1312 CONGRESSIONAL RECORD. FEBRUARY 26,
Counties, New York: of William P . Fisher, William B. Kline, and By Mr. A. S. WILLIAMS: The petition of St. Micha~l's cJ:mrch, of others, citizens of New Germantown, New J ersey; of 30 clergymen of Charleston, Sonth Carolina, to refund the cluty paicl on a chime of the Metb9dist church of Philadelphia and vicinity, for a commi sion bells imported into the province of South Carolina in 1763, seized by of inquiry concerning the alcoholic liquor traffic, to the Committee the British in 1780, and taken to Engla.nd, where they were repur on the Judiciary. chased in 1784 and returned to Charleston. In 1863, during the sl:!ell By Mr. GAUSE: Papers relating to the claim of William F. Grove ing of Charleston, they were removed to Columbia, South Carolina, for adrlitional compensation as a United Sta.tes Army officer, to the for safe-keeping, where they were cracked from heat during tho de Committee on Military Aftttirs. struction of that city in 1865, and were sent back to England, recast, Also, the petition of members of the Baptist church at Helena, for and aga.in re-imported, to the Committee of Claims. compensation sufficient to repair the damages to the same caused by Also, the petitions of 47 citizens of Charlotte, 18 citizens of West its occupation by the United States Army as a hospital, to the Com Branch, of 29 citizens-of Pinconning, of 21 citizens of Orion, of 40 mittee on War Claims. citizens of Parma, and of 110 citizens of Wenona, all in the State of Also, the petition of H. H. Ma.this, for pay for cotton t.aken and Michigan, that authority be granted to build a bridge across the river used by United States military authorities in constructing fortifica at Detroit, to the Committee on Commerce. . tions at Trenton, Tennessee, and burned after capture by General By 1\Ir. ·wiLLIAMS, of Wisconsin : The petition of Albert G. Pea Forrest, to the same committee. body, for pay as a Unit-ed Sta.tes officer, to the Committee on Military By !Ylr. GUNTER: Papers relating to the claim of Juan Carlos San Affairs. · . tistevan and others, privat~ land claim No. 61, in the Territory of New .Mexico, to the Committee on Private Land Claims. By Mr. HAMILTON, of New J.ersey : The petition of Tobias Bou dinot, fo1· compensation for damages to his property by the Army, to HOUSE OF REPRESENTATIVES. the Committee on War Claims. By Mr. HAYMOND: The petition of 156 citizens of Michigan City, SATURDAY, February 26, 1876. Indiana, that authority be granted to erect a bridge across the river at Detroit, to the Committee on Commerce. The House met at twelve o'clock m. · Prayer by the Cha.plain, Rev. I. L. TOWNSE~H), D. D. By Mr. HENDERSON: The petition of Ron. J. V. Enstice and other attorneys and citizens of Lee County, Illinois, that if the new judicial ORDER OF BUSINESS. district in illinois is created, Dixon, in said Lee County, be made the Tke SPEAKER. By previous order the House is now in session as place of holding the courts, to the Committee on the Judiciary. in Committee of the Whole House on the state of the Union for tlo By Mr. HENKLE: The petition of the president and directors of bate only, no bu iness whatever to be transacted. The gentleman the general ho~ital at Georgetown, for an appropriation for said in from Illinois [Mr. EDEN] w1ll preside. stitution, to the Committee for the District of Columbia. The SPEAKER pro tempo1·e, (Mr. EDEJ.~.) The gentleman from Ten By Mr. BOAR: The petition of Major John M. Goodhue, to be nessee [Mr. RIDDLE] is entitled to the floor. placed on the roll of retired UnitBd States officers, to the Committee THE CURRENCY. on Military Affairs. By Mr. HOUSE : The petition of Calvin Hays, (colored,) of David Mr. RIDDLE. Mr. Speaker, politics is a progressive science. It is son County, Tennessee, for a pension or other relief, to the Commit an experimental S<(ience, consisting in the application of temporary tee on War Claims. contrivances to temporary emergencies. It has been wisely said that By Mr. JACOBS: The petition of 252 citizens of Idaho and Nez "no lines ca:u. be laid down for civil or political wisdom. They are a Perces Counties, Idaho Territory, for an appropriation for the improve matter incapable of exact definition." And with equal wisdom it has ment of the Columbia and Snake Rivers, to the Committee on Com been asserted that "all political principles have been raised by hasty merce. induction from limited facts; and that therefore it is the part of a By Mr. MAGOON: Memorial of the Legislature of WiscODI'~in, for in wise man when he adds to the facts to revise the induction, and, in creased mail service in Green Lake and Waushara Counties, in said stead of sacrificing practice to principles, modify the principles that State, to the Committee on the Post-Office and Post-Roads. he may change the practice." Also, memorial of the Wisconsin Legis,lature, for increased mail serv We are the representatives of the people. It is our solemn duty to ice in Polk County, in said State, to the same committee. carry out their wishes and execute their sovereign will, regardless of Also, memorial of the Wisconsin Legislature, for an appropriation onr own individual opinions, preferences, or predilections. And i~ is to improve t he Chippewa River, in said State, to the Committee on our duty to incorporate that will, when clearly ascertained, into the Commerce. legislation of the country. We, as the representatives of the people By Mr. MUrCHLER: The petition of citizens of Bucks County, can h~ve no will of our own in oppositio~ to the will of the people: Pennsylvania, for a post-route from Appleb:1chsviUe to Richland Even 1f they are wrong, nevertheless the1r behests must be carried town, to the Comniit.tee on the Post-Office and Post-Roads. out with unquestioning obedience. Let ·them have their own way, By l\ir. NEAL : The petition of E. A. Sellma.n and 117 other soldiers, and if they are wrong that principle of noble generosity which is in that each soldier be granted $200 in lieu of a land warrant, to the herent in the popular heart will in the end lead them to correct the evils Committee on Military Affairs. of their own production. The magnet of their souls when touched By Mr. NEW: The petition of citizens of Indiana, for the repeal of by remembrance ever trembles to the poles of truth and right and the check-stamp tax:, to the Committee of ·ways and Means. honor. By Mr. PLAISTED: The petition of George ,V. 'Vatson and 30 oth I am fortunate in being able to re-enforce these sentinlents by the ers, for a post-route from Limestone to Van Buren, Maine, to the Com opinion of the most profound political philosopher of modern times; mittee on the Post-Office and Post-Roads. for it was Edmund Burke who said: Also, the petition of Charles Kidder and 49 others, for a post-route In eff~ct, to follow, not to ~orce the :public inclination; to give a direction, ::dorm, a techmcal dress, and a specific sanctiOn to the general sense of the community is from Briflgewater Comer to East Bridgewater, to the same committee. the true end of the Legislature. * "" * It would be dreadful, indeed, if th~re By Mr. POPPLETON : The petition of W. W. Chermigton, G. W. was any power in the nation capable of resisting its unanimous desire, or even t.he Miller, Michael George, William M. Faris, and 460 other citizens of desire of any very great and decided majority of the p eople. The people may be Ohio, for the appointment of a commission of inquiry on the subject deceived in their choice of an object. But I can scarcely conceive any choice they may make to be so very mischievous as the existence of any human force capable of the traffic in alcoholic liquor, for a law prohibiting its importa of resisting it. tion, and for other prohibitory legislation on the liquor question, to the Committcee of Ways and Means. And when speaking in 1772 on a bill respecting the importation By Ur. RUSK: Papers relating to the claim of John S. Dickson, and exportation of corn, he said : for pay as a captain in the United States Army, to the Committee on (ln thli? ~casi.on I give way to _tho _present bill, l!ot because I. a.Pprove of t.he Military Affairs. measqro m 1tself, hut because I thmk 1t prudent to y1elcl to the sp1nt of the times. The people will have it so ; ami it is not for their representatives to say nay. I By Mr. SEELYE: Thepetitionsof theMethodistEpiscopalchurches cannot, however, help entering my pr otest against the {!eneral principles of policy at Natick, and Turner's Falls, Massachusetts; of the Fremont street on which it is supported, because I think them extremely dangerous. church, Boston, Massachusetts; and of the Ma.ssachusetts Temper ance Alliance, signed by their respective officers, for a commission of And since this session of Congress began, on t he 20th day of Janu inquiry concerning the alcoholic liquor traffic; to the Committee on ary, 1876, the same principle of action was indorsed by the ilistin the Judiciary. · guished gentleman from .Massa-chusetts, [Mr. BANKs,] whose u tter By Mr. TUCKER : The petitions of Pickerell &Brooks; ofWats<1n, ances upon this floor seem always to be directed by th,e inspirations McGill &Co.; ofVirginiaTaylor,executrixofJoseph Taylor; of Alex of patriotism, and which are always listened to with so much atten ander Donnon, administrator of David Dunlap; of David B. Tennant, tion and respect by every member of this House. On that occasion for pay for manufacturing tobacco seized by United States authori he said : Sir, I have no appeal to make to democrats or republicans. I do not know what ties and sol<.l, to the Committee on vVar Claims. they may propose. still less what they may do, for the relief of the country. I tlo Also, the petition of L. R. Spelman, administrator of John Currie, not rest my faith in them. My hope is not there. I have an ever-abiding faitil deceased, for indemnity for a vessel captured by the United States which I think will be realized elsewhere. I salute the august majesty of tlre peo naval authorities, to the s:une committee. ple that stands behind them; the people who know their stake in the country and By Mr. THOMPSON: The )letition of John Pew and others, of their way out of it. Gloucester, :Massachusetts, for an examination and survey of cert.ain And in the same speech the same disth1guished gentleman made rocks in the harbor of Gloucester with reference to their removal, to the confession that from some cause his own people did not enjoy the the Committee on Commerce. same prosperity that they seemed to have ten years ago. It would 1876. CONGRESSIONAL RECORD. 1313
