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Ml- 2
VOL. 51.
SEBICAN
, n illllKD EVERY THUIIfIDAT MOltmSd BY
JOHN B. BRATTON.
TBK M S :
, . Cl i,ptiok.— Two Dollars if paid within tho
' ■ a ntl Two Dollars and Fifty Cunts, if not paid
Hjj, (lu year. Those tonus will bo rigidly ad-
J jto ia every instance. No subscription ili.s
-'limncl until all arrearages are paid unless at
I, option of the Editor. ',
dprKßTiSßHßNTS—Accompanied by thocAsn, ana
. eJoCC iling one square, will bo inserted three
iLi f° r al *d twenty-five cents for each
[dlilianal insertion. Those of a greater length in
pfdpuriiom
jos-PnnmNG —Such AS Hand-bills, Posting-bills
finipblcts, Blanks, Labels, Ac. Ac., executed with
imracy the shortest notice.
putiffa.
w HEN?
IflioVwiU Had lioftvcns'sluao again ?
• Fa blue and sable now !
When ccaao the storm of grief andpiiin
ffhat bends the Nation’s brow ?
Then will a golden gleam of light
. Gusli from the gloomy skies ?
iyhcn end this weary, warring night,
Willi peace .anil Love's sunriso ?
Is lie asleep ? an'd
To wako Him, as of yore,
To look upon a world undone,
And bid it’s strife bo o’er.?
Is ili'cro noTaranl in the land,
J i<i wrestle and prevail?
A doubling Thomas, (hen, must stalled
Affrighted by the gale?
Ob! that the hum! of Hud would part
Thu clouds above the calm,
And bailie the Katioil’s bleeding heart
With mercy's soothing balm 1
JUiswllantmifi.
A Tough Yarn.
I rcmcmber'lica-ring a good story of an old
;fo!lmv who once resided in our town, and
who was very fund of telling storios—rather
'Surge ones too, his friends thought. Xlohad
been in the army during the Mexican war,
and most of his stories wors of events which
‘transpired, there.
One evening quite a-number wore gathered
.itiilio village store, ami Uncle Joe was there
as usual, ready to tell his accustomed yarns.
.The.conversation turned upon the size ol
certain vegetables, and one of the farmers
present told the dimensions of some cabbages
•ji had misdu.
. “ Thai’s nothin',” said Undo Joe. “Why
dicn I was in Mexico I saw whole acres of
rabljagi’s so big that many's thoTimo a hull
raiment of us went light under the leaves
of une of 'em to get out’er the rain. J.*ei\li-
fine country that Mexico is rl can
** That’s so”' rcmalked-eno of the compa
ny, “fur I was there about the same time,
find I saw one of the most remarkable sights
»i h 3re that "I ever saw in my life.”
'U r luit.v.v.s it? 7>cu,tcU us.” said Unde
, - • . .... • . , « ...
" Wity one day I was traveling along, and
'lcumc to what at flrstJ thought was an im
ineiise brass wall exton'din-g- as far
I could see, baton doseinspection''!'found
it was a brass kettle, so largo I hat there were
Iffcntylivo tinkers at work upon it, and they
iHTi* so far apart that they could not hoar
Die sound of each oLijor’B'bftlmnerB. ,, i , - -
, ‘“What* in fli-uridcr vreio they makin' that
h?" Undo Joe asked, in open-mouthed
wonder. , • !
** Why, to boil your coujoiuidc'd bif'hcad of
(ohbafivindt'Q'be nxircj”
It is needless to s/iy that Undo Joe toM no
more stories in that store for at. least-a week.
Matrimonial AmrEUTisEsiEjrrs. —My dear'
pirl, if a young fellow shouldiisk ypu to step
put on the roof of the house in the dark, ami
jump oil'over tho ; oavoe without seeing how
T-niuwu you would go, would you do it?—
Probably not. Well,when any young fellow,
old fellow cither, writes you a letter, or
puts an advertisement in the paper,asking.
Juii to correspond with him —don't .you do!
k; bo wants you..to, take a/jump in tho.
Qurk, aud you'll break your neck.
r ID* Uneducated- persons and oven tho ru
vlwt often succeed in illustration, .where tho
thoughtful and cultivated Tail. A striking'
inntauco is given us in the case of a negro,
J’liose head was examined by a phrenologist,
paid he: ■“lt am hard to tell what roqat is
dc smoke-house by puttin' do hand on de
-roof!"
‘•Ctohe Quells. —An officer at-Bermuda
; Hundred says tho rebels are rising shells
| ni odc of stone, in conical form. -Sumo are
Rfoot long, with a hole which.-contains tho
fuse and combustible.material,* the same as
jn any shell. The advantages Claimed for
7 ,H‘CBd fihellg are that they fly into morofeag
•Kcnts, and aro cheaper, but they are less rc
•Kihlo for accuracy. The stone is a kind of
Jfliartz. -
A Countryman was invited to ii-party
■wo there was music, both vocal and instru
'cnta.l. On the following morning ho met
"oof the guests, who said, “Well, how did
enjoy yourself last night? wore not the
4"artettea excellent?” “Well, really, sir, I
' ®atsay,” said he, “for I didn’t taste ’em;
ejt’< ®* lO P 3 'were tho finest I over did
ai ] o some ladies tho very *feppo-
Jo , mirrors ? Because tho one re
-B''''thout talking the other talks ..with
out reflecting. ■
An auctioneer said Of.a.gentlemnn who had
ah- a hut never, oatne to take it
that ho was one of the.most un-oome
. “table persons ho over knew‘iu the whole
c °urao of his life !
