain. Call it mistake of law or mistake of fact, the prin­ Mr. CONGER. If it be understood now, all Senators will be ·ciplos of equity forbid the United States to withhold the same from the rightful ready to-morrow for considering such bills as they are interested in. .owner. l\!r. ROLLINS. I desire to make a report from a committee. ".As there is no dist>ute about the facts in the case, and as the exact amount of .Ellsworth's money pa1d into the 'rreasury is stated by the Supreme Court, and as Mr. FERRY. ·Why can it not be understood that in the same way he has only received a part of it, he now asks Congress to authorize the balance as pension bills are taken np the bills relatin~ to public buildings will t o be t:eturned t9 him. This balance amounts to $:.! 580.50, being the amount due be considered to-morrowT Public noticew1ll then be given to Sena­ him fox the ~ear 1871 and a part of the lear 1870. It is now in the Treasury, and tors who are interested in those bills, and they will be here. ,Yet the Supreme Court has decided tha it belon~s to Ellsworth. "Unuer these .circumstances, the simple questlon is whether the United States The PRESIDENT p1·o tempore. Certainly that can be clone, if it is \Will retain the money which has been legalll ascertained to belong to a citizen, the understanding of the Senate that the bills for public buildings met:ely because its recovery is barred in the Court of Claims. in the United States shall be taken up after the routine morning "Though no statute of limitations concludes the aotion of Congress, there are business to-morrow. times when, in analo~ to the action of the courts, stale claims or those rendered doubtful by lapse of trme and the laches of the claimants may properly be disre­ Mr. FERRY. That will then be a notice to Senators, and they will garded. But your committee are of opinion that this claim is not one of that be here ready to protect or defend bills in which they are specially class, and that, under the circumstances and the absolute freedom from all doubt interested. as to the ex:act facts the Govemment cannot honestly continue to withhold this The PRESll>ENT pro tentpore. Is there objection to such an nn­ balance from the claJm:mt. They therefore recommend the passage of the accom. panying bill." derstandingT The committee concur in the opinion of the author of the above report, and Mr. BUTLER. I should be glad to know, before I consent to that recommend that the bill pass. • arrangement, whether the Committee on Public Buildings and_ XIII-255 4066 CONGRESSIONAL RECORD-SENATE. MAY 18,.

Grounds have reported n.lllJills for public "buildings wnich have been by him to the bill (S. No. 1723) to increase the water supply oi referred to them. Washington, and for other purposes; which were ordered to be l\lr. VEST. No, sir; I have a bill from that committee which I printed. wish to roport now. ' REPORTS OF CO:Ul\llTTEES. l\1r. HARRIS. Is it sought to obtain unanimous consent at this Mr. CAMERON, of Wisconsin, from the Committee on Public time for such action to-morrow T Buildings and Grounds, to whom was referred the bill (S. No. 1883) The PRESIDENT pro tempore. That is what is asked. for the erection of a public builuing at La Crosse, Wisconsin, re­ l\Ir. HARRIS. .Are the bills to come within the Anthony rule be­ ported it without amendment. fore two o'clock, or afterf The PRESIDENT pro tempore. As soon as the routine morning Al\IEND:\IE..~T TO A BILL. business is finished. Mr. ROLLINS, from the Committee on the District of Columbia, l\ir. HARRIS. I havo no objection. reported an amendment intended to be proposed to the bill (H. R. The PRESIDENT p1·o tempore. After the routine morning business No. 5664) making appropriations to provide for the expenses of the· is ove1· to-morrow the bills relating to public buildings will be taken government of the District of Columbia for the fiscal year ending up, if there be no objection, just as has been done in reganl to pen­ June 30, 1883, and for other purposes; which was referred to the sion bills. Committee on Appropriations, and ordered to be printed. :Mr. BUTLER. Before I give my consent I should like to know l\IILITARY LAND- WARRANT LOCATIO~S. why the bills which have been already reported should be considered now f Why not wait until all the bills which have been referred to The Senate resumed, as in Committee of the Whole, the consider­ the committee have been acted on by it f ation oftue bill (S. No. 67) to authorize the Secretary of the Interior ~ir. l<~ERRY. I answer the Senator that the proposition is simply to ascertain and certify the amount of land located with military that bills pertaining to public buildings shall be taken up just as warrants in the States described therein, and for other purposes; has been done where we have gone to the Calendar and taken up the pending question being on the amendment of .Mr. SAULSBURY t() pension cases. Senators are especially interested i~ many public insert as an additional se0tion the following: buildings in different parts of the United States, and such a notice SEc. -. That no part of the money paid under this act to any of the Sta.tes men­ would prepare them to be present if they had other interests that tioned therein shall be applied by such States to the payment of agents or attor­ neys for services rendered by them in procuring the pa-ssage of this act, or in con­ might call them elsewhere. 'Ve have pursued this course before, nection with the claims of such State to the money hereby authorized to be paid i and the desire is to give notice so that they may be prepared to de­ and the Secretary of the Treasury is hereby authorized and directed to withhola. fend the bills. It seems to me just and courteous that such a course payment to any State until satisfactory assurances shall be filed with him by the should be pursued. authorities of such State that no part of the money paid under this act shall be S() Mr. BUTLER. I do not desire to be discourteous or unjust; I have applied. . no such purpose as that in making my inquiry; but, as the Senator The PRESIDENT pro tempore. The Senator from 1\fichi~an, [Mr. from Michigan has stated, Senators are interested in public build­ Co~GER,] who is entitled to the floor, has informed the Chair tl:ra.t ings. I happen to be interested in one in my State, on which there he does not desire to speak at this time. has been no report; and for one I should like very much to see equal 1-Ir. DECK. I should like to have some information about the justice done to all parts of the country upon that subject before I pending amendment. This morning I read the debate of yesterday give my consent. with some care. I am entirely willmg to vote that each State shall Mr. l<'ERRY. If the Senator will allow me, this arrangement will have absolute control over the fund, and that n.o money shall be not interfere with the bill in which be is specially interested. The paid, except in accordance with an order made by the State subse­ bills will come up in their order, taking up all the bills for public quent to the passage of the act; but to prohibit a State from passing buildings throughout the United States. an order to pay anybody who was employed legitimately, seems to 1\lr. BUTLER. But the Committee on Public Buildings and me to be going very far. I think some check ought to be put upon tho Grounus have not r~ported the bill to which I refer. States in one regard, for when contracts have been made perhaps Mr. VEST. :Mr. President-- by former administrations and the J?resent administration of the Mr. PLUMB. I shall have to insist upon the regular order. State is required to carry them out, nght or wrong, great evil may 1-ir. FEHRY. If the committee have not reported the bill it is the grow out of it. That far the amendment seems to me to bo right; misfortune then of the Senator from South Carolina. When that bill but after the money is paid to prevent the State from paying any comes before the Senat-e we shall be prepared to vot-e with him upon person that its attorney-~{\neral or any legally authorized oilicer may its merits. have employed in a legitimate service, seems to me to be going a Mr. ·BUTLER. If I can ever get it out of tho hands of the com- long ways. mittee. I should like to see some modification of the amendment. Iri other :Mr. PLUMB. 1\lr. Presiuent-- words, I want the money paid to the States, and then I want to let The PRESIDENT pro tempore. The regular order is called for. the States take any subs{\quent action they please; but to prohibit Mr. l\!c~ULLAN. Is there objection to the request of the Senat.or them from doing anything they may please afterward seems to me from l\1ichi~an T to bo going altogethar too far. The PRESIDENT pro tempore. The regular order is called for. Mr. PLUMB. I think the point which the Senator from Kentucky Mr. l\1cl\11LLAN. Will the Senator from Kansas permit the ques- makes is n.ot only very proyor, but it is entirely met by the provisions tion of consent to be settled T · • of the several acts of admission. Those nets of admission provided :Mr. PLUMB. If it can bo settled without debate, I have no specifically what shall be done with this fund. I have no idea in the objection, but here is n. debate opening up which will take all the world that the Secretary of the Trea&ury would pay ono single dol­ - afternoon. lar of it to any person except to authorized agents of the respective The PRESID:&.'I\T pro tempore. Is there unanimous consent to the States, and not a penny of it to n.ny attorney for his services in a mat­ proposition of the Senator from Michigan f ter of this kind. Mr. BUTLER. I do not agree to give unanimous consent, Mr. Mr. BECK. But this matter has been pending some time, and the President. present administration of a State may feel itself bound to comply The PRESIDENT pro tempm·e. That ends it. with some obligation entered into by a prior administration. Mr. BECK. A majority of the Sena~e can control the matter. 1-Ir. PLUMB. That will have to be done by an act of the Legisla­ The PRESIDENT pro tempore. Of course when the time comes a ture of the State after the money has been appropriated. majority can control it. 1\Ir. BECK. If tho amendment provided that the money should Mr. PLUMB. Let the Secretary report the pending amendment not be paid except in accordance w1th some action of the State taken on the unfinishepo that we shall illspose of the 5 per that is a very different proposition from what he suggests. cent. bill to-day. 1\fr. BECK. I do not want to prohibit the States from acting after 1\Ir. HARRIS submitted two amendments intended to be proposed they have once received tho money. 1882. CONGRESSIONAL RECORD-SENATE. 4067

The PRESIDENT pro ternpore. The question is on agreeing to the Tho PRESIDENT pro ternpm·e. The Senator from Alabama [1\fr. amendment of the Senator from Delaware, [Mr. SAULSBURY.] · MORGAN] had printed an amendment to the bill, but he has not The question being put, there were on a division-ayes 15, noes 17; offered it. no quorom votinrr. l\Ir. VANCE. Is an amonument in order now 7 Mr. PLUMB. 1 ask for the yeas and nays. TIJe PRESIDENT P~"O tempore. It is. The yeas and nays were ordered. Mr. VANCE. In section 1, line 5, after the word" land-warrants,'' :Mr. BECK. Is the amendment open to amendment now Y I move to insert: The PRESIDENT pro tempore. It is. Ancl all lands donated for railroad purposes, or to corporations within them, and Mr. DECK. After the word ''paid," in line 6, I move to insert the for educational purposes, over and above the lands granted by their several acts of words: admission. Except in accordance with laws of said States passed subsequent to the passage So as to reau : of this act. That the Secretary of the Interior be, aml be is hereuy, directed to ascertain the amount of puulic lands entered by the location of military scrip and land-warrants, l\Ir. ALLISON. What objection is there to that Y and all lands donated for railroad purposes. or to corporations within them, and for Mr. PLUMB. So far as I am concerned, I have no objection to educational purposes, over and above the lands granted by their several acts of that amendment. admission, in the States of Ohio, Indiana, &c. :Mr. BECK. If that amendment is made I am willing to vote for And after the woru "land-warrants," in liue 19, to insert: . the amendment of the Senator from Delaware. I move that as an Which may be in excess of the lands so donated to them for railroad and mlu­ amendment to the amenument. cational purposes, if there be any such excesa in amount and value. Mr. McMILLAN. The objection I have to the amendment of the Senator from Delaware is that I think it is a gross insult to the So as to make that portion of the first section read: States which shall be the recipients of this fund or any portion of it. .And it shall be the duty of the Secretary of the Treasury, out of any money in I think it is unworthy of Congress to adopt any such amendment as the Treasury not otberwise appropriated, to pay to such States 5 per cent. on the that. We are doing injustice to ourselves, and we are doing injus­ amount of lands located by military scrip and land-warrants, which may ue in ex­ cess of the lands so donated to them for railroad and educational p1;1rposes, if there tice to the States we represent here. I am surprised that such an be any such excess in amount and value, estimating said lands at the rate of $1.25 amendment is offered and sustained to any serious extent in the per acre. Senate. Mr. INGALLS. I should like to hear some explanation a.s to the The PRESIDENT pro tempo1·e. The question is on agreeing to the efl'ect of that amendment. amendment of the Senator from Kentucky to the amendment of the :Mr. VANCE. Mr. President, it is a rule of law, I believe, that Senator from Delaware. when children have been advanced and the oris:inal estate is to be .Mr. SAULSBURY. Can I at this stage accept the amendment of divided they cannot come in share and flhare ahke until they have the Senator from Kentucky T accounted for their advancement. These ~ew States were g-raate? The PRESIDENT pro tempore. It can be accepted. a certain amount of land, as I understand 1t, to set them up m busi­ Mr. SAULSBURY. I accept the amendment. ness, to begin housekeeping, by the acts which admitted them, and The PRESIDENT pro tem,pore. The amendment to the amendment a portion of those lands so granted to them were- afterward covered is accepted. The question 1s on agreeing to the amendment as mod­ by the military warrants issued to the soldiers of the country. ified, on which the yeas and nays have been ordered. . Mr. ALLISON. No, that is not the case. Mr. McMILLAN. Let the amendment as modified be read. Mr. VANCE. The Senator from Iowa shakes his head. I do not The ACTING SECRETARY. It is proposed to add, as an additional know whether there is anvthing in it or not. [Laughter.] section, the following: Mr. ALLISON. I simply state to the Senator that this bill does SEC.-. That no part of the money paid under this act to any of the States. not cover the class of cases which he is now describing. mentionell therein shall be applied by such States to the payment of agents or :Mr. VANCE. I understand at all events th3.t this is to reimburse attorneys for services rendereil by them in procuring the passage of this act, or in connection with the claims of such States to the money hereby authorized to be the new States for lands that were promised to them, which lands paill, except in accordance with laws of said States passed subsequent to the pas­ were finally taken up by military warrants; that is to say, they sage of this act, and the Secretary of the Treasury is hereby authorized and di­ were promised 5 per cent. on the net proceeus of the sales of all rected to withhold payment to any State until satisfactory assurances shall be filell lands within their borders, and those lands on which they were thus with him, by the authorities of such State, that no part of the money paid under this act shall. be so applied. promised 5 per cent. have been taken up by military warrants, and now they cl~im the 5 per cent. Mr. McMILLAN. That requires a sovereign State to como here It seems to me that tho parties in this case, the claimants, so to and give the assurance to the Secretary of the Treasury that the speak, cannot get on by a strictly legal title. I contenu that there State will not apply any portion of this fund to the payment of was no contract made by the acts of admission for various reasons. agents or counsel fees. - In the first place, if you make a valid contract there must be parties Mr. PLUMB. I should like to ask the Senator from Kentucky if in esse. \Vhen John Smith and Bill Jones enter into a contract it is he thinks the last part of the amendment of the Senator from Dela­ necessary that Bill Jones should have been born and shoulcl be in ware is at all material now Y existence; and I see not how these inchoate, imperfect, unborn ~er­ Mr. ALLISON. I understand that the Senator from Delaware ritories could contract as equals with the Government of the Umteu accepts the amendment of the Senator from Kentucky. States before their natal day. I can perceive of no methou by which , The PRESIDENT p1·o tempm·e. He has accepted it, but it is the that could be adopted, except on the doctrine that the covenant was last clause to which the Senator from Kansas calls attention. with them and their children, and that it would thus admit the Mr. ALLISON. I move to strike out all after the words inserted infants to the rite of baptism. by the Senator from Kentucky. 1\ir. INGALLS. But the contract is contained in the act of admis­ Mr. VEST. That should certainly bo done. The amendment is sion of the several States. inconsistent the way it stands now. Mr. VANCE. So I understand; and before they were States I The PRESIDENT p1·o tempm·e. The question is on agreeing to the understand they could not contract. amendment of the Senator from Iowa [.Mr. ALLISON] to the amend­ Mr. INGALLS. If they had not been States they could not have ment of the Senator from Delaware [Mr. SAULSBURY.] ' been aumitted. Mr. McPHERSON. Let the amendment to the amendment be Mr. VANCE. If they had been States of this p-nion they could not reported. have been admitted mostassurodly. I have never known a State ad­ The ACTING SECRETARY. It is proposed to strike out all the mitted into the Union, except the reconstructed States, which were amendment after tho words "subsequent to tho passage of this act," admitted to be out for certain purposes and then were admitted in as follows: for other purposes. But be that as it may, these States have not any And the Secretary of the Treasury is hereby authorized and directed to with· legal right to this fund, and when it comes to the doctrine of equity hold payment to any State until satisfactory assurances shall be filed with him. by I think they will be still worse off. the authorities of such State, that no part of the money paid under this act shall These States claim 5 per cent. of the value of all lands which have be so applied. been donated to the soldiers of the Government by military war­ The PRESIDENT pro tempol'e. The question is on agreeing to the rants; anu during the time they have existed and pending these amendment to tho amendment. claims, for they have been pending here many years, I understand, .Mr. SAULSBURY. I do not object to that. ' these States, including the Territories, which will soon be knocking The amendment to the amendment was ag-reed to. at the door for their 5 per cent. also, have received as actual donees The PRESIDENT p·ro tempore. The questiOn is on agreeing to the from the Government of the United States fifty times in valne lands amendment as amended, on which the yeas and nays have been or- for educational and railroad purposes, or to corporations being within dered. ' their limits, as a pure gift. When a man has been paid his claim l\.lr. DAVIS, of West Virginia. As the amendment now stands fifty times over and then insists upon the technicality of the law in there is no objection to it that I know of, and it is not-necessary to regard to the 5 per cent. it would seem to me very much like a man havo the yeas a.nd nays. I ask unanimous consent that the call be making a contract with his attorney to pay him 5 per cent. to collect dispensed with. his debts, anu the attorney having collected the whole of the sum Tho PRESIDENT pro temJJore. The Chair hears no objection, and and put it in his pocket, then sues his client for the 5 per cent. the call will be withdrawn. Tl1e question is on agreeing to the amend­ I have here a compilation made from Mr. Spofford's American .Alma­ ment as amended. nac} which shows that these very States now claiming this 5 per eent., The amendment as amended was agreed to. whicharesohungryforit, and areap:pealingtothe pledgedfa.ithofthe 4068 CONGRESSIONAL RECORD-SENATE. 1\;l.AY 18, nation to relieve them, ha ,~e receivetl directly as a gift for railroad claiming the fulfillment of what they had a right to consider at the purposes 54,667,031 acres; for corporations to build railroads within time a contract with this Go1ernment, a hard contract I clnim, an their borders there have been granted 137,341,800 acres. unworthy one for the Geneml Government to have imposed in the :Mr. INGALLS. The Senator docs not regard that as a gift to the organic law creating these several States. I desire to call tho atten­ States tion of the Senate for a little while to that view of the subject. Mr. VANCE. A gift to a corporation to build. a railroad within When tho original States were arranging their botmdaries prepara­ a State I should sa:v inured to the benefit of the State. tory to the formation of this Government there was not one of tllom, Mr. INGALLS. 'rt benefits the people of all the States. whether the old charters gave the authority to do so or not, but what Mr. VANCE. It benefits in a particular manner the people of the reached out in every direction to extend its boundaries beyond oven State throurr.h which the railroad runs, and the stockholders of the the original charter from the home government ; and they all secured corporation~ For e

l'tlr. VANCE. I subside. yon promised ns; at least let ns have a little portion of the procoedB Mr. CONGER. Because I cannot pursue eveu a line of argument of the sales of these lands; " and grudgingly and slowly tho General if I have to go over and over it again and again, in consequence of Government agreed that when it did dispose of the soil-the disposi­ being distracted by interruptfons. tion of the soil waswhat it haureserved-itwoulugivetooachState Mr. VANCE. I beg the Senator's pardon. I did not know that I within which it sold the land 5 per cent. of tho proceeds. At the. was disturbing him or I shoulu not have been guilty of interrupting price fixeu, $1.25 an acre, this would be 6! cents for each acre. him. Sir, the General Government required each State government, so l'tlr. CONGER. It is only while I am stating the few things I wish lonO' a's there was an acre ofpublic lands within the State, to spread to prefient in the order in which they occur to me that I wonld desire its laws over that lanorliecl in tho organic the promises and all the inducements It had helU out to its own cit­ laws under which tliese feeble Territories came into tho rank of izens to go and make a new empire, to become a part of the great States poor, impoverished, with Indian wars on their hanus and empire of the United States. troubles on their hands in all directions, with no troops from the Geu­ Why shoulu not these now States have had some of that soil which eral Gove11nment to protect the settlers in thousands of instances, with was within their limits unoccupied f The Government was out of all the weaknesses to which the States were oxposeu as Territories aud debt; tho Government was even then distributing millions of dollars new States-it seems to me if one would look over that list of wrongs surplus money tO' the old States that it bad received from these lands. and grievances there would not be a man here who would be unwill­ All its debts were paiu. The object of the cession by some of the ing to enforce the conditions of the entry of these Territories into States, and perhaps by all, to the General Government was to enable the family of States and to vote to pay this 5 per cent. which has the .General Gonrnment to 'pay its iudebteuness and to carry on the been so long due, and so long 1?-njustly, aye, shamefully, withheht. Government. That had long been done when many of these Terri­ That is my view of the condition of the General Government in its tories became States. ·what need of further holding the land that relations to these Territories and States. So far from this being a was given to pay the indebtedness of the General Government, to bold and audacious attempt of these States to secure the 5 per cent. hold it beyonu the time when that indebtedness was paiu, ay, to for themselves, if the bill be passed it will be only a tardy recogni­ hold it even after moneys had been received into the Treasury far tion of tho small pittance which the General Government promised beyond all the wants of the Government, so that Congress-and the to the people who should settle in these Territories. No one State old States did it-divided amon~ the old States that great surplus can meet the whole Government. No one Territory asking for ad­ revenue! And they have had It since. Have the new States that mission, a feeble infant State, can stand against tho law which may have been formed since received any of that surplus revenue f Oh, be imposed upon it. It must come into tho Union, under all the no. hard conditions, peacefully, or it must stay out. Ambitious as the Now, sir, I come to another proposition which the Senator from people were to become a State, ambitious as they were to builu up North Carolina has suggested. He sa.ys Congress has given to :Mich­ the whole country in building up their own State, they accepteu igan and to other 'Vestern States large amounts of land for railroad the conditions. They diu believe that there woulu be no trick on purposes. True. It has given to many of these States, he says, large the part of the General Go'\·ernment to deprive them of the little pit­ amounts of land for educational purposes. Equally true. It gave tance they were granted. to Connecticut a tract one hundred and twenty miles long and fifty '\Vhat a shameful pretense it is for a groat nation like the United or sixty miles wide, in Ohio, which has made one of the finest edu­ States to pleau that it refuses this 5 per cent. because there was not, cational funds that any State of this Union has, and Connecticut sup­ in the exact lan~nage of the law, a technical sa.le of tho lanlls. ports its schools to-day from property taken out of Ohio. What is a sale¥ .1\Iust money actually pass to constitute a sale 'f If Sir, there is no doubt that the successors of those who imposed such a man in his private relations to others defended himself against tho hard, such uuworthy obligations upon the new States in their or­ fulfillment of his contract by such a pitiful, shameful pretense as ganic law, when they were unable to help themselves, and when they that, he might possibly succeed, and he mi~ht win his cause in a must either decline to come into the family of States and be States technical forum, but he woul