not be a violent presumption tosupposo that every Represcnt,ative in be a great contraction of the currency and great distress in the coun this Congress would, if called upon, make the same melancholy con try; and Mr. Brooks, of New York, had the candor to declare that his fession. It is an unquestionable fact that the people are in distress; constituents would reap a golden harvest from that distress; that and it is equally unquestionable that they demand relief, and they they made large gains from the follies and errors of others. It is to demand it of their Representatives in Congress. be hoped that no part of the country will be permitted to get any There is great prostration of business in every part of the country, advantage over any other part of it by the unwise legislation of the and· there is no present prospect·of its revival. Trade is paralyzed present Congress. If it be possible, let it correct the gross errors aml and failures in commercial life are continually occurring; and these manifest blunders of the past. At any rate, let it refrain from per distressing. events are producing discontent and clamor among the petrating any more blunders, for in politics a blunder is said to be people. The cry of distress comes up to this Capitol from every city greater than a crime. and town and hamlet in the land. Something ought to be done to That the currency has been contracted to the extent stated, and alleviate .this distress and to impart vitality to the stagnant waters even beyond it, was conclusively demonstrated by my colleague [.Mr. of c.ommerce anrl of business. BmGHT] in a speech delivered in this House on the 28th day of 'larch, The origination of measures which would certainly give reli~f to 1874. In that speech he said: the count-ry would be far more grateful to the people than the excite On the 31st of August, 1865, we had 2,193,395,627 of currency. On the 1st of No ments of an amnesty debate or the passage of a centennial appropria vember, 1873, we ba.d 631,488,677, mak-ing a reduction of $1,560,966,851, or an an tion. If something of a remedial character is not done, there will be nual reduction during eight years of 195,133,356. a. commotion and an agitation among the masses of our countrymen I prepared a table several months ago in which was shown at that not unlike the convulsions that shake the earth when the fabled time the amount of currency in circulation in the great trading and Euceladus turns himself over beneath the everlasting moun~ains. commercial nations of the world, the population of those nations, and The impressio11 prevails among the people that they have not been the circulation pel' capita among their people. That table is not ex fairly dealt with in the legislation of the last few years, and it must actly correct at this time, of course, but it approximates correctness, be confessed that an examination of some of that legislation is well and is sufficiently accurate to illustrate the proposition that I desire calculated to give color to that accusation. Alawwasneverenacted to enforce; and that table is as follows: more disastrously injurious to the interests of the toiling millions of this country than the resumption law of the last Congress. The pas sage of such a law may well revive in our memories the remark of the Countries. Circulation. Popula Per venerable chancellor to his diffident son: "Come, my son, and learn tion. capita. by how little wisdom the world is governed." Compulsory resumption laws have always been signal failures. France ...... -··· ... . ~I, 509,000,000 36,000,000 "42 ()() . Their utter futility is made perfectly transparent in the clear light of Great Brit.'lin...... ••...... 683,000,000 32,000,000 21 00 history. It is a fact, known to every intelligent :fi.nv.ncier and poli 1 18 00 tician, and one that has been referred to time and a.gain in discus %:it!d S~~;·:::::::::::::::::::::: ::::::: ~~~: ~gg: ggg !~: ggg: ggg 15 00 sions had on finance years ago in this House, that the Bank of England . suspended specie payments in 1791 and did not resume until1823, It will be seen at a glance that those of the above-named nations and d.!,ITing that period resumption could not be coerced by legisla which have the largest circulation per capita enjoy the greatest finan tion. During tha,t suspension the day was fixed about eight different cial prosperity, and the actual facts show it. times when the people should pay specie; and the result every time The amount of circulation pm· capita in the Unit-ed States since 1862 was to run up the price of gold, ruin business men, and paralyze trade; has been as follows: In 1862, $21 ; in 1863, $27 ; in 1864, 28; in 186G, and the laws requiring resumption at a fixed period hn,d to be modi $27; in 1866, $23; in 1867, $2'2.80; ·in 1868, $21; in 1 86~, $20; and in fied or repealed for the relief of the country. 1875, $15, which is less than it was in 1857. General Jackson issued his "specie circular" in 1836; and multiplied The argument presented by these figures is simply overwhelming, thousands now living remember with painful distinctness the pltmti and they flash conviction upon every unprejudiced mind. They make fnl crop of financial ruin and disaster which it brought forth in 1837. it as clear as the light of the meridian sun that the greatest prosperity A. resumption law compelling a return to specie payments on a fixed of this country was contemporaneous with its largest moneljary circn day in the future necessarily leads to an unhealthy contraction of the lation; and the fact is patent to all that that prosperity has declined currency. It has always done so in the past and will always most in a geometrical mtio with the depletion of the currency. certainly do so in the future. The calamities of nations are the les I would inquire, then, what n,ction is necessary on the part of Con sons of history; and we are exceedingly unwise if we fail to profit by gress to restore our lost prosperity? It is, most unquestionably, ~:1 this specie-resumption lesson. Under the operation of the resump increase of the volume of the currency, either by such legislation as • tion law now in force the currency ha,s already been contracted about will mobilize ana put in circulation what currency we have, a grertt $!2,000,000, a.s stated by Treasurer New, and it has been brought about part of which has been driven from the ordinary channels of business by the surrender of circulation by the national banks and by the ac by the apprehensions excited by the "resumption law," or by such cumulation of greenbacks by those banks for purposes t>f ultimate legislation as will actually nodd to the volume of circulation now out resumption or for the redemption of their circulation. standing. Perhaps legislation looking in both these directions would Let us at once remove this congressional guillotine which has al afford a more immediate, adequate, and efficacious remedy. ready taken so much of the blood of life from our business commu There is not enough money in actual circulation to keep the gre::tt nity. If thv.t odious law is not repealed its operation or prospective industrial and commercial interests of the country in a state of healthy execution will lend to an indirect confiscation of a large portion of activity. The exigencies of the times demand more currency, infla the property of the people. It is also obnoxious to the charge of tion if you please; not unlimited infl:.ttion, but a sound nond health class legislation; for, whether so intended or not, it is manifestly in ful inflation. I am frnnk to say that I do not want such an inflati6n the interest of the money power of the country. The holders of of the currency as will necessarily cause its depreciation, for that money can well aftord to let it remain for several years in their strong would be swindling the people. I desire n, currency properly adjusted boxes unemployed, in order that they may invest it in property after to the business operations of the people, and not such a redundancy it has depreciated at least one-half in value. They can well nfford of it, a,s will derange the values of all property and make of trade aud to submit to present temporary inconvenience in the certain and con commerce a mere game of chance. I want no confederate money, no fident expectation of reaping great and permanent advanta~es in the assignat plethora, no superfluity Of currency, but just that quantity future. They well know that property sold under the shenff's ham which the business experience of this country has demonstrated to be mer never brings its full value, and they well know how to take ad van essential to its commercial activity n,nd its general, material, and tage of the follies and necessities of both provident and improvident industrial prosperity. debtors. The French have a specie circulation of $1,250,000,000, because they And the effect of such a law is such thnot the apprehension of its cannot be induced to deposit their money in bank and transact their operation always leads to a panic and loss of confidence among the business by checks, as do the people of England and America; and, people. There is something mysterious and unaccountable about a in addition to that, the Bank of France, ou the 30th of September, panic. We are told in the ancient mythologies that Pan commanded 1875, had a circulation of $484,000,000 ; making in all a circulation of · the armies of Bacchus when he invaded India, and that, while the $1,734,000,000. Although France emerged five years ago from one of superstitious Indians endured without trepidation the thunderbolts the most disastrous and desolating wars of ancient or modern times, of the Titans, yet when Pan caused his sharp and shrill voice to re yet to-day she enjoys a greater degree of thrift and internal pros verberate among the surrounding mountains they fled in disorder and perity than any of the leading commercial nations of the world, with dastardlyprecipitatieo. And from this circumstance we derive greater even than Germany, to whom she has paid within that period our word "panic." Let us guard against such legislation as alarms $1,000,000,000. the people and arrests the steady progress of beneficent industry. 'Vhile other causes may, and no doubt clid in some measure, con And in addition to this C3.use of our present distress, our circulating tribute to this result, yet I would respectfully inquire if her volume medium ha{} been reduced more than $1,000,000,000 previous to the pas of cmrency, fully adequate at all times to the demands and exig the impartial reasoner that this result will not follow if the currency of 4 or 41 per cent. in !"Old, with a provision 'that bank-notes to an amount equal to has a firm and substantial basis. There is no more necessity for the the notes which may tbus be retired may be issued, if required by the banks; and that from and after the 1st day of .January, 1878, the United States notes shall ceasA clepreciation of the value of paper money, if its amount is constantly to be a legal t ender. regulated with reference to the business operations of the people, than there is for the depreciation of gold and silver. The excllangeable We have bud enough legislation already in the interest of the banks value of gold and silver will diminish in proportion to the quantity and of the money power of the country. What is now imperatively in tirculation; and so with a paper currency. The best support of a demanded is legislation in the interest of the people, in the interest currency is not limitation, but receivability; ancl this rule applies of the toiling millions, whose cries for relief are continually heard at with equal force to specie and paper money. the uoors of this Capitol. I am fortunate in being able to fortify this statement by remarks Any legislation by this or any other Congress which would add to made by Mr. Thaddeus Stevens, of Pennsylvania, in this House on the the interest-carrying debt of the nation, or which would convert n. 6th day of Fe brnary, 1862. He then said: non-interest-bearing obligation