The Republican party has now lour
* pillows on .which it rests, 1 to Wit—
■ -
henfieontion; ,
■
Mißcogonation.
oro . John, that’s twice you’ve
101 ,"° and forgotten that lard.’ ‘ La,
tom rV’ was B 0 S ro asy' that it slipped my
THE FINANCES.
srku cu of
SENATOR POWELL, of Ky.
Delivered in the U. S. Senate May 30, 1804,
on the Bill to Provide Infernal Revenue
to Support the Government , etc.
Mr. POWELL.* Tho matter under consid
eration is one of very great moment. I have
been somewhat struck with tho speech of tho
Senator from Ohio in advocacy of this propo
sition. It seems that a conflict has como up
now,, and to that tho question is to bo nar
rowed down, between tho-Stato hanks and
tho national banks. Tho truth is tho system
of finance that lias been presented by the
Secretary of the Treasury, and which hag
foupd an p.blo and zealous advocate in the
Senator from Ohio, is -wrong -.in principle.—
There is not a principle of finance, in my
humble judgment, connected -with the whole
scheme. It has thus far proved afailuro and
disastrous to the country, and tho longer you
continue it tho more disastrous will bo, the
result, tho more manifest and striking will
•bo tho failure of the paper-money system of
tho Secretary of tho Treasury, I remember,
sir, when the national bank bill was intro-
duccd hero originally, when it was ably and
zealously advocated by the honorable Senator
from Ohio, wo were told that it would furnish
the best currency in the world, a bettor cur
rency than £uld and silver. We were told
that'it would equalize exchanges throughout
the whole country, and that the result would
bo a currency based upon the credit of .the
.Government, and one. that would bo sqund,
healthy and uniform throughout the whole
land. I then opposed the national banking
system. I felt confident then that it would
result in the most disastrous fuin to the com
mercial and industrial interests of thd coun-
try ; and from the time the first note was is
sued up to this |iour m.y saddest anticipations
have been more than'realized,
Aft?Vtrying n Government paper-money
syrlsm foy a year and more, by issuing green
backs .and other forms of paper currency,
some with stul .some without interest, the
Secretary of tho treasury at tho last session
of Congress presented tho national bank
scheme; and we fimi-.thab .this paper money
is going down in value daily-juntM to-day gold
is worth 1044 in tho city of blow York. You
come up now to"try and tinker vit .up again.
Allow mo to tell you, Mr. President, tho Se
nate, and the country that tho only way to
relievo the country from this great disaster.is
to abandon the system utterly.,
15ut tho Senator from Ohio to-day ascribes
tho ills that arise from this system to'tho lo
cal bank issues. lie and tho Secretary of
the Treasury desire to make tho local banka,
the State banks, tho scape goats to’bear their
financial blunders into tho wilderness. Sir,
that cannot bo done. It is not tho State
banks but it is tho rottenness of tho system
that has been adopted that causes the disas
ters we all witness and feel. If you wish to
remedy it you must put tiie axe to the root of
the evilj you must stop your infamous system
of paper money, you must curtail the issues,
you must repeal your national bank law. —
That is the remedy, and that is tho only re
medy. No linnneial tinkering of Secretary
Uha&e will relieve tho system from the disas
ter which.followed and will continue to fol
low it.
I have stated that tho system is wrong in
principle. There.is nothing now in this sys
tem. of.the Secretary of .tho Treasury. I
mean ng disrespect to that distinguished
functionary; L admit that ho is a man of
ability ; but his abilities have not been dis
played in a financial l line. 'Ho presents his
reports to. tho Senate and to the country; he
comes hern rigged out in all the * effete and
exploded ideas-that mark.the pathway of
commercial disasters and bankruptcies in
fur. a-thousand years. lie has
adopted all their Had policies and rejected all
their good. Ho has his .advacatcs ; die has
those who laud him as the great financier of
tbo'ago. 'So with, Taw-when he threw
his paper money system upon Uraiicc. ‘So
all tho paper money-bubble men have had
their followers. 'Under such a system money
is plenty, prices high ; to tho -superficial ob-,
server •.everything looks well. /The’results
over have shown and-ever will show that tho
system is rotten to the core, and will result in
Jujury, bankruptcy and. ruin to any and eve-
ry country that .adopts it-
The Senator from Ohio advocates his scheme
and tho .scheme of tho Secretary with very
great ability, and certainly with'very great
tenacity, i had thought that a year or two's
experience would-have caused tho Secretary
himself to abandon it, and tho able Senator
from Ohio to come up unci admit that it was
qu error and ask, that the system bo repealed,
and that we report to those principles ot fi
nance that have been received as good by all
-the nations of the earth ; but so far from that
his w.hole speech to-day has been an effort to
lay the sins of the Secretary of the -.Treasury
upon the State banks., -)lVhy, ; Dir, tho State
banka have not been in default in this mat
ter, as I think I am fully-Able to show.
.But, six*, allwo mo hero to state, as I have
often before stated to tho Senate,'that no sys
tem of hanking' over was or in my judgment
ever will bo sound and advanagoous to.tho
commercial and lousiness interests of..;tho
country -unless the notes aro
made redeemable at tho counter .from which
they are issued, in coin upon demand., ihafe
is-a principle in-banking that cannot bo de
parted from without injury to tho country
upon which the system is inflicted. Ido not
suppose there is a financier now i.n-any com
mercial State in the world, save and except
Mr, Secretary Chase, that would think that
any other system was calculated to promote
tho good of tho country. ,
Have you such a system in your national
banks? No, sir ; and lam very much .mis
taken if tho word “coin” appears, m the na
tional bank bill at all. ,1 tried, when your
first national bank-bill-was-passed, to intro
duce “coin” into it. I Wanted to give it a
little stiffening. I wanted to lot the people
boo when it went out to them that it contem
plated something like . coin; something at
some time like a redemption of tho paper in
cold .and silver coin ; hut I could not got tho
word ■'f ooin" into tho, bill. I offered an
amendment that they should to required to
redeem their issues in coin. It was rejected.