Union, it did promise that this little pittance of 5 per cent. of these simple justice be done. The people of that State, sColorado ...... 12,191 25 243,825 00 195,060.00 make a contract, anu the State contemplated, not yet having an exist­ Florida ...... ••...... 29,317 57 586,351 25 469, 081.24 ence, was not in a condition to make a contract. J:owa ...... : ...... 881,239 13 17,624,782 50 14, 009, 825. 77 Both these positions are remarkable in view of the organic act.s of Illinois ...... 59[,, 866 32 11, 917, 326 25 9, 533, 853. 00 Indiana ...... 82,027 32 1, 640, 546 25 1, 312, 436. 65 the States. The honorable Senator from Minnesota [Mr.l\1Cl\1ILLA..'i] 270,741 12 5, 414, 822 25 4, 331, 856. 95 read yesterday from tho admission act of Minnesota, in which lan­ f:.ti~~~ ~ ·_ -. ·. ·_ ~:::::::::: ~: ~:::::: 72,425 19 1, 448, 503 75 1, 158, 802. 50 guage was used clearly stipulating thn,t the General Government 270,704 63 5, 414, 092 50 4, 331, 273. 78 would grant 5 per cent. of the proceeds of the public lands, anu in 373,393 25 7, 467, 865 00 5, 990, 291. 81 24,061 13 481,222 50 384, 977.73 consideration and upon condition of that grant the State of Minne­ i~E~i :~ ~~~ ~ ~: :~ ~ ::~ ~:: ~ ~~~ ~: 426,186 82 8, 523, 736 25 6, 818, 988. 89 sota was to do certain things. Let me call the attention of the hon­ Nebraska ...... $121,202 38 $2, 424, 047 50 $1, 939, 238. 05 orable Senator from North Carolina to the language of the act for Nevada ...... 666 25 13.325 00 10,660.00 {)hio ...... 113,503 88 2, 271; 877 50 1, 817, 501. 99 the admission of the State of Iowa, and I think it will show him that 4, 949 31 98,986 25 79,189.14 those who framed that act in 1845 understood that there were two ;>;1'!c~~s~· ~: :::::::::::::::::::::: 404,111 38 8, 082, 227 50 6, 465, 781. 82 parties to the contract, and that a contract was being made by the law itself and the acts that were to be done afterward. This law TotaL ...... a, 947,173 5o 78, 043, 408 50 63,170, 760.74 provides- • That in lieu of the propositions submitted to the Congress of the United States, Very respectfully, by an ordinance passed on the 1st day of November, 1844, by the convention of J. M:. ARMSTRONG, delegates at Iowa City~ assembled for the purpose of making a constitution for Acting Oommissioner. the State of Iowa., whicn are hereby rejected, the following propositions be, and Governor R. P. LOWE, Washington, D. 0. the same are hereby, offered to the Legislature of the State of Iowa, for their ac­ ceptance or rejection; which, if accepted, under the authority conferred on the­ Mr. VANCE. Mr. President, I just want in a word to express my said Legislature by the convention which framed the constitution of the said State, dissent from the doctrine that the equality referred to, as each State shall be obligatory upon the United States. · .coming intothe Unionshould be admitted, meant an equality of pub­ lic lands or an equality of property of any kind. I have always Then follow certain specifications of what the Government of t.he understood 'that it meant an equality of political rights and privi­ United States was to do; first, it was to grant section numbered 16 Jeges. It .certainly would be an absurdity to sn,y that every State in each township; then, second, it was to grant 72 sections of land •COrning into the Union should be on an equality with the States in for a university; third, it was to grant five entire sections of land the Union in regard "to their public property. If so, the very acts of to be selected and located under the direction of the Legislature for -cession of the old States destroyerl that idea, because the State of public buildings; fourth, it was to grant all salt springs within the North Carolina, from whose act I have read, gave away every acre State for certam purposes; and fifth- of her public land from a certain boundary, to wit, the Great: Smoky That 5 per cent. of the net proceeds of sales of all public lands lying within the .Mountain range, the Iron Mountain in the western part of the State, said State which have been or shall be sold by Congress, from and after the ad­ mission of said State, after deducting all the expenses incident to the same, shall .to the J.Iississippi Valley, gave away every foot of those lands to the be appropriated for making public roads and canals within the said State, as the ·Government of the United States, in order to form the State of Leg1slatnre may direct : Provided- 'Tennessee. Then, if the Government of the United States had con­ ferred all those lands by grant on the new State of Tennessee, there Now come the stipulations of what the State must do- would have been no equality, because the State of Tennessee would Provided, That the five foregoing propositions herein offered are on the condi· \have had all the public lands and the State of North Carolina have tion that the Legislature of the said State, by virtue of the powers confen-ed upon it by the convention which framed the constitution of the said State, shall pro· none. It is not necessary to say more about that. vide, by an ordinance, irrevocable without the consent of the United States, that • As to other conditions which formed the considerations so called tho said State shall never interfere with the primary disposal of the soil within for this so-called contract, I desire to say this: first, I do not admit the same by the United States, nor wit_h any regulations Congress may find neces­ that the States had any authority whatsoever to tax the property of sary for securing the title in such soil to the bona. fide purchasers thereof l and that no tax shalf be imposed on lands tho property of the United Statel' ; ana that the General Government within their borders; and in the next place in no case shall non-resident proprietors be taxed higher than residents; and that the condition that the States should refrain from taxing land granted the bounty lands granted, or hereafter to be !!ranted, for military services during l)y the United States for a certain number of years was a benefit that the late war, shali, while they continue to beheld by the patentees or their heirs, inured to the States themselves and not to the Government, because remain exempt from any tax laid by Ol'der or under the authorit:v of the State, whether for the State, county, township, or any other purpose, for the term of the Govorn~nent receiveu no benefit from the State refraining from three years from and after the date of the patents, respecti.-ely. ;taxing the lands, but the States did because it encouraged immigra­ ;tion and thereby hastened the settling up and strengthening of the There is a solemn stipulation, there is a. solemn agreement, there :new States. It sounds a little strange to me that the conditions im­ is a solemn covenant, a solemn declaration of what the United States poscu upon the admission of a State which were intended for the Government would do, a.nd a declaration that it was to be done upon bene tit of the State should be made the excuse for running the bands a condition, and that condition is to-day a performed conuition. -of that new State still further into the Treas,ury n,nd abstracting more Now, if there is anything in public faith, if there is anything in -of tho public and the common funds. the duty of the Unitecl States to keep its faith, the United States is Mr. McDILL. Mr. President, I do not know that I should have pledged by contract with the State of Iowa in this case and the ..any justification for detaining the Senate by the discussion of this State of Minnesota and the other States in the other cases to allow .su IJject further, except ti·om the fact that the State which I have the to these States 5 per cent. of the proceeds of the sales of the public · honor in pn,rt to represent is largely a claimant under this bill, and lands within their limits for the purposes mentioned in tho different it may be right that this State should through its representatives acts. .say something with reference to the claim. The Senator from New Hampshire says, ''These States could not '!'he State of Iowa, as I think I may safely say of the other States do the things they are prohibited from doing, and therefore there is :mentioned in this bill, does not come here as a supplicant or a be~­ no consideration for tho contract." The Senator from North Caro­ gar. She comes presenting what she believes to be a just and valid. lina says, "There was no State of Iowa or State of Minnesota at this .claim. She believes that tbat claim is strong both in the letter and time; and as it takes two to make a contract, there can be no con­ the spirit of the law, and therefore she asks that simple right and tract." The~e :pro:po!iitions, these arguments, these statements, it '4072 CONGRESSIONAL RECORD-SENATE.

seems to me, will not bear the light of discussion. They remind me the situation, when the people of Iowa were called upon th.rough the­ -very much, when I read the facts themsel:ves, of a story that is told Legislature of the State-for that is the language of the act-to ac­ of an old practitioner at the bar, who heard from the lips of the court cept the covenant proposed to them by the United States, and they a most remarkable decision, destroying all the interests of his clients read in that that they were to have 5 per cent. of the proceeds of' and leaving him hopeless as far as the case was concerned. After the public lands, what did they contemplate f They contemplated the decision was read or declared from the bench and the law of that the ·policy then adopted by the Government would be pursued, that case was made known to him, he rose and began to read, from that the land then mapped and platted and to be sold would be· Blackstone, elementary principles. The court was astonished, and sold for $1.25-an acre, and that 5 per cent. of that amount, or one­ asked him why he was so doing. He said he was not reading for the twentieth of it, would be given to the State for the purposes men­ purpose of enlightening the court, but for the purpose of showing tioned in the solemn stipulation of the United States. A new state· what a fool Blackstone was. And in the light of the organic acts of affairs occurred in consequence of the war, and in the State of' passed by the fathers and by those who came after them and who pre­ Iowa 14,000,000 acres of land were ente.red with land-warrants-land ceded us, in which these solemn declarations and considerations for that the State expected at the time and had the .right at the tim'e to­ contracts are set forth, we may say, in the light of the argument of expect would be sold at $1.25 an acre, and that she, under the con­ the Senator from North Carolina and the Senator from New Hamp­ tract or stipulation made by the General Government and drawn from shire, what a set of fools the fathers were; how foolish it was that her by the force of circumstances, would receive 5 per cent. upon a . they should themselves solemnly stipulate thet~e things ifthey had no dollar and a qua.rter an acre for all these 14,000,000 acres. '\Vbat· idea that they were binding on the States or that they were any con­ happened f This provision of law coming in force took all this land sideration for a contract. It is an insult to those who preceded us, by military warrants, aud she is left to-day without the 5 per cent. it seems to me, to use such an argument. that was stipulated, that was promised, that was a part and parcel' The only proper question is, whether under the law these States of the stipulations made by the United States Government upon her are entitled to 5 per cent. on the proceeds of lands which were taken admission. up by bounty on military land-warrants; and now on that point, The Senator from New Hampshire spoke as though it was a great and to show you that these military land-warrants were in payment benefit to the State to have the soldier brought into our borders and' of soldiers' services, I desire to call attention to some matters that I settled there. I admit that that would have been the· case but for find in a book published by authority of Congress, being the report the well-known fact that the warrants given to soldiers for services. of the land commission. I read from chapter 14, page 232, of that in the Mexican war were a land-scrip that was sold in the market book: and bought largely by non-resident speculators, who-because they From the earliest era of our history the policy of rewarding the defenders of' conld be purchased from the soldier at less than a dollar and a quar­ the country has been marked by great liberality, and land bounties were promised ter an acre-made large profits by buying the land-warrants and at a period prior to the nation's possessing public domain. These grants under locating the lands. I could mention the names of many gentlemen general laws to June 30, 1880, amount to 61,028,430 acres. of large capital in the Eastern States who located thousands and CONGRESSIONAL ACTION. hundreds of thousands of acres of land in the State of Iowa with The Colonial Congress, by a resolution passed September 16, 1776, made grants land-warrants bought for speculative purposes. 'Where was the sol­ to the officers and soldiers who should engage in the service, and continue therein dierf Not upon our lands, but those lands were held under the stipu­ to the close of the war, or until discharged by Congress, or to the representatives of such officers and soldiers as should be slain by the enemy. lations made by the Government for th.ree years after the patent was issued non-taxable by the State. They had been held in fact, and are Not a promise of 1:1nd to those who had engaged, but to those who held to-day, more than thirty years after the passage of the act, and should engage- I think twenty-five to thirty years afte.r their location, by non-resi­ Such lands to be provided by the United StateR, and the expense in procuring dent owners; and the people of Iowa, possessing the most magnifi­ them to be borne by the States as other expenses of the war. cent soil and greater natural advantages than almost any State in On the 23d of April, 1783, it was- this Union, have been compelled for long years to see tr.he immigrant ' Resolt:ed, That when Congress can consistently make grants of land they will pass over her lands and on to the more weste.rn States, where the· reward in this way the officers, men, and other refugees from Canaua. more beneficent homestead policy prevails, and ou.r lands are yet held by these persons who purchased them with military land-war­ The act of 1847, being what is known as the Mexican war wa.rrant rants. act, provided- .Mr. MORRILL. What did the speculators pay for the lands­ That non-commissioned officer s, musicians, and privates who served in the war a dollar and a quarter an acre f witll Mexico in the volunteer army of the United States for twelve months, or who should be discharged for wounds or sickness prior to the end of that time, or in 1\ir. McDILL. No, sh; they bought the land-warrants at less. case of his death while in the service, then his heirs should receive a certificate than a dollar and a quarter an acre. or warrant from the War Department for the quantity of 160 acres of land. l\ir. MORRILL. How much less f This was at the beginning of the war. In addition to that­ :Mr. McDILL. I cannot toll, but probably a dollar an acre was.. There was in this act a provision for acceptance by applicant of a Treasury scrip about what they were worth, the speculators making twenty-five for $100 at 6 per cent. interest, in lieu of 160 acres of land. cents on every acre; and they are holding large bodies of land in. that State to this day, land that, by the action of those who have. Showing that it wus a payment to the solilie.r and not a bounty­ lived there, and who have cultivated the soil, and who have built · Those who served less than twelve months on like terms as to death or dischaq~e up that State from its small beginnings to its present magnificent for wounds were to receive each a warrantfor40 acres of land, or a Treasury scnp growth, is to-day worth twenty-tive, thirty, forty, or fifty dollars an• for $25, if preferred. acre, and the owners pay taxes only upon the value of non-resident, So that the various acts which provided for the .Mexican war war­ uncultivated land. So, then, tliere is nothing in the argument offered. rants provided that the soldiers should either have one hundred by the honorable Senator from New Hampshire that it was a benefit and sixty acres of land or $100 in money, or forty acres of land or to the State to have the soldier come in. $25 in money, according to the length of their service. 'l'he ~aw The honorable Senator from North Carolina says that because largo, itself was passed at the very time that some of tho soldiers were in amounts have been donated to the States for railroad and other pu.r-. the field and that other soldiers were being recruited all over the poses, therefo.re this 5 per cent. ought not to be allowed. I think it country. is a well-estab~ished principle of law that gifts cannot be offset: In addition to what I have cited I may refer to a matter that is against a just claim. I think the honorable Senator has seen tried: stated in the 1·epo.rt of the committee. In the debate and in the many a case in his day where neighbors got into a litigation and one­ discussion Senator Cameron, of Pennsylvania, Senator Co.rwin, of sued the other upon an account, where the court has held that those· Ohio, and other o-entlemen referred to this grant of land-warrants gifts which were given, donated, could not be oflset against a claim; as a payment to tt.e soldier. Senator Corwin, of Ohio, referred to it and if there is a claim here in this case for 5 per cent. of the pro-­ as a payment of $200 in addition to the regular monthly pay. ceeds, the fact that large quantities of land have been given to the· In the light of these facts ca.n it be possible that it can be claimed, States cannot in the least IJe pleaded as an offset to the claim. either according to the spirit of the law or according to the letter of But I want to analyze and see whethe.r these alleged gifts have• the law, that the soldiers were not paid partly in money and partly been in fact gifts. The gift was to the State usually, I believe almostt in land f If they were, here is the solemn covenant and agreement always to the State, in trust to see that a certain railroad was built.. of the United States that the States which are named in this bill ·what did the General Government do f She reserved every alte.rnate· should have 5 per cent. of the proceeds of those lands for a certain section and declared that that alternate section should be sold forr­ purpose. It is a question of whethe.r the contract shall be performed; just twice as much as the land would have brought if the gift had· It is a question of whether it shall be carried -;mt. not been made. That is to say, she gave away half the land and sold Again, in determining what is meant by the written or printed stip­ the other half for just as much as she would have got for all, doub-. nlations of a contract, no principle is more familiar than that we ling the price in order to make up for the donation. The Generalr must take the su.rrounding circumstances and see what was the situ­ Government realized $2.50 an acre in those cases, and the States where­ ation. Take my own State as a most remarkable illustration. Iowa the sales were for cash at $2.50 an ac.re have .received the 5 per cent. . was admitted into the Union in 1846. The act of admission was on ·tho $2.50, and are making no claim for that again. passed.in 1845. In 1t:Yt5 if I am right in my dates, the Mexican wa.r Then we are reminded of the donation of the swamp lands. They had not yet begun. what then was the condition of this country f were given for a purpose~ which was so far as the United States. The policy of the nation was well known. It had become an estab­ Government was concernecL.a selfish purpose. It was believed that li~Shed policy that the lands of the United St.ates were to be snr­ it was necessary to reclaim the swamp and overflowed lands and,. re_yed, mapped, and platted, and sold at $1.25 per acre. That being that the onl;r way it could be done, and the only way the adjOining;1 · 1882. CONGRESSIONAL RECORD-SENATE. 4073· lands coulcl bo maue better, was by giving away the swamp and The report mentions that Ohio had received $21077,631.06 in the overflowecllands to the States in order that they might institute a building of that road; Indiana, $1,128,289.50, and Illinois, $742,445.30. series of improvements which would result in the reclamation of the The Senator from Miohi~an [Mr. CONGER] talks about the hard­ surrounding lands and the betterin~ of the condition of the whole ships of these various Terntories prior to their admission as States, country. It was to advance the pnce and to enhance the value of and afterward concerning the treatment received at the hands of the lands of the United States that these grants were made, so that the United States. Why, Mr. President, this will be news to the· that cannot be an offset aO'ainst this claim. world. Everybody will conced.e a.t once that if these lands had been Something has been said about the cheek and want of modesty of put in the hands of the States the settleme.nt of the States would not \Vestern men. I want to say to gentlemen who suppose we have a have proceeded so rapidly; they would have held the lands for a. vast amount of cheek and very little modesty that wo shall never much larger price. Certainly they would not have granted free uc found, having received 100 per ceJ+t. benefit, asking 5 per cent. homesteads. But the United States was the sole proprietor of these on the benefit we received; but the stipulation which has been made lands, and according to the Constitution Co~gress may "dispose of" hero that we should have 5 per cent. of the proceeds of the land sold and make all needful rules and regulations respecting the territory· is a stipulation that is binding ou the conscience of the country. It or other property belonging to the United States." Unless you alter is nothing more nor lessthan a right, andhence it is that we present the Constitution of the United Stat.es that must be the law of the this claim. land at the present time. There was no power then, there is no power I think it necessary to say nothing more, but it does seem to me now, by which we may distribute to special States any part of the­ that this question ought not to be a question between old States funds belonging to the United States Treasury. These must be held and new States; it ought not to be a question between the ori~inal for the common benefit of all. thirteen and those that have come into the Union since; it ought to Mr. President, take the case of the enabling act of Indiana: "five be a question of right; it ought to be a question of equity; it ought per cent. of the net proceeds of the land which shall be sold, deduct­ to be a question of })ropriety; it ought to be a question of duty. It ing expenses, shall be reserved for makin~ roads ancl canals, three­ does not seem to me (though perhaps then I might find myself in a . fifths of which to be applied to objects within said State, and only different situation) that if I hacl the honor of representing here a 2 per cent. to the benefit of the State;" nothing to be paid to the State that was one of tho old thirteen it would make any difference State. Take that of Ohio: one-twentieth part of the proceeds or in my understanding of these solemn stipulations with the Govern­ lands sohl by Congress was to be applied to the laying out and mak­ ment of the United States. Think of it again, for it is the key to ing of public roads from the Atlantic to the Ohio and to and through the discussion, that the United States Government said to these the State; nothing to be paid to the State. States, ''Before you may takeyourplace in the Union, in the sister­ I have the statement of Secretary Sherman, while he was Secretary hood of States, you must accept through your Legislature and in­ of the Treasury, in a letter written to my colleague, in which he dorse and ratll'y certain propositions that we make; we say to you says: that we will give you the sixteenth section in each township for No claims have been ever presented to this Department or to the General Land school purposes; we say to you we will give yon some land for uni­ Office for more than 5 per cent. of the net proceeds of lands actually soltl. versity purposes; we say to you that we will give you 5 per cent. of the proceeds of the land sold, and upon condition that we do that That statement was made in 1880. Look again to the proposition you must make an irrevocable ordinance that you will not interfere about the net proceeds. If we have granted large amounts of lands with the disposal of the soil; that you will not tax non-residents for railroads the net proceeds are those roads. \Vould these States. higher than residents; that you will not tax the soldier's land for respectively be entitled to their share of one-twentieth part of those three years after it is patented to him." The State Legislature speaks roads Y and accepts the proposition, and the State is admitted into the Again, as I referred to it yesterday while the Senator from Ohio Union, auu now all these States say t~ o Congress, "'Vill you kindly [Mr. SHERl\IAN] was on the floor, the lands that we reeeivecl we cer­ fulfill your contract; will you justly keep your promise; will you tainly thought we got a color of title to, at least from Virginia t make an equitable adjustment and settlement of this difficulty f" I and it was particularly specified in the deed of cession that they say it is not a question for old States or for new States, but it is a should be disposed of for the common benefit of all the States. question for the Senate and House of Representatives ofthe United But, Mr. President, this bill, supposing it were to pass, is fla­ States considering what is duo to good faith and to the promises grantly unjust. For instance, the Senator from Iowa [:Mr. McDILL)­ made by this Government. just now declared that the bulk of the land-warrants were sold for l\1x. :MORRILL. Mr. President, this is a bill that I can neither less than a dollar and a quarter an acre, and yet according to this agree to the heaclnor tail of. Iu the first place, it comes here as a bill every acre so entered is to come into its calculation at a dolla.r ·sort of log-rolling bill. If t.he whole eighteen States named were and a quarter a.n aero. The law that he read in relation to the war­ not congregated together upon this bill there ,,·ould not be a quos- . with Mexico, which permitted a bounty of one hundred and sixty tiou about its defeat at once. I do not believe that if this bill was acres of land, or $100 in money, shows that Congress then did notr for a private claim and shoultl ue presented to a.ny committee of this reganl the lancl as worth a dollar and a quarter an acre, but esti­ Senate it could get even a respectable minority to support it. If mated it at $100 for one hundred and sixty acres. the old States or the Union owe anything to any of these new States, 1\Ir. McDILL. The statement I made in regard to a dollar an acre­ I would be ready to pay it if it were fifty times the amount.,that is for the warrant was what it brought to the soldier, not what it involved in this uill; but tho truth is that the whole bill is involved brought to the United States. It took up one hundred and sixty in and stands upon the merest quibble, and that is in the languaO'e acres of land, but it was sold by the soldier at a. dollar. incorporated in every a.ct for the admission of new States. We ha~e Mr. MORRILL. But the soldier did not get a dollar and a quarter here sta.tesmen who are undertakin~ to argue that a donation, that an acre for it. Nobody got that but the speculator. a bounty, is a sale of the public laud. Does anybody believe it Y Is Mr. 1\IcDILL. But tho warrant entered one hundred and sixty- there a school-uoy ten years old who would not go to the foot of his acres of land. · class if he did not uetter understand the definition of the word'' sale 7" 1\fr. MORRILL. I regret very deeply that a bill of this kind And yet tbis is the basis of tho claim presented to ns here in behalf should be brought in that should appeal to the loyalty of every Sen­ of eighteen States. ator who is interested. Of course it is natural that every Senator Look again to the unmista.kable meaning of the la.ngua.ge. They wants to do the best he can conscientiously for his own State. But are asking to receive a twentieth part, or 5 per cent., of the net I think a .bill of this kind ought to be brought up strictly upon its proceeds of the sales o.f lands. \Vhat would that be in the case of merits. If there are any merits in it-I do not think that there the Mexican warY vV e gave those soldiers lands, and the net pro­ are-it ought to be submitted to some court. ceeds are California and a. large extent of territory. Would these But there is in the last end of the bill something tha.t I regard a.s. States be entitled to a twentieth part of California, and of the land still more discreditable to this kind of legislation, and that is a pro­ that we received f vision by which there is to be an estoppel on a large number of claims. The mere statement of tho question shows tho utter fallacy upon which in my judgment are ,just as valid as the one now presented. which the whole claim rests, and it is one of those stale claims that The last proviso reads as follows : Senators have sadly neglected for seventy years, if it has any validity Pr~videdjurther, That the receipt of the certificates of indebtedness, or moner, whatever. Every dollar that belongs to these States for percentage provided for in this act, by the governor of any one of the States named, or his' duly authorized agent, shall operate on the part of such State so receiving the same on sales made for cash has ah·eady been paid over to them. There as an estoppel of any and all claims which such State may have against tlle United is no dispute about that. States for 5 per cent. on account of any lands which have been, or may here­ I could read if it were necessary a report made in 1873, and signed after be, granted to such State, corporation, person, or persons, for the purposes by one of the Senators from Iowa, in which it is saicl: of intermil improvements, or to aid in the construction of railroads or canals, or­ for any other purpose whatsoever, or on account of any lands which ha.ve been, or It can hardly be insisted that the United States bas not ap&lied the trust fund may hereafter be, entered under the homestead laws of the United States. ;~~~J\h~ ~~tract; and after it bas applied t() this wor a sum so largely in 'Vhat right has the introducer of this bill, or the whole Senate on this bill, to make an estoppel of any State if it has really a just and Speaking of the amount paid out for public roads- valid claim. · creating a hi17bway which the country knows was in early days of great service to Mr. PLUMB. \Vill the Senator from Vermont permit me to make the ·west, an'd only abandoning t.ho completion of the road from a change of cil:· a suggestion. cwnstn.noos, wbkh rendered the prosecution of the work undesirable to :ill, one is Mr. MORRILL. Yes, sir. at a loss to see an~ just claim these States at this day have to be a~in paid the Mr. PLUMB. Perhaps the Senator had better move to strike out fo~Del~;e~~~J~s eon expenJod by the United States, according to e contract, that provision. We will support it ifhe will m•)Ve it. 4074 OONGRE8SIONAL REOORJ!}-SENATE. MAY 18,