into one carrying interest, would be .All contrn.ots are made not only with a view to present laws, but subject to the considered, and justly so, as a fraud upon the people. It is the tre future MgisL1.tion of the country. We have more than once changed the value of mendous interest-bearing debt of the nation which imposes sooner coin. Neither our gold nor silver coin is as valuable as it was fifty years ago. ous a tax upon the labor of the country. \Ve have no monarchy, no Congress in 1853, I believe, regulated the weight and -.alue of silver. They de aristocracy, and no church establishment in this country by name; ba~ed it over 7 per cent. and made it a legal tender. but, in reality, we have something that is nearly as had. Great Britain And again he said on the same day : has all these splend_id appendages of power, nnd yet the yearly cost Increase gold mid silver beyond the amount needed, and you depreciate its value. of her government 1s only $517,000,000; while the yearly cost of the Such inflation of the currency is just as il;ljurious as if it were in paper, so far as raising prices and stimulating speculation concerned. governments in -the United States, national, State, county, and mu are nicipal, is the enormous sum of $640,000,000, which is about one-fourth And he quotes the following language of McCulloch, whom be of the value of one entire crop raised in the country. The amount characterizes as "one of the most learned of writers on that. subject:'' of the cost of government is the same in the United States as in En By reducing the supply of notes below the supply of coin that wonld circuhte gland, being ·16 per capita. It is inimical to the genius of republican in their place were they withdrawn, their -.alue may be raised above tl1e value of institutions that their governments should be gorgeous and splendid. gold, while by increasing them to a greater extent it is proportionably lowered. It was wisely said by Nathaniel Macon, of North Carolina, who, in In 1i70 the annual production of gold and silver was only about the earlier and purer days of this Republic presided as Speaker over $30,000,000, while the annual yield. at this time is about $200,000,000, the deliberations of this House, "that republican governments should or an increa-se of sixfold in a century. When America was discovered be poor and the people rich." the total annual production of the precious metals in Christendom We may well profit, as we have already done to some considerable wa-s only about $300,000, and the total stock on hand was only about extent, by the maxim of this Cato of American politics, and reduce it 200,000,000, while the present stock of coin in Christendom is about to a wholesome practice by the diminution of salaries and expendi- · S,OOO,OOO,OOO. We now dig as much gold :md silver from the earth tures generally, and evince a disposition, at least, to turn over a new every year as all E~uope had in 1792; and the stock of coin has in leaf in our governmental history, and return to the good old ways of creased in Christenclom some two hundred and :fifty fold, while the repn blican simplicity. It is high time to inaugurate the "evangelical population has not increased fivefold. I am indelJt.ed for these bets politics of love and charity and good will to man," and to limit the to Hittell's History of Culture, and the following is an extract from action of the Government to the exercise of the fewest possible func that work: tions of power. The true democratic theory of government is to do But commerce has gained more than our stock of coin, and money is now usecl nothing by legislative intervention for the people that the people can far more extensively. * * The effect of the increase of the precious met.1.ls h.'tS possibly do for themselves without the aid of the Government. It is been to cause a rise in the market price of labor and of the products of labor; antl an ounce of silver is now worth relatively about one twenty-1ifth part as much as the mission of the democratic party to confine the Government to its it was in 1500. primary ends, which are the protection of the life, liberty, and prop What was the result of this great increase in the annual produc erty of its citizens. The republican party embraces to a very large tion of gold and silver'f Why, sir, an era of unexampled prosperity. extent the paternal theory of government, and thereby enlarges its The opening of the gold placers of the Sacramento basin and the sil functions, so that they embrace l>y far too many details in the ramifi ver lode-s of Nevada has led to a development of the Pacific slope, an cations of society; and corruption and maladminstration are the accumulation of wealth, and an acceleration of the general progress inevitable result. There are, and will be, corrupt men in all politi of civilization in America unparalleled in the annals of history. cal organizations ; but the democratic party has always had, and Commerce has been duplicated and reduplicateu, agriculture has been always will have, this immeasurable advantage over the republican • stimulated, emigration has been encouraged, and every material and party, that its p1'inciples do not necessarily en~ender corruption as do industrial interest has been promoted. The silver arid golden stream, those of th~ republican party. The democrn.t1c party prevents an iu like the ancient Pactolus, has poured its profusion of wealth into the calcnlable amotmt of mal-administration by leaving the secondary lap ·of stagnant trade and discouraged industry; and the energies of ends of government to private enterprise and private beneficence. a young nation revived and shook their invincible locks like a giant The democratic party may in some instances be compelled to depart refreshed from his slumbers. A large part of onrbroaddomain which from its fundamental principles of action by previous bad and unau before was a barren wiluerness became a verita.ble "garden of the thorized legislation, for which it wa-s in no way responsible. In llis Lord." · speech on the centennial appropriation, January 25, 1876, :Mr. THOMP A similar state of prosperity was produced by the generous circu SO:N, of hla sachusetts, enunciated a political maxim which any politi lation which the country enjoyed in 1865, 1866, and 1BG7. The in cal party may be justified in adopting on extraordinary occasions; strumentalit.y by ·which that generous circulation can be rest.ored is and it is this : neither dubious nor difficult. What h::ts produced prosperity in the An unconstitutional act may create constitutional obHgations. A government past will most certainly produce it again. Instead of 1·etiring the may be justly called upon to repair the injury its un..'l.uthorized nets have done. legal-tenders, let their present amount be enlarged. An English au The class of ca es to which this maxim applies is the only cla-ss that thority on finance, which I do not now remember, declares that the justifies the blending of the primary with the secondary ends of gov monetary circulation required by every country to carry on its mul ernment. An instrument cannot he employed advantageously both tifarious business enterprises is an amount equal to three times the as a razor and a carvin~-knife. If so employed, it will neither shave sum that will defray the expenses of its government, economicnlly so well nor carve so well. And the same principle applies to the gov administered. If our n.nnual expenditure is $300,000,000, our perma ernment. There is positively not enough pnblic virtue in this coun nent circulation should be $900,000,000. And by the census of 1870 try to carry on the Governmept without malpractice and corruption the gold and silver and paper money of the conntry amounted to if both its primary and secondary-ends are embraced within the scope $900,000,000, an amount fully adequate to the demands of trade and of its authority and administration. the wants of the business community, if it were in circubtion. A . We are one of the most heavily taxed nations in the w9rld as the proposition was ma.de during the discussion of the Treasury-note bills result of our departure from tbe true theory and practice of a repub in 1 62 a,nd 1 63 that the minimum of circulation among tp.e people lican government. Every hardy son of toil in the land feels the should be fixed at $20 per capita. It would be wise at this time to con weight of this heavy taxation; and it is a religious duty to reduce it vert that proposition into a law, which, like those of the :Medes and and even to remove it if it can possibly be done. \Ve need in this Persians, should bo irrepealable. Under this rule our circulation would high forum of national legislation repres ntatives who have theca approach S900,000,000, as our population is near forty-five million; pacity and the heart to be touched by a feeling sense of the wants a.nd wliile in fact it is only 714,000,000, and really less than that by at the sufferings of the people, and who have at the same time the nerve least 150,000,000 through the effect of the fears and apprehensions and the determination to propose and to champion that legislation caused by the resumption law. Even 714,000,000 only gives l!; per which will meet those wants and alleviate those sufferings. capita. The actual circulation among our people is less than 15 11er An election to Congress is the political mint which. places upon the capita, while in France and Great Britain, the most prosperous na citizen the stamp of representation, and it imposes the discharge of tions on the globe, it is over $20 per capita, as has been previously a great duty and the burden of a heavy responsibility. His distinc shown. . tion and his welcome plaudit from a grateful people come and they In a letter to the New York Tribune, dated September 11, 1l75, the come alone from the honest and faithful discharge of that duty nnd late Secretary of the Treasury, Hugh McCulloch, makes the follow the full and adequate meetin~ of that responsibility. It is the amount in~ propo ition: of duty done and the extent of his honorable achievements in the in If I were a memuer of Congress, my first act would be to in trod nee n bill maldng terest of the people that twine the lamel and the chaplet of fame tllc Unj.teu States notes ~t ouce cop.vertil.lle iut.o l.lon him a personal decoration, but they are abadge of his servitude to jewel in its Lloo<1y crown ; and acconnt on that every devoted lover tho people, and not a title of nobility. Instead. of elevating him above of his country will return his devout thanks to Almighty God that it the people they constitute him a servant of the people. The Author has como, and. that it has gone; for it has foreverscttlec.l the one fun of our holy religion, when he girded Himself with a towel and washed damental principle of this Government. It bas forever ettleu, as tne feet of Hit! disciples, promulgated the new g01:;pel of duty which nothing but the terrible divinity of war could have forever settled, must be accepted and acted upon by every public man who hopes to the great. and ovel'8hadowin~ question, a question involving all other meet the just expectations of his constituency, and that gospel is this: questions, of the unity amlmdivisibility of this Government. If any man would be hrrca.t among you, let him be your minister; anll if any man Ever since the convention of 1787 there had been a ditlerence of woulll be chlef among you, let hlm be servant of all. opinion among the most profound statesmen of the conn try as to the nature and character Qf its government. There were two antago And are we such representatives Y The work proposed and per nistic theories of constitutional interpretation. Most southern men If fected by this Congress will show whether we are or not. the peo believed their alle~~mce due, in the first instance, to their States and ple have not such representatives on this floor at this time, they will not to the General Government. They religiously believed, as the have them here at a period iu the future not very far distant. Kentucky and Virginia resolutions of 1798 and 1799 asserted, that in An overwhelming majority of the people demand that every dollar the event of a coniest between the SJ:ates an co-extensive with the limits of his country, in which letter he says, in~ their old and worn-out theories in regard to bard money, which is (and I am well assured in my own mind that he will pardon the use acknowledged to be an impossible currency in periods of panic ancl I now make of it:) financial disaster, when there exists the greatest necessity for its I beg leave to state that the United States gold sixes are (1ue before 1881, and can free circulation. So many new facts have accumulated in the hlstorv be redeemod by t~o United States at s~dry times prior to that da~o. The United of finance as to neces.