I then askod that they be .required to keep
on band ono-fouith of the amount of their is
sues in coin, for the benefit of the note-hold
ers. That, too, was rejected. X then, asked
that a smaller amount should bo, .required to
be kept on hand, but none was put in. .wliat
security have the holders of the notes of your
national banks? The distinguished Senator
• from Ohio to-day told you that bank paper
secured by the credit of tho Government was
hotter than the Government itsolt., U that
ho true, the Government is at a very sad dis
count to-day. I should bo pained, to think
that the Government was in no better.credit
than the national bank laauos. I should bo
“OUR COUNTRY—MAY IT ALWAYS BE RIGHT—BUT RIGHT OR WRONG OUR COUNTRY."
The reason is that that which is of the least
value and which will pass at all fills all the
channels of currency. The greenbacks and
national bank issues being the most trashy
and least secure of all the paper money in
the country has taken the place of the State
■bank notes. Ido not believe that $5,000 of
Kentucky bank paper is npiw-paid out and
received in the State from which I come in a
yj
„ car. So it is in the Stato of Indiana, and I
dare say it is so in other States. Why is it
so.? The bank paper of the States 1 have
mentioned is-so much better than the green
backs that the people;put it in their pockets
and keep it, and -use the paper
in their ordinary transtie'eions. Tf your cur
rency goes on depreciating, what will be
come of the securities for the issues of the
national banks ? It may happen, and I be
lieve it will happen whenever an,intelligent
and honest and upright court of final-resort
shall sit in judgment ,upon the greenbacks,
that they will bo held not to bo a legal ten
der. If that should occur, what will become
of your issues ? Then the twonty-ftvo per
cent, of greenbacks which the national banks
have to keep on hand will bo comparatively
worthless, for. wo all know-that there-is
scarcely anything which keeps up that de
scription of paper now but the fact that it is
made by law tender, the national
bank issues are redeemable by law in green
back's.
I will say no more, Mr. President, as to
tho question of tho security of the national
bank bills. Tho Senator from Ohio has told
us over and over again that it is neocessary
in time of war to have paper money. My
reading of history differs widcly from that of
tho honorpWo Senator., My opinion is that
in times of war .when excessive.issues pa
per money have boon resorted to they have
always resulted disastrously to tho country
that has .issued them. It was so in England
at onp time. Great disasters followed there
in consequence of tho very largo issue of pa
per money. I hold in my hand a pamphlet
written by Mr. Gallatin, of Now York, and
I wish to God wo had his financial hrains in
the Treasury Department to-day, in which ho
treats of tho subject very elaborately ; but I
shall not trouble tho Senate by reading it.—
In tho Trench Revolution that Government
issued their assignats, and, as wo .all know,
tho result was utter ruin. When first
Napoleon came into power he swept their pa
per-money system by tho board and ho paid
tho soldiers that .bore .his eagles in coin.—
Then ho bad .-victory, and then he restored
that country and relieved it to a very great
extent from tho disasters that had followed
tho fatal paper-money system. Napoleon I,
on tho 20th of October, 18015, from tho scene
of .Ncy's victory,'from which ho took his ti
tle.as. Duke of Elchingen, tho day after tho
capitulation of Ulm, when engaged in the
great and marvelous campaign of 1805, con
sequent upon the coalition of Russia, Aus
tria,’and England, wrote the following let
ter: ' *
Elciiingf.n, October 20, ISOS
M. Regnier: I am sorry to see that my
Tribunal of Commerce docs not attend to its
business. Bank notes arc not money, and
do not bear the mark of tho sovereign. Pay
ment in notes is no longer an obligation. In
a country where justice is compromised social
order no longer exists. The bank must ex
change Its notes for coin at the counter, or
close its doors if it has no coin. X will not
have paper money. N.ipoi.eon.
This letter of one of the greatest soldi era
and Btntosmcn the world ever knew plainly
expresses his view's of the use of irredeema
ble paper money in time of war.
How was it in the war of the Revolution?
What was the condition then ? Did oar Con
tinental paper servo us in that trying strug
gloof our fathers? No,.sir. They issued two
or three hundred million dollars of Continen
tal money, and what was the result? They
passed laws decreeing that a man was not a
patriot .who would not receive it; and they
publislfcd'.every edict possible to compel the
people to take ...it; but what was the result?
It went,.down, andjbocarao worthless. How
wore tho fortunes of.our fathers then reliev
ed-in. a financial ;jway ? .-..Every reader of
American history knows that it was the ge
nius of Robert Morris who formed a bank in
Philadelphia—the bank that was afterwards
called the Bank of-North America, a few
years afterwards chartered by the State of
Pennsylvania... It was a liard-tnoney bank.
It.paid its issuesin coin. lie it was who
furnished the sinews of war 1 to Washington
when your paper issues bad brought us al
most, to utter ruin. jAnd yet, sir, with these
examples before us, wo arc told every day and
evry hour when this question is up that in
consequence of the war wo mast have exces
sive, paper issues. It is all a mistake, there
is no more necessity in time of war for Inly
ing a paper currency that' is not convertible
at -the counter from which it is issued into
coin than,there is in a time of peace; and
that Government which enters upon that de
scription of finance. does thu greatest injury
possible to itself.‘‘O.