Mr. MORRILL. I have no doubt the Senator from Kansas would The purpose of the amendment, I wish to state, is simply that we bave the courage to come again. ' shall pay money to these States out of the Treasury now, if we pay Mr. PLUMB. It ia not a question of coming again; it is simply a anything at all. This bill provides for 3.65 bonds runninB' twenty question of staying, now that we are here. years, and we have affirmed on all sides of the Senate, I believe both l\1r. MORRILL. But, 1\Ir. President, it seems to me that the whole Republicans and Democrats, during the present session of Congress theory of this bill is wrong. If this were to pass as it is now, I sup­ that the credit of the United States is such that we ought not to pay pose that the township given to La F;1yette they would not come in more than 3 per cent. interest. I am opposed to borrowing money .and ask for a twentieth pa;rt of. But I only desired to express very to pay this debt at 3.G5 per cent. interest, if we have to pay it at all; l)rietly my opinion that there is not a shred of this bill that ought and if it is a debt we have got to pay it. Let us take tho money out to stand in the Senate of the United States. of the Treasuay now, for it is there. Mr. MORGAN. 1\fr. President-- Mr. PLUMB. To relieve the Senator from Alabama from any en­ 1\k. BUTLER. ' If the Senator from Alabama will yield to a mo­ largement on that point, I am perfectly willing to accept the amend­ tion to go into executive session, I will make that motion. ment. l\1r. VEST. I ask leave to make a report from the Committee on The PRESIDENT JYI'O tempore. The Senator cannot accept the Public Buildings and Grounds. amendment. The PRESIDENT pro tempore. It will be received if tho Senator Mr. ALLISON. I think we can agree to it without opposition. from Abbama yields. Mr. PLUMB. What I meant to say was that I was perfectly will­ PUBLIC BUILDING AT GREENSBOROUGII. ing to waive, on behalf of the committee, any objection to it. Mr. MORGAN. That brings us squaretothe question whetherwe Mr. VEST. The Committee on Public Buildings and Grounds, to will pay any money. whom was referred the bill (H. R. No. 5546) for the erection of a Mr. SHERMAN. What do you propose to pay instead of the cer- public bullding at Greensborough, North Carolina., direct .me to tificates f report it favorably. Mr. MORGAN. To appropriate the money directly. 1\Ir. R.A.NSOl\1. With the consent of my friend from Kansas, who 1\Ir. SHERMAN. That is right. has charge of the pending bill, I hope we may have the bill just re­ The PRESIDENT pro tempore. 'Vill the Senator from Alabmna ported considered now. It will not take a minute. I have to leave have his amendment printed f to-night and be absent for some days. Mr. ALLISON. That is unnecessary. By unanimous consent, the Senate, as in Committee of the Whole, Mr. MORGAN. The amendment is accepted, I understand, and is proceeded to consider the bill (H. R. No. 5546) for the erection of a adopted. public building at Greensborough, North Carolina. The PRESIDENT p1·o tempore. It cannot be adopted without a The bill was reported to the Senate, ordered to a third reading, vote. The amendment can be read and a vote taken on it. The read the third time, and passed. . amenument will be read. Mr. BECK. I should like to ask leave to call up the bill for a The ACTLlliG SECRETARY. In section 2, line 3, it is proposed to strike public building at Louisville. It was the first passed by the House out thewords ''by issuing and delivering;" in line 5, after the word .and the most meritorious of all. "indebtedness" to strike out all down to and including the word Mr. MORGAN. I think it is rather late in the day to call up bills. w due" in t.he thirteenth line; in line 14, to strike out ''on the presen­ I understand that to-morrow all those bills are to be called up. tation ofthesame ;"in line 15, tostrikeoutfrom the word ''proyjded" The PRESIDENT protemp01·e. Notice has been given of the inten· down to and including the word ''appropriated" in line 17; and in tion to call them up to-morrow. lines 21 and 22 strike out" certificates of indebtedness or;" so that Mr. MAXEY. There are quite a number of bills for public build­ the section as amended will read: ings which are necessary to be acted on, and I ask that some time be SEc. 2. That the Secretary of the Treasury be, and he is hereby, authorized and .set to take them all up for action. • directed to pay the amounts allowed as herein provided 'to the governors of the The PRESIDENT pro tempo-re. The Senator fro:n Michigan [Mr. States named, or their dnly authorized agents, out of any money in the Treasury CoNGER] has tried to get a time set to-morrow, and he has given not otherwise appropriated; and whatever may be nec.essary to carry out the pur­ notice that he will move to-morrow morning to take them up as soon poses and provisiOns of this act'is hereby appropriated ont of any monev in the Treasm·y of the United States not otherwise appropriated: Provided, That the .as the morning business is over. It can be done by a majority vote. receipt of the money, provided for in this act, by the governor of any one of the Mr. MAXEY. I think all those bills should be considered. States named, or his dnly authorized agent, shall operate on the part of such State so receiving the same as an estoppel of any and all claims which such State may EXECUTIVE COl\IMUl\'ICA'TION. have against the United States for 5 per cent. on account of any lands whicll The PRESIDENT p1·o temp01·e laid before the Senate the following have been, or may hereafter be, granted1to such State, corporation, person, or per­ sons, for the purposes of internal improvements, or to aid in the construction of 1Illessage from the President of the United States; which was referred railroads or canals, or for any other purpose whatsoever, or on account of any .to the Committee on Foreign Relations: lands which have been, or may hereafter be, entered under the homestead laws of To the Senate of the United States: the United States. I transmit herewith a letter from the Secretary of State, accompanied by a copy o()fthe correspondence referred to in Senate resolution of the 26th ultimo in relation Mr. MORGAN. I will move to strike out of lines 31, 32, and· 33 of :to the .Japanese indemnity. section 2 the words" or on account of any lands which have been, CHESTER A. ARTHUR. or may hereafter be, entered underthehomestead laws of the United EXECUTIVE MANsiOX, Washington, May 18, 1882. States," and insert in line 19 of section 1, after the word "war­ WITHDRAWAL OF PAPERS. rants," the words "or by homesteau entries." Mr. ALLISON. I suggest to the Senator from klabama that he On motion of ~Ir. MILLER, of California, it was take a separate vote on the amendment already offered. The last Ordered, That the papers accompanying the memorial of W. S. ·Dodge be with· one involves a new question. -drawn from the files of the Senate. 1\Ir. MORGAN. I know; but I understood the other amendment HOUSE BILL REFERRED. had been adopted. Let it be adopted. The bill (II. R. No. 3832) to provide for the restoration to citizeu­ Mr. ALLISON. I suge-est that the first amendment offered by the .ship of such citizens of the United States as have become natural­ Senater and already reaa be agreed to. . ized as subjects of Great Britain was read twice by its title, and The PRESIDEN'l' p1·o tempm·e. The question is on the amendment referred to the Committee on the Judiciary. of the Senator from Alabama, which has been read by the Secretary. 'l'he amendment was agreed to. MILITARY LA..."D-WARRAKT LOCATIONS. 1\Ir. MORGAN. I now move the amendment which I just sug­ The PRESIDENT p1·o tempore. Did the Chair understancl the Sen­ gesteu, to strike out of lines 31, 32, and 33 of section 2, commencing ator from Alabama to say that he would yield for a motion to go into with the word "or" in line 31, ''or on account of any lands which executive session f have been, or may hereafter be, entered under the homestead laws of Mr. MORGAN. I will in a moment, after I have stat~d an amenll­ the United States;" and in line 19 of section 1, after the word "war­ ment I propose to offer to the pending bill. I propose to amend the rants," to insert" or by homestead enuies." bill in the second section by striking out, commencing in line 3, Mr. MORRILL. Those amendments had better be printed. the words "by issuing and delivering," and by striking out the fol­ . 'l'he PRESIDENT p1·o tempore. The Senator from Vermont asks lowing words, beginning in line 5 : that the amentlment be printed. _ Said certificates to be of the denomination of one hunllred, five hunclred, and Mr. PLUMB. I suppose it is simply conforming the bill to the sug­ one thousand dollars each, as the Secretary may direct, to be made and issued by the gestion of the Senat-or from Vermont that the bill is not wiue enongh Secretary in such form, and signed, and attested, and registered, as he shall direct, in its scope. each certificate to· run twenty years from its date, to draw interest, payable semi­ annually, at the rate of 3.65 per cent. per annum, and be payable, both principal Mr. MORRILL. I think these amenclments ought to be print-ed, and inter est, when due. so that we can see what they are. The PRESIDENT p1·o tempo1·e. The order to print will be entered. Then I propose to strike out the following words, beginning in Mr. MORRILL. I have a couple of amendments that I will not, line 14: it is so late now, ask the Senator who has the conduct of the hill to On the presentation of the same: P·rovided, That the Secretary of the Treasury may, at his option, pay the said amollUts allowed, or any part thereof, ont of any accept, but I have no doubt he will. The first one is to insert : lDOney in the Treasury not otherwise appropriated. Provided, That all certificates of indebtedness or .money received by auy State under tll6 provisions of this act shall be faithfully applied and expended for the -Then, in lines 21 aml 221 I propose to strike out "certificates of purposes and objects mentioned a~" d,e~;~cl;ibed in the enabling acts of Congress for indebtedness." the admission of such State. 1882. CONGRESSIONAL RECORD-HOUSE. 4075

Mr. PLUMD. Just say" subject to the conditions of_the original out the spirit of his amendment, which I think quite right, the lan­ .acts of admission," and I have no objection, or if this is equivalent guage of the second section should also be amended. The .first sec­ to that I have no objection to it. tion contemplates that the oath be taken in any place; there is no Mr. .MORRILL. In Indiana they would have to spend it for roads, restriction; the words ''legation or consulate," which have been a.nd in some of the other States for canals and railroads. stricken out upon the motion of the gentleman from Iowa, aro in a .Mr. PLUMB. All right. parenthetical clause annexed to the jumt. The second sectiop. pro­ l\fr. J',fORRILL. I have one other amendment. I only ask to have vides "that such renunciation shall, within the territories and juris­ this amendment printed now: diction of the United States, he made in duplicate beforA any court," And providedjurtlwr, That the quantity of ali lands donated to any State for the &c.; but still the language does not negative the possibility of such purpose of internal improvement, or to atd in the construction of any railroad or renunciation being made in some other place. ~ ~anal, shall be computed at the rate of $1.25 an acre1 and the amount of the same Mr. KASSON. If the bill coutains any langu:ig~ mconsistent with sh:ill. be deducted from any sum which would otherwise accrue to said State under the provisions of this act. what I have stated as tho purpose of the bill it is an error iu tran­ scribing. Will t.he Clerk please read the first part of the second sec­ Tho PRESIDENT pro tempo1·e. The amendment will bo printed. tion V Is there any objection to printing the bill as n,monded and with the The Clerk read as follows: propo~:;ed amendments to it Y SEc. 2. That such renunciation shall, within tho territolies anu jurisdiction of .Mr. ALLISON. I hope that will be done. the United States, be made in duplicate before any court authorized by law for The PRESIDENT pro tempore . . That order will be made. the time being to admit aliens to naturalization, &o. Mr. CAMERON, of Pennsylvania. The Senator from Alabn,ma, Mr. KASSON. The language of the section i~:;right, as the geutle­ {Mr. MORGA...~,] who is entitled to the floor, gives way to me to move an executive session. I make that motion. man sees. The motion was agreed to; and the Senate proceeded to the con­ Mr. ROBINSON, of Massachusetts. 'I'he gentlem::m does not quite ,sideration of executive business. After one hour and fifteen minutes see it. The only point is that before the first section was amended spent in executive session the doors were reopened, and (at five the lan~nn,ge of the second section was in harmony with it. Bnt the ·o'clock and thirty-five minutes p.m.) the Senate adjourned. House having stricken out that portion of the first section which contemplated that this renunchttion of citizenship might be made at places outside of this countr.v. the language of the second sect.ion stilllca'V"es room for that implication. Mr. KASSON. I will correct the language if the gentleman thinks HOUSE OF REPRESENTATIVES. there is any room for doubt; I do not. But it is very easy to meet the gentleman's objection by modifying the second section, so as to THURSDAY, May 18,1882. read "that such renunciation shall be made within the t erritory and jurisdiction of the United States, and be made in duplicate," &c. The House met :t.t eleven o'clock a. m. Prayer by the Chaplain, I move to amend in that way. Rev. F. D. PowER. M:r. IIOLl\f.A.N. I think the whole bill had better be read again. The Journal of yesterday's proceedings was read and approved. An amendment of the naturalization laws is an important question, RESTORATION TO CITIZENSHIP. and ought to be well understood. The bill is a very short one. Mr. KASSON. The Committee on Foreign Affairs have unani­ 'I'he SPEAKER The bill will bo read with the amendment already mously reported a bill (H. R. No. 3832) to provide for the restoration made in the first section, and the amendment proposed by the gentle­ to citizenship of such citizens of the United States as have become man from Iowa to the second section. naturalized as subjects of Great Britain. As I know of no possible The bill having been read, 'Objection to the bill, I ask that it be taken from theHouseCalendar The amendment of Mr. KAsso~ was agreed to. .and passed at this time. The bill as amended was ordered to be engrossed for a third read­ The SPEAKER. The bill will be read. ing, and it was accordingly read the third time, and passed. The bill was read, as follows : Mr. KASSON moved to reconsider the vote by which the bill was Whereas it is provided in article 3 of the treaty with Great Britain of ~he date passed; and also moved that the motion to reconsider be laid on the -of .May 13, A. D. 1870, that if any citizen of the United States natnraJ.ized within table. the uominions of her Britannic majesty shall renew his residence in the United The latter motion was agreed to. States, the United States Government may, on his own application, and on such -conditions as that Government may think fit to impose, reaumit him to the charac­ INSPECTION OF BOILERS, ETC. ter and privileges of a citizen of the United States, and Great Britain shall not in that case claim him as a British subject on account of his former naturaliza­ Mr. HUDBELL, by unanimOlL'i consent, introduced a bill (H. R. tion: Therefore, No. 6237) amending section 4414 of the Revised Statutes, fixing the Be it enacted, cl:c., That any person being originally a citizen of the United compensation of inspectors of hulls and boilers in the districts of States, who has been naturalized as a British subject, may publicly declare his re­ Michigan and Superior; within the State of Michigan; which was nunciation of such naturalization and resume his character and privileges as a -citizen of the United States of America, by subscribing an instrument in writing read a first and second time, referred to the Committee on Commerce, -substantially as follows: and ordered to be printed. DECLARATION OF l!.GNUNCIATION. STEPHEN D. HOTCHKISS. I, .A.. JJ., of [insert abode,] being originally a citizen of the United States of Mr. HUBBELL also, by unanimous consent, introduced a bill (H. .America, and having become naturalized within the dominions of her Britannic majesty as a British subject, do hereby renounce my naturalization as a British R. No. 623B) granting a pension to Stephen D. Hotchkiss; which was ·subject, and declare that it is my desire to resume my nationality as a citizen of read a first and second time, referred to the Committee on Invalid 5) to amend section 2552 of the Revised Statutes, and to Mr. KASSON. At the end of the first section the words "legation change tbo boundaries of the fourth collection district of Virginia. or consnlate" should be stricken out., and tho word "and" inserted 'I'he bill was read, as follows : before the word" county;" so that it would road: Be it enacted, cl:c., That paragraph 4 of section 2552 of the ll.evised Statutes be, and the same is hereby, amended so that it shall read: Malle and subscribed to before me, in [insert State and county.] ''The district of Yorktown; to comprise ali the waters and shores from the point forming the Routh shore of the mouth of tho Rappahannock River, along tho coast . Tho subsequent provision of the bill is that this declaration of re­ of the Chesapeake Bay via 0111 Point Comfort, Hampton, and Newport News. IJunciationmust be made in the United States; that was tho intention thence along the south shore of the James River to a pomt on the peninsula. formed <>f the bill. • by the James and York Rivers opposite \Villiamsburgh, and thence acroRs Raid The amendment was agreed to. peninsula to the south bank of the York River RO as to embrace in saiU district, 1n addit.ion to the ports heretofore included, Hampton and Newport News; in 1\fr. BURROWS, of Michigan. Does the citizenship date from the which Newport News shall be the port of entry and Yorktown aportofdeliverv." time of renunciation, or at some future timeT Sxc. 2. That paragraph 5 of section 2552 ot the Revised Statutes be, and file Mr. KASSON. :From the time of renunciation; it coulcl not take same is hereby, amenued so that it shall r ead: effect from any future time. "The district of Norfolk and Portsmouth; to comprise all the wator01 and shores within the State of Vir¢-nia southward of tho district of Yorktown, as Mr. REAGAN. Is it left discretionary with the Government h ereinbefore described, and not included in the districts of Yorktown, Petorsbnrgh, wllother the person shall be restored to citizenship or not T and Richmond; in which Norfolk and Portsmouth shall be tho sole port of entry, Mr. KASSON. No; it gives the absolute right to the person to aml Suffolk and Smithfield the ports of delivery." ()btain restoration to citizenship. SEc. 3. That paragraph 4 of section 2553 be, and the samo is horoby, aruoutlod so that it shall x·ead: ~fr . ROlliNSON', of Massachusetts. I call the attention of the gon­ "In the district of Yorktown, a collector, who shall reside at Newport NowB, tl~n from Iowa [Mr. KAsSON] to the fact that in order to carry and a sun-eyor, who shall reside at Yorktown." 4076 CONGRESSIONAL RECORD-HOUSE.

~ir. HOLMAN. I wish to reserve the right to object until it has NOT VOTING-84. been stated whether or not this measure is recommended by the Sec­ :Belford, Dezendorf, Hubbs, Rice, J" ohn n. retary of the Treasury. If not, I must object. :Belmont-, Dibrell, Jones, Phineas Richardson, D. P. Mr. PAGE. It llas ueen recommended by the Secretary of the Black, Dowd, Jorgensen, Richardson, J. S. Bliss, Du~ro, Joyce, Robinson, Wm. E. Treasury. Bragg, Ellis, Lacey, Ryan, Mr. \VISE, of Virginia. And unanimously reported by the Com­ Brewer, Farwell, Chas. B. La-dd, Shallen berger, mittee on Commerce. :Browne, Frost, Latham, Sherwin, :Brumm, Geddes, Leedom, Shultz, Mr. HOL~f..A.N. Is there a letter from the Secretary of the Treas­ :Buck, George, LeFevre, Simonton, ury recommending itf Cabell, Gibson, Lindsey, Sin~leton J"aa. W. ::\Ir. PAGE. Yes sir. Caldwell, Hall, Manning, Smith~ J. Hyatt Tllere being no ofbjection, the llill was ordered to be engrossed for Camp, llammond, John McLane, Spaulaing, Cassidy, llardy, Morse, Speer, a lliird reading, and was accordingly read the third time, and passed. Chapman, Harris, llenj. W. Mosgrove, StephenR, Mr. WISE, of Virginia, moved to reconsider the vote by which the Colerick, llawk, Moulton, Stone, uill was passed; and also moved that the motion to reconsider be laid Cornell, Henderson, Nolan, Talbott, on the table. Cox Samuel S. HHill~rbert, Pacheco, Thompson, P. B. Covmgton,1 Parker, TownRhend, R. W. The latter motion was agreed to. Crowley, IIooker, Pettibone, Washburn, S)IlTllSONIA..."'I REPORT FOR 1881. Culberson, llorr, Phister, Wise, Morgan R. Tlle SPEAKER, by unanimous consent, laid before the House the Davidson, Hubbell, Reed, Wood, Benjamin. following concurrent resolution of the Senate; which, under the law, So the amendment was rejected. . was referred to tlle Committee on Printing: Durin~ the roll-call the following pairs were announced from the Resolved by the Senate, (the House of .Representatives concurring,) That 15,560 Clerk's uesk; ' copies of the report of the Smithsonian Institution for the year 1881 be printed; :Mr. CORNELL with 1!ir. BLACK. 2,500 copies of which shall be for the use of the Senate, 6,060 copies for the use of ~Ir. LADD with Mr. JOYCE. the House of Representatives, and 7,000 copies for the use of the Smithsonian Institution. ~IT. RICllARDSO~, of New York, with Mr. RICllARDSON, of South ORDER OF BUSL."'IESS. Carolina. Mr. HAWK with Mr. CABELL. Mr. CRAPO :.mel :Mr. HOLMAN demanded tlle regular order. 1\lr. CAMP with Mr. HARDY. Tlle SPE.A.KER. The regular order is the morning honr for the Mr. HALL with ~ir . TALBOTT. call of committees for reports. Mr. SIIALLENnERGER with Mr. MOULTON. Mr. CRAPO. I move to dispense with the morning hour. 11ir. LACEY with 1\Ir. HERBERT. The morning hour was dispensed with, two-thirds voting in favor ~Ir. JoNEs, of New Jersey, with 111r. Cox, of New York. thereof. Mr. LDI'DSEY with 11IT. DIBRELL. EXTENSION OF NATIONAL-BANK CHARTERS. ~lr. DAVIDSO~ with M:r. DEZENDORF. lli. CRAPO. I call for the regular order. Mr. STEPIIENS with Mr. FARWELL of Illinois. The SPE.AK.ER. The regular order is the further consiueration of 1\ir. HENDERSO~ with Mr. TOWNSHE~D of Illinois. the special order, the bill (H. R. No. 4167) to enable national bank­ Mr. CROWLEY with 1\Ir. NOLAN. ing associations to extend their corporate existence. At the adjourn­ Mr. LATIIAM with l\ir. HORR. mont last evening the question pending was on the amendment of 1\ir. PIIISTER with Mr. W ASIIDURN. the gentleman from Missouri~ [Mr. BUCJU.""ER,] on which the yeas and 1\ir. ROSECRANS with Mr. FISHER. nn,ys have been ordered. The Clerk will reau the amendment. Mr. llELFORD with Mr. CALDWELL. The Clerk read as follows: ~ir. HOOKER with Mr. BUCK. .A..mend the pending bill by striking out "twenty" and inserting "ten" as the Mr. BREWER with Mr. CIIAPJ\IAN . number of years for which the charters of these national banks may be extended. Mr. HARRIS, of Massachusetts, with Mr. MANNING. The question was taken; and it was decided in the negative­ ~Ir. SIIERWL~ with Mr. TIIOl\IPSON of Kentucky. yeas 91, nays 116, not voting 84; as follows: Mr. FROST with Mr. BROWNE. YE.AS-91. Mr. CULBERSON with Mr. HUBBELL. A.iken, Cutts, Kenna, r..onecrans, :Mr. RYAN with Mr. LE FEVR111. .AnrlerMon, Davis, Lowndes II. King, Scales, ~ir. PARKER with Mr. SniO~TON. .A,I1Ilfl eld, Deuster, Klotz, Shackelford, Mr. MORSE with Mr. BOWMAN. .Atherton, Dibble, Knott, Singleton, Otho R. Mr. BRAGG with Mr. POUND . Atkins, Dunnell, Martin, Sparks, :Beltzhoo>er, Ermentrout, Matson, Springer, lli. llRIDil\I with Mr. \VISE ofPcnusylvania. Benoy l<'inley, McKenzie, Steele, Mr. HAMMO:l\"'D, of New York, with Mr. GEDDES. Blackburn, Ford, McMillin, Stockslager, Mr. BOWMAN. I llave voted all thTongh on tbis questiou be­ :Blanchard, :Forney, Mills, Tillman, cause, although paired witb l\Ir. MORSE, it was unclerstoou I might Bland, Fulkerson, Money, Tucker, Blount, Garrison, Morrison, Turner, Henry G. vote, as he wonl