~itate a revision of the hasty inductions hereto States currency sues are payable thirty years after date, and WJll mature from 1895 to 1899, and are not redeemable before maturity. My opinion, tberefore, is fore made from limited facts; and some of the most enthusiastic ad that. the difference in the time tho loans have to run makes tile difference in their vocates of a. metallic currency are gradually :tnnouncing their adhe ll?arket va~ue in fa~or of tho longer loan. The currency bonds are payable, prin sion to the proposition that "in a well-governed country the credit. cipal and mtorest, m currency. of the state is the highest form known," and that "the credit of the These currency bonds are worth· more than gold to-day ; and this governments of Great llrita.in or the United States is worth more thun fact I desire to he well remembered for a purpose that will be fully the promise of any bank to pay gold." stated hereafter. I am well a·ware tha,t doubts are ent-ertained by many as to the If the Txea-sury notes were not discriminated against by the legisla- constitutionoJ. power of our Government to issue in times of peace . tion of the country, they would be of equal value with gold and silver, Treasury notes which shall be a legal tender. If these doubts are o and would be preferred by the people in the conduct of their business general and of such a character as to embarrass ancl obstruct whole operations. If these discriminations were removed, and if the notes some legisl:ttion for the relief of the country, then the gravity of the of the national banks were superseded by Treasury notes m~de a legal situation is such a-s fully to justify the adoption of constitutional tender in the payment of all debts, then there woulu be less necessity amendment which shall expressly and unquestionably confer that for an increase of the currency by positive and affirmative legislation, power. Permit me in conclusion, Mr. Spea,ker, to say that the demo for the reason that such measures would, by the operati'm ·of their cratic party, in the p::uit history of this Republic, has gl{)riously vincli inherent power, break the great gold gorge which now obstructs the cat.ed its character u.s the friend and tho champion of the clearest circulation of specie, and the gold and silver would come out of the rights of the people. It is too late in the day for that party to take bank vaults and money-chests and flow freely in the currents of tra,de a step backward. It must show itself equal to the present emergency, and commerce. Their withdrawal from business renders them as in and demonstrate the fact to the people that it is a progressive democ ert for purposes of practical utility as if they were still bidden in the racy, and keeps itself fully abreast of the great que tions of the aO'e. bosom of the prime\7 al rock of their mollllta.in homes. The actn'tl fact Tho democratic party of to-day is ~ot the democratic party of 1Sh6 is that the hoarding of the precious metals exerts a powerful positive or of 1 61 ; but it is a new and renovated part.y, combining in orO'anic influence in the direction of commercial and financial stagnation; for and harmonious union the conservative :tnd vital elements of the olcl st.rength unexerte ture adorn herself with a folia.ge more vital and more glorions than Il\IPROVE:MEl'l~ OF CUMBERLA~D RIVER. that of 1787. But in order that she may achieve so gra.nd a destiny Mr. DURHAM. l'tlr. Speaker, nearly all of the speeches wlJich have sho must revise some of her hasty inductions upon the great financial been made during the present session when the House bas been iu questions of our politics and conform to the spilit of a new age which Committee of the Whole were on the currency question. Their views lJas been superinduced by an advancing civilization. The Bourbon have been various and their opinions very diverse. The people of the element, which learns nothing and forgets nothing, has no place in the country are very much interested in that question, I admit. On a creed of a progressive democracy. I believe it was Coleridge who said: sound system of finance very much depends the prosperity of the If men could learn from history, what lessons it might teach them. But passion country. But I propose to-day to change the programme a little, and and party blind their eyes; and.the light which experience gives is a lantern on speak about the improvement of some of the great natural highways the stern which shines only on the waves behind them. of the country, upon which I think very much of the growth, pros It was Bolingbroke who said: perity, and development of the country depend. History is nothing but philosophy teaching by example. During the last Congress 1 procured an appropriation for a survey And it was Burke who said: of Smith's Shoals, in the Cumberland River, in the State of Kentucky. • That survey was made in thela.tter part of 1874 by Mr. R. C.l\IcCalla, Example is the school of mankind and they will learn at no other. assistant engineer, and his report wHl be found in the annual report The true American politician can never fully meet his responsibili of the Chief of Engineers for 1875, in appendix R, on pages 16, 17, ties unless ·he has learned that philosophy which is taught in the 18, 19, 20, and 21. At this session I have introduced a bill author school of example, and unless he has been illumined by that light izing the Secretary of War to improve said shoals according to the which emanates from the lantern of experience. plans and specifications of said report, and asking an appropriation But all great changes in politics and in the principles of govern of $70,000 to enable him to make said improvement. The committee ment must, like those in the great realm of nature, necessarily be of will indulge me fora shorttimewhile I give some additional reasons, slow growth. The complete relief of a suffering and oppressed peo not in said report, for the improvement of said shoals. ple cannot be accomplished by a single act of leoislation, just as At You are well apprised of the importance of cheap transportation, alanta could not finish the race and seize the gol~en apple at a single and where there are natural highw3.ys of a national character they bound. A 15eginning must be made an(l the grand result reached should be so improved as to give an outlet to the products of the conn after many approximations toward the highest attainable good, and try through which they run, provided said improvements are pr3.cti the highest attainable good is ever the aim of the pra-ctical and the cable. However much we may differ as to the propriety of giving enlightened statesman. aid to the great artificial channels of commerce, no one, I dare say, The financial measures proposed by the democratic party in the now doubts the power of Congress to improve rivers running through present Congress must be founded on this wise maxim of true states more than one State, to improve rivers and harbors where the same manship. If they do not embody the highest good, they must embody is necessary to foster and protect commerce on the seaboard and to the highest attainable good at the present time, or they will fail to develop the resources of the country. The more you improve these command the support and the approbation of the people. Political arteries and make them navigable for all clas es of vessels which can truth, like all other truth, is a polygon. It has many sides, and, like traverse them, the more you develop the resources of the country; and the moon, but one phase is presented to the world at a time. As the cheaper you carry those products to their respective markets, the knowledge advances and mankind with it, new phases of truth, new cheaper they can be had by the consumer, and he is enabled to appro sides of the polygon, will become visible, until finally the whole cir priate more of them to his own comfort, taste, and pleasure. I need cle of truth will be completed, and the political inductions of the race not stop to argue that wat-er transporta.tion is the cheapest of all the will attain the nearest possible approximation to perfection and infal kinds in use in this country. This arises from the fact that it is a nat libility. mal highway; no daily wear and tear of this road-bed; no great out A beginnincr must be made by the democratic party, and she must lay in constructing the same. It can be utilized in a hundred differ demonstrate her good intentions to the country by such legislation ent ways, from the magnificent steamer freighted with the lives and as will manifestly be in the interest of the toilincr millions whose property of men, down to the coal-barge and the rouglllog-raft. I consistent champion she has ever been, and not in the interest of the will dwell no longer on these self-evident propositions. privileged and favored few at the expense of the suffering many. If Now the grand question is this: Is this such an improvement as snch an auspicious beginning shall be made during the present session should be made by the Government T Is it in the interest of trade of Congress, it may with safety be written down in the political an and commerce, and will it bring material wealth to any considerable nals as the sure word of prophecy that the democratic party, as the portion of the countryT It is known to you all the Cumberland is faithful representative of the progressive political sentiment of the one of the main branches of the Ohio River. Risin~ in the mount nation, will, sooner or later, be clothed with "the lawn of office and ains of Kentucky, it runs for more than a hundrea miles in Ken the staff" of supreme authority; and when she does come into power, tucky, then through a considerable portion of Tennessee, then back as come she assuredly will, she will