It is claimed that the necessities of the war
have caused the excessive paper issues.—
What has boon the result?. 'lt is this exoos
sivn paper mon'ey system and the. inflations
that have followed which have entailed and
will entail on this'country nearly one half
the public debt under, which wo labor and
will labor for years and years to come. : flow
has it that effect ?. -■A'V'lieu you make those
very groat' and very xobundant, issues, you
inflate the price of everything. 'Wo are t ild
There now that the ■Covp.inmoiit is the heavi
est purchaser in the market for all the pro
ducts of the • farm and of (lie loom. They,
have to-feed their armies; they have to clothe
their soldiers; they have to furnish the meaty
the bread, and. the-vegetables to the soldier;
and the food for thoi? horses and their stock
used in the Army. In consequence of this
inflation prices have arisen, nearly quadru
ple on many articles. iThe Government when
it goes into tho market lias to pay these very
extravagant prices, and every dollar that it
pays becomes a six per cent, interest debt
payable in coin. That is tho way your debt
is increased. ."It requires much more of tins
trash of money to subserve the pin-poses of
circulation thaw it-would if your money was
good • For this reason'll does not tako more
than half a dollar of good money to a dol
lar’s worth of tne commodities that you have
to buy and pay for in this paper trash. Halt
tho amount of issue would do. Suppose you
go to buy §lO,OOO worth of pork, or corn, or.
flour, or horses, and you pay in this paper
money, those commodities are doubiod in val
ue. But suppose there had boon no infllatwm
of currency and prices had remained as they
were, it would have cost but §5,000 to make
that investment, and you oouid have bought
it for $5,000 in goodourronoy, As a curren
cy depreciates in value it requires more ot it
to answer the. purposes of trade and oora
meroo : there can bo.no. doubt about that,
and hence it is that by this inflation caused
by the blundering and ba.d policy of Secre
tary Chase, you have put hundreds of millions
dbbt.upon this people. Everything has gone
CARLISLE, LA., THURSDAY, JULY 14 :
up to tho most extravagant price,‘and when
sorry if it had no more credit., 'the Govern
ment tu-day,’ according to-tlio Senator’s iheo-'
ry t is at a very heavy discount, nearly two
for one, and perhaps by this time to-merrow
it will ho a little over two to one. Many
countries have passed through dark and stor
my trials, and have oomo out with honor,
with dignity, with gjandouv, with wealth,
aud with power ; hut it hasaUways been by
abandoning paper-money schemes. Tho pa
per-money system -lias fallen to atoms nil
around us. "It hne.beeu tried in.almost every
commercial country in ■iluropo at some period
of its history, and tho .experience of its sad
oileots should bo a warning to us. We rc-
sorted to it in the time of nur own llevolu
tion. Tlrp Continental money was issued,
and it linally became utterly worthless. .Still
wo held on to our Government, and wo tho’t
•that our fathers had given to us in the Gov
eriimcnt a priceless legacy ; if we can
preserve it with all the constitutional guar
antees given us by our fathers, it will prove
a priceless legacy to our children after us.
Sir, this papeVmoney system is wrong.—,
There is not a single sound principle of
finance in it. ' I have asked the question,
what are the securities fpr the bills issued by
the national banks ? . The Senator says they
are issued, .on-thc -basic iof the Government
bonds, to the entcr.t of'nibqty cents <(f notes
to a dollar ol bonds. ~-V/ hat ic yobr 1 overn
mont bond worth to day ? I suppose it is at
fifty per cent, discount, gold being at the
price it is to-day in Now York. IVhat other
security have you? The national banks are
required to keep on hand in greenbacks
twenty-livo per cent, of the amount of their
issues ; and those greenbacks are at a great
er discount than your Government bond. ■
dhit the tv,‘u*together, and the issues of the
national banks are not seemed. Yon issue
ninety per cent, of notes on the basis ol the
Government bond, and when yontalto tli.e
bond and the twenty-live per cent, in green
backs required to bo kept on hand, and put
them together, they will iall twenty or thir
ty per cent, short of scouring the issues. I
speak of the security of’tho notes of the na
tional banks, considering gold as the measure
of value. Do not teU mo that such a system
of banking will result otherwise than in in
jury to the country. The national bunk,
notes fall still-born; the country does not
take thorn except at a ruinous and heavy
discount. The securities for the hack issues
are greater to-clav than.they .will bo to-mor
row or next day.” The issues are cut secure
now.; wkatcau you expect will bo the result
two years lienee ? fit will .got .worse .every
day. It lias grown worse .every .hour -since
the first note was issued, d admit there Inis
boon some little fluctuation ; it Inis boon some
days up and then has lallen back again ; but
the general tendency of the paper money
lias been downward. Six months ago, when
we met hero, I declared that by midsummer
a dollar of gold would be equal to two dollars
of paper. Already that poiat of depreciation
has been about reached.