themselves from such unnecessary indebtedness. The people demand The demand notes were the only notes issued during the war that were made a that all currency shall be issued by the Government. That full legal­ full legal tender, that is, receivable for all public dues (including duties on im­ ports) and a tender for private clebts. After they were made a full legal tender tender lawful money shall take the place of the present national­ they ci~· culated at par and went up with gold to a premium of $2.85, or, in other bank circulation, and save to the people all the interest now paid words, 1t cost $2.85 m greenbacks to buy u dollar in gold or demand notes.-Berkley upon the bonds which serve as the uasis of the national hanks. Tho on the Money Qtustion. people are interested in a cheap and liberal currency which would None of theso tluctuations were broctght about by an increase or decrease of the curren~JY; on the contrary, gold rose the most rapidly when there was no consid­ stimulate the industries, encourage enterprise, develop the resources erable mcrease of the currency, and fell in the face of large adclitions to it. N othin~Y of the country, and give employment and just compensation to labor. can ue more conclusivl:' of the incorrectness of the opinion that gold is always the These privileged capitalists are intere~:;ted in high rates of interest standard of value, and that the hi~?h price it has commanded in the United States during the progress of the war is tne reRult of an inflated currency tha.n this brief thongh such mterest may he unnecessarily oppressive to the people: statement of its variations in theNewYork stockmarket. Gold has been a favor­ We demand the full legal-tender currency. The United States ite article to gamble in. It has been forced up and down uy those tricks and de­ Snpreme Court, in December, 1870, declared that- vi51es that are so well understood at the stock board.-Report of the .Finances, 1864- Legal-tender Treasury notes have become the universal measure of values. '6o page 53. ~the course of a few da:ys the price of this article (coin) rose from $1.50 to That- $2.85 in paper.for $1 in spem_e, and subsequently fell_in as short a period to $1.87, Making the notes legal tenders gave them a new use, and it needs no argument and then agam rose as rap1dly to $2.50; and all Wlthout any assignable cause to show that the value of things is in proportion to the uses to which the~ may be traceable to an increase or decrease in circulation of paper money. It is quite applied. · ap.pa.rent that the solution of the problem may be found !-n the ~patriotic and cnmmal efforts of speculators n.nd probably of ~:~ecret enermes to ra1se the price of That- coin, regardless of the injury inflicted upon the country, or desiring to inflict.­ Whatever power there is over the currency is vested in Congress. * * * If Report of .Mr. Fessenden, Secretary of the Trea11ury, December, 1864. the power to declare what is money is not in Congress it is annihilated. * * * The Constitution does not ordain what metals may be coined, or prescribe that The testimony of these tlistinguished statesmen fully proves our the legal value of the metals when coined shall correspond at all with their in­ sta~eme.ntt~at all ~eprecia.tion of the greenback ~as caused by special trinsic value in the market. * * * Nor does it even affirm that Congress may legislatwn m the wterest of those people who hve and become mill­ declare anything to be legal tender for the payment of dabts. * * * It is ionaires by plundering the producers of wealth through the machinery hardly correct to speak of a standard of value. * * * The Constitution does not speak of it. * * * It contemplates that which has gravity or extension­ of laws mad~ by themselves or their attorneys. but value is an ideal thing. * * * The coinage acts fix its unit as a dollar· but The great founders of this Government saw the danger of allowing the gold or silver thing we call a dollar is in no sense a standard of a dollar. 'Itis llal'l;k~rs and other monopolists t?e opportun~ty, through the means of a representative of it. * * * These cases have been beard before a full court the1r Immense concentrated capital, of electrng themselves and their and they have received our most careful consideration. ' attorneys to make laws for themselves. According to this decision, intrinsic or commodity value has noth­ ing to _do with the material which shall be coined or stamped by the [Dehates of Congress, volume 1, 1789-1796, pages 445, 446, United States Senate, sovereign power of government as money. Congress has discretion­ Tuesday, December 24.] ary power over the whole subject. I challenge any gentleman to EXCLUBI0::-1' OF BANK OFFICERS A.."\D STOCKHOLDERS FROJ\1 CO::-I'GRESS. pluc~ an.y other construction u~on th~s decision of the Supreme Court. The followinj?; motion was made and seconded, to wit, that the Constitution ue Bulhomsts, bankers, and speme-basis money speculators have tried amended by adding, at the end of the ninth section of the first article, the follow­ in~ clause: through their stump speakers and subsidized presses to make the 'N9r shall any person holding an office or stock in any institution in the nature people believe that this power to issue full legal-tender paper cur­ of a bank for isswng or discounting bills or notes payable to bearer or order, un­ rency could only be exercised during war. The Supreme Court der the authority of the United States, be a member of either House while he holds such office or stock, but no power to grant any charter of incorporation or any ruade ~his decision five ye~rs after. the war. The language of the commercial or other monopoly shall be berein implied." court 1s clear and conclusive, placmO' the whole subject of money Thursday, January 16, 1t passed in the affirmativ6-yeas 13, na.ys 12. within the discretion and control of Congress, without any refer­ 1 Notwithstanding the greenback was not received for all the pur­ enc~ to peao? or war. :ro talk about .the exercise of such power which may give prosperity to the Amerwan people only during war poses of money, there was only a depreciation of 2t per cent. until in March, 18631 when the money speculators controlling legislation is s.o absurd and so puerile as to be wholly unworthy of an averaO'e0 American, much less of an American statesman. succeeded in getting a law enacted providing that the legal-tender "It needs no argument to show that the value of things is in propor­ greenbacks should uot be iuterchan~eable for interest-lJearing bonds tion to the uses to which they maybe applied." If the legal-tender after the first day of July, 1863. Tnere was an immediate deprecia­ note is receivable for import duties and for all debts public and tion of 55 per cent. within a few months, and mnch greater depre­ private the same as gold, it would be worth m01·e than gold, because ciation afterward. it is safer and more convenient for all purposes of money. The All this depreciation was premeditated, not accidental, and caused legal tender has now been in use for twenty years. There would bl special laws in the interest of men who add nothing to the wealth have been no depreciation in that paper had not interested money o the world. Thousands of soldiers and honest laboring-men had speculators controlled legislation sufficiently to accomplish their been paid in this money, yet that power which caused this unjust foul purposes. When the clearing-houses of New York and Boston legislation had no res~eot for the just rights of the people. Soon agreed to receive the legal-tender paper for import duties thirty after, in 18G51 the capitalistic managers secured legislation to con­ tract the currency several hundred millions of do1lars under the false days previous to the 1st day of January, 18791 equality with gold was immediately established, because the paper performed all tbe func­ pretense that depreciation was caused by inflation of the currency. tions of gold. This was resumption. No man wanted metal money. Subsidized presses taught the people that the paper circulation must JoHN SHERMAN says the creditors preferred the legal-tender paper be contracted to reach a specie basis. and he paid $600,000,000 within a few montht; in the legal-tender our~ The people's money was destroyed or put into interest-hearing rency. bonds to serve as the basis of national banks. Bankers were inter­ Mr. Speaker, I now say there never was any depreciation of the ested in the destruction of all money which did not pay toll at their greenback, except that caused by the influence of bankers and money mills. A large contraction of the currency caused hard times. Fac­ .t>peculatorsbyplacingtheword" exoept"in the greenback not allow­ tories and founderies were closed, all business paralyzed, the coun­ ing it to be used for the payment of import duties a~d interest try filled with millions of unemployed men, who were unable to buy upon the public debt. That is intentionally depreoiatiug the people's the necessaries of life, thereby causing underconsumption. The -currency, in order that bullionists, bankers, and money speculators people were told that they were made miserable by a surplus of might successfully continue their business ofplunderingthe American products, by overproduction. The national banking system, estab­ c~tpitalists, rpeople. lished in 1!::!631 was a licensed aristocracy of who were 'fhaddens Stevens, speaking of the Senate amendment to the lecral­ authorized to receive donations of bank paper and loan the same at high rates of interest, compounded several times a year. The act of tendcr House hill, (second session Thirty-seventh Conrrress,0 Cong~es- sional Globe, part 1, 1861-'(32, page 800,) said: 1869 that changed the condition of payment of the 5.20 bonds from payment in paper money to coin money, the act of 1870, authorizing I have a melancholy foreboding that we are about t.o consummate a cunningly .devised scheme, which will carry great !njury and great loss to all classes of people the funding of these bonds, the act of 1873 demonetizing silver and 'throughout this Union except one. With my colleague I believe that no act of thereby making debts payable in gold alone, the resumption act of legislation of this Government was ever hailed with as much delight throughout 18751 the issuing of $50,000,000 of 5 per cent. bonds to purchase silver the whole length and breadth of this Union by every class of people without any to take the place of fractional paper currency, all this series of special .exception, as the.b~ which we passed~~ sent to't~~ Sena~. In~tead of being .a beneficent and mVIgorating measure, 1t lEI now pos1tively nusohievous. It now legislation was in the interest of money speculators, w bile thousands of ·creates monel and by its very terms declares it a depreoiateli currency. It makeR onppled soluiers have waited seven teen years, constantly pleading for ~o cln:ses o mo~ey-one fo:, the banks*and broke;s and another for the.People. some legislation in their interest. Congress has found but little time A wail came up from the caverns of bullion brokers, and from the saloons of the to legislate for the people. Weeks have been expended in makincr :associated banks. campaign speeches upon the tariff-commission bill, favorites of party * * * * * have been provided for, bankers can get time for speciallegislatiou in They fell upon the bill in hot haste and so disfigured and deformed it that its this House, hut Congress can get no time for currency-reform bills, and very father would not know it. for i'n tersta te legislation to protect the people a.gai nst railroad monop­ Henry Wilson in the Senate saiu : olies. The people begin to think that this Goverument was not estab­ It is a contest between brokers and jobbers and money-changers on the one lished for the general welfare, but to make special Jaws in the interest i!ide :mel the people of the United States on the other. I venture to express the of the few to enslave the many. Congress can pass resolutions ex­ o

The English premier (Gladstone) is in advance of onr American That while the bullion in this coinage bas added nothing to the >alue of the money, the Government stamp bas effectually deprived the world of the u se or­ money lords. He says : the bullion, ancl that the cost of the bullion is a loss to the people for which tbero I imaj!;ine there can be no doubt amon~ us that the great conditions of a good is no compenRation. 'l'hat the aggre~ate of the money value which can exist in. cmTency are these: its safety, its converuence, and its cheapness; and I must say, an.v country is limited and fixeu automatically b.v its envirorunent. for my part, I should give a fourth condition to aferfeot C?Urrency, whicli is that That it bears a sure relation, however indeterminate, to the population, wealth, the profit of that currency ought to be the profit o the nation. and exchanges of such country as modifi ~u by the character and habits of the peo­ ple, their mode of transacting business, the rapiuity with which their exchanges. The United States Supremo Court, as already shown, in December, are eft'ected, and many other considorn.tions. 1870, decided that Congress has discretionary power over the whole That this value exists potentially where>er there are exchanges to be made. subject of money; that the value of money is in its uses, given by That in order to utilize this value it is only necessary for the law to materialize it, law, without regarcl to any intrinsic or commodity valne of the ma­ whereupon it becomes money. That it is independent of all other values and can­ not be mixed with them. That it cannot be in any degree increased by the com­ terial which may be stamped or coined as money. This decision is moclity value of the material selectt:cl for money. a second declaration of American independence. It is another proc­ That the commodity value can only make itself felt through adestruotionof the· lamation of emancipation, which strikes down the chains of bank­ money. That as long as the commouity continues to perform tho money function ers and bnllionists, and libemtes fifty millions of people from pagan the commodity value, instea.U of adding anything to the confened money value, is. entirely suspended and non-effective. idolatry to the metals, and the machinations of bankers, bondhold­ That the only argument that can be aclvancec;lin favor of investin« any material ers, money speculators, Shylocks, and sharpers. substance possess~g inttinsio value with the money function is, itat the boluer Manv leading Democrats upon this floor have advocated the per­ would be secure to t.ne extent of the commodity value, even though society, laws, and systems should break down. petuation of the national banking system, and others the limitation That there is no gain in this security, a!'l it must have been yurchased at the of money to the accidental discovery of the metals. These men pro­ outset by the community, including the holclers of money, at tts full value, and fess to be the followers of Franklin, Jefferson, .Madison, Calhoun, that there wol,lld remain uncompensated the great losses to the community, in­ Jackson, and Benton. Shades of departed American statesmen, im­ cluding such holders, which arise from a vicious money. That when paper money depreciates, or even brt'aks down entirely, the procesR ­ mortal spirits of just men made perfect, have mercy upon that de­ is ordinarily so gra-dual that tho losses of indiviuual holders are inappreciable. generate Democracy which made war to sustain chattel slavery, and That tho money of all countr~es, whatever may be its material, is nothing but now boldly advocates the most ingenious system of serfdom and the sum of the integral parts into which the money value is divided. slavery for fifty millions of American people! The Republican party That the value of each of these int~grant parts, or units, will depend upon tho­ number of parts into which this value 1:> snbtliviued. gave birth to the greenback child. We were proud of that groat That in case this value is subclivided throup;h the use of the precious metals, partv, with its many missionaries, martyrs, and patriotic statesmen. these upits, or integra.nt parts, are subjecteu to variations in theu value through \Ve placed the names of Seward, Sumner, and Lincoln in the an increase of their number from UJ;~.known and accidental supplies from the mines­ family record among our household gods. We have lived to see that and through a decrease by the unknown number of such units which may be con­ smned in other uses. great party captured by the money power; bankers, railroad monop­ That while the cost of prouucing such units auds nothing to their money yalue, olists, and their attorneys placeOlume 1, page 40.) sovereign authority may c:onfer the money function. ~hat whenever the law de­ clares tliat paper in a certain form, upon being stamped with authoritative and distin­ VIEWS OF Tim L'\COXVERTIDLE·P.APEU OR FIAT·MOXEY SCllOOL. guishing marks and devices, shall be investecl \vith the money function, each piece · The other school ad vooates an exclusively fiat-paper money to be issued by the of such paper so stamped becomes not. a debt, nor a credit, nor a promise. di:>hon· Government, which should possess no value on account of the intrinsic qualities orecl or otherwise, nor a representative of goltl or silver, nor of any one thing, but of the ma.telial of which it is composed, but whose value should be extrinsic and of all things· that it becomes the thing signifiecl, not. a sign, anu to all intents and deriveu from the useful functions witlt which the Government invested it, and purpoRes lacking no quality, but JIOSSORsing aU, becomes money, pure, simp!(\, au!l . whose eaoli unit shoulu be kept steady in value tltrougb.ltlgallimitations and reg· unadulterated, with a value not less real because not mixed wit1i an intrinsic value, ulations of the number of such units issueu. than the money value ronfeiTed in the same manner ancl by the same authority on The views of tltis school are that utility, accompanied by limitation of quantity, golU and silYer, nor less real than the intrinsic value of those commodities. is the basis of exchangeable value. That this utihtymay either depend upon such They claim thnt money can be mnintainecl steadier anu ruoro uniform in pur­ intrinsic qnalities as would render the thing possessing them valuable to man in chasing power auu made to perform its true functions with !!l'eater exactness when .. isolation as well as to man in society, or upon extrinsic artificial qualities which composed of some material an bstance always attainable and notpos ses~:~ ing ntil it.y society may confer upon any article, however intrinsicaiiy valueless, by endowing or value for other purpo~es than when composetl of such sub:>tances a:> ~old and it witJl the power of performintr tlte money function. silver, posses!'!iug such values, ancl ili.Jlicnlt anu uncertain of attainment, anu sulJ . That the evident fact that this function does not inhere in and cannot be con· jeot to other than money clemantls. ferred on any article, so as to make it either valuable or useful to man in isolation. That the commingling of money value anu commodity >aloe in ono suu!'!tance is .. while it is essential to the very existence of society, demonstrates that money value au interminglin~ of things whoRe UReR are inoonsiHtent with anu whose eleruen t.q is not derived from the useful, intrinsic qualities of the material upon wh10b the have no ailiuity for each other; that it is a confounuing of barter with price, ancl money function may be conferred. They al. o call attention to the facts that the of measure with the thing to be rueasuretl; that the uncertain, varying, and gon­ usefulness to the incli vidual of any article depends solely upon the intrinsic quali­ erall.v inr.reasing demanrl for the commodity subjects the money to >icious port.ur­ ties which it may possess, and is not at alldiruini:>heu by it$ existence in unlimited bations in value, while the superior and constaut demand for tho monoy renders . quantity, but tbat money, on the contrary, becomes entirely u seless unless its the commodity more steady in value than it wonld otherwise be. quantity be limited. They conclude from these facts tbat tl1e money value of tho That tho ~·cater steadine11s thns gained in the commodity value is of no impor . materia'! of which money is composed rests solely upon the pm·ely artificial and ex­ tance or benefit whate>er, while the resulting unsteadiness in the value of money trinsic qualities conferred upon it; that this value IS inseparable from society and is a trnnscendeut injury to the world. grows out of its neeu of uemanu for an instrument of valuation and exr.hange. That tho commodity demand for gold anu silver not only exerts a disturbing They maintain that money is not in itself wealth, but a set of counters for com­ influence on the value of metallic money. but unfortunately always exerts it in the puting and exchan~ing wealth, or, as was saicl by lli1:1hop llerl,eloy, "a ticket en· ruinous direction of increasing that >alue by diminishing its volume, anu still titling to poweranu fitted to record and transfer this P,OWor," and that" it is oflittle more unfortunately that as wealth and population increase olrl uses increase and . consequence what material the tickets are made of; ' that there are certain qnali· new uses are discovered. ties which are essential to the proper perforruance of the money function; that That to unite commouUy and money in one substance is to plant in money t!le · money should be steady in vnluc, portable, divisible, distinrruishablo, antldillicultof seeds of its own destruction. imitation; that of all these qualities steadiness in value is t'&e one most essential and That the arts, r esis tin~ the inva ion of their legitimate domain, are constantly . inclisponsable; that the highest office of money is that of measuring values, present absorbing tho coin; t.hat such money is costl;v and unscientitic, anu only an iru­ and future, ancl that to perform this otlice equitably its each unit mnst possess pro>ement on the barter system, ancl ret.'l.ins vtcious in~edients of that barbarou~ . through time a practically uufiuctuating, unvarying purchasing power; that as this methnd of exchange. steadiness can be secured only through a limi tatiou and rep;ulat10n of its quantity, That it is as important an instrument for measuring values as woulu be a ther­ the power of limitation and regulation shoulc.l be always present, and that to this momet~r for measuring heat if its fluid inclioator wore subject to constant uisturb· end the material of money should be prouuceable at all times without limit, and as an cos to au unknown extent from other influences than beat. near as possible without cost, and de..,tructible without losR. They maintain that the tl.uctuation in th_e valne .of met~llic money causctl by the They maintain that when the money function is conferreu upon golu ancl sih'er, encroachment!'! of the commodity demand IS suf:fiment of Itself to condemn the U!!fl · while the requirements of portability, divisibility, distinguishability, and ilifficulty of gold and sll..-or as money, bu't that when to this are added the enormous flue· of imitation are tolerably met, the requirements of constant at-tainability and in­ tuations in their supply tlte argument against their U.'!e becomes conclulliYe. expensiveness are not met at all and that the superlatively esRe~tial requirement They claim that adequate metallic supplies in the future will depend, as in the of Hteailiness in >alue is so imperfectly met as to render thorn unfit for money. pa.'!t, upon the accidental discoveries of gold amlsilver mines, :mel upon t.ho policy They claim that the money function is the noblest of all functions and investR aud mining lawii of tho ~overnments controllin~ the locality of the di<;c o~ories, ir · anythin~ upon which it is coufeiTeu with a utility far peater than is possesse;:u fortunately they should bo made. by any other exchangeable article lmown to man; that this utility is the truo ancl 'l'hey maintaln that the inuustry of gold anu Rilver mining iii more subject to only scientific basis of money value; t.hat the value begotten by this utility is all chance and less governed by tho economic laws of production than any othorpnr· that is needed for money and all that money can possibly possess, and is q.ll anu the suit, and conseqnentlr bears only an accidenta,l. relation to human efforts in other · only kind of >alue ever estimated, when money, whether metallic or flat, is used. fields, and that therot'ore the prouuet of such industry is unevon nnd ill-sniteufor 'rhat whenever the material of money is in demand as a commodity, such demanu a Dl(\at~ure of all value . They claim that the world's supply of metallic money, can neither increase the money value nor disturb either tho commodity or tho anu consequently its valne, is not only subject to the vicissitudes inherent in the money until it rises to the le..-el of the money demand, when it begins to destroy business of minlng, bnt is largely inorea!'led or diminiHhed, as the case may be, the money. through political complications ancl through other conditions which lutvo no neces· ­ That this is illuRtrateu in subsiiliary coinages and in the full tender sHvercoin­ sary connection with mining. age of the Latin Union, the bullion value of' which, being below the money value, .!.s a signal illuAtration of this they refer to tho decrease of tho sup plio:> of golcl prevents the metal in tho coin from being either eXJlorttd or used for other than antl sil-..or aft.er 1800, caused by the revolution in the SpaniRh·Amoncan colonie8, ruouey purposes. and to the enonnous inorea.<:e of the supplies at a later periou, through the acquisi· That in that coinage it is the le~a.l - tcnder ftmction conferred by tbo sovereign t.lon anu ocunpatiou of California, which resulted from the success of the Den:to· authoritr anfl verified by its starup, and not the metal that receives the impres­ oratic party iu the olose !->residential election of 1844, and which might othtlrWJ:>o · ~

