so that this
provision of the bill neither provides for a contraction nor
expansion of the currency, but leaves the amount to be regulated
by the business wants of the community, so that when notes are
issued to a bank eighty per cent. of the amount in United States
notes is redeemed, and this process continued until United States
notes are reduced to three hundred millions."

Mr. Schurz asked:

"Will the Senator permit me to ask him a question in reference to
this section? When the eighty per cent. of greenbacks are retired
will they be destroyed and never used again?"

I replied:

"I will speak of that in a moment in connection with other sections.
Now, Mr. president, that is all there is in regard to banking in
this bill and also in regard to the retirement of the United States
notes until the time for the resumption of specie payments comes,
when this bill provides for actual redemption in coin of all notes
presented. It has always been a question in the minds of many
people as to whether it is wise to fix a day for specie payments.
That matter was discussed at the last session of Congress by many
Senators, and the general opinion seemed to be that if we would
provide the means by which specie payments would be resumed it
might not be necessary to fix the day; but, on the other hand, it
is important to have our laws in regard to the currency fix a
probable time, or a certain time, when everybody may know that his
contracts will be measured by the coin standard. We also know, by
the example of other nations which have found themselves in the
condition in which we are now placed, and by some of the states
when specie payments were suspended, that they have adopted a
specific day for the resumption of specie payments. In England,
by the bank act of 1819, they provided for the resumption of specie
payments in 1823, making four years. In our own states--in New
York, in Ohio, in nearly all the states--when there has been a
temporary suspension of specie payments a time has been fixed when
the banks were compelled to resume, and this bill simply follows
the example that has been set by the states, by England, and by
other nations, when they have been involved in a like condition.

"This bill also provides ample means to prepare for and to maintain
resumption. I may say the whole credit and money of the United
States is placed by this bill under the direction of the proper
executive officers, not only to prep