The Senator from Ohio says you most
have this paper-money issue in consequence
of the exigencies of the war, and he wishes
to know what else wo could have done, lie
asks whether wo could have- kept the sub-
Trensnry law la operation all 100 time, re
ceiving and paying out nol.lnng hot gold
and silver. During the consideration ol liie
national bank bill which is now on the stat
ute-book, I suggested to the Senate what I
would have dune. I would not in this crisis
content myself with receiving and paying
out coin alone ; I would have suspended so
milch of the sub-Treasury law as required
payments to bo made in coin ; and I would
have .used the issues of sound State banks,
receiving and paying, them out during liie
war. If you had douo that, you would have
Intel a paper currency which the people ap
preciated, a currency furnished by Slate in-
Htitqtions that wore solvent and in good cred
it. The Senator said tonlay that many ol
tlio State banks were good-and others bad. —
I admit that some of the hunks in some
States wore not worthy of eieJit, but at liie
beginning of this v/.ar, tho. larger portion ol
tlio State banks wero in.excellent condition
and they are in excellent condition to-dav. —
1 believe that ail tho banks of the New Eng
land States at. that time were in good condi
tion and are to-day, Tho hanks oi New
York certainly wore. The larger portion ol
tlie banks of Pennsylvania wore. The hanks
of Ohio were. The State Bank of Indiana
and all the hunks of Kentucky were. At to
• the condition of tho banking.-system in tho
more remote Northwest,-I am not so inti
mately .advised ; but liie Government could
have well regulated .that matter and issued
its orders monthly prquarterly saying-which
hank notes should be received-j ail'd then at
the end of tho war we should, have-solvent
institutions with which our people wore la-,
miliar. There might have been some ex
pansion in the course ol the war, and after it
was over there would probably have been ne
cessity for-- contraction ; but tilings .would
soon have accommodated themselves to the
wants of the country.',
Tlio Senator desires tho conflict between
tho two systems to subside. lie says it ought
not to go on ; it is injurious to liolli.. T con
cur with him in that. I want the conflict to
ooaso ; but I want that bank paper taken out
of existence which-is of the hoist value. I
want tlio State hanks to maintain themselves,
and I want-your national- bank trash to lie
driven out and tlio law authorijiing.it to be
repealed. !l think it is ahlanieniahle-tiling
that tlio, contest over commenced. T suppose
every Senator here -wishes tlio best paper is
sue we can hare. Surely it is not seriously
proposed to drive out the better Ui substitute
a moaner paper currency. •'We should desire
to continue that which is most secure, that
which is most solvent, that which will puss
with tlio least discount, and every Senator
must know that that is tho currency of the
State hanks. Why then destroy tlio State
banks for the purpose of foisting, upon tlio
country the paper issues of your miserable
rotten national bank system ?
Tlio Senator says that the State -banks
bare forfeited tboir charters. When did
they forfeit them 1 -.What they have douo
they have been forced to do by tlio action of
the-Federal Government. . Many of them
never failed to redeem their issues at their
counters in coin, in accordance with the pro
visions of their charters, until tlio Federal
Government at Washington passoddaws ma
king its greenbacks a legal tender, and then
they did ns tlio citizens of tho United States 1
didl they paid out tlio greenbacks. I think
tlio country is pretty well satisfied now, not
withstanding tho glowing predictions which
wero made as to tho success of your national
bank system and tho excellency of the Bur
rehoy it would furnish, that tho issuos of the
State banks are much bettor, mid they are
to-day at a premium over your .greenbacks
and national hank issues throughout tho
whole-land. The truth is that in obedience
to a law'that regulates .currency here and
everywhere, the State hank.issues havojircl
ty well goue out of oireulatiun.-at least in all
1864.
the region'of country from which X come. —
you go into the market to purchase.yqu cre
ate a debt tho interest of which is uot paya
ble in this paper money, for tho interest on
your bonds is payable in coin, and a six per
cent, debt with interest payable semi-annual
ly in coin is a very heavy interest for a sol
vent tjovprnmpnt to pay for money. *
But, Sir. President, it is claimed that
you sell your bonds at par. Tho honor
able Senator from-Ohio, -spoke tho other day
about these bonds being sold at par now, and
he said that before this paper-money system
you could uot sell them at all perhaps, cr else
at a discount. Why, sir, they never,.-have
sold at par. If yon sell one to-day, you sell
it at a most ruinous discount. Senators will
remember that when t speak of discount, I
always speak of gold aiyl silver as tho stan
dard of value. That is what I conceive to be
tho constitutional currencjq and none other.
You sell every one of your bonds at the most'
ruinous discount to-day. is no
question about that. You receive for
them this paper money, and you givo a bond
the interest of which is payable in coin; and
so really, insto.nl of borrowing money at par,
you (ircqriving too,, twelve, or fifteen' pev cent
interest to day.
The Senator from Ohio says that you must
decrease,the paper issues, and that, ho says
is the policy of the Secretary of the Treasu
ry. Jf so, lie goes to work to effect it in a
umst singular manner. He docs it by rcoom
meuding,a system of hanks that are author
ized to issue §300,000,000 of paper money.
.1 concur with the Senator from Ohio in say
ing we must reduce the circulation of paper
money before wo can have a healthy curren
cy. What amount of paper money have wo
notv ? I hold in my hand a table that I have
male out from the best information that is
at hand ; .1 dp not suppose it is entirely accu
rate, but HToots up as follows: of tempora
ry loan there is $47,207,340; United States
Treasury notes, $-1-10,073,015; fractional cur
rency, $10,173,320 ; interest-bearing Treas
ury * notes, $200,000,000’; certificates of in
debtedness, $131,008,000 ; andthe-Stato bank
circulation I put down at $170,000,000. —*
That makes $1,010,552,481. I do not take
inti) that account the issues of national banks
which perhaps amount now to some fifteen or
twenty million dollars. I include the certifi
cates of indebtedness.-because I know that
in largo mercantile transactions they arc pas
sed ns currency. Then we have to-day over
a thousand millions of paper money in circu
dv.tiuu in these various forms. -Hoes anybody
suppose that wb can have any healthy system
of currency with that enormous issue of pa
per money ? But what is tho remedy the hon
orable Senator proposes? He says wo must
retire it, and first lie wishes to legislate out
of existence the Sato banks. I will not en
ter into any argument to prove that S.tato
bank paper is a bettor currency than tho
notes of these national banks or tho green
back*. Although,the country knows that the
Government here at-Washington is making
war upon them, notwithstanding the Socreta- |
ry of the Treasury cries out daily that they |
must he put down, notwithstanding his able ,
and eloquent advocate, tho Senator from Ohio
every time tills question is up proclaims bold
ly. and I admire his manhood,' that his ob
ject is to put them down, notwithstanding all
that pressure upon them, the issues of those
banks arc greatly more valuable than the pa
pci of you? national banks.