world, while the second stimulated industry and commerce to un extent ne;er tit:y to absolute control than through the metallic system, which remits the regu­ before known. latiOn of quantity to accidents and vicissitudes, industrial and political, sometimes They say that in addition to the evils which result from fluctuations in the sup· through the resumption awl suspension of the yield of the mines, and sometimes ply of the precious metals is the fatal evil of inadequacy of supply which is now through the resumption and suspension of specie payments in any and every coun­ preSlsing upon the industry and commerce of the world with crushing severity; try; tbat as paper money is producible substantially without labor and without that this inauequacy is constantly becoming more marked and tht·eatens to con· expense, its exclusive use would be an addition to the public wealth equal to the­ tinue inuefl.nitely. entire cost of supplying anu keeping up the supply of the necessary quantity of They refer to the facts that the yielu of the precious metals since 1847 has been metallic money. unprecedented, aggregating the enormous sum of $4,500,000,000; that this entire That in order to make it secure and possess the highest uegree of utility, paper­ amount, swollen by the sums liberated by suspended countries, has been permit. money should be issued exclusively by the Government, to the exclusion of all ted to flow uniuterrupteill.V into the few countries maintain.ing the specie baRis; other kinus of mone:y:; that it should be regulated in value through an equitable that notwithstanding all this prices in these latter countries have for a number adjustment of quantity by virtue of laws w'hich should take effect only upon the­ of years been falling, and still have a downward tendency, and have already nearly occurrence of conditions precedent, not dependent upon legislation, such as an sunk to the level of'the prices of1847, when the ~eatminesofCaliforniaweredis­ increase or decrease of population. covercu; that the most prolific sources of metallic supply are showing unmistak­ That it should be reCiprocally rece\vable by Government ancl people, and able signs of exhaustion; that the yielle degree of pros­ That the next step in many countries bas been a coinage maintained al>ove its> perity impossible, except with metallic money. bullion value through limitation of quantity anu the stam"(> of authority, as in sub­ They submit that thus to insist that such money is essential to any advanced sidiary silver coinages, and at the present time in the entire silver coinage in the· prosperity, and at the same time to admit that it can be obtained by only a few States of the Latin lJnion; and that since tho success of this last step in preserv­ nations, anu to the exclusion of all the others, is to (leny the etemal fitnPss of things, ing, through limitation of quantity, a steauiness of money ;aluc above and wholly to deny the auaptation of material conditions to hulllan prOJ!l'OSs, to deny the har­ independent of intrinsic value bas been asstll'ed, it woulu be presumptuous t()· monies of nature, and to deny that an intelligent and beneficent design is mani­ affirm that the same means may not furnish without any intriuRic value wllatever, fested in creation. a better and steadier money than the world has ever seen, anu that such money· They maintain that as the most important function of money is to measure will not become the money of the future. values and to prcser;e equities in time ti·ansactions, the great bulk of which are They admit that wherever society is uiviued into two dL<> t.inct classes, tlte gov­ internal and between citizens of the same country, and all of which are expressed erning and the producing class, a fiat money is open to serious if not fatal objec-­ in the money of some particular country, it follows that any system of money that tions, the chiefest of which iA the danger of trusting it.q i~:~ s ne to- the good faith of· is common to several countries is a vicious one. in that it tmbjects the entire in­ the rulers, whose profli~acy, ambition, and extravagance would: be sure to impel t ernal uusiness of each of them to all the disasters ori~inatin~ in the political or them to vitiate O.Dll ultimately destroy it bf excessive issues a..q they have from financial mismanagement of the government, or in tne political disturbances, the same motives frequently debased metallic money, a.ucl that the scales aml ern-· \ follies, misfortunes, or reckless speculations of the inhabitants of any one or all cil>le afford some protection against the debasement of metallic money, while an of the others. overissue of yaper money when in the hands of the governing £ew. can neither be' That mon~:~y is simply the instrument of commerce and industr~·. aml not their guarded agamst nor remedieu. object: tJtat a sutlicicncy of it is better than more anu infinitely bettcx· than less. But they claim that in tho present enlightened age the true- function of money. Tbat tho outflow of money from one country to another having money systems is better u:nderstood than at any former periou. in common is a double injury. That with all t.he expelience of the past to warn and guide, £alse Rystems may· That it is an injury to the country that receives it, aml a greater injury to the be avoided and a true system established. country that parts with it. That such countries as ha;e free, stable, allll constitutional ~;a~ernments andl Tltat it tenus in the one instance to produce crises througlt inflation, and the advanced systems of,jurisprudence, and which furni:ih universal apportunities for · other panics through contraction. Anu that in addition to this is an injury to education, and whose citizens arc by the practice of liberty accustomed to self­ eacll on account of t!Je derangement of the trade of the other. imposell burdens and restraints, can be intrustetl with tlle ret.rulation of the vol­ That the inYention of money is but half completed when the necessary limita­ ume and value of fiat money, with a full assurance that it wilf be· regulated with tions and regulations of its quantity, and consequently of its value, are remitted wisdom and equity ; and they maintain that it is the only kind of money whose· not only to toe vicissitudes and chances of mining but to the ;icissitudes in the value can be scientifically regulated. business an~llcgislation of foreign countries. , That the~:~e facts and considerations, and many others which rui ~ ltt be urged, Mr. WARD. Mr. Speaker, I oppose the amendment proposed by show that metallic money is an inaccurate money; that it fills only m a moderate the gentleman from Missouri. If I understand, it provides for the· fte~c~·~~I~fijl~ft~b~J~%~~e:efot~::d:ff{~~: tslos;~~·a'd~~:c~d e~i~~~i~~~t . iculars extension of the charters of the national b:mks for a peri.ou of only They claim, on the other hand, that every requirement of a perfect system can one year instead of twenty, as contemplated in tho bill~ An exten­ he met mol'e nearly anu more certainly by paper money th.an by any other ever sion of one year means simply an abolition of tho whole system of· devised. Not pap~:~r money based upon goid, silver, or any other fluctuating com­ national banks, and it means its destruction at the end o£'that time. . mouity, wllose measure it shoulu be; nor upon a -promise of commodities, near or 'l'he bill we are now considering provides the means for continu­ reruotc, uefinite or indefinite, of governments or banks; nor, like the French as­ ingthepresentnational banking system fora further period of twenty. si~nats, uasod upon lanus; nor fastened to gold or silver by a chain sure to snap w nen t.he metals arc wanted; nor con;ertible into bonds, and thereby offering the years after the expiration of the present charter. The means pro­ bribe of interest for its withdrawal from circulation; nor of any use to its owner vided will enable the banks to move smoothly along without sudden except when parted with; nor capable of yielding profit except when employed in wjnding up of their affairs, or jarring of the vast business. interests, the production and distribution of wealth; uut an allsolute money, whose value, conferred l>y the sovereign authority and regulated by a prearranged and por­ that are so intimately connected with, and dependent upon these- fectccl system and not by tbe passions and caprices of the hour, would rest im­ institutions. . pregnably on functions essential to civilization and progress. The bill further tllrows every safeWiard by way of careful exam­ '.fhey claim that it wonld be more portable, more difficult of imitation, more easily inations to ascertain the sound conditiOn of banks applying for re­ verified, more readily divisible, and less expensive than metallic money. That as quantity controls the value of money, the all-important quality of steadi­ newal of charters, and it preserves the rights of every non-assauting- ness in value couiu be better assured through a system which subjects that quan- stockholder, by securing him in cash or an equivalent. ., 4080 CONGRESSIONAL RECORD- HOUSE. MAY 18,

Mr. Speaker, it will be difficult to understand why hostility is I appeal to the intelligence of this House. that it would be unjust manifested to this measure from any quarter, aud especially why and unwise to legislate so as to cripple this great instrumentalitie~ of there has been such determined opposition from the Democratic side business convenience and prosperity, or to drive them ont of exist­ of this House against having a day fixed for its consideration. For ence. it must be remembered that the gentleman from Massachusetts [Mr. The SPEAKER. The question is on tho amendment of the gen­ CRAPO] in charge ofthe bill, made threo e.fl'orts before he succeeded tleman from Missouri, [Mr. HASELTIXE,] to strike out the word in obtaining a day for a hearing gf this measure, of such mom~ntous "twenty," in line 16 of section 1, and to insert in lieu thereof the interest to the whole nation; and that it woulcl have been disposed of word "one." weeks ago only for the refusal that came from our friends on the The question being taken, there were-a;y:es 32, noes 119. Democratic side. l\fr. JONES, of Texas, called for the yeas and nays. :Mr. Speaker, why oppose the continuation of the national bank­ On the question of ordering the yeas and nays there were-ayes ing system Y Can it be doubted that its sudden termination would 24 · not one-ii.fth of the last vote. be followed by business disorder and wide-spread financial disaster¥ So the yeas and nays were not ordered, and the amendment was And who suggests a better, or as go'?d a substitute 'I None can be not agreed to. found! l\fr. ROBERTSON. I offer the amendment which I send to the Mr. Speaker, it is admitted that our national banking system is the desk. best in its operation that the world has ever kBown. In contrast to all The Clerk read as follows: former systems that have existed in this country, it needs no eulogy. In line 16 of section 1 strike out the word "twenty," and insert in lieu thereof We have now a banking system that makes its notes par from one the word " two." end of tho country to the other, because those notes are based, in the Mr. ROBERTSON. l\fr. Speaker, I propose to use the latitude al­ .first instance, upon tlle security of the Government; and, in addition lowed in the House: as in Committee of the Whole, and to speak on t o that, a very large security in t.he shape of the individual liability the question ofnational banks. I do not propose to speak ofa que~tion -of the stockholders of the Lanka. afl'ecting our financial system, but of a question of far more natiOnal In the hour of the country's financial need these Lanka came to its importance than that of perpetuating the existence of three or four relief, and they have faithfully fulfillecl every obligation imposed hundred institutions or corporations seeldng to monopolize the sys­ :upon them. They have become interwoven with the business inter­ tem of currency and control the issue of that currency. I propose to ests in every section, and now number 2,495, and are to be found in rise for the sole purpose of getting some time to discuss the question .every State of the Union except Mississippi, and in every Territory of the broken banks of the 1\Iississipps River. [Laughter.] .except Arizona. I have been for two weeks endeavoring in vain to get the :floor on The arguments of the opponents of the national banking- system that question. I and other gentlemen upon this .floor have been try­ ..assume that the Lanka are mammoth corporations, dealing in unmense ino- to get the consideration of that question, in which twenty-five .amounts, realizing enormous profits, and their stock owned by wealthy millions of people are deeply interested, and in reference to which .capitalists. In the discussion of a question like this I assume every there are Lills now upon the Speaker's table f1·om the Senate which, .memLer of the House is anxious to proceed on reliable information unless speedy action is taken, ~tis to be feared will sleep the sleep to correct conclusions. of death. That will in all probability be the result if they go to the It may be that in great cities, where large business interests are Committee on Commerce, which reaches out its arm~J and takes in ..congregatedand thedemandsformoneyareconstant and urgent, bank every appropriation for the improvement of our rivers and harbors. profits may be large; but it must be remembered that the majority That great question has not had, and I am afraid will not have, a ..of the national banks are in the country, removed from those influ­ hearing before this House and the country in the House of Repre- ences that give continual employment and extraordinary gains for sentatives. . .capital, and this hostile legislation has direct injurious e.fiect upon I therefore at this time content myself with aRkins- the indulgence the country banks. of the House for leave to print a few remarks sustaming the patri­ A carefully-prepared calculation shows the profit on bank circula­ otic message of the President seut to Congress the other day. I find Jation, based on a bond at 6 per cent. interest, is 1.23 per cent.; on S'entlemen on that side of the House who sustain ~he preRent _Admi~l­ .a 7 per cent. bond, 1.085 per cent., and on a 3 per cent., .94 per cent. tstration do not seem to have the nerve to sustam the Prestdent m The last report of the Comptroller of the Currency gives the fol­ that patriotic message to the extent even of making a speech sus­ ilowing statement of profits for the year 1881 : tainino-thatmessage.0 I ask leave to print the balanceofmyremarks. Mr. HU:MPHREY. Do you sustain the President in that mes- sage!. Geographical divisions. Mr. ROBERTSON. I do i I most unequivocally sustain him. Mr. HUMPHREY. All r1ght. The SPEAKER. The Chair hears no ohjection to the request of ------1------the gentleman from Louisiana for leave to print. [See Appendix.] l\fr. ROBERTSON. I withdraw my amendment. Per cent. Per cent. Per cent. l\fr. \VARNER. I offer the amendment which I send to the desk. 7. 2 5. 8 7. 3 -ID;dl~n~l:~ ~~~~:::::::::::::::::::::::::::: ::: 8. 5 6.4 9. 4 The Clerk read as follows: ~outhern States ...... •....•.... _...... • ...... 8.3 6.9 11.3 Amend section 1 by adding the following: . Western States .anu T-erritories ...... 10.4 8.1 1L 6 "That nothing contained in section 1 or any other section of this b1ll shall be understood or construed to deprive Congress of the right and power at any and ·United States ...... •... ·--- ...... •.•...... 8.4 6. 6 9. 2 all times to alter and repeal any and all parts of this act whenever they may see :proper so to do, or the i?terests of the people may demand ~h~ same, and to put mto liquidation and wmd up any and all of the banks rec01vmg charters under Another fact :fonnd in the report of the same officer for the year 1880 this act." 'Will show that it is the small tradesman that is most dependent upon .the banks for .accommodation. During 1880- l\fr. BURROWS, of Michigan. That is the law now, is it not 'I The nom ber o.f pieces of paper discounted was 808,269, and the average of each Mr. BLAND. I would ask the ~entleman from Tennessee to make .disconnt$1,082.59. .Lf the average time of these bills was sixty days, and the banks it read "that nothing contained m this or any other act"-- held continually the same amount, the number of disconnts made during the year Thc SPEAKER. Tile gentleman from Tennessee [Mr. WARNER] ·-would be.neaxly fiv.e millions, (4,849,614,) the total discounts more than five thou­ is entitled to the floor. ,sand millions, (5,250,000,000,) which would be equal to a discount of $700 annually for each voter, or $500 for each family in the country. The number of notes and 1\Ir. WARNER. The only object I have in view is that Congress bills of $100 each, or lesA. at the date named was 251,345. or nearly one-third of the may not part irrevocably with its power over the currency, and that whole; the numberoOf bills of less than $500 each was 547.385, or considerably more those who o-et cha1·ters may not be deceived when they get them by .th{m.two-thirds of .thil whole; while the number of bills of less than $1,000 each was believing that Congress has thWI parted with its power. I desire 642,765, which was more than. three-fourths of the whole number. that Cong1·ess may at any time when necessity d.emands it, even if a Mr. Speaker, to those who are opposing tho continuance of the war should arise, take back or hold in its bosom the power to control bankinS' system because they believe that the millionaires and tlle the currency in order to defend the nation . .capitalists axe the largest parties in interest, it will prove interesting I Lelieve uncler the Constitution this power cannot Le parted with to examine some facts and figures t.hat will demonstrate that tho com­ irr~vocaLly, although it may Le believed by. those who received J?ara.tively _poor are really the share-holders, and the small savings, charters that it mio-ht, and that the contract IS one that cannot Le the_great bulk ofthe capital. impaired. nut in g'rdcr to relieve the question of all doubts, and in The finance report of 1876-the last on the suLjed-gives these , order that no fraud may be practiced upon tbe banks themselves or .curious figures as to the distributi<'-n of national-bank stock in round those who receive charters under this law, I say let this become a .figures. Thel'e were- part of the contract at the time the Lanka receive their charters. If .Holders less than ten sha.res _...... _...... -- - - -. ------100, 000 that is done no fraud can be practiced upou them, and CongresH can ,Holders between ten and twenty shares. __ ...... -.------39, 000 at any time if the necessity arises, resume the power and control ,Holders bet:ween twenty and thirty shares __ .... -··.--.----- 18, 000 over tile cur'rency which might become necessary in case of war. In Holders between thirty and forty shares._. __ .. _. _.- .... --. 9, 000 that event it might bccom'e necessary that Congress should rel:!m.ae Holders between forty and fifty shares ____ . ____ . __ ... ----. 9, 000 the power and again issue Treasury notes, or, as you ~ay te~ them, Holders between fifty and one hundred shares ___ ..... -- .. - 15, 000 s:reenbacks, in order to carry on a w~r . Under the L1ll as 1t. stands .Jloldors between one hundred and five hundred share& .. -. . lOt 000 if the banks hold this power in theu hands they could brmg thf} .'Holders over .ilve hundred.shares ... _... _.•...... -- 767. •nation to its knee and•make it bow to-them . 1882. CONGRESSIONAL RECORD-HOUSE. 4081

Mr. CRAPO. I wish simply to say, in answer to wh:1t h:1s been is only a ctncstion of time, whether we legislate ag:1inst them or for said by the gentleman fi·om Tennessee, [Mr. \VARNER,] that t.he them. Tho foundation-stones of the system are gradually being amendment he oflers is the law now. In the fnndrunental law upon swept :1way, and the system must soon come to :1n encl. Hence I pro­ which the banks aro acting, in the l:1w of June 3, 18G4, there is t his pose by my amenclment that twenty years shall be the limit of their clause, that" Congress may at any time amend, alter, or repeal this existence, unless Congress sh:1ll fix. an earlier period, and I think Con­ act;" anu every national bank is organized under t.hat. It seems t.o gr e~:>s mnst fix an e:1rlier period, because the banks must give w:1y me, if it is necess:1ry to re-enact that, it would be much better to uo IJ ofore the twenty ye:1rs shall h:1ve expireu. It woulu be well for us it at the end of this bill rather than in the first section ; and I sug­ to notify them at this time th:1t their days are numiJered, that the gest, if that question is to come up for discussion and consiuemtion, founuation upon which they choose to be built is gradually and surely it had better be postponed until we complete the bill. being taken from under them, and ConO'ress must :provide some other Mr. TUCKER. I ask tho gentleman from Massachusetts whether system for furnishing the currency of the country. What that sys­ it is not the fact that that section has not been re-enacted in tho tem shall be it is not for me now, to outline. There are many plans Revh1ed Statutes f proposeu; and something else must be do vised to take tho place of Mr. CRAPO. All the amendments which have been made in the the present system. national banking act have referred te to such association a certificate under his hand aud seal that the associat.ion has complied. with all the provisions required to be complied ters of all banks, whether extendeu under t.his bill or created under with, ancl is authorizeu to have succession for the extended. pel'iod named. in the the law as it now stands, shall expire at the end of twenty years amended. articles of association. from the 1st day of January next, unless Uongress sh:1ll 1lx an Mr. CRAPO. I move a verbal amonument to this section-to strike earlier period for the expiration of such charters. out., iu line 5, the word "over," anu insert the word "under;" so By reference to the public-debt statement for the last month it will that the phrase will read, "nuder the seal of the association." be seen that the bonds of the United States upon which the circnll1- The amcuumeut was agreed to. tion of the national banks is based may be paid in a much shorter The Clerk re:1u· as follows: period than that proviued in this bill for the existence of the na­ Sxc. 3. That upon the receipt of the application and certificate of the associa.­ tional banks. The difficulty now threatening the n:1tional banking tiou proviued for in the preceding section the Comptroller of the Currency may. system of this country is the gradual destruction of the basis of tho if he deems it n ocesRary, cause a special examination t.o be made, at the expen e of circulation of the banks. the association, to determine its condition; and if after such examiuation orother­ These banks are bottomed upon United States bonds, and those 'vise it appears to him that said association is in a satisfactory condition he shall grant his certilicate of approval pronded for in the preceding section, or if it ap­ bonds are being paid off at the rate of $152,000,000 a year. By ref­ p ears that the conclition of said association is not satisfactory he shall withhold erence to the last public-debt statement it will be seen that for tho such certificate of appro>al. ten months for the present fiscal year $128,000,000 of bonds have boon SEC. 4. That any association so extending the period of its succession s11all con­ redeemed, or at the rate of $12,000,000 a month. At th:1t s:1me rate tinue to enjoy all the rights and privileges and immunities granted and shall con­ tinue to be subject t{) all the duties, liabilities, and restrictions imposed br the the bonds now due, the 3t percents extended, amounting to $401,- Revised Statutes of the United States and other ads having reference to national 000 000, and the four-and-a-halfs, due September 1, 1891, amounting banldn~ associations, and it shall continue to be in all respects the identical asso­ to $25o,ooo ooo, or a total of $741,000,000, will be paiu at the end of ciation 1t was before t,h e extension of its period of succession, with the same right 1, five years trom1 this time; leaving outstanding only the 4 percents, immunities, and liabilities. which will not become due until 1907. The present price of the 4 Mr. CRAPO. It has been suggested to me that the lauguaO'e vf per cent. bonds is 118 to 120. the fourth section would be improved by striking out at the end the Mr. FLOWER. They are now 121. words "with the same rights, immunities, and liabilities." The first )li'. SPRINGER. If the banks shall desire to :purchase 4 per cent. p:1rt of this section provides ''that any association so extending the bonus upon which to base their circulation they will have to pay period of its sncce11sion shall continue to enjoy all the rights and for them 121, and they will receive only ninety cents on the dollar privileO'es anu immunities granted, and shall continue to be subject of circulation, thus pa . yin~ thirty-one cents premium on their cir­ to all t~e duties, liabilities and restrictions imposeu by the ReVlsed culation. Now I believe that every business man will regard it as Statutes." It will make the language simpler and clearer to omit at au impossibility for a profitable circul:1tion to be secured at the rate the end of the section the l:1nguage I have indicated. of 31 p(!r cent. premium. The SPEAKER. Is there objection to consiuering the words indi­ Therefore gonLlomon must see th:1t tho existence of na.tion£1 banks catcu by the gontlcm:1n from .Massachusetts as stricken out f Xlll--256 4082 CONGR.ESSION L R.ECOR.D-HOUSE. MA.Y 18,