come charged with the imperative into Kentucky, then empties into the Ohio River. Its whole length is command of the people to remove the carcasses of political corruption about six. hundred miles, and in winter and spring is navigable for two from the highways and the byways of the Government and to inaugu hundred miles for large first-class boats, and durin&' .the summer for rate in the purified temples of constitutionallibertythe reign of a purer small boats up to the foot of the shoals I am seeKing to have im public morality and of a nobler political administration. And when proved. It is such a stream as Congress should order improved, if she shall be so invested with power, the prayer of every true demo there is wealth to be developed by so doing. There is then twelve cratic heart will ever be that she may ~orever stand upon the Appian hundred miles of coa-st ou this river. Winding as it does through ways of the Constitution, never trusting any man, even of her own mountains and plains, it bears upon its bosom to the Ohio and Missis political faith, any further than the Constitution trusts him, and that sippi Rivers the rich products of this large extent of country. It is she may continue to administer the "evangelical politics of love and estimated that the commerce on this river above Nashville now charity and good-will to man" in this "western appendix of civiliza amounts to $10,000,000 annually, and with some improvements, not tion" down to the last period of recorded time. costing half as much as is thrown away on one post-office builtiing, Mr. TOWNSEND, of Pennsylvania. Will tlte gentleman from Ten the commerce would reach double that amount. nessee allow me, before he resumes his seat, to ask him a question or These shoals obstruct the passage of coal-boats: rafts, &c., at all two with regard to some of his statements, in which his calculations times of the year except when there is a high rise in the river, and this are different from mine f . does not often occur; so that most of the time there is not sufficient 1\Ir. RIDDLE. Certainly. tide to carry to market the inexhaustible supplies of coal and lumber l\I.r. TOWNSEND, of Pennsylvania. I desire to know whether or above and adjacent to said shoals. There is oYer one million of acres not the gentleman in his calculation of the per capita of currency in and about twenty thousand square miles in extent of the country in cludes any of the interest-bearing bonds or obligations of the Gov whose bosom is embedded millions of dollars' worth of coal, ancl on ernment? the surface of which is an inexhaustible supply of pine, Eoplar, and M.r. RIDDLE. No, sir. oak timber, which lies above and on either side of theses oals and is 1\Ir. TOWNSEND, of Pennsylvania. And in the second pla-ce I want acces.~ible, if there was any convenient way of getting to market those to know whether in his calculation be makes any allowance for the vast products. This country is rough, is sparsely inhabited; but if deposits in the banks as affecting the business of the country 'f these inexhaustible products wouJd be made available by means of 1\Ir. RIDDLE. No, sir. transportation, then the population would double and treble in a Mr. TOWNSEND, of Pennsylvania. And my third question is, will short time. New mines would be opened, towns spring up, and great the ~entleman be good enough to state what is the reason why the wealth would come to those who are· now cut off from a market Jeo-a1-tenders are now below parf for these products; and those who now look to these mines for then· ~fr. RIDDLE. I have stated that most fully in my speech. supply of coal and lumber would purchase the same for nearly one 1\Ir. TOWNSEND, of Pennsylvania. I was not aware that the gen half of the price they now pay. tleman had done so. ~Ir. Speaker, the number of flat-boat tides over tnese shoals will 1\lr. RIDDLE. It is because the Government places on them the not average over three annually, and the number of boats is about stamp of inferiority and discredits its own paper. ,. eighty each season, carrying about six hundred and forty thousand Mr. TOWNSEND, of Pennsylvania. In what way 'f bushels of coal; this is generally sold in the Nashville market at six-• l\Ir. RIDDLE. By refusing to receive them in payment of \)U debts. teen and one-half cents per bushel, thus yie:ding in gross about .fr. KELLEY. And if the gentleman will permit me, I would 100,000. Boatmen living on the river say there are on an avemge add-or in e:x.cba.ugo for its bomls. annually twenty-four boat-tides from the foot of the shoals down Mr. RIDDLE. Certainly; or in exchange for its bonds. the river. Now, if the improvement proposed would quadruple the 1318 CONGRESSIONAL RECORD. FEBRU.A.H.Y 26, number of tides on the shoals, then yon would have over two and a such aid hy improvino- the great water-lines and their tributaries as half millions of-bushels of coal sent to market annually, and a return will facilitate the commerce of the country and develop it va. t re of $400,000 therefor. But it is reasonable to suppose, as the facilities sources and wealth. This I believe is the tl:ne way to cheaper. tl'ans for getting these products to mm·ket are increased, new mines would portation. be opened, a much larger number of boats would be sent down each I will not say that many, very many of the appropriations made to tide, and I do not regard it an extravagant estimate when I say there improve ri ver-o, to build court-houses, custom-houses, and post-offices would be sent from t-hese mines annually five or six millions of bushels are wrong and unnecessv.ry; but I will say they in mos instances are of coal, yielding to the operatives and to the country at least $750,000. extravagant. There is now in course of construction in the United Nor is this all. There is now, when there is a high tide, large rafts of as States, outside of the District of Columbia, public buildings costing :fine timber and lmnber as can be found anywhere floated down this over $40,000,000, many of them costing double and even four times stream. These would also belargelyincreasedinnumberandvalue, so as much as they should, the unnecessary tinseling and carving on that, with this improvement made~ the return to these hard-working, them costing more than I a-sk for this improvement. And if the o honest (but destitute in many regards) people would be at least unnecessary and useless expenditures were cut off, there would be $1,000,000 annually from coal and lumber. This is not all. 1here lies enough saved to improve the Ohio River and all of its grand tribu • in these mountain ra -n~es, and near to this river, above these shoals, taries, thus opening up the untold wealth along their borders. Look quantities of iron-ore, the extent not known; but should this approach for a moment at some of the e appropriations, and at the almost in in extent and quantity the coal found here, then this source of wealth credible amount being expended on them: $7,500,000 for a post-office will far exceed that of both coal and lumber. I venture the as ertion and court-house in New York; 4,000,000 for a custom-house in New that there is scarcely anywhere any section of country of the same Orleans; $3,000,000 for a custom-house and post-office in Saint Louis; extent so rich in its natural re ources; and here permit me to give an $2,500,000 for a mint in Sau Francisco; $2,500,000 for a custom-bon. e extract from the report of the engineer. He says: · in Chicago; $2,225,000 for a post-office in Boston, and hundreds of I deem it unnecessary to expatiate more fully upon the character ann quantity thousands of dollars to other buildings sca.ttered all over the couutry, of the resources, mineral, manufacturing, and agricultural, of this section of the the cost of which is far in excess of what is required. Cumberland River and the countries tributary thereto. Suffice it to say that there Mr. Speaker, the burdens of the Government and its protections and is perhaps no section of similar extent in the United States that can surpass it in advantages are very unequally distributed. And I insistthere can be undeveloped coal, iron, lumber, agricultural, and manufacturing resources. .provided some remedy, although the same may not be ample and Mr. Speaker, I am not asking for au appropriation simply to give complete. The policy should be to give back to those who contribute some person a fat contract to do a piece of work which when done somuchforthesupport of the Government something to aid in devel will yield no return to the people in the country ; but, sir, I ask the oping their natural resources when they are conti~uous to the natural sum because it is needed to develop the untold resources of that highways of the country. You thus stimulo.te tne industries of the ·country; because by making these three great products-coal, iron, country, and render the people more contented and happy. But· so and lumber-accessible by transportation their consumers purchase long as you make the large useless appropriations, thereby in many them at lower rates; because it adds much to the geneml prosperity insta~ces building up rings and encour:'l~ng extmvagance, you create of the country, and consequently to the happiness of the people. heart-burnings and jealousies and stine the energies of those who, Permit me to say th:1t the people of that section are a patriotic, in with proper help and encouragement, would make the country greater, dustrious, virtuous people, who are struggling under adverse circum more prosperous, and happy. This is a worthy object, and I ask and stances to develop these great resources, thereby bringing slow profit demand an appropriation to commence this work, not only in the to themselves and fumishing these great necessaries to other , and name and behalf of my immediate constituency, but I ask it becau e they ask the aid of the Government in opening up this great natural this stream is of national importance and its improvement will help hio-hway, and they should have it. · to develop the gTeat natural resources of our common country. Sir, the district which I represent, through which the Cumberland It may be said by some that we must retrench and reduce our River runs, and in which is situated these shoals, has never received enormous expenses. I will go a-s far as any man in this House to cut from the Govermnent a dollar for public improvement. The Govern off all useless expenditures and exercise a rigid economy. Yet a large ment has built no court-bouse, no custom-house, .no post-office; has and enlightened st.atesmanship is ever looking to the growth and de cleaned ont no rivers in its borders; and she pays annually in inte-r velopment ofthe na.tion, and whatever appropriation is necessary to na.l revenue alone into the Treasury over a half million dollars, which carry out these objects and to make us happier and more pro 'perons is more than some whole States pay, and to 'vhich the Government should be made. Snmetimes a small outlay yields twenty, thirty, and bas appropriated hundreds of thousands of dollars for objects of no eYen a hundred fold. And believing, as I do, such will he the result more importance than this. That you may see bow these appropri::~r of. this improvement asked for, I say again, right, justice, and fair t.ions have heretofore and are now being made, I desire to give yon ness demand that it shall be made. some of the appropriations in the last :fifty years. The same are taken TilE from the offic~al records, and are no doubt conect. The whole amount CURRENCY. appropriated to rivers and harbors in that time is about 50,000,000, ~ 1\Ir. PAGE. I rise to ask permission of the House, for the first time and, the Secretary of War informs us, bas been distributed a follows, since I have been a member of it, to have priutecl in t.he RECORD some in- remarks which I have prepa.red on the currency question. Maine...... --- ...... $1,300,000 Georgia...... : .. , .. $571,000 There being no objection, leave wa-s granted. [Sec Appendix.] ·ew Hampshire...... 