I could without the least trouble take up
the charters of these banks and show tho se
curity that exists for their issues, and make
it manifest everywhere that they are solvent
while no man on earth'can take up tho law
yon passed here organi/.ingthc national banks
and prove that there is a sufficient security
for the issues of these banks. -It does not
exist to-day, and every day, in my judgment,
the securities will grow loss valuable.
But, sir, tho Senator would retire tho one
hundred* and sixty or one hundred and sev
enty millions of State bank issues. That
will not do. You would have soma eight hun
dred and forty six millions of currency left.
1 will suppose that three hundred millions of
issue, at the outside, Would be sufficient.lor
tins country, particularly with the seceded
Slates off. T know that in’lB37 we had three
hundred ami forty-four millions of bank is
sues, and what was the result 1 ? A, crash and
a breaking up, commercial disaster and bank
ruptev -throughout the whole country. In
1857 wo again had an expansion, and a
crash followed, not so groat, however, as that
of 1837. Tho crash is now upon us.ih con
sequence of tho Secretary's paper-money is-'-
sues. The honorable Senator from Ohio
would reduce them, I suppose, by retiring the |
greenbacks; and right here, while J never
did advocate the issue of a greenback, I must
come to the defence of greenbacks. I think
if we must resort to Government papermou
oy the greenback, costing the Government no
interest, is the one we should have stuck to.
f V. as opposed toithc issue of that description
of ipaper money. -I was opposed to it upon
policy,“sueh as satisfied my judgment, atJeast
I was opposed to tho Icgultender clause,
cause l-4hou.ght it was a gross .violation of
the Constitution of tho country.
But, sir, how is tho Senator to get cloar of
the greenbacks? .How,can ho get clear of
thom.aud-silpport bis national bank system ;
In tho bill authorizing your national banks,
you require tho issue.of tliose banks to'bo re
deemed in what you call- lawful 'money of
the Unit-od -States*sm'd that as’a greenback.-
You cannot retire them while you have year
rotter, paper-money system created by this
national bank scheme. You have to keep
twenty-live per’cent. Of-them in the .vaults
of each bank as security fur iho note-hold
ers-; there twenty-live per cent..is absorbed.
•You have to redeem the bank notes in them.
Bu, then, it is utterly impossible to retire
them. ‘ You-might retire a portion of them,
T grant you, but a very largo issue of them
.must remain o.ut for the purpose of redeeming
tho national bank paper. Suppose you issue
three hundred'’millions, of bank paper, I
should suppose that, according to every sys
tem of correct banking, there mustbo at least
half of that amount in greenbacks for the
purpose of meeting tho provisions of tho law,
and for tho redemption of tho bank-issues. —
It will not do for tho advocates .pf tho bill to
say that gold and silver ipay.be used, for I
suppose there is no <man who thinks that a
note issued by a bank formed on this nation
al bank System ever can bo at par in coin.-—-
Such a thing does-not exist andViwivcr will
exist in any State in th.o American Union.—-
That is iho species of “ >vild-cat”
banking. Ith.as been exploded in-tho States.
Many of thenvhad a similar system, and there
was not onoirrwhich tho -system was not better
than your national system, because all of
them with have any acquaintance
requited a cprtr.in .amouut-of coin to -bo kept
on hand, .some ten, some fifteen, some twen
ty per cent. Those systems, too, required
another thing which your banking system
does not roqairo. Jf there, was 1 a-deprecia
tion in.the.bonds, they either had to retire
their issues or furnish to.the custodian ot the
bonds an additional amount sufficient to se
cure their issues.
I say, then, you will bo compelled to keep
your greenbacks You cannot retire
them under this system. As long as you
retain the national hank system, so long will
•you be compelled to keep tho greenbacks out
'to. enable those 'banks to comply with the
provisions of the law ; for the idea of their
ever redeeming their notes'in coin is absurd
unless you amend the law and require them
to keep coin on hand for the.purpose.
I would suggest to the Senator from Ohio
that in order to carry out the principle which
Ijq. has in mind when ho says that the issues
of paper money must be reduced, wo should
commence by retiring that which is of least
value, and whenever you apply that tost the
favorite pet scheme of the Secretary and of’
the Senator will bo at an end, ami the issues
of tho'national banks will be retired. If we
must have paper money this is not redeema
ble in have that which is of great
est value and which approximates nearest to
coin. That, it strikes me, is what wise, pru
dent, and sensible men would do. But the
Senator from Ohio and the Secretary of the
Treasury desirq to retire the bent paper'eur
rency wo have and to leave that which is
most worthless and trashy in the. band* of
the people'. To that lam opposed. • I admit,
with the Senator and with the Secretary,
that you must retire the redundant issue of
.paper before you can have a paper circulation
that approximates to the value of coin ; but
let us act like wise and sensible men gnd
I retire that which is of tlio least value.