Mr. 1\IA.RSH. Before that is done, I ask that tl.Je clerk read tl.Je Mr. ERJ\IENTROUT. I want my colle~no to designate any di l:l­ amendment. Lriot in tho State of Pennsylvania. where th1s projndicehas prevailed The Clerk read the proposed amendment of :L\Ir. CnAro, as follows: to prevent 1.110 collection of bank debts. Mr. BAYN.B. It mn.y be true, as alleged lly tho di~>tinguishcd gen­ In linea 8 and 9 of section 4, strike out "with t!Je same rights, immunities, and liabilities." · tlcm:m from New York on the other side, that this prejudice may he strong in certain portions of Democratic districts in the State of :Mr. CRAPO. Those words aro merely an unnecessary r petition Pennsylvania.. I am glad to know tha.t most of the Representatives ef wha.t appears in the previous part of the section. Their omission of tho State of Pennsylvania. ha,ve cultivated a di.fforent theory in will simplify the language and prevent confusion. re~aru to t.his mnt.tcr. The SPEAKER. Does the gentleman from Illinojs [Mr. l\IARSn] :L\1r. ER::\IENTPOUT. I deny the statement so far as Pennsylvania object to striking out these words f is concerned. If my colleague knows any State I want him to uamo Mr. MARSH. Yes, sir; until I understand why it js propose1l. it. In the dil:ltriot 1 represent the banks sue and are sued in the The question being put on the amendment of l\Ir. C1uro, it wal:l conntv courts. agreed to. Mr. 'wiLLITS. Does this amenclment apply to tho facts you state 1 Mr. HAMl\10 'D, of Georgia-. I moYo to amend tho fourth scotiou Docs not the amendment of the gontlcmau from Georgia [Mr. HAl.I- of the bill by adding what I send. to tlle desk. 1\IOXD] apply simply to bringing snits in States in which banks are The Clerk read as follows: located., and. not to bringing suits in another State Y According to Provided, howe1.·er. That the jnristliction for suits hcrcaft cr l1ronght 11.1 or againRt this ameudmont, are not national banks and the private banks of any assocL.1.tion _established under any lawpr?viding for nat~onal banking asRocia­ tho cit.y of Pittsburgh placed on the same standing both in and out tions, except smts between them and the Umted States or 1ts officers and agents, of t.he Sta.to Y In the State tb(ly are to bring suits the same as pri­ shall be the same as~ anu not other than, the jurisdiction for suits by or a~rainst banks not organizea under any law of the United States which do or might do va.te hanks in State courts-that is, in the States in which they are banking business where such natioual banking association maybe doin~ businees locatetl, aml ontsifle of the States they are to bring them in the when such suits may be begnn; and all laws and parts of laws of the Uw teu States United. States conrts just the samo. inconRistent willi tlLis proviso be, anu the same are hereby, repealed. 1\Ir. BAYNE. Thi. changes the law so tho suit must be brought in 1\fr. HOLMAN . . I submit, as a substitute for the arncn:~fe t.o sny that nobody ·will deny tbo nccessit.y for a paper currency of some kintl. Jt, iH a nctl 1liroctly by tho Government, ancl redeemable in coin; Mr. HA.Ml\IOl'I"'D, of Georgia. Mr. Speaker, I R)ll'nt ten minutcH others 'vau t Treasury not.esnon-rcdeemable, but declared to be money yesterday in stating tho reasons for my amcmlUteut., 1.Lwt gcntlontcll :lllll a l c~n l tenclcr by CongresA. The auvocatcs of tl.tis scheme irught see them in the RECORD thil:l ruoruiug. Tho geutlomau frolll pnL tlll'ir trust iu logil:llatiou. A third. class of the opponents of the ] Incliana-1 [Mr. HOL)IA..."'\' 1 as I now understand., auamlo118 ltiH ntu ctHl­ twtioua,1 bnnldttg ~o~yHt m, :tJHl hy no means a miuority, desire the res­ ment, which was printed in tho R.F.CORD of L'lst Sa,tnnlay'l:l proce.ecl­ toratiou of the t)t.ate haukH. These gentlemen are very reticent in ings, and subl:ltitutes something else. Wl.Jetlter hiA present proposi­ tlwir 1li~;cn 3s iou. Tbeir reticence implies a degree of self-d eni::~ l not tion is right or not I cannot tell from simply hcariug jt read. Un­ mmal to thum. They aro strict constructionists of tho Constitution, less some objection he urged to my amendment I do uot ~tro to ~ay :wcl HJ1~·tbiug s~txoring of h:tnk.iug on tho part of the national Gov­ anything more upon it. tly pormis~>ion of tLo Hou ~;e I will rei'crYo CI'IIliJeJJt exeiteHtlteircou l:l tHutionaJ ~o;crnp l eH, which a.roa.lwa.ystender the residue of my tive miuntes to reply to au1y oujcoiiom; Lo H that ancl asil y a ron t~o tl. may be suggested. The ohject.ionl:l to tho St.<1te lt::mks aro so well gronnclcd aml ~;o for­ Mr. BUTTERWORTH. DoeR tho amendment of t.he g nt.lenmn midable th. t thoy ucocliiO elaboration. Broken ua.nks, uishonoreu from Georgia plnce t.be uat-ioual hanks upon tho same footiu~ pre­ }Htper, overissnm~, counterfeits, high rates of exchange, general di s­ cisely as any other corpora.tion or indiviuuaJ ¥ tn1Rt, panics, and bankruptcies a.ro necessary consequences of that Mr. HAMMOND, of Georgia. That is my umler tandinrr. l:lJ"I:ltem, as experience has abnntlant.ly shown. Those who hope for Mr. BUTTERWORTH. It uoes not deprive the banks of tho right tho restoration of tllis Hy~>tem must derive gratification from public under the statute to transfer a case to a Unitetl Sta.tes co urt where miRfortnnes. any other corporation upon a similar showing would ue entitled to Tho Treasury-note plan, whether it embraces the absolute money that right Y idea., as it is called, or tho principle of convertibility into coin, is M.r. HAMMOND, of Georgia. It docs not unless there is some pecu­ f:ttally ucfectivo. 'fho auS(IIlce of elasticity is an incurable tlcfect liarity in the law of removal as to those banks. in tllat plan. Tho issue of Treasury notes would not be regulated hy :Mr. BUTTER\VORTH. Then, as I understand, it simply placcl.i the wnuts of bnsiuess, lint by the arbitrary decision of Congress. the banks on the same footing as other corporations. No per capita rnlo woultl be practicable because one Congress wonlcl l\Ir. BAYNE. Mr. Speaker, I ha>e heard complaint mnde ngninst tlcoido that tho amonnt of currency ongitt to bo $20 per capita, while the proposition contained iu the amendment of tho gentleman from the next wonloluto man allurles exists in any particnlar State or State~>, will the gentle­ e.qnilibrinm tho factors of excha.ngo. Now, Mr. Speaker, t.he only man please name them Y really gooll reason which can be given against the national banking Mr. BAYNE. Some of the Sontbom Rtatcs. A,\'stem iH that it is fonJHlell ou the public debt. Sooner or later thiH 1\Ir. FLOWER. Which of thornY diflicnlty will havo to uo mot. Tho payment of the national uobt il:l Mr. BAYNE. Why, sh, the representation was lll:ulo to llHl a t~hort a. great clnt.y, whioh onght not to be postponehc eing any port.ion although there was a time when I was afraid of them, upon national of t.his country iu which justice is not admini~c~tored by the courts, qttcHt.ion l:l eijpccially. Still I uo uot believe that we need ha>e such St-.'lite anu Federal. There may be individual instances; I do not u.pprehcnsion now; at all events I hope the time has come when wo know ; I hope there are not. But Congress ought not to l c~ isl ato on shall never bo afra.i u :tgaiu iu that respect. Yet in making laws we the iuea there will be any such instances or any such places. If must make them ''\ith a -view not only to their present application, there be any such, I submit that giving these banks oxclnRive privi­ but to what may bo. their result in tho future; and by what has been leges, which the people regard as harsh, tends to keep up that spirit, tho result of snch logit:>lation in the past we may judge what may and taking them away and placing these national banks on equality IJo again t.be resnlt. I oppose, therefore, the transfer of the juris­ with horn@ corporations will destroy that spirit and gi•e thom evon­ uiction of the nationa.l courts to the l::ltate courts. ha.ndeu justice everywhere. But a.gain-auo road again. The proposition I have submitted seeks to apply a remedy. It Tho amendment offercu by Mr. HA.:\niO~-n, of Georgia, and tho is a plain and simple proposition. The objection, on the contrary, substitute ot:l'orou by 1\Ir. f.[OLMAN were again read. to the proposition submitted by the gentleman from Georgia is that Mr. BLAND. I uosire to ofl:'er as a substitute what I send to the it confers upon the banking associations the same powers, and none uesk. others, in regard to going into the Federal courts that are possessed Tho Clerk read as follows : by the local banking associations. Now, a difficulty arises at this Atld to the amendment these words : point which seems to be manifest to every one. It docs not follow "Pronided fw·ther, That said a~sociations are hereby prohibited from issuing that there are banking associations in all of the States that are do­ circulating uotcs; and hereafter no national banking association shall increase its ing or can do business. The evil of the gentleman's proposition I circulation or be organized with authority to it~sue notes to circulate as money." thmk is that it is the same as the original proposition embouicd in Ur. Dh"\'"GLEY .. I make the point of order on that amendment. the act <,f 1863, that put the taxation of the shares of national banks Tho SPEAKER. Tho gentleman will state his point of oruer. upon the same footing with the shares of the State banks; u.nd for Mr. DINGLEY. That it iij not germane to tho substitute. ruany long anu weary years, undor that provision, there were States Mr. lJLAND. The fourth section relates to the rights and privi­ that could not tax the stock of national banking associations at all. leges of national l>auks, anu to that section my aruenLlment is ger­ I hope my friend from Georgia will see that objection clearly, which mane. I have mentioned to him already, that there may be and undoubt­ The SPEAKER. The amendment of the gentleman from Georgia. cUJy are States whore there are no such banking association.s as are and tho substitute of the gentleman from Indiana, the Chair under~ 4084 CONGRESSIONAL REOOR.D-HOUSE. ~{AY 18,

Rtands, refer to the matter of the jurisdiction of tho courts in suits izee had in bank litigationi, whore by such suits. tho decisions of tho Supremo Court of tho United States are controll­ :Mr. STOCKSLAGER. Now, Ur. Speaker, the snbstitnte which I in~ and of vast importance, it seems to me that the national banks offer provides that the Federal courtiS shall not have juris~ ; nnd all on t~tancling bank -note circulation shall be immediately retired and of the United States thelatterwero chosen, a.ntl a liability ·whiclulicl an eq nal amonu t of U nitetl States Trtlasury notes shall be issuetl in lieu thereof. not exist nmler the laws of the State was fastened npon a. citiwn hy l\fr. Speaker, one of the distinguished champions of this measure a change of forum-by suing it in a United States conrt instead of on tho other sillo of the House has distinctly stated this morning, as the State court. Any law that permits the perpetration of snell au I understootl him, tllat the question of circul::ttion is on the part of outrage upon any person should no longer disgrace the uook of stat­ the nationul banks but a small matter. If he and other friends of utes which contains it. this mcas11re nrc sincere in that view, the alloption of the amend­ Tho fears of the t;ontlcmn.n from Pe.nnsyh·ru1in. [Mr. DAY~E] tlw,t ment I have jnst submitted, providing fot the retirement of nn.­ local prejudice~ nnght iufineuco jurors to unfairness against tho tional-l.J:mk circulation, would certainly gratify tllis side of the banks in cases to which they are parties have no fonudation what­ House, or at least gentlemen wllo think as 1 do ou this quc~:~tiou. ever so far as my observation extends. I think that I can safely say '\-Ve believe that United States Treasury notes would be a chea110r tllat no such prejudice exists anywhere within the State of Alabama,. and mnch more satisfactory circulation for tho country than tile na­ Mr. Speaker, we constantly hear of the overcrowded condition of tionn.l-bauk circulation as now existing. And we are supported in the dockets of tho United States courts. T1te Snpromo Court is more tllis view, as I 1mtlerstand, by a 1·ecent declaration from very high than throe years behind, and but last week the Senate passetl a bill authority on tile other side of the water. I have in my band a nows­ to establish an intermediate court of appeals providing for tuo ap­ pnJlcr extract 1mrport.in0' to give tho \icws of 1\fr. Glaustone, as (\X­ pointment of eighteen additional circuit ,ju

I believe, Mr. Speaker, that United States Treasury notes ombrace value so ascertained and determined shall be deemed to be a debt due to Raid shn.re-holller from Raid bt\nk until paiti; aml the abares so Rnrrenclered an( I ap· all four of the conditions specified by l\fr. Glaclstenc as the requisites praiseti shall, after tine notice, be solti at public sale, within thirty days aftot· the of a perfect currency; and I am decidedly ill favor of such currency ilnal appraisal proYitied in tb.is section. in room of the national-bank circulation. 1\fr. BLAND. 1\fr. Speaker, it will be observed that sections 1 to 4 Mr. RANDALL. I move the following amendment to como in at of the pending bill continue the national banks with all tile rigilts the end of section G : and privileges enjoyed by them under existing law. The amend­ rrot·ided, That in the reorganization of any banldng association intended tore· place any existing banking a:- Thus the volume of the currency will remain tho same. The Treas­ bill. Those l1n.nks Ilavo undertaken to or(Tanize anew under tho ury notes which may be issued will be equal in amount to tho bank letter of the Comptroller and the opinion of the Attorney-General, notes retired. bnt tilm·e has been some injustice in the method which they have I must at this point pay my respects to my Green back frien1ls, taken tilat shows the necesk:lity aml wisdom of the bill which we arc especially my Greenback friend from Pennsylvania, [:Mr. llRU~DL] consi1lering. For instance, when tho charter of a bank of a million In my opinion they have unmasked tbemseh·es in this Honse. A of dollars of capital expires, anR nol·es, pm­ carrying out their doctrine under an amendment "·bich gi,·cs tile villing for ro(liHtribntion of national bank eurroucy, ant! for other purpo fle~." awl rigilt to the State court.s to hear and determine tilesc qnestions so t he Rn<:'h notes when retieerucrl shnll bo forwartied to tlae Comptroller of the Cnl'l'enoy a nil de~troy ti as now provi•le(l by law; aml when the amount of such notes shall people of the vicinage can l)ass upon the questions botweeu them and be reduceu to 5 per cent. of tlae capital stock of the bank i ~su iu g tho same, the the national banks, then he is in favor of dragging them lm udreds of aHRociation so extended shall llepoRit lawful mou11y with tho Trca~nre1· of the miles away and tr~' ing the1u mnong strangen; in onlc.r to accommo­ United Rtates Rnilir.icmt to retleem all of it.<~ ontHtantlmg circmlation ns providc(l in date these corporations. l'le<:'t,ions G:!2:3, 5!?:..!4, anti 5:.!25 of the Revised Statntes; aml auy gain Uaat may arise from the failure to pt'eAPnt such circulating notes for reuemvtion shall inure to tlw I say if til ere is any proposition Ilcrc that is important, tltis is the llenetit uf the Unit<:'d States; a nil from time to time, R..'l snob nntcR arc rcrlc.e mc us an :ulletulment by new circulating noteR bearin:.r s uch devke:-<. to be approve1l b.v tho Cumptrollor t-o tho bill. Yet our "Greenback" frientls are so uuxions to sup­ of the Currency, as Aball wake IJ:lcm readily tli sti n~lti»hablo from the circnlating port their R epublican friends on the other side of the H onsc t.ltat note~:~ heretofore iHBncu. · tlloy are willing to turn over tile people of tile country to the 1.11crey 1\fr. HOL~JA:N. I oifnr tho amen!lment which I send to tllfl rc.jectc1l. n.nd destroyed.. Tho expense of tho new plates devolves upou tho' The question then recurred on Mr. llLAXD'S amentlwcut. banks. Mr. MURCH demanded tile yeas and nays. M1·. HOLMAN. That is not so st.atc.cl in the bilL The House divided; and there were ayes 32. Mr. CRAPO. It is so by tho genoralln.w; but if tho gentleman The SPEAKER. Not a sufficient number. desii·cs to make it explicit in the bill, I have no objection. Mr. MURCH demanded tellers on the yeas n.nd.nays. Mr. HOLMAN. Tho olcllaw alue fixehallpa;r 8ai•l ex p cu~es ; awl tho bc1.·ow;th ~:~ hall niHO ln~ nppli~t\blc tu ::~ u ch n»»ociations. 1882. QONGl{ESSIONAL R. ECOl{D-~OUSE. 4087

Til at all the moneys lleposited in the Treasury of the United States for tho pur· A uill (H. R. No. 3333) to uonate one condemneu cast-iron cannon po!-~e of reueeming tl:ie circulat.ion of national ba!Jking associations sh~ll he de~med to the citizens of Otserro, Michigan ; ::! above llcscriucd on presentation of tJle ~muo nt the Treasury; anu the Sec­ public, of Concord, New Hampshire, six conuemneu cannon, aml for retary or tile Trea~11ry shall cause to ue isstwd saiu Treas1uy notes in linn of Ruc.h bank' not.es as silall become ti10 propert.v of tl.Jo G nvernmont in payment of taxc.s other purposes; m· otJ1erwise; ami til at the bank uotes for which Treasury notes shall be su!Jsti­ A uill (H. R. No. 45b5) to donate four conuemneu iron cannon to tnted !\hall be dostroyeu. the city of Mansfield, Ohio, to ue placed on the public square near That the Treasury noteR issueu in pnrsnance of this act shall be rocei'l"able and the soldiers' bronze monument; payable for all duos and demanus fur which nat.ional-~ank note~:~ are now by law l'OCI:livable and payable, anu shall be exchangeable fur legal.tenuer notes w.ilen A uill (H. H. No. 4745) to autlwrize the Secretary of War to furnish pre~ented in sums of $100 or more fur that purposoatthe Trea~ fur decoration of soliliert~' cemetery. .Mr. RANDALL. I rise to a point of order. The SPEAKER. Tho gentleman will state it. F.XTEXSION OF NATIONAL-BA...~K CHARTERS. M.r. RANDALL. If I correctly unuerstand the amendment of the The Honse resumed the consiLleration of the special order. .rcntleman from Missouri, it is a substitute for tho sixth section of 1\Ir. llLAND. If I can have the atte~tion of the House for a mo­ tLe uill. Now, the amendment snl1mitteing tho same mone­ The SPEAKER. The qncstion is on ngreeing; to the nmcntlment ta.ry fnuctious at~ Lank-notes to take up t!lC bank cil:enlat.. ion: T.hat submitted by the gentleman from Jndian~L, [Mr. HOL:\TA..'\".] is to say, as fast as the b:1nk charters OX})Jre they go mto llqm~atwn, The amendment was a.gr('etl to. rctlecm their circulation by the depo~:~it of lawfnl money m the Mr. HOLMAN movod to reconsider the Yote Ly wlliclt the amcn,1- Treasury, and tha.t money iH used as other snrpltu1 revenue, autl tl.t" ment was agrcocl to; and also movctl thn.t tho 111otion to reeonsitler Treasury issues other circulating uoteA to take up 'Lank-notes. be laid on tlle table. The latter motion 'Yas ngreetnnen of a. hill which t.he Lank note i::~ receivable and payable. And they are made oow pending before the Honse; aml I (lo not think it is inchul •tl in exchangeable for legal-tonuer not~s tlt~ same as tlte bank note; aJ?d the general order as to amendments. legal-tenuer notes are retleema.ble m com, anracetl within that order. from Iowa. l\fr. ROlliNSON, of Massachnsott8. I sltaH 11ot press tho point of Mr. MURCH. I wi~>h to ask tlle gentleman one more question. order, antl am willing to let the gentleman be hca.nlnpon tho suh­ Mr. llJ:;AND. I do uot yie!U. The gentleman wust uudcrstaml I stitntc. am not a 1iat-mo1wy Greenbacker. 1\tESSAGE FRO:\I THF. l'HE81DEXT. Mr. JONES, of Texas. \Vill the gentleman yielu to me for a qnes- A message in writing from tho PrcsiLlcnt oft.h0 U!ti~ed Statr.s ~as t.ion f communica.te2) to donate condeiDUtl