75, 000 Florida ...... 2i6, 000 Mr. LANDERS, of Indiana. l\Ir. Speaker, in view of the pro trato Vermont...... 450,000 Alabama ...... : ...... 639,900 condition of the wealth-producing industries of the country, tlie pe- Massachusetts ...... 2, 300, 000 Louisiana...... 1, 3~;:; . 000 Rhoucisl:md...... 500, ooo Texas ...... 412,000 . cnniary ruin of so great a proportion of our business men, and the Connecticut ...... 9fi5, 000 Arkansas ...... 385, ouo threatene(l pecuniary ruin of thousands rnore, it is the paramomt t New York...... 7, 500, 000 Ohio ...... 2, 046,928 duty of Congress to investigate tho cause that has produced so dis New Jersey ...... ----...... 182, 000 Indiana ...... miD, ooo astrous and distressing a condition of affairs, in order that we may Pennsylvania...... 1, 106,000 lllinois ...... 1, 659,000 Delaware...... 2, 709, 759 5, 900, "000 apply a proper remedy. Maryland ...... 1, 031,500 wi~~~~~:.-.-: ~ ~::::::::::::: 3, 732. 500 In entering upon this investigation, I am fully aware of the cause Virginia...... 738,500 C'l.lifornia ...... 935 000 that divides the people and their repre enta.tives into parties on tbis 7 0I"th Carolina...... 1, 295,900 Oregon ...... 400:000 South Carolina...... 144, 000 momentous subject. Were it not for this cause of division, a remedy for the evils that afflict t-he business community could easily be discov The Mississippi River and its tributaries-the Missouri, Ohio, and ered and speedily applied; one which t he mass of our citizens would Arkansas-$15,200,000. heartily applaud. Some of the largest sums for harbor improvements are as follows : :Mr. Speaker, the difficulties that prevent us · from speedily ap East River, New York ...... $1,708,200 plying relief to the busines , laboring, aud wealth-producing indus Hudson River ...... ----··...... 1, 189,288 tries of the country arise from the simple fa.ct that there lies in our pathway a contest between two forms of government-a contest that ~~~~!H'~~:k,~a~r" :~ ~~::: :::::::::::::::::::::::::::::::::::::::::: ~: ~~~: 1g1 is as old as the Constitution, for it took its rise in the convention of nos ton Harbor, l.1aisachnsetts...... 1, 115, 170 Cape Fear River, North Carolina ...... :...... 1, 008,208 1787 that framed the Constitution-and until we come to a clear un Siwannah River and Harbor, Georgia ...... 561, 000 derstanding of the difficulties that beset our pathway, that divide us Mobile Harbor anu Bay...... 608,997 into parties, and prevent us from unit-ed action, or any action at all, Saint Mag's Falls and Canal, Michigan...... 1, 400,000 we will not be able to apply the remedies required to relieve the dis ~::c~~d ,;[s~~~~f~ }ii;e;~::::: :·:::: ::: ~:: ::::::::::::::::::::::::::::: 1, ~~g: ggg tress of the people, arising from a contraction of t he circulating me Des Moines Rapid.'3, M.is issippi River...... 4, 294,200 dium of the country, a-s I will clearly show. Ohio River Fn.lls and Louisville Canal...... 1, 16:J, 200 The contest about forms of government to which I refer is a con Rock Island Rapids, Missis ippi River ...... :...... 1, 0 9, 650 test between the American system of tate and Federal governments Mouth of Mississippi River ...... •...... _...... 2, 185, 181 and the British aristocratic system, consolidating Scotland, Ireland, Not one dollar has found its way into my district to improve this England, and Wales into one national government, based on aristo great natural highway. I do not intend to be understood as advocat cratic principles; therefore the effort with ns t.o subordinate tbo ing what is commonly called a general system of internal improve State governments and cou oli • 1876. CONGRESSIONAL RECORD. 1319 system of full legal-tender money and the cash system of business best proposed to establish a national bank, which proposition was also re . acconl with the American system of government, while, on the other jected. Judge Wilson admitted the correctness of the statement, hand, the British system of bank currency and the credit system of which will be found to be correct by an examination of tho proceed business sustain the British system of aristocratic government. ings of that convention. On the 19th of February, 1863, Hon. E. G. Spaulding, in this House, In 1811 the national bank applied for a recharter, which was de· in his speech in favor of the national-bank currency bill, saiq.: nied it by Congress, on whlcil occasion Mr. Clay, of Kentucky, made It is now most apparent that the policy advocated by Alexander Hamilton of a a powerful speech against the recharter of the bank. In his remarks strong central p;overnment was the true policy. {See page 4 of appendix to Spauld he treats such_ an institution as "unconstitutional, anti-American, ing's History of the Legal-Tender.} and strictly a British institution." Mr. Clay, addressing himself to In the general convention of 1787 that framed the Federal Consti the advocates of bank currency, said: tution the contest was between a national aristocratic form of gov Do they forget that we are not in Westminster Hall 1 * * * May not the ernment and a federal union of equal states, with "all power in time arrive when the concentration of such n. vast portion of the circulating me dium of the country in the hands of any corporation will be dangerous to the herent in the people" of each state. liberties of the country 1 On tilis subject, on June 18, 1787, Mr. Hamilton said: W e must establish a general and national government. and annihilate the State Mr. Speaker, that time has now arrived which Mr. Clay foresaw, distinctions and State operations; and unless we do this, no good purpose can be and it becomes the duty of the representatives of the people to take answered. * * * from the national banks the power to make and control the currency. I foresee the difficulty on a consolidated plan of drawing a representation from But lest we ma,y f::tll into a still greater evil of returning to Sta,te so extensive a continent to one place. ~ * * This, however, can be no conclu- · sive objection if it eventuates in an extinction of State ?;Overnments. * * * banks of issue, I shall now show -that the States are directly aml I believe tho British government forms the best model the wol'ld ever produced, positively prohlbited from emitting a "bill of credit," and conse and such has been its progress in the minds of mnnv, that this troth gradually quently of incorpomting a bank of issue. Article 1, section 10 of the gains ground. This government bas for its object public strength aml individual security. It is S.'l.id with us to be unattmnab'ie. If it was once formed it would Federn.l Constitution says : maintain itself. All communities divide themselves into the few and the many. No St.ate shall coin money, emit bills of credit, or make anything but gold and The first are the rich and well born, the other the mass of the people. * * ~ silver coin a tender in payment of debts. Can a democratic assembly, who annually revol>e in the mass of the people, be Section 8, article 1, paragraph 5, of the Federal Constitution says: supposed steadily to pursue the public good~ Nothing but a permanent bod~ can c~ck tho imprudence of democracy. Their turbulent and uncontrolling disposition Congress shall have power to coin money, regulate the value thereof and of requires checks. * * * foreign coin. . Let one body of the legislature be constituted during good behavior or life. The power to make money or a medium of exchange, whicil "is the Let one executive be appointed (for lifo] whl> dares execute his powers. w * * All State laws to be absolutely void which contravene the general laws. ..A.n offi tool of trade," is a power incident to sovereignty, and, as "all power cer to be appointed in each Sta.te to ha>e a. negative on all State laws. .A.Ll the is inherent in the people," they must be sovereign, as sovereignty is milit-ia and the appointment of officers to bennderthenationalgovernment. * * * defined to be the highest power known to any government; and, as we The people are gmdually ripening in their opinions of government; they begin cannot have two highest p_owers, sovereignty must reside in the peo to tire of an excess of democracy.-Yatll8's D ebates of the 001~vention, pages 132-137. ple, and not in any constitution or form of government, but in those Mr. Hamilton's proposed scheme of "national" government having who make them and may at their pleasure change, alter, or amend been adopted in committee of the whole and reported to the con them. Sovereignty delegates power to make supreme or the highest vention, the federal union UJdvoc::ttes, on Jtme 20, 1787, moved to strike law, but cannot delegate any part of its sovereignty witilout losing out the word ''national in the first re olve" and to substitute the the whole, as it cannot reside in the people and in their representa words'' Government of the United States;" which W:LS agreed to. The tives at one and the same time. Therefore, in making constitutions n::ttional system of H::tmilton was abandoned, and the federal system and governments, it was proper that the people should have delegated was adopted. either to Congress or to the State Legislatures the power to make Alexander Hamilton, as Secretary of the Treasury, proposed to money; and, having shown that this power has been delegated to Congress the adoption of the British system of bank currency; and Congress, it becomes necessary to show by what act of Congress this ou his recommendation, on February 25, 1791, "Tile president, direct power is exercised. It is made by that act of Congress which makes ors, and compa,ny of the Bank of the U:uited States" waB incorporated anything a tender in payment of debts, which is called a legal-tender for a period of twenty years, with a capital of $10,000,000. act. Two things· are clearly observable in connection with this ques Thomas Jefferson, then Secretary of State, gave a written opinion tion: First, that the power to make a legal-tender act is not granted denying the power of Congress to incorporate a bank of issue. Mr. in the Federal Constitution by any mention of such an act; second, -Madison opposed it in a powerful speech in Congress a-s unconstitu that the power to make such an act is contained in the power and duty tional; and, ::tlthough General Washington signed the bill, it is known to regulate the value of money. that he was strongly opposed to bank currency based on specie for l\fr. Webster on this subject said: redemption, or to any paper currency made redeem::tble in coin, even Collating the j!;rant to Congress and the prohibition to the States, a ju treading though