There are many.other reasons why I can
not advocate this scheme for the destruction
of the State bank?.'-‘'The Senator from Ohio
makes that direct-hnue. Ue any a these two i
systems cannot live ; cither your national
bank system must go down or the State
banks must he destroyed. t for oue will
stand by the State banks, and I will endeav
or to destroy that system which I think fur
nishes the least valuable currency. I am
glad he has made the issue, for I do not be
lieve there is a Senator in this Chamber ex
cept himself who docs not believe that the
State hanks furnish a better currency than
the national banks. That being the ease,
let us hold on to the Stale banks, and let us
commence the retrenchment of these issues i
•at .the .right place; let us repeal the national I
bank low, and then, as we receive the green
backs for dues to the Gnyernmen V-utain
them ami not reissue them ; and then when
your paper circulation shall he reduced to
sumo two hundred ami fifty or three hundred
millions of dollars, you will lind that it will
approximate to gold in value, and nut till
then.
Secretary Chase may come herb with his
financial tinkering; lie may ask you to pass
gold .bills, and you may pass them, and yet
you will not put down the value of gold nor
put up tlio value of this paper money. When
you withdraw your paper money from circu
lation, ‘bank paper, if issued in accordance
with • approved systems of banking, having,
sufficient capital, and the note being redeem
able in.coin at the counter from which it is
issued, you will have a paper currency that
will bo of equal value with gold, and nut till
then. No financial tinkering over did
or ever will cause a bank note nit is
sued on healthy principles of banking to cir
culate at par with coin. I believe that since
the world commenced no country was over
cursed with aunorc di>,.istrous financial poli
cy than the present Secretary of the Treasu
ury lias inflicted upon our country. We
hate seen its bad effects all around us and
the longer it is continued the more glar
ing they will be.
1 am opposed to taxing State banks. Jam
opposed toitho : propoMtiun contained in the
report of the committee as well as to the
• amendment of the Senator from Ohio. There
is really very little difference between the
two propositions. .1 do not believe that the .
circulating medium should bo ta.xed. It
should he.lijcc the air wc-bre.atjie, free. -Of
itself it is not of v.ul.ue, its value is represen
tative altogether, rlt is the medium of ex
change. fit is the measure, of values. *lt,
does for commerce the office that the-vital air
docador.tho human system. All thetaxyou
should lay on the State hanks is a tar. on
their earnings, their pmiUs, as you tax citi
zens engaged in other business. .You have
taxed the net income of men in business
heretofore three per cent. Tax the profits
of the banks that much. If you raise your
income tax on individuals' raise it on the bunk
Treat them,.as you treat individuals. ,If you
lay additional taxes on them, everybody
knows, that if they issue their notes the cor
porations will nut pay the tax, for they will
exact it from their customers in some way.
I would tax thorn like individuals on their
income, and I would not tax them any more.
I' think it is had policy to do it,; and partic
ularly would.l not d<* if;n-.or.der to carryout
the object avowed by the fiomitor-from Ohhq
ami the Secretary of the Treasury, to kill off
the Sate banks and substitute for.-their pa- j
per this miserable national bank currency.
Sir, was th-iy.-tfver .such amaguilicent fail
ure as this national hank currency? >vYou
havO-had it for same time ; it went forth with
the faith of this,,mighty nation pledged to it.
It was proclaimed to the peoplo, “ Ifyuur Gov
o,,nmontstands'thia money will be good.” Aud
yet it is not to-day worth morn in gold than
about half ita.no.nimil value, and every hour
it is growing worse. - I admire the tenacity
of my friend from’Ohio. I thought we had
- experience enough to convince him that the
system was a failure’. The Senator, I know
has diacussed the question with great ability.
I do not believe you could find a gentlemen
herd or elsewhere ‘who would have made so
elaborate, able and plausible a speech in ad
vocacy of such a rotten scheme. ’I had hope
cd that after our experience ho would give
it up ; but ho fights on .with the tenacity of
. Butler’s hero, Iludibras:
“Down lio felt; .yet fulling, fought :
And being down, still' laid about."
Ho is now laying about tho corps of this mis
erable system, for it has died in its infancy.
Wo find him and tile Secretary of the -Treas
ury harping on it,‘and willing ■to murder
everything that comes in r.o.tupotitioii with it.
I ekpoet that .after, the State hank currency
is all put oht of tho way, an edict will ho is*
sued banishing gold and silver coin, because
it is a bettor currency than the issues of tho
national banks.
Mr. President,,l hope the country will no
lon "-or .listen to those who urge this paper
money system. Let us act for ourselves. -I .
know and the Senate knows that tho nation
al bank bill which was passed hero at the
last Congress,-was passed against tho judg
ment of the’ Sonato. Wo thought wo had it
killed; but the Secretary of tho Treasury
came into this Hall; be told Senators pri
vately that ho could not carry on the Govern
ment.for sixty days-without tho bill; and
yielding their'jndgments to him they gavo it
to him ; and how did he get along with his |
finances afterwards? I think nobody will'
now say that'the national banks liavo helped
him. ' The Sonato yielded their judgment to
.that functionary .then 4-I hope they will do bo
no more.' Ttdias proved r. moat magnificent
failure, if I may bo allowed to use such.an
expression. Let us act like free an inde
pendent Senators, and protect oqr country
Iroia Lho great and crushing disaster that
must follow from this paper money system of
Mr. Secretary Chase. I verily believe that
this paper-money system of the Secretary
will be quite as disastrous to the,commercial
and industrial interests of this country as the
rebellion itself, For God's Sake do not let us
follow such a leader any'longer let'tis turn
to the right path ; let us carry out’ such fi
nancial schemes as the history of the world
for a thousand years has indicated are nut
fallacious, and then wo will discharge the
duty of patriotic Senators.