Mr. ATKINS. Do you fix when these Treasury notes will be re­ Tho following additional pairs were n.nnonnceens, Jones, JamesK. Singleton, Otho R the mn,nnor prescribed by section 5162; and after such as~ignment the associa­ Beltzhoover, Culberson, Kenna, Sparks, tion and its shareholders shall stand discharged from all liabilities upon the cir­ Berry Davis, Lov;nues H. Knott, ::5tock:!llagcr, culatin~ note&, :mu said notos shall be redoemeu antl ca.ncoled at the Treasury of Blackburn, Dugro, Leedom, Tillman, the United States. And if any such association shall fail to mako the deposit Blancharu, Dunn, Lo l!'uVI·o, Turner, H enry G. aml tal;:e up its boncl~:~ for twelve months after tho expiration of its charter, saiu Bland, l!'iuley, Manning, 'l'nruer, Oscar a>;>.rn] saicl that because I Deenng, Kasson, Robeson, \Vebuer, chose to vote against taking jurisdiction from tho Fellcral courts aml De Motte, Kelley, Robinson, Geo. D. West, giving it to tho State courts, therefore I was playing iuto tho hands Deuster, Ketcham, Robinson, James S. White. Dingley, Klotz, noss, \Villiams, ClJas. G. of tho Republicans. He sa,id that that was but a sa,mple of what the Dowd, Lewis, Russell, Willits. Greenbackers generally diu. Dunnell, J,ord, Ryan, Wi t~ e, G e or~;e D. Now, I lmve this to say : in the first place, in all my conduct and Dwight, Lynch, Scoville, \Voocl, 'Valter A. action hero, and so far as I know tlle conduct ancl action of those who Erruentrout, Marsh, Scranton, Youu~. Enett, Mason, Shelley, profess to be Greenbackers, npon this question have boon consistent, Farwell, Sewell S. McClme, Shultz, !:ltraightforward, allcl honest. As to playing into the hands of tho Republicans let mo say here that the. Democrats have hcretofor(l NOT YOTIXG- 8 ~. treated tlle Greenbackers with great clisrespcct. They have been so A thorton, Dibrell, Larey, Richanl.-on, .Tuo. S. Ban Ellis Ladd, ltobinson, \Vlll. E. unfair tons that when tbey had the m::t.jorit.y hero aud tho control Bel.n{ont, Eviu's, Latbam, HO!;Pcruns, of this House they woulu not even gi vo us a heariDg, tho Speaker Black, Farwell, Chas. B. Lindsey, Shallonbm·gcr, turning his back upon us. [Laughter.] Bliss, }'isher, hlartin, Sherwin, Now I deshe to say th:1t we lln.vo been treated fnirly in this Hon~o Blount, Frost, McCoicl, tiiuwnton, Bragg, Gibson, McKenzie, Speflr, in every respect by the Republicans. \Ve have bccu rccognizcu on Brewer, Hall, McKinley, Springer, committees, whereas the Democrats wonlcl not recognize us ou com­ Browne, Hammond, John McLane, Steele, mittees. \Ve have been recognized on the floor of this House. Tho Buckner, Hammond, N. J. Morrison, Stephens, Ropnblieans have recognized that we arc a pn.rty. They have joined Camp, Hardy, Morse, Ta.lbolt, Carlisle, Hawk, MosgTove, Thorupson, r. n. the issno with us squarely. They have sn.id that tlley were oppoRe4 25~. 11)0 2. 0 The SPEAKER. The gentleman from Missouri [Mr. DLA~-rn] can­ New York ..... ·-···----·-···-·-·· 286 fiO, 7:14, 51o 1, 33U, a:l7 2. 6 not IJe recognize1l now, unless the gentleman from .Main" yielc1s. 25 7, 111, 0-17 lG~. 961 2. 3 Mr. DINGLEY. Does the gentlcq1an desire to oppose tlte amentl- TI~~~~~·!e.~ ~ ~:: ·. ~ ~ ~:::::::::::: ~:: 5 9fi0,770 35,461 3. 7 ment'l 16 6, 8l7, 844 17:!, GGD 2. 5 ~u~r:!.~~~~.': ~::: ~ ~:::: ~ ~:::::::: ~:: 25 2, 196,381 61,340 2. 8 Mr. DLAND . . Yes, sir. \Viscon in·--· · ------··---········ 140 7, 565, 400 134,747 1. 8 Mr. DINGLEY. I will yield the gentleman t.wo minutes. Mr. BLAND. I will not accept two minutes ; I will take fisc TotaL .. ·-·-·-· .. ············ 707 114, 671, 346 2, GOG, 28:J 2. minutes in my own right. If I cannot bo recognized-- ' Tho SPEAKER. The gentleman was not entitled to recognition. TlJe highest amount of circulation issuetl to fifteen national banks which failed Mr. BLAND. I will occupy my own time when I get r ecognition. previous to 1870 was $1,5fl4,400, and the amount outstantling on Xoveml>er 1, 1 SO Mr. DINGLEY. I yield to the gentleman from Texas, [Mr. JONES.] ·wa,s $11,6:!8, tile proportion of notes remaining unreueeme!l being only .75 per cent. of' the amount issued. The percentage of notes unredeemed of tlJe same Mr. JONES, of Texas. I desire to say, 1\ir. Speaker, that the banks on November 1.1875, was 1.3!:1; in 1876, 1.35; in 1878, .86; and in 1880, as bus charge of the gentleman from Missouri [Mr. DLAND] that the Green­ been seen, it is .75 ; Ahowing a rapid increase in tT1e redemption of the notes of back party as a party advocates the jurisdiction of tbe Federal these banks. TlJe total amount issuet.l to twenty-tlJree national banks, in whlch comts in preference to that of tho State courts in matters relating are inclutled the 1iftecn lJanks, already mentionetl, wi.J ich failed previous to the year Ul73, was $3,1!lG,6!J3, antl the amonnt outstandi.JJ_g on November 1, 18!i0, was to national banks is, so far as I am concerned, wholly gratuitous. $45,G44, the J;lroportion of notes remaining unretleemet.l boing but 1.43 per cent. of 'fhe gentleman fTom Missouri, with an eagerness that betrayed a ilie muount JR~Hed. The total amount outstanding of t.lJe notes of the o hanks h a lurking fear of tlte Greenback party, seized upon tlte remarks of the be n reduced $ 11,430 since November 1, 1 78, and tho percentage r etlncetl from gentlew:m from Pennsylvania, [Mr. BRUl\11\I] as a pretext for making 1. 78 to 1.43. Tile total amount issne!L to tlJirt.y-four natwnal banks which failetl prior to 1H74 was $5,590,803, antl the amount outstandi.JJ~ on November 1, l!lSO, was that charge. Now, when gentlemen thus in their baste catch at any­ $177,440, tlJe proportion of notes ruu-edeemeu l>oillg 3.17 per cent. of the amount thing to tlo others injustice they deserve eit.her our comlcmnation issued. or our sympathy and pity. [Ln.ughter.] If I did not suspect tbat Of the circulation of fifty-one national bankR in ~oluntary liqnidation previon to 1870, amonntlng to $5,8:Jll,940, there yet remains ontonrt iM so crowisetl Statutes shall also l.Je applicaulo to suult associations. t:hurge which ho bas seen proper to ruake. He has stated tllat the Grecnuaekers woro uniformly votiug " ·it.h the Htlpuhlicam; on every .Mr. CRAPO. I offer an amomlmont to this sectiou iu ortlor to per- propoRition sulmlittemmlOrat, Tho Clerk read as follows: and. stating in snustauce tlla,t the Greenback party of th;Lt Htate Antl the franclti~:~os of such asHociaUon as Hhall l.Jo exten«le«l for tho solo pur­ wero pledgc<-1 to Yolo with tho Republicans in organizing the House pose of liquitla.ting tlwir atl'airs uutil saitl alli.tirs are liually closet!. in case their .-otes shonltl be neecletl. I deny tha.t ·tatemeut now rus Mr. CRAPO. Unuer oxistiug law there is no provision whatever I denied it then. Let rue give yon hrietly the history of it. I never for win,ling up the hanks wilose charters expire. Tilere is proviMion s~lW that charge in any other paper in my Stato ox.cept iu tho Dem­ for winding tilem up wilen tlloy go iuto volnutary liquidation. I ocratic paper~. In my own_ilisb·ict., when canvassing the district I ask simply to have a letter of the Comptroller or t.uo Uurrcncy roatl, saw it pnblisbe­ porate liJ'c fur this specific purpoRc as much requires RpeciallegiHlative enactment ions to my own State of Illinois, hy wbich 110 bank of either circnlu­ as does the original creation of tllo corporation. No such enactment is found in tho act of Congress authorizing the creation of national banks and lH'CRcriuiug tion or disconut can be incorporated witbout a Yote of tlw people, tkeir powers, nor is there any pronsion cl:;cwhere tllat we arc aware of which woulcl sniJruit from necessity to the payment of preminm aud colJ e­ wonl!l prevent tho ui1:1solution of a corporation from working the abatement of a qnent loss or quit. businesR. Now who would. gain by tbis transac­ tmi t p nndin~ arrainst it at the time." tion Y Not the Government, for it is not fuwling any portion of its Under th1s s"tate of facts, and in new of the approaching expiration of the fran­ chises of many national banking associations, as shown on page 5 anu thereafter indebtedness aud will not., and the only pcrsoll~:~ benefiteu by tbe of the indorsed executive document, the earliest being on .April 11 proximo, it transaction will be the holders of the 4 per cent. bonus who sell them scorns to be necessary that some iwmedia.te action sbouhl l>e taken by <.:ongres:; to to the banks, they haviug the power to exact whatever price t.hey exteml these fi·anchiRes for pw-po~>e s of liquidation solely. choose. · Very respectfully, JNO. JAY KNOX, Cvmptrullrr. Now take the large bank, hnving $1,000,000 ca.pital. Ron. WILLIAM W. CRAPO, Under the present law anu by this bill such bank, when its 3! per Ohainnan Committee on Banking ami Currency, cent. bonus are paid off, ns they will be within the next two or three llouse of Representatives. years, can purchase and deposit :fifty thonsand of 4 per cent. lioneL~, The SPEAKER. The question is on agreeing to the amcll(lwcut only $20,000 more than the bank with $50,000 capital is required to offered by the gentleman from Massachusetts, [.OM.r. CRAPO.] deposit, although it has twenty t imes the capital. This is not just. The question being taken, the amendment was agreed to. It uiscriminatcs against the small banks scattered. thoughout the Mr. RANDALL and 1\Ir. CANNO:N rose. country, which accommotlate the many, and in favor of the large The SPEAKER. The Chair understands the gentleman from banks which accommodate tho few. Pennsylvania [Mr. RA.."'IDALL] offers as an amendmeut a now section_ My amendmeut will permit banks of $150,000 or less capital to The gentleman from Illinois [Mr. CANNO:N] offers a further amend­ depoRit as low as $10,000 of United States bonus, or reuuce their ment to section 7. deposit of bonus to that amount, and still continue in business. If Mr. CANNON. I prefer to offer my amendment as a proviso to they avail themselves of tbis privilege of course they will only be section 7. I send it to the desk to be read. entitled to $9,000 of circulation. The ca.pital of the banks is not in The Clerk read as follows: any wise aft'ectcu by the amendment. The law will remain if this Provided, That national banks now organized or hereafter organized having a amendment is adopted just as it is now as to the amount of capi­ capital of $150,000 or less shall not be required to keep or dopo11it with tho 'l'rcas­ tal required to engage or continue a bank under the act, with all tht) m·er of the United States United States bonds in excess of $10,000, as Recurity for safeguards remaining now thrown about the system of national their circulating notes, and such of t.bose banks havin~ on depoRit bonlls in excess banking. of that amount are authorized to reduce their circulation by the deposit of lawful money as provideu by law. It may be objected· tl1at my amendment will proclnce a contraction of the currency. On the contrary there will be a greater contraction l\ir. CRAPO. I think that should be a new section, if it be intro­ of the murency without my amendment than with it, for if the small e no twentieth of its capital. A bank of $500,000 capital need not deposit circulation Y · more t!Jan ${)0,000, one-tenth of its capital. A. IJank of $150,000 cap­ Mr. CANNON. All; bnt why compel the small country banks to ital must deposit as much as $50,000 of bonds, one-third of its capital. pay a premium largely over what the 4 per cent. bonu is worth, aud A bank of $100,000 capital must deposit $34,000 of bonds, one-thiru take or not take circulation when in either cveut there is a loss upon of its capital. A bank of $50,000 capital must crt them into l1aving a capital of$150,000 or less that the minimum deposit of bonds capital Y for circulation shall be $10,000, tho bank getting 90 ller cent. of that 1\fr. CA.NNON. That has nothing to do with my amendment. I amount as circulation, and that is a much larger amount for tho wonlU welcome a pro-vision that they uUght bank under this act small banks in proportion to their capital than the large banks are without any circulation or deposit of bon1ls. But if that is not ngreecl compelled to deposit in proportion to their capital. Now, the neces­ to, my ameuument gives the option of reducing the amount of bonds !:lity for this amendment is that at the present prices of bonds there is to $10,000 for cleposit with the ComptroUer, and a circulation of $9,000 practically no profit in circulation. }'or instance, at the premium of in tbe case of banks having a capital of $150,000 or less. ~1 on 4 percents, and with 8 per cent. interest as the bank rate, there This amendment was drawn upon full consultation with tho Comp­ is only a profit of less than two-tenths of1 per cent. per annum on cir­ troller of the Currency, anu, as I nnclerstand, at least has not his dis­ culation. At the premium of 25 per cent. on bonds there is no profit, approval; an

Total for bonds ..••...•••••••..•.•••••.••••••••....•. 371500 ~1,000 as $10,000 in bonds. ·what other purpose i~:~ there J There is 4092 CONGRESSIONAL ltECOltD-HOUSE. no pretense you are keeping up these banks for any other than le~iti­ Farwell. Sewell S. Lonl, Rice, John B. To,vnscntl, Amos Godshalk, Lynch, Rice, William W. 'l'yler, m::tte purposes. There are but one or two purposes under the con­ Grout, MaRon, Rich, Updegrafl', J. T. stitution for which you have auy power to incorporate banks; and Guenther, McClure, Ititchoy, Updegratr, Tboma.a this is in effect a new corporation. . llartlenbergh, McCook, Robeson, Urner One is, (and I grant that at one time there was at least a seeming llarmer, 1\lilos, ltobinson, Jamc!l S. Valenhne, llanis Benj. W. Miller, Russell, Van A.ornam, necessity for it,) the establishment of these banks for the purpose of Haseltine,1 Moore, Uyan, Van Voor!Ji11, aiiling the Government in iloating its immense dobt. Bnt the gen­ llazelton, Neal, Scranton, Wait, tleman from illinois [:Mr. C.U.'"NON] now confesses, by his ameno been a bar anu an obstacle to tho floating ol the public Jacobs, J>eirce, Spooner, ·willits tlebt. Jadwin, Pettibone, Slone, 'Vood, Walter .A. Jorgensen, Prescott, Strait, Young. Mr. CA.};TNO~. Has it not always been, is it not so now, nn'orney, :ucKenzie, Turner,'IIcnry G. llliR!\ l<'ulkerson, McMillin, 'l'urner Oscar bankR must uow hy law deposit$;)0,000 of bo1Hls aml take out $4G,OOO 1 Blount., Uarri>~ou , :Mills, Roger Q. Vance' of circulation. I atlmit t.hat thero was one other thing exprcsseu in Bnck1Jer, Gechle!!, Money, Van Horn, the titloofthe act," to estrtblish a mliform circulation." That was Cabell, Gibson, 1\Iuldrow, 'Vat!Rworth, a power which it was aS1illD!ell Congress could exercise. Cassidy, Gunter, Murch, 'Vard, Y Ulartly, Hammoucl, N. ,J. Mutchler, Waruet·. Now, what are yon uoing to-day Thora is uot a gentlcru:m on Clements, Harris, llenry ti. Oates, 'Vellborn, that si~ltn-, Hon >~ o, !toss, and-a-halfs nod the fonrs, and there aro uo other bonds for tllern to NOT VOTING-88. bny. What, then, will become of your circulation when the t!Jroe­ uutl-a-halts are paid. ofl' f AtlleMon. Dllzontlorf, Knott, Ricbarclson, Jno. S. Ba1·1Jour, Dibrell, Lacey, l~ob ert~:~on, You are actually ignoring antlrefuHing to look at tbis qneHtion of Belfurtl, l<'anvell, Chas. B. Lac.lll, Robinson, Wm. E. circulation which these banks were intended to fnrnish. Yon have Black l<'i>~!Jer, Lat!Jam, Rosecrans, no possible authority to extend their existence unless it is to provide BlancLanl, Ji'rost, Lewis, Shallenberger, Bragg, George, Linclfley, S!Jerwin, for a uniform, steady, anu safe circulation. Anu there is not a gent lo­ Brew or, Hall, Martiu Simonton, man on that siue of the House wllo will say that in the present con­ llnunm, Hammuml, Jolm McCoiJ, Singleton, Jus. "'V. dition of t!Jo public debt tho circulation of this conn try, resting upon lluc!Janun, Hartly, McKinley, Spe!3r, _ that t1ebt, is not in imminent peril, anu this amendwent uocs not Caltlwoll, llawk, McLane, Hprlllger, Camp, J[euder>ion, More;v, Hteele, afrect that ctncstiou in the least. Carlisle, llerbert 1\10!'l'IHUn, Step liens, 'fbo SPEAKER. The time of tbe gentleman hns e::qlirctl. 1 llewit.t, '.a hra ru R. Morse, Talbott, l\Ir. llUCKNEH. I witlulmw my pro jotma amentlment. 8t:~~lUUD llill Mosgrove, Thomas, Mr. ATKINS. I wonltl inquire of the gentleman from illinois if be Uook,' llooker, Moulton, Thompson, P. B. Cornell, florr, Nolan. '.fownshend, R. W. proposes to reduce tJ1e security of banks of $100,000 capital from Cox, Samnel R. Hnbbell, l~acbeco, UJ>ROU, $100,000 down to $10,000 'I Crowley, Huh us, l'age, "alker, Mr. CAl~ ON. I do not propose to affect the security of the bank, CullJPrsun, Hutch in!!, Parker " "asllbnrn, the capital of tho bank, at all. I only propose that those banks hav­ Curtin, Jones, l'hinca!! l'l!i!!t.tll:, 'Vheelor, Darrall, Joyce, Jt Cfl , Wise :Mor~an R. ing a capital of not exceeiling $150,000 shall not be obliged. to deposit Davidson, Kasson, Richartlson, D.P. 'Voo1\, HCJ\)awiu. bonds excecuin~ $ l0~00 in amount to secure circnlation. The SPEAKER. The question is upon the amendment offered by So tho amendment of Mr. CA...~OX wns ngrectl to. tho gentleman from Illinois. The following additional pairs wore auuouncetl: Mr. CR.A.PO. I ask tho gentleman to make his amentlmcut an Mr. PAGE with Mr. CLARK. independent section. Mr. BELFORD with Mr CALDWELL. Mr. CANNON. I am willing to tlo so, anu let it come in a."! section 1\fr. LEWIS with Mr. BLANCHARD. 8 of the bill. Mr. REED with Mr. SPRINGER. Mr. CRAPO. Strike ont the word "proviucu," antl make it a uuw The result of the vote was annonncetl as above stated. section. Mr. CAl\"NON. I move to reconsider tlle vote just takou, autl also Mr. CA~'NON. I will do so. move that the motion to rcconsh.ler be laid on the table. Mr. BRUMM. I uesiro to ask one qnrstion for information. Mr. RANDALL. I call for the yeas aml nays on laying upon the The SPEAKER. Debate llas been exhausted.. table tho motion to reconsider. l\Ir. llRU1DJ. I do not want to debate this question, bnt I think Mr. HAMMOND, of Georgia. Is this motion in ortlor wllile we wo slloulU nnuerstanu it so as to vote upon it intelligently. Why are nctinf' as in Commi ttco of t.ho Wholo Y not make the amendment so that every bank may llavo a circulation The SPEAKER. The Honso is not in Committee of the Whole, equal to a perccntngo of its dcpositst whatever that may be f properly speaking, but is simply: acting to a certain extent nuder .Mr. CANNON. I prefer tho amen

The question was taken; and there were-yeas 110, nays D7, not ing tho bonus and ta.kin~ up the circnlation unless something else voting 84; as follows: is snustitntcd for t.hat c1rcnl:ttion; and a proposition to th:tt effect YE~_B-110. has been voted down. No"T' my proposition is that when Jn,wfnl Aldrich, Dwi~bt, 11Iilcs, Smith, J. HyaLt money is t. llayne, Farwell, Sewell S. .Moore, Spooner, :u1lic.an Greenback friends hoth vote against t.hat; Brewer Godshalk, Neal, Stone, :tnd I suppo13o it will hanlly ue noc.esl3ary to have a vote on that lll'iggs,' Grout., :NorcrosR , Strait, propo13it ion. llrumm, OuentlJP.r, Ot·th, Taylor, Now, the gentleman from Tex as n.ucl Lis Greeulmck followers havo lluck, Hardenbergh, Paul, Thomas, llurrows, Julina C. Harmer Payson, 'lhompson, Wm.G. votetl against that proposition, and he charges me with n.ttackiug tho Burrows, J os. 11. Harris, lleuj. W. Peelle, Tyler, Greenback party here instead of tlw Repnutican party. I attackotl Butterworth, llascltine, Peirce, Updegraff, J. T. them both; !Jut inasmuch as our Grcenl>ack friends Lavo tic requestcc.l. Deering, Lynch, Scranton, Wood, Walter A. It furt.her announce"·orth. Dunnell, McCook, ~illith, Dietrich C. It further aunouucc40) to authorize tho receipt of United States golcl coin in exchange for golill (S. No. 17d5) fur the relief of D:n·itl l\Iorerse, Hewitt, G. W. I' helps, Willis, JONES] uo e, 1\.forgnn R. Davis, Lowmlosll. Kasson, RioharllRon, D.P. \Vooll, BeujaJUiu. it only confirms the sk>~crnent-thoy are here only iu the interest of tho Republican p:trty. So the motion to roconshlt•r w::ts la,icl on t.ho tn.ule. Now, Mr. Sp,!aJ\:er, I do not want my time to be wasted hy mes­ The following additional p:tir was n.nnouncod; sages corning hero by the Seurctary of the S~:nate . Every time a Mr. CLAitDY wit.h Mr. REED. 1n·oposi ion is ma of tho H[llllC harmouious f:uu­ to oJfcr an audit ional sectiou. ily. And whene\·er any one of tllo Greenbackers makes :t point, Mr. BLAND. Before ~tny ameuion rcq niri ng tho national ua.u ks as t.Lei r eha rtors as I wish to speak in oppo!:! ition to it. uxpiro to go into li'lniu:tt.ion under the Revised St:ttutct>; Lhn.t is, uy The SPEAKER The gontlcm:1u from Kansas can uc heard in a dcrJO~;it of lawfuJmouey to take up their circulation. Al3 a matter opposi t.ion to thn ameudmont. ot course, every dollar of lawful money thus depo13ited is so much l\fr. HASKELL. l\lr. Speaker, in common with :tlmost eY ry ono contraction of the cnrroncy. Now, if the bowls remain on deposit of t his ~:~itated on this floor, an~tribution of 1.he national-bank cur­ at a loss; that they retain their charters and their circulation merely rency. auu for other purvoses," is-hereby amen !led to the ofl'~:~ct that national banks intending to withdmwthe whole or any-part of the bonds int.erest upon which has to avail themselves of the privileges of national bankers and of the not ceasctl held by tl10 Treasurer of tha United States in tmHt to secure their circtl­ strength and character such charters give them in the country. latiD;!.notes, antl to uepo>' it lawful money in lieti thereof, for the purpose of retiring By this amendment of the gentleman from Illinois, and which has orr cleemiug their ci!'culation, shall be reqnireu, in case of each separate intended been adopted by the House, we have opened the door to the possible withdrawal, to gi~e ninety days' notice of snnh intention, in writin~, to the Secre­ tary of the Trea>~tu'Y; antl section~ 5159 anu 51()0 of tho Revised Statutes of the retirement of a circulation that has been admitted upon the floor is Unitetl States are hereby re-cnactou. not profitable, and in view of the fact that the 4 per cent. bonds, which they will have to buy to continue, have increased in value Mr. RICE, of Missouri. I rise to a parliamentary irH1uiry. from 17 to some 20 per cent. premium within the last few days, I The SPEAKER. The geutloman will~;tate it. submit to the Honse that we have opened a way posHihly to tho re­ Mr. RICE, of MiAI:!tlltri. 1 wish to inquire if tho HouHe Las dis­ tirement of two-thirds of the amount of circulat.ion of many of these posed of section 7 ·? I do not nnclen;ta,ntl that wo haYe disposed of that section. The House Las just refu~:~ed to au opt a motion to strike banks1 and have provided no wa,y of replacing it. If this amend­ ment 1s to reduce largely the currency of the country the eviletl'ects it out. will counterbalance the good effects of tLe bill. I am eutirely 'vill­ The SPEAKER. Amendments had boon offered to the orig-inal ing, as I stated yesterday, to aid tho banks in their work of reor­ text of the section. S01ne Lave been adopteise our banking system intelligently, an~eR," Rhall be rcqnircd The deposits of the people cannot be too safely secured. l3u t I sub­ to gi~e uinety rlays' notice to the Secretary of the TrcaRUl'Y of itA int •ntion to dc­ po~it lawful monev anll withuraw Hs circulating notes: l'rovided, That nnt, more mit it is the part of wisdom for this Rou o to provide some means than $.>,000,000 of 'lawfulllloney shall be depositetl flnring any calcn1lnr lllonth for for the prevention of the excessive retirement of tho national bank­ thitl]llli'JIOtle: And providedjurthe.r, Tllat tl10 provisious of this section Rlnlll not ing circulation, a retirement which is maontls are called for re!lemption the hnuks bolcling snch called uonds shall snr­ unless provided against in Rome other portion of t.he bill. reuuer them within lliirty ua.ys after the maturity of their call. At all events I am unwilling to incur any great risk to onr present 1\Ir. RANDALL. I accept that in lion of my amon intcrest is per­ tircd in any one mout.h, tixing the limit at $5,000,000, un(l creates an fectly protected by the bill, the present Yolumo of onr currency se­ additiona,1 ~afegnanl against tho danger of an excessi vo withdrawn 1 cured, the right of complete control over these bank~:~ aHsnretl as'uow of bonds and reduction iu the volume of circulation. In addition, to Congress and to the pP.oplo. The bill shonl t-llo wholo the Revised StatuteR, n.s wa~ proviclc