it should be made a leo-al tender, as is fully shown by his letter of the provision is this: Congress shall have the power to coin money, regulate t.he toT. Stone, a member of the ~bryland Legislature, written at Mount >aloe thereof and of forei~ coins, emit bills * * * or make anything besides Vernon, February 27, 1787; ::tnd also by the action of the Virginia gold and sil'ver coin a legru-tender in payment of deb~. delegation in the constitutional convention of 1787, which, by a vote In reply to those who assert that coin only can be declared a leg::tl of nine States to two, refused to deleg::tte the power to Congress to emit tender, it is proper to call attention to the fact that the powers a" bill of credit," whlch is defined to be" a note promising payment granted to Congress are permissive~ and not obligatory; therefore, as in lawful money on demancl and speci::tlly ::tuthorized by law to pass Uongress might not coin gold and silver, the States reserved the power as a circul::Lting medium." Virginia was one of the nine States which to make gold and silver coin (of other countries) a tender in payment refused to delegate such a power to Congress. of debt-s. As the laws of Congress made in accordance with the Mr. Madison appended a note to the proceedings of the convention powers granted to it are supreme, bad Congress been compelled to in which be says that he" became satisfied that striking out the words make coin a tender in the payment of debts, dues, and demand , or 'to emit bills of credit' would not disable the Government from tile the only legal tender, as the designing advocates of bank cmrency m;e of public notes as far as they could be safe and proper, and would contend, the reservation on the part of the States would not have been cut off the pretext for a paper currency, and particularly for making made. It would have been both useless and absurd. the bills [of credit] a tender either for public or private debts." One other fact must he borne in mind in connection with this sub A full legal tender is both money and currency, whereas a note, ject, that in order to regulate the value of money Congress must promising payment in lawful money, is mere currency and not money, m::tke it a full legal tender, as a partial legal tender is always depre anc.l is made to depend for its v::tlue on the prompt performance of the ciated as comparecl with a fullleo-a,l tender; as is proved in the caso promise to pay in lawful money on demand. • of silver coin, it, being a partial fegal tender, is depreciated as com The notes of the United States Bank; incorporated in 1791, were pared with gold coin, which is the only full legal tender, ana as was made legal-tenders to the Government and payable in legal-tender proven in the case of the demand notes issued in July, 1861, and Feb coin on demand which made them "bills of credit," and therefore un ruary, 1862. Those demand notes were only legal tenders for public constitutional. The present national-bank currency, redeemable on dues. "When the banks suspended specie payments in December, demand in legal-tender greenbacks, arc also legal-tenders for public 1861, they refused to take them for debts due them, which depre dues, and are therefore mere currency or "bills of credit." As the ciatecl those notes to a level with suspended-bank paper. On March advocates of national-bank ~urrency have ever contended that tile 17, 1861, Congress made tilem an equal legal tender with gold coin, promissory notes of banks may be made a legal tender, of course it is at a. time when there was no coin to -redeem them with, and when both inconsistent and absurd for tilem to deny the constitutionalitY. of their redemption had been virtually prohibited by the act of Feb a legal-tender Treasury note. Moreover; they are estopped by their mary 25, 1862, when tiley instantly rose to an equality in value with own acts from setting up such a plea; and more especially in the face o-old coin, and continued to rise with it to a value of 285.50 on tho of a decision of the United States Supreme Court in favor of the con $100, as compared with partial legal-tender greenbacks. There ::trc stitutionality of United States Treasury notes issued in 1812 and 1814, $60,000 of those full legal-tender notes not yet redeemed, and if there which decision was delivered by Judge Story. are any of them not yet destroyed by use they will now command the In order to show more clearly the want of any constitutional power same premium as gold ooin beyause by law they are made to perform in Congress to incorporate a bank or banks of issue, I call atten the same functions. Consequently money is not onlythe creature of tion to the fact that in 1791, on a consideration of the bill to incor a. legal-tender act, but that act also gives it value, whether composed porate the "national" bank, Mr.. Baldwin reminded Judge Wilson, of of coin or paper. "When money is made a full legal tender it is par Pennsylvania, that the States refused to delegate to the l!~ederal Gov or of equal value, and bears a premium or hlgber value than a partial ernment the power to create corporations. Particular power was then legal tender as compared with a full legal tender. 1320 CONGRESSIONAL RECORD. }fEBRUARY 26, . Having shown that the entire power over the question of creating To which Ji'rankliu replied, as follows : money is in Congress and by what act that power is exercit5ed, and This opinion of its ruining the country seems to be merellspeculative, or not other that Congress cannot justly make a partial legal tender, it is proper wise founded than upon misinformation in the matter o fact. The truth is that, to call attention to the fact that Congress cannot demonetize coin, the balance of trade with Britain being greatly against them, the gold and silver are drawn out to pay the balance; and then the necessity of some medium of trade as the States may make it a legal tender in case Congress fails or re bas induced the making of paper money. Thus. if carrying out all the gold anu sil fuses to do so. ver ruins a country, every colony was ruined beforeitmade paper money. But, far THE AMERICAN SYSTEl! CF MO~"EY, .U.l> ITS SL"PERIORITY OVER BANK CURREXCY. from being ruined by it, the colonies thathavemade nseof paper money have been, and are, all in a thrivin~ contlition. * * * By an examination of Jefferson's published correspondence, the fol P ennsylvania, before 1t mane any paper money, was totally stripped of its gold lowing will be found in a letter to his son-in-law, •colonel Eppes, and silver, though they had from time to time, like the neighboring colonies, agreed chairman of the Committee of Ways and Means in Congress, dated to take gold and silver coins at higher nominal values, in hopes of drawing money into and retaining it for the internal uses of the province. During that weak pratl Juno 24, 1813. He said : tice ail ver got up by degrees to eight shillings and ninepence per ounce * • In the war of 1755 our St.. ment; that would be a-s steady and uniform in value as the metals themselves. I February 16, 1862, as amended by the committee, in his remarks very shall not go into the discussion now, but on a suitable occa-sion I shall be able to make good every word I have uttered. I will be able to do more-to prove that it clearly insinuated thatthema.in purpose was to perpetuate the bonded is within the constitutional power of Congress to use such a paper in the manage indebtedness and pay the interest in coin. ment of its finances a{lcording to the most rigid rule of construing the Constitu The bill 'vas opposed in the Senate becan.se. the Treasury notes were tion; and that those at least who think that Congress can authoru:e the notes of made convertible and not redeemable in coin on demand. In reply private corporations to b o received in the public dues.are estopped from denying 1ts right w receive its own paper. to this objection Senator HOWE said : .All paper· currencies have been an costly, and dangerous national-b:mk system of currency. Mr. Spaul formed us that he is ashamed of the act that increased the premium ding, then iu Congress and now president of ::1 national bank at Buf on the bondholdeTs' coin and comparatively lowered the value of the falo, New York, ou page 167 of his History of the Legal-Tender, in people'~ greenback, let us see whether we cannot discover the desi~u speaking of the nine-hundred-million-loan act considered in Committee of pa-s ing so ruinously Ulljust an act of ba.d faith toward the people. of the Whole House on Monday, Jannary 12, 1 63, sn.ys : Mr. Spaulding, on page 198 of his history, says: "The attempt of The bill as reported did not contain some provisions which Secretary Chase was Secretary Chase to float G per cent. 10.40 bonds" caused the premium very anxious to have passed; one was to repeal the provision restricting him in on gold coin to rise a-s follows: Jannary 15, 1864, gold wa-s 155; on the the sale of bonus to the market value, another was to abrogate{repuiliate) that 15th of April it was 178; June 15 it was 197; on June 29 it was from most equita.ble and just provision contained in the original legal-tender a.ct [of February 25, 18621 aliowing the holders of legal-tender notes to convert them at 235 to 250, which enabled 40 cents in gold coin to obta.in $1 in green •.my time into 5.20 6 per cent. bonds, interest payable semi-annually in coin. Tho backs, which consequently enabled 40 cents in coin to obtain a dollar's committee did not deem it just to abrogate thls provision, while Secretary Chase worth of bonds to draw interest on and deposit in the Treasury, and believed its repeal would enable him to ma.ko better terms in selling bonds. obtain 90 per cent. of the face value of the bond in n:1tional-bank We are told that the Secretary of the Treasury desired to obtain currency, on which additional interest is paid the bondholder by the uetter terms for bonds; but we have never been informed that he did individual borrower of that currency, making to the bondholder aud obtain better terms for them; while we do know that by this cun banker three rates of interest on each dollo,r of bonds which cost him ningly-devised legislation they were obtained at less than forty cents from thirty-five to forty cents on the dollar. Therefore the gentleman on the dolla~·. from Maine hn.s just cause to be" ashamed" of the acts of his part.y On page 169 of Mr. Spaulcling's history, containing bis speech on while exercising unlimited power in this House over legislation. But the nine-hundred-million-loan act, he said: "That as there was then worse follows: On July 11, 1864, the premium on gold advanced to (January, 1863) no excess of money or circulating medium the Sec 2<:)5t at the board of brokers in New York, making 35 cents in go1d retary of the Treasury had not ueen able to dispose of more than coin equal to 1 in legally-dishonored greenbacks, which enabled the twenty-five millions of the fi\7 e hundred millions of bonds which the 35 cents in gold coin to obtain a dollar's worth of bonds. No such legal-tender act of February 25, 1862, authorized him to clispose of." deliberate robbery of any people by cunningly-devised legislation can Tbis is a very important fact in the consideration of this remarka,ble be found in any other country on the bee of the globe, nor do we subject of creating :1 bonded indebtedness to enn.ble ba.nkers to ~et think that any other than the law-abiding people of this country 11ational-bank currency to put in operation those institutions whiCh would so long and so patiently have endured it. Congress, at the repeated uTgent. request of Secretary Chase, incor 1\fr. Chairman, this is a question between an oppressed people anll porated in March, 1r3G3; at this same session of Congrcs8 which ''re their oppressors; between the doers of wrong and the sufferers of pudiated" that "most equitable and just" contract with the people wrong; and our oppressors and their supple tools say we are lunatics allowing them to uond United States Trea-sury notes at their p1easme; for objecting any longer to endure such monstrous wrongs, well cal and the gentleman from Maine [Mr. BLA.L.'