The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1863-01-09
xy@sF1-5 - