The Sun.
London, England, 1870-02-18 00:00:00

AMERICAN AFFAIRS.

(From the Anglo- American Times.)

Elsewhere will be found a resnindof an able speech
of Senator Fenton on Senator Sherman's Finance Bill.
It is more an essay on currency and resumption than a dis-
cussion of the measures proposed by the Senator from Ohio.
Practically the late Governor of New York brings for ward
two main objections. He holds that the currency is redund-
ant, and that it must be curtailed if it is to be lifted up
to the value of gold, while the tendency of Mr. Sherman's
bill is rather to increase than to diminish the circulating
medium. Mr. Fenton opposes it on that ground, though
he believes that the gold-bearing notes cannot be got into
circulation. His other objection is for the latter reason
not strong; he opposes two unequal currencies of the
same denominational value, while he regards the proposal
as harmless, because the superior currency cannot be in-
troduced in the face of the inferior. He answers those
who think it best to have the currency alone on the ground
that if now redundant, the growing requirements of the
nation will soon overtake the superfluity. In asserts that
they who say so do not understand the character and pur-
poses of money, that a nation does not require its currency
to keep pace with its wealth. England and Scotland have
rather reduced than added to the circulating medium for
many years, and their wants are amply previded for by
cheques, drafts, hills, and other ego; cuff, which are brought
into play as substitutes. This would be a strong answer
to the argument lately advanced by us if it went over the
whole question, but it does not. What we said was, that,
supposing the currency of the United States to have been
redundant before the South had been reconstructed and
the Pacific Railroad had been built, the large portion
drawn off to supply such an empty reservoir as the South
then was, and to replace the coin circulation of the Pacific
States, was practically a curtailment. This is not au-
swered by Governor Fenton, although the real question,
and the only one whereby the general rise, or lifting up,
as he calls it, of the currency can be accounted for. He
thinks the chasm of the 20 per cent. gold premium still
left is impossible for the nation to jump except by a long
training ; but he forgets that in six mouths that chasm
has nearly been narrowed one-t elf.
Senator Morton took ground in strong opposi-
tion to the Bill. In the first place, it would contract the
currency to the extent of $6,750,000, as it would require
that amount to be withdrawn as a reserve by the banks
issuing the $45,000,000. Since June $26,000,000 of Three
per Cent. Certificates had been curtailed,and this was the real
cause ot the present stringency, while Sherman's Bill would
run up the amount to $33,000,000. Congress was opposed
to contraction, and Commissioner Wells erred in his argu-
ment that it was necessary if currency was to be brought up
to par to withdraw from two to three millions of Legal Ten-
ders, his comparison of the United States with the United
Kingdom being altogether erroneous, the latter having
facilities that three-fourths of the former did not pi ssess
in bank cheques and credits. He was not of opinion that
gold would decline until specie payments were reached.
It, was possible that gold might be at 40 cents. premium
within four months, and intelligent financiers are looking
forward to some such rise. In providing for a system f
banking it was unsafe to calculate that gold would never
go beyond 80 cents, and to establish banks on a coin basic,
with only 25 per cent. of gold in their vaults ; it might be
successful in the Pacific States, but was dangerous, and
would certainly fail on the Atlantic side of the Rocky Moun-
tains. Senator Sherman here put a question regarding
the operations in gold in New York, to which Mr. Morton
replied that they were limited to transactions between im-
porters and the foreigners with whom they dealt. " The
importers sell their goods to the jobbers, and the latter to
the Western merchants, on a gold basis, but there is no
gold in the transaction. They sell for gold, with the un-
derstanding that when the debt comes due they are to be
paid in curl ency, according to the value of gold on that
day. These gold notes proposed by the bill could not go
into circulation any more rapidly than the gold they
represented, and could not he kept afloat except by the
bank keeping a dollar in gold for each dollar it had out.
In case of an increase in the price of gold, these notes
would be run home for redemption, in order to procure gold
to sell to importers who were required to have it. The
banks would then have to go out and buy at a large pre-
mium, which would inevitably cause their suspension."
Senator Sherman explained the nature of his bill, as first
partially correcting the unequal distribution of banking
currency among the States, and establishing free banking
on a coin basis. Massachusetts, Rhode Island, and Con-
necticut, with less than two millions, or a twentieth of the
population, have nearly a third of the bank circulation,
while the rapidly growing Western States have scarcely
$3 per head,and the Southern States are without any bank-
ing facilities. This arose out of a violation of the la w by
a former Secretary of the Treasury and Comptroller of the
Currency,and National Banking had become the monopoly
of a few States, which, in reply to the demand of the West
for more circulation, called for a contraction of the cur-
rency. This bill was the remedy which had been sought
in vain for three years, and the Committee on Finance
suggested the measure to the President and the Secretary
of the Treasury, who approved. The first objection was
that it expanded the currency; but this was avoided by
equal aiuount or TlArYtf per emit. Certifi-
cates, as the House would not sanction the withdrawal of
greenbacks. They bore interest, and were mainly held in
Eastern banks where the circulation is in excess. The
proposition for free banking on coin notes inaugurated the
true system embracing absolute security to the note-holder,
and the United States. The banks to be authorized will
be organized only on the Pacific coast, or in New York,
and the South where largo transactions are based upon gold
values. He further answered the possible objections to the
proposition. The bill would be followed fie due time by a bill
for funding the public debt, and for the revision of the In-
ternal Revenue tax and tariff. Senator Sherman was
auxious to push the bill through, as it was but a mere pre-
liminary to still more important measures. It is evident,
from the large majority it commanded in the Senate,
and the absence of hostile criticism in the papers, that it
has met with general approval, or, at any rate, no hearty
hostility ; yet we cannot help thinking there is great force
in Senator Morton's remarks. He holds with Fenton that
two currencies of unequal value cannot co-exist, the in-
ferior driving out the superior, and if gold again becomes,
as it assuredly will, a great medium for speculating, the gold-
bearing notes will rapidly be presented to the specie paying
banks, which run cannot be met by a reserve of 25 per
cent. ; hence that the banks will be driven into the
market to buy gold from the speculators who are driving
them, that they may be enabled to cash their own notes,
and if loft to such mercy will be speedily choked
out of existence. It is announced that specie-paying
banks under this bill are already being organized
on the Pacific slope, where they may safely do so ; but
whether banks so organized can carry on business in
New York remains to be seen. At any rate we can well
understand the mouths of the Fisks and the Goulds water-
ing in anticipation of a delicious treat. If they had had
them in their celebrated gold raid last September they
would have cut them into ribands, unless the Treasury had
been directed to assist them in case of necessity, which
might be done, as the Treasury advances would be covered
by the U. S. bonds already deposited.
Long accounts appear in the New York papers
about the capture, trial, and execution of Salnave. He
attempted to leave Verrette on the 27th December, but his
force was driven back in great disorder, and the pursuit was
so hot that, after doubling in many directions, and his bag-
gage and followers being cut off, on the Bth January Sal-
nave, with a devoted remnant, attempted to cut his way
through a portion of the opposing army. He was, how-
ever, defeated after a fierce fight of five hours, his force
being nearly all cut to pieces. Taken to Port-au-Prince,
he was at once tried ; M. Lavand declining even at Sal-
nave's request to defend him. The President of the Coun-
cil named two lawyers, and the prisoner was charged with
annulling the Constitution and proclaiming himself Protec-
tor of the Republic, holding the Government by fraud and
force. "Therefore, Sylvan Salnave is accused of high trea-
son, devastation, pillage with arms, committing assassina-
tions, and is now amenable for these crimes." He appears
to have been well defended, but the tribunal, after an
hour's deliberation, brought in the following sentence :
"In the name of the Republic, the Court finds Sylvan
Salnave, aged 43, soldier and ex-President of Hayti,
guilty of all the charges preferred against him, and do
sentence him to be shot to death, and orders that the exe-
cution shall take place at the Peristyles of the National
Palace." A quarter of an hour was given to write a letter,
which he sealed and placed in the hands of the President.
Ile was then pinioned, taken to the place of execution, tied
to a post and shot, his body being put into a cart and
buried among the felons. His Government was over-
thrown after a three years' struggle. He first sprang into
notice in the movement for overturning Soulouque, whese
bust he shattered with a pistol shot. One of his acts
brought him into collision with the British, for he dragged
from the English Consulate some Haytian refugees, and
shot them, in spite of every remonstrance. The Bulldog
opened fire on the forts, but in changing position got
aground, when the captain was compelled to blow her up.
than was captured by the British,
Subsequently Cape Hite'
but Salnave escaped. He was a man of undaunted
bravery, but we are not aware that he had any other high
quality.
The Vaples and Florence Observer informs us of
the death of Mr. W. G. Mickell, of New York, which took
place last Saturday at Naples at the United States Hotel.
The deceased gentleman had been in failing health for
some time past, but his death was hastened by a cold
caught about three weeks since, which brought on a dis-
ease that baffled all the acquirements ot medical science.
The saute paper says the United States sailing frigate
Sabine has not come into port, although wo hoar that she
has been cruising in the neighbouring waters for some
days past. She may be expected at any moment.
The general arrangements of the British Post-
office for taking over the telegraphic business have been
found to work admirably. Notwithstanding the diffi-
culties which necessarily attended the reorganisation of
the various establishments, the whole of the work up to
Saturday night was transacted in a manner to give
satisfaction to all concerned. The reduction in the tariff
of charges to the uniform rate of ls. has already led
to a large increase in the amount of business. It is
estimated that the number of messages despatched

Landon : Printed and Published by WILLIAM ANDREW?
of No. 112, Strand, Printer, at THE SUN Office, NO. 112, Stratick
in the Precinct of the Savoy, is the gOenty Micicileoes"".!
Friday, February 18, 1870,