\'"E] who participated in this culated to .drive a once free and prosperous people into worse than iniq nitous legislation affects to shed "crocodile tears" on the floor lunacy. of this House and to be " ashamed" of such legislation as increased Hear SecTetary Fessenden on this subject., in his report of Decem the premium on coin and comparatively lowered the value of the ber, 1864. He sn,id: legal-tender t,'Teenuack, repudiated by its maker for custom-house In the conrse of a few days the price of thls article (gold coin) rose from $1.50 to duties and intere t on bonds. $2. 5 in paper for $1 in specie, and 1mbsequently fell, in as short a perio Mr. Speaker, this qnestion of a return to specie payments, as an ex whfch rpakes nntional banking free to all bondholders by depositing cuse for contract.ion, has not been entertained by me for one moment, their bonds in the Treasury and getting !)0 per cent. of their fnce va lno and shall not be, producing, as it has, the present ruinous state of in national-bank currency rf'quiringredemption, to lend at such rates affairs; and no vote will I give in favor of n,ny measure looking to of interest as can be squeezed ont of needy borroTI"ers who are bron~ht war(l permanently fastening on the people a.n institution that.peri into the clutches of these" credit-mongers" by au expansion of :t re odically prostra,tes our indust.ries, controls the volume and regul:1tes deemable currency-mere evidences of debts due the public IJy bank the value of currency ; an institution that expands and contracts the ers equal to the bonded indebtedness of tllo Federal Government less circulating medium at the pleasure of selfish specubtors, who never 10 per cent. The next operation is to put tl.J.eirsubsicly currency out on risk a dollar in producing wea.lth, and who insist on maintaining tho interest, secured by well-indorsed notes, and t.husinduceevery business legislation dictated by them, which has enriched them and impover man to extend his business to its utmost limit. Jns~ at that point ished. wen,lth-producers. Never shall this interest command my vote these bankers remember that their currency calls for redemption in or support until it shall have shown itself willing to aid in placing lawful money on demand; and, as they have not the means with which the business of the country on that solid basis indicated by me. I to redeem it, they begin to contract discounts, calling for payments ot will not make myself responsible, either directly or inclirectly, for the their loans; which contracts the circulating medium, producing a pres continued and increasing distress of my countrymen, produced by the sure in business circles, then a crash and a panic; and having no contraction policy. means to pay their notes in lawful money, tllcy lock their doors and The proper remedies are easily applied, and would be instantaneous cooly retire, sneering in disgust at the lunatics who are fools euough in their operation; but in consequence of this conflict between aris to imagine that the promi~Se to redeem bank currency in greenbacks tocra.tic and democratic repu bl\c::m forms of governments, legislative or coin was made to be performed. relief, so imperatively demanded by the interests of the people, is de Such is the see-saw, the up and down, expn,nsion and contraction layed, although this House is largely controlled by Representatives policy and proces.'3 of banks of issue, and it is to these bankers that elected by democrn,ts and independent republicans, who desire full the gentleman n·om Maine woulu hand over tl.J.e power to regulate legal-tender money and its substitution for the na.tionn,l-bank cur the volume and value of money. This is tho result of studying politi rency, and the prohibition of banks of issue. cal economy out of books in a law office, where a, rich creditor as=-' Why shall Congress give to .individuals or corporations the high client is always welcome, no matter what becomes of the poor de power to make n, currency and regulate its value and volume Y The luded debtor who was foolish enough to take the advice of the gen powers of Congress are delegated, and not sovereign ; therefore I ask tleman from Maine, and trust the banks to rcguln,to "the wants of by what part of the Constitution is Congress authorized to givoupto trade," and fix tho price of land, and of every commodity throughout Rpeculn,tors a power delegn,ted to it only f .Mr. Webster, in :1 consti the country. Insten.d of wasting time in studying books on political ntional argument on this subject, said: economy, written in the interest of bank currency an(lof speculative The whole control over the st:mdo.rd of vaJne and medium of payments is vested capitalista generally, tho gentleman will fiml it more protita.ble to in the General Government. study the wants and interests of bminess capitalists. Moreover, be That this is a correct conclusion is obvious, from the fact, that the sides having spent his time in stutlying tllo interests of banks of is Constitution uoes not contain any clause granting to Congress the sue, as he doubts the capacity of the people's representatives to be power to issue a note or" public bill," authorized by la~ to ciTt:ulate as trusted with ca-rrying out· the fundamental la.w by whicll our acts money or currency, promising payment in lawful money; and, as snell must b~ governed, it would seem that he has also been devoting some ·a power was purposely and by a distinct vote of the framing con vcn- of his attention to studying the views of the Hamilton school of states tion denied to Congress, it would be n.n act of usurpation to assume men, who, a.s I have shown, doubted the capacity of the people for it or confer on individuals or corporations a power not delegateu to self-government, and thought that system of government best which Congress, and dest·ructive of the public good. takes care of the rich and leaves them to protect the poor. For the past fifteen years the eastern bondholders and bankers have Mr. Speaker, I repeat it, it is this conflict between two widely controlled the le$islation of Congress in their own interest, to t.he in· different systems of government that makes' this contest necessary jury and oppress LOn of the great agricultural and commercialinterests between full legal-tender money and bank currency requiring re of the country. Their" cunningly-devised. scheme" to make the in demption in. legal-tender money. The contest is not between gold tere&t on bonus and duties on imported goods payable in gold coin, as and silver coin and legal-tender Trensury notes; no conflict can ari e t.he only full legal-tender money, creating a.n increased demand for between them if they are made by l:1w to perform the same functions. it, and thereby creating n, premium on it by law, which act 1\fr. Ste The contest· is between the paper money of the people, which does vens, of Pennsylvania, denounced, as I have shown; and Mr. Spa.uld not need redemption in other money, and the promissory notes of ing, in his. speech on the 19th of l!'ebr1:1ary, 1862, in opposition to the banks of issue. The volnme of legal-tender money has a very safe Senate amendments, said: limit fixed to it. Congress c:mnot p::t s any law, constitutionally, to Who are they that ask to have a preference ~iven to them over other creditors of pay out money for any ot.her purpose than to pay constitutional and tho Q-Qvernment7 Sir, it is!!> class of men very sharp in all money transac!ions. lawful demands on the Treasury, and it is the tluty of Congress to ')."hey are not among those who by their labor and skill make the wealt.h of the pay a debt at the ea,rliest moment possible, that not ono dollar of tax country. * * "' Mea who are willing to lend money to the Q-Qvernment, if you ation may be drawn from the people to pay interest on a suspended will make the security beyond aJl question, give them a high ra.te of interest, and make it payable in coin. * * "' Sir, the legal-tender Treasury-note bill was in· debt for the want of par money to pay it with, so -long as the high tended to avoid all such financiering, and protect the Government, and the people prerogative is in Congress to make money, and regulate its value, uy who pay taxes, from all such hard bargains. * * * In every aspect in which yon making it a full legaL tender; being the only way in which Congress view this hard-money provision its practical working will be disastrous. can give it a fixecl or unfl.uctuating value. .A.s soon as the country was at peace, these bankers and money The great delusion of the gentleman from Maine consists in his mis lenders generally, in bad faith with the people, exerted their power taking a medium of exchange or a tool of trade for wealtll. .Money, to procure legislation to compel the people to pay the 5.20 bonds in or a legal tender, is not wealth; it is simply the means of cxcl.J.anging gold coin in order to defer the payment of them, as they kn(;lw there commodities and of paying debts. .Although it may cost the Gov was not the gold coin iu the country to do it with as those bonds be ernment very little to make a legal-tender paper dollar, whoever came redeemable; nor could it be obtained unuer the contraction act gets it out of the Treasury lawfully must give a dollar for it, and of 1866. It is obvious that the purpose was to perpetuate the interest being a full legal tender, it will be certain to get him its full denom on the bonds, to be met by heavy taxation :xs a. perpetual -burden on inational value in exchange for it. Being based on all t.he wealth of the labor and industries of the country. the country, incl.uding its bullion or coin, it is therefore a representa . How m~ch lon~er are we to be com_Pelled to endure the yoke of serv tive of wealth or value, and may jnstly be required to be t.. THE 1\lAXIFEST REMEDIES. view January, 1!:!74, and Review of the Two Worlds, November 1, 18i3, The cause of a disease being known, it is ea.sy to know what remedy is $1,250,000,000, with a population of 36.102,921, gives an amount of to apply. As contraction caused the crash and panic of 1873, and has money per h ead of $34.62; and of this amount of circulating mesncd.• the death angel upon nearly every hearth-stone in the land, was not Tllo reason of 1 bis is fully explainefl by :1 letter of Mr. ,V. W. Cor an unmixed evil. Like every severe afil.ictiou, it has at least one coran, of this city: a financ~er and _philanthropist whose reputation i&, 1316 CONGRESSIONAL RECORD. FEBRUARY 26,