Senators have spoken of the Continental
money. ..Sir, I verily believe.that the fall of
this paper .system that wc'novr have will bo
ultimately as 'great and more rapid than that
of the Continental money. I have a table
hero showing the full of the Continental mo
ney. We passed the first law for the issue
of legal.tender notes on the 25th 6f February,
ISO 2 ; then we-passed another in J uly of that
year. . We have had those legal-tender issues
now for about two years, and iylint ar.c they
worth ? Gold is 11M to-day. , I hold in my
’hand a table of the value arid depreciation of
Continental, money, which -I will send to the
Secretary's desk and ask him to read it. 1
The Secretary read, as follows:
Continent/,!. Ceuiir.Nev. — A friend hands ns nn
extract from an almanac written for tlje year 171*1,
giving a scale of the depreciation of the Continen
tal money for the settlement of old debts, as direc
ted by tlio General Assembly of Pennsylvania,
from which wo gather some particulars of the pro
gress of the depreciation of Continental currcu -y
which may not bo uninteresting to the readers of
the Age ;
Dnfr.
1777.
January,
.February,
Jlarcb,
April,
Juno, (sl'ghUy improved)
July, August, ScpL. Oct. Noy.
December,
•1775. January, ;
February and March, , ;»
April, (highest point Tor two years) t>
•May, (again improved) 5
Juno and July (still better) 4
, August, September, October, 5
L ‘ .November ami December, 0
Uu January,
'February,
-March,
April,
Hay,
June, (temporary renclion)
July, (temporary reaction)
August,
September*
October, ,
November, '
I'cccmbcr, (about present discount
on g-oonbacks)
17S0. January,
February;
March, April,
May, (lust spasmodic recovery) 5'J
Juno, CI
J uiy ; • 5-1 i
August, 7b
September, 72
October, T 3
November, ' 7-1
Dccombcr,
In 17S1, tho depredation win fixed at about 7./
during the months of January, February, March,
and April. At 75 per cent, discount it required
four dollars of paper to represent one silver dollai.
From this.point the depreciation was much or<»
rapid; it'suon required liv#, then six, thej). .eight
paper dollars to represent gne-in .spce : o. On ibo
Ist of May, 1761, one hundred paper dollars were
equivalent to one .dollar in coin, after which tho
dilfercnco became eo.w that tho Continental
money ceased to circulate. —'philwlelphiu J <jc .
Hr. -‘POWELL. Mr. President, wo nil
know the condition of that Continental cur
rency'. It became utterly worthless. It will
ho observed, however, from the table that has
been-ref-d-that it stood much better than .the
issues of paper money we have now at the
end of.two years after it was issued. I have,
no will become
quite us worthless as that.
The law establishing the national baits
makes them depositories of the public money,
at t.he discretion of the Secretary of the Trea
sury, and ovorthrows 4 tho independent Tren
eury-.system, asystem that has worked well,
and met the approval of tho entire country
until the bill to create natigcuiV-batiks was in
troduced. I had supposed that there were
no statesmen of this day who wore not fully
and entirely satisfied that the public money
should be keptapart from thaJjanks, thattla
wisdom of tho independent Tteasury system
had been fully vindicated by its practical
workings
’ When you make the national banks dopn-
Vitories of the public money you will entail
upon the country tenfold tho evils of the pot
bunk system, which worked*so disastrously
to the country. • That illustrious patriot ami
statesman,-Ooueral dackson,.placed the coun
try under.a debt of everlasting gnititudoby
his. overthrow of tho United States »l>ank,
which be conceived to be d?.ngerowe"‘to tho
liberties’ of the-’ people, and his/udveonoy o*'
hard'money..--That wibestatcsm.an-caiti;».•
*' Give tho people an honest Govern 'roe 1- -, '. r j
km from monopolies und.-privileged clashes, and
hard money, not’paper currency, for their hard,
labor, and r.ll will bo well.”
'ln tlic place of an honest Government wo
have the most corrupt and venal Administra
tion the world Ims over seen, monopolies iu
the shape of a high protective tnrilVund mam
moth • systems of internal improvement, fol
lowed by high taxation, which imp»verihh.
the people by wringing from.them the honest
earnings of their labor, while a worthless pa
per currency* Hoods the land.
I have another objection to this •national
bank system. I believe that it is unconstitu
tional. I think there «s no warrant in the
Constitution for the organization of such,
banks. I believe it tends to consolidation. I
believe that it creates a moneyed power hero'
which, if*they carry U out, will bo dangerous
to the liberties of the people. I am utterly,
opposed to-it in every form. .1 am in favor of
tiio local banks; I wish to
oh them. I believo fcbat.no institutions, ever,
acted more patriotically than thaso-'-nauks
have done during this war. -It was the, banks
of New York chiefly, .and the hanks of Phila
delphia and -Boston .acting in conjunction,
with them, that gave'tho sinews of war to tb«
Government at tho beginning of the strife.—-
We could not have got along without them..
They enabled the Secretary of the Treasury
to got along; nnd'hc how, with great feroci
ty, has turned'against them, and.wishes to
crush iind destroy them. I think it is a spe
cies of ingratitude that a vittuous and honest
people ought not to submit to.
' CT7” ‘ Husband,.l don’t know whore that;
boy got his laid temper; I am sure pot from
me.’ ‘ No. my dear ; for X don’t find that
you have lost dny.’
•■337* Richmond is like a certain kind of
physic—very hard to take.
j®* When is a woman like a watch !
When she is capp’d and jeweled,.
& m
NO. 5.
'■Pff ••fnf.
U
Jil
•121
Jri
fill