DALL] proposed a new section. The gentlema.n from Massachusetts Mr. CANNON. No, sir. The l.Jond cen.Rcs to dmw interest, l.Jut tho [:Mr. CRAPO 1 offere!l a. substitute for that now section, ·which t ho holder noctl not Rnrrender it unl ~; lte chooses so to do. Now, who Chair understands tho gentleman from Pennsylvania to accept in holcls the 4 per c Ht. hondR a1Hl t h o 4t percents ¥ A hlook of fifty or lieu of his. sixty millious is held hy Van\lerhiU. Who elsef Ca.pitalis~ prin­ Mr. RANDALL. I do. cipally about New York ntul in Now England. The SPEAKEH.. And to that the gentleman from Texas [:Mr. They arc Lo he l.J eneuteu l>y t.his pro>iRion; nm1 it is an open se­ CuLBEHSO~] desires to offer an amendment. cret, a11mitte1l h y everybody, hat they propose to exact from the Mr. CANNON. Pending that I rise to oppose tho substitute oft.ho banks wLtttcYer premium t.heycltovsc to put 11pon these honclswhon goutlem:tn from Ponu~>ylnt.uia as moiliucd by t h e gentlem:tn from the:~ percents arc cnllcL, for sncb a provi ion to offer an amendment. · would aiel in refnnding. But it is not claime1l by a.ny one that the bfr. CANNON. P ending that I d esire. to occupy five minutes in Government bas any into11tion of tho kiuu. The efl'cct of this pro­ opposing the substitute of the gentleman from Pennsylvania. vision, in my opinion, will be to drive mn.uy l>a.nks ont of l.Ju siness, Mr. CULBERSON. I move to strike out the portion of tho amend­ which means retirement of their circulation and contraction of the ment relating to the $G,OOO,OOO per mouth and insert what I send to currency, bow much no wan c•tn tc11, and ~Yhich also means the col­ the tlesk. lection of the cre1lits of the bank!:! from its cul'ltomers when it goes 1\Ir. CANNON. I rise to a qnE'Ktion of order. The gentleman from into liqniU. five Mr. CANNON. Certainly. minutes to oppose it. lt is my right t,o occupy tbm.;e five miuntc:-. Mr. CRAPO. Snppot'c tltorc is a, brgo nrnonnt of surplus in tho of nnexpenuell time in opposing the amendment before any aw wl­ Treasury, and the Secretary of tho Trc:umry makes a call for $15,000,- ment to it is offered. 000 on account of that surpluA. Now, there is a !:itl·iugcncy in the The SPEAKhR. Thore is no disa~>~ Ruch bank surreuuors its fnmchi >~e or charter." ovcnlne uou1lH vdlllinll it to t h eir iut rcr-;t to tako the 1nonev arHl The SPEAKER. The gentlema.n from llliuoi ~> Plr. CA~~xox] is find otllcr investments for it t h at will yioM a return wlwro tuey aru re<"on·nized. receiving no retnru from the Government,. If tho bank, however, M~. CANNON. My opposition is to the laAt cln.u~c of thiR RnlH.;t i­ would lose less money hy 1 tt.ing its umul remain on deposit as a basis tutc. I would b e p;latl if I bad time to answer th.e gentleman from for it ~:~ circulation after t ho interest has ceased upon the l.Jontl than Kansas [l\fr. HASKELL] in his strictures upon the a mendment I it would by pre euting it forpa.yment and purchasing oftlle holder ofl'ered, which was adopted by the HonRe, as he totally misappre­ honds not clue, paying whatever premium might be deman of the House totally misapprehcnernmeut woulu have t.he use of t.he money not de­ the scope of that amendment. manded l>y the bomlliolortion of tho substitute: could use tho sa.mc in proviuing for tho si'uking fund, or otllerwise But when bonds are called for redemption the banks holding Ruc h called bonds as it chooses. Nor it:'l thoro as mnch o ll'om tho banks goiug ont of lm ~:> in cHH, aJHl in snr,h event bank has upon deposit with tlle Comptroller of tho Currency bond~:~ necessaril y retiring t!Jcir circnlat.ion, ratllerthan snbmit to t l11• exac­ of a 11ar value of $100,000, which ernmont gh·es notice that it is re all~~ furnisheu ready-made by Cougr>ss in tlli~:~provi~:~iou. to pay the bonds. The bank has in lieu of the boUlls circnlatiou to [Hero tho hammer fd l.] t he amonnt of $90,000. Unuor the law as it now is the ba.nk may per­ l\fr. CULUERSON. My ammu1mcnt proposes that no uct11k shall mit the $100,000 of bonds wllich arc called to remain on deposit with surrender more than mte-tc11th of its circulation iu any one year, un­ tho Comptroller of the Currenc~~ ttllll still retain it·s $90,000 circu­ less it proposes to l:llll'l'undor it eharter. There are now $:171,000,000 lation; bnt the interest coases, so that the Govcmmmit has i11 the of national-ha.nk circulation iu t.hc UnitcUO per woultl place it in t ho power of t- lt c~:~e l>anl< ~:~ t,o rc1luco t ho volnmo of annum intercl:lt. The Government can stand tlJts If the b:tuk can. tltc CIU'I'ency in tho country by $37,000,000 per anunw. That, I tllink, Hut if this provision is adopte1l, witllin thirty days thoh:wk its com­ il> all the lib ert, ~T iu that direction whieh \\' u fo!houhl allow t h em. I pelled to take its bonds on deposit with tho Comptroller an1l present. will ask tllat my propo:-. ition, which I han• modith.·d, may be read. t.hem for payment, rccciviltg therefor $100,000, an an1l thereof ibu following: "Aml Utat 110 more than onc-ll'ntl1 of ils circulation Hlt nll bo RlllT mlel'(ld in auy pay there for wha.tcvor premium the owners may o;x:act. At the one year by any bauking a:s:sociatiou, wile:;:; s uch lmuk tsLuTouucrs it::; Crauobise or price of tile 4 per cent. bonds to-day the bank, to retain its . ·uo,ooo clmrter." circulation, would have to pay the owner $ 1~1,0 00 for $ lOO,OOO of Mr. CULDBR ON. I now yit1lit them with tho Comptroller. In this event no­ gent.lt·lll:tll from Now York, [Mr. FLOWE It.] body would be affected but the bank and the private hoMer of tho Mr. FLOWEH.. I ri~>O to fa.vor the :llllllntlment of the g ntl •mnu 4 per cent. l.Jonds from whom it maue its pnrcbase, atul tho Go,·eru­ from PeJrnRylvauia as motliiicll hy t.ll o guHtlPIIIan from Massachu­ nte1lt which would lose tho usc of t)le $100,000 in tlle Treasury paid setts, for I boliovc that it will he in tho iutercst oftlle bn~-;inesH com­ for the overdue bonds. rnnnit.,y of t.lte Uuite1l :state~-; , The Bccrctary of the Troa.Mury, in hits Tho banks have on deposit, in ronnel numl.Jers, to sncure Llwir oircn­ ropOl't for l 8 l, !:lay~> : lat.ion $200,000,000 of :3i per cont. bon1l,;. soon to he callotl, :uul this provi~:;iou sa.ys to thelll, "Yott shnll go ont of existence unl ·ss yon Shonl41mau,v of the bankH, llirOH)!h apprchonHinn of nch-or>~o logil'llatiou, or frorn any othnr· ca ll »\1, 1l o:; ire to retire their circul,ltiun, the dopo>! it of such an amount tmrrendor these bouds within tllirty days after they are allo~ urcr rui)!ht ca.n:;e a :;Brinn.; aucl snd1len contr..tction of aftor the inwrcst Las ccase4lupon them, an1l supply tlluir pl::t co with currcm'Yaml gmYe mhai'L'll.Rsmcnts iu lm itJOH:>. That the apprehension of sucll -l per cent. bouds at wlta.tovor premium the speculating bohkr th rcuf action i>1 nut :!:l"OHDiliUI'IK i:; :;!town b~' what took pla c~ nn the p:t:iRage of tJ10 3 p e1· chool:les to put. upon them." eent. rofun1ling bill uy CongroKt~ at. it>~ ht>~t>~ Ot~H iou . If it i.; liloll:!hL a.tl vi<~ai.Jle Con· gr ct~8 c.au onact t hat natiomtl hank>! be prohihitull from retiring thoir o.urrenoy, ex­ Mr. RANDALL. Do you not make tho individual surrender his CP.pton a predout~ JJotico of intoutiont~o to do; tho length ofthat uotiue tulle fixed bowl f llylaw. 4096 CONGR.ESSION.AL RECORD-HOUSE. MAY 18,

I contend that under this national banking system aU the banks tl1e currency in one year, while my amendment would allow only that may besomewbatpauicky, bocauseofaforeign warforinstance, $37,000,000. mitTht send in tl~ir circulation in such quantities and demand their .Mr. BUCKNER. I suppose it is in order to move to amend the bo~ds and sell tliem, as to bankrupt all the rest. of the community. original proposHion. I speak for the rest of the community as well as for the banks whon The SPEAKER. The amemlmont indicatecl hy t1Je gentleman I support this amendment for tho purpose of aiding them aml us in would be in order, but not at tho present time. Tho question iR 11 pon times of pa,ruc. the amendment offered by the gentleman from Texas [Mr. CuLnRR­ Mr. RANDALL. I now yield two minutes remaining of my time so~ ] to the amendment of the gentleman from Pennsylvania [Mr. to the gentleman from ~Visconsin, [~Ir. DEUSTER.] RANDALL] as mouitied. Mr. DEUSTER. The a1nentlment just offered by the gentleman The question was taken; aml upon a uivision there woro-ayesG7, from Pennsylvania. [Mr. R.A...."'IDALL] as modified upon the. suggestion noes 88. of tho ~entleman from Massachusetts [Mr. CRAPO] obVlates one of Before the result of tho vote was announced, the mam objections urged against the system of national banks. I :Mr. HOLMAN called for the yeas and nays. therefore hope that the same will be adopteu. "'\Vith that amend­ ~fr. SPRINGER. Let us have tellers first. ment added to this bill I shall vote for it. Tho SPEAKER. The question is Jirst in order on the uemancl for I am willing to vote for it for various reasons. In tho firRt place the yeas and nays. there is nothin~ whate>er in the way of a reorganization of a bank The yeas and nays wore oruered, there being ~in tho affirmative, whose charter IS about to expire, under the present laws, and for more tl.Jan one-fifth of the last vote. another term of twenty years. In that respect tho bill is simply a The q uostion was taken; ana thoro were-yeas 88, nays 115, not reaffirmation of a right already existing; in the second place this voting 88 ; as follows: reorganization, if effected under the present laws, wonld involve YEAS-88. the withdrawal of the surplus from the banks. They would ha ..- e Aikon, Cox, William R. House, Ranuall, to winu up business, diviue the surplus profits now forming the Anderson, Covington, Jones, George W. Reagan, l1asis of commercial transactions amounting to many hnnclrecl mill­ ...llnillolll, Cravens, Jones, James K . Rice, Theron M. .Athflrton, CullJerson, Kenna, Robertson, ions, and amounting in themselves to the enormons sum of $128,- Atkins, Davis, Lowuues ll. King, Scales, 000,000 among the stockholders, call in all their loans, interfere with llarbonr, Deuster, Klotz, Rcoville, the commercial transactions now or at the time in progress, and BeltzhooV"er, Dugro, Knott., Hhelle,y, l1egin business anew with no surplus to loan, and consequently lim­ Berry, Dunn, Leedom, Sin~l et()n, Otllo R. lllackbnrn, Ermentrout, Le .l<'evre, Spnngor, ited ability for doing business. This surplus has betm created by Bland, Finley, Mauning, Stockslager, the requirement making a certain portion of the profits of the banks Blonnt, Ford, Matson, Tucker, a part of their available r esene, and has greatly tended toward Brumm, Forney, McKenzie, Turner, Henry G. strengthening the reliability and soundness of these banks. But Buckner, }' ulker ~:~ on, McM.i.llin, Turner, Oscar Burrows, Jos . II. Geddes, Mills, Vance, this amount wonld surely be lost to the business of the conutry in Cabell, Gunter, Money, Van Horn, that reauily-a>ailable form during the next ten months if this bill Cam:phell, Harumone at present to secure depositors U1Hl business peo­ Belmont, J<'arwcll, Chas. .n. J,atham, Shackelforcl, ple from losses throngh irresponsible bankin•l' institntious; :uul that lllack, I•'isher, J,ewis, Shallen berger, a reliable source of taxation has been created, eily controlled, an1l Blnncharu, l<'rost, J,iociHfly, Sherwin, sruoot.hly fultilling the importa,nt functions of a bankiuor syHtem Bliss, Garri>son, :Martin, Himontou, Hragg, G e or~;e, :McCoitl, SparkR, which, in any form, is au absolute necessity for tho lmsiu 'Ss of the lkewor, GibHcm, J\fcKiulHy, Spa uliliug, conntrv. nrow:no, Hall, :McLane, Speflr, In m·y opinion the question of their futnro ex is tell co wiLl bu Aolvctl Rnc:l1anan, Hnmrnontl, John 1\lor~:~e, Steele, by tirue itself more readily than by logislatiou. Tho pnhlic anllf!on Jorgon~:~eu, Ri llaruson, Juo. S . Wi~:~e, .Mor~;an R. .Joyce, P..olJin~:~on, Wm. E. Wood, llm\)amin. man from Ponnsyl>ania, Pir. RA..,DALL,] by striking out "$5,000,- Dczondorf, 000" and inserting " $1,000,000." So tho ::UIJCIIUJUOllt of 1\Ir. CULUERSO~ to tho aruonumont of l\1r. The SPEAKER. There is poniling already a motion to strike out RA~DALL aR moditiull wa~; not agrcetl to. and insert. '.Qto following additional pairs wore announce

~Ir . .A.TIIERTO:N with Mr. CURTI::\1. l\1r. JONES, of Arkansas. I move to strike out "G" and insert )'!r. HERNDON with Mr. HUBBELL. "3t." The result of the vote was announced. as above stated. l\lr. STOCKSLAGER. Say 3. Mr. BUCKNER obtained the floor. l\lr. JONES, of Arkansas. I will modify my amenclment to sn.y 3 Mr. COX, of New York. !wish to move an additional section. inst.ead of 3t. · 1\Ir. CANNON. I desire to move an amenclment to this section. Mr. ATKINS. I move that the House do now adjourn. The SPEAKER. The gentleman from Missouri [Mr. BuCKNER] is The House divided; and there were-ayes 8:3, noes 58. 1·ecognized. Pending the announcement of the result of the vote, the following 1\Ir. BERRY. I move the House adjourn. business was done. The SPEAKER. The gentleman from Mi&;onri [Mr. BUCKNER] E~ROLLED BILLS SIG~ED. has the floor. Mr. ALDRICH, by unanimous consent, from the Committee on En­ ~Ir. BUCKNER. I will yield for that motion. rolled Bills, reported that they had examined and found truly enrolled The question bein~ taken on the motion that the House adjourn, it a hill (H. R. No. 114:l) for the relief of Timothy E. Ellsworth; when was not agreed to, tnere being-ayes 61, noes 87. the Speaker signed the same. ~Ir. BUCKNER. Imovetoamend byinsertingtheprovision which I t>Pnd to the desk. Al\IERICA~S I:\IPRISONED IN MEXICO. The Clerk read as follows: 'fhe SPEAKER, by unanimous consent, laid before the House the That no new or additional bank-note circulation be issne!l. either by a new bank following message from the President; which was referred to t.he or any increase of circulation of banks already organized be issued w1thout a simi­ Committee on Foreign Affairs, and ordered to he printetl: lar notice fileu in the office of the Secretary ot the Treasury ninety days before the tln.te of the art.icles of incorporation, or period when said increase of circulation To the IIouse of Representatives: Hhall be made, and which saiu notice shall be subscribed uy at least five of the in­ I transmit herewith a concluding report from the Secretary of State of the 17th corporators of ~:~aid bank, and shall state the name of the hank, its proposed loca­ instant, and its accompanyinu papers, rfllative to Thoruas Shieltls and Charles tiOn, the character of bonus to be deposited in the Treasury, and the amount of \Veuber, who were imprisoned'at .A.~an, Mexico, anu whose cases furme1l the sub­ drculation to be issued thereon. ject of the resolution of the House ot Representatives of l<'ebruary 6, 188~. ~lr. BUCKNER. Mr. Speaker, I desire to congratulate my friendH CHESTER .A.. ARTIIUR. on the other ~:;ide upon the great advance they are making on this EXECUTIVE 1\IAXSIOX, May 18, 1882. !luestion of circulation. The "elasticity," the India-rubber charac­ LKAVE OF ABSENCE. ter of the national-hank circulation has been the chief recommenda­ tjon urgecl in its favor. Lt has been claimed that the amount of this Dy unanimous consent, leave of absence was granted as follows: currency would conform itself to the business wants of the country. To Mr. ROBINSON, ofNew York, for three ed by the act of share-holders owning two-thirds of its stock, or unless its franchise bccorueR forfeited by some violation of law. r Now, why not apply the same principle to prevent au undue ex­ SKc. 2. Tl!at such amentlment of saili articles of association shall be authorized pansion of the currency f \Vhy not tlu·ow some obstacle in the way by the consent in writing of sharellolliers ownin · ~ not le~:~s than two-tllirtls of tl.Je of the banks enlarging their circulation to just such an extent as capital stock of the association; aml the I.Joiml ot' directors shall cause such con­ they may desire f That is the object of this amendment, nothing sent to be certified, under the seal of tho association, by it~:~ pre::~ident or ca!>llier to else. W hilo we are providing against too rapid contraction why not the Comptroller ot' the Currency, accompanied by an applic:\tion made by the president or ca~:~hie1· for tho approval of tile amended articles of as>~ociation bv tbe say that the national-bank cuculation shall not be enlarged at the Comptroller; antl such amended articles of as~:~ociation shall not be valid untll the mere will or caprice of tho banks t Comptroller shall give to such Ui:!l:!ociation a certificate under hi1:1 band and ~:~eal Mr. HUTCHINS. Is the gentleman irt favor of this amendment f that the association bas complied with all the provisions requiretl to be complied Mr. llUCKNEH.. Certainly I am. I have proposed to submit, as with, and is authorized to have succession for the extended period named m the amended article~:~ of assomation. an amendment to this bill, a provision to fix permanently in some 8Ec. 3. That upon the receipt of the applieation and certificate of the associa­ form or other the amount of this circulation. tion pronded for in tile preceding section tile Comptroller of the Currency may, I see that gentlemen on tl.e other side, and especially my friend if lle deems it necessary, cause a special examination to be maue at the expen~:~o of the association to determine its condition; and if after such examination or other­ from Illinois, lMr. CA..."'WON,] begin to be alarmed about what I havo wise it appears to him that said association is in a sati~:~factury contlition, he shall been preachin~ here for the last two or three months. I apprehenJ. grant his certiticate of approval ]Jrovided for in the preceding section; or if it that some hanK somewhere in Illinois-- . appears that the condition of said association is not sati~:~factor.v he shall withhold Mr. CA.l\TNON. .My friend claims that I am getting alarmed at his such certificate of approval. · SEC. 4. That any URsociation so extending the period of its succession shall preaching; but after I get alarmed, he goes hack on me and votes continue to enjoy all the l'i~hts and }Hivileges anu 1mwunities granted and shall the other way. continue t6 be subject to all the dutie1:1, liabilitiel:!, and restrictions impo~:~ed by the Mr. BUCKNER. Not at all. lf I have t.ime I will show that my Revised Statutes of t-he United States and other acts having reference to national friend's proposition means further contraction. Though it may he banking association~:~, antl it shall continue to be in all respects the identical asso­ ciation 1t was before the extension of its period of sueces~:~ion: Provided, lwwever, in the interest of some bank of $100,000 or $150,000 capital, it means That the jurisdiction for suit8llereafttlr brongllt by or against any association es­ contraction. Some·bank somewhere-probably in my friend's dis­ tablished under any law provilling for national lJanking as~:~ociation~:~, except suits trict, though I will not say that it is-has $100,000 in 3t per cent. between them and the Uuited States or its otlicers and agtmts, shall be the same bonds liable to be called, as they certainly niust be within the next as, anu not other than. the jurisdiction for suits by or a~;ain8t lJanks not organized under any law of tile United States whlch do or ruigbt ao banking bu~:~ines1:1 where two or three years. 1\ly friend says that the banks will not buy 4 such national banking a.~sociation1:1 may ue doing business when 11uch suits may he per cent. or 4t per cent. bonds at the present premium. Now, what begun; and all laws and parts of law~:~ of the United States incon~:~istent with this is snch a bank to dot When its $100,000 of bonds are called in proviso be and the same are hereby, repealed. SEc. 5. That when any national banking association has amended its article!\ of $90,000 of circulation goes out of existence. But the bank does not association as provided in this act, and the Comptroller bas granted his certificate wish to give up altogether its circulation and cease to do business as of approval, any shareholtler not as~:~enting to such amendment may ~ive notice in a national bank; therefore it is willing to deposit $10,000 of bonds writing to tho directors within thirty days from the date ot tho certificate of ap­ and issue $9,000 of circulation. \Vhat is this but a contraction of proval of his de~:~ire to withtlraw from saiu aRsociat.ion, in which case he shall be entitled to receive from saitl banking a,.,sociation the value of tbe Rhares so helt.J. $81,000 in addition to what is already going on f by !Jim, to be ascertained by an appi·aisal made by a committee of three person!\, · 1\:fr. CANNON. The gentleman, I know, wants to got this matter one to be selected by such shareholder. one by tl!e director~:~, and tlJe iliinl by the right. first two; and in case the value so fixed shall nut be sati~:~factory to any ~:~nch share­ Mr. BUCKNER. Yes, sir. holder, he may appeal to the Comptroller of the Currency, who ~:~hail cau~:~e are­ appmisal to be made, wllich shall ue final and bintling; and if said reappraisal shall Mr. CANNON. Would there not be a greater contraction if the exceed the value lixed by said cmnruit.tee, ti1e bank sllall pay tile expense~:~ of said hank should go out of existence altogether and retire the whole of reapprai~:~al, and otherwise the appellaut shall pay said expenHcs ; and the value its circulation f so a~:~certained and detennined slutll be deemed to be a debt due . to said ~:~l!are­ The SPEAKER. The time of the gentleman from Missouri ha.s holder from said bank until paid; and the shares so surrendered and appraise1l shall, after due notice be sold at pui.Jlic sale within thirty days after tlte tiual ap­ expired. praisal provided in this1 section: Pro1rided, That in the organization of any bank­ .Mr. Buc.KNER's amendment was rejecte(l, mg a.ssociation intend d to replace any exiating banking association and retaining XIII_._z57 4098 CONGRESSIONAL RECORD-SENATE. MAY 19,

the name thereof, the holders of stock in the expiring association shall be entitled SENATE. to preference in the allotmen~ of the shares of the new a.ail themselves of the provisions of this act, shall be re­ Oorresponding Secretary. ~uired to comply with the provisions of sections 5221 and 5222 of the Revise«l Hon. DAVID DAVIS. Statutes in tlte same manner as if the shareholders had voted to go into liquidation, JU."D as providerl in section 5220 of the Revised Statutes; and the provi~:~ions of sections PETITIO.XS ME:\IORIALS. 52!:!4 and 5225 of tho Revised Statutes shall also be applicable to such associations; Mr. ROLLINS presented the petition of J. T. Burns, H. A. Pea­ and the francllise of such association is hereby extended for the sole purpose of body, and others, citizens of Milford, New Hampshire, praying the liquiuatinJ?; their affairR until snch affairs are finally closed. SEc. 8. That national banks now organized or hereafter orj!anized having a. passage of a Federn.l statute compelling corporations and their agents c-apital of $150.000 or less shall not be requireu to keep or deposit with the Treas­ and common carriers to perform certain duties, and regulating the urer of the United States Unitec.l. States bonds in excess of $10,000 as security for charges for railroad transportation; which was referred to the Com­ their circulating notes, and such of those banks having on deposit bonds in excess of that amount are authorized to reduce their circula.tion by the deposit of lawful mittee on Commerce. money as provideu by law. Mr. MILLER, of New York, presented a petition of citizens of Matteawan, Dutchess County, New York, praying for the passage of And then (at :five o'clock and two minutes p. m.) the Honse ad­ an act to pt3nsion soldiers and sailors who have lost a limb, or suf­ journed. fered a disability equivalent thereto, at the rate of $40 a month; which was referred to the Committee on Pensions. He also presented a petition of citizens of Lewis County, New PETITIO~S, ETC. York, praying for tho passn.ge of a bill for the amelioration of the The following memorials, petitions, and other papers were laid on condition of emigrants to this country; whlch was referred to the the Clerk's desk, under the rule, and referred as follows: Committee on Commerce. By :Mr. ATHERTON : Paper relating to the claim of Sarah Max­ Mr. PENDL"ETON presented the petition of Rev. ,V. A. Leonard well-to the Committee on Invalid Pensions. and 26 others, residents of the city of 'Vashington, praying for the By Mr. BARBOUR: Papers relating to the claim of Daniel F. Du­ passage of an act !:franting $5,000 to the Chllrch Orphanage Associa­ laney and Isaac N. Hollingsworth-severally t.o the Committee on tion of Saint Johns Parish, of Washington; which was referred to War Claims. · the Committee on the District of Columbia. By Mr. DWIGHT: The petition of S. E. 'Veed and 27 others, citi­ zens of Binghamton, New York, against the pas..'lage of the biil relat­ REPORTS OF COMMITTEES. ing to methylated spirits-to the Committee on Ways and Means. :Mr. MAHONE, from the Committee on Post-Offices and Post-Roads, By Mr. GEDDES: The petition of D. ,V. Byron and 76 others, to whom was referred the petition of M. C. Mordecai aud others, praying that a pension be granted to S. A. Gormley-to the Com­ owners of the steamship Isabel, praying compensation for mail ser­ mittee on Invalid Pensions. vice, submitted a report thereon, accompanied by a bill (S. No. 1905) By Mr. N.J. HAMMOND: The petition of Davenport, Johnson & for the relief of M. C. Mordecai. Co. and others, merchants of Atlanta, Georgia, in favor of the passage The bill was rea.d twice by its title, and tho report was ordered to of the Brewer bill for the protection of commercial travelers-to the be printee instructed me to report it without amend­ Gallatin, Ohio, for the establishment of a post-route between thot~e ment and to recommend its passage. As this measure affects the plac01:1-to the Committee on the Post-Office and Post-Roads. convenience of the Senate ancl especially of the Committee on Print­ lly Mr. D. P. RICHARDSON: The petitions of 0. \V. Smith and in~, I venture to ask for its present consideration. others and of S. G. Lewis and others, for the enactment of a general By tmanimous consent, tho joint resolution was considered as in It Jaw to regulate emigration-~;everally to the Committee on Com­ Committee of the Whole. makes it lawful for the Public Printer, merce. under the direction of the Joint Committee of the Senate and House By Mr. 0. R. SINGLETON: The petition of citizens of .Madison of Representatives on Printing, to print for sale, at a price sufficient County, Mississippi, for an appropriation for educational pw-poses­ to reimburse the expenses of such printing, the current Congressional to tho Committee on EJncat:on and Labor. Directory and the current numbers of the Co~GRESSIONAL RECORD, By Mr. STlrCKSLAGER: The petition of S. M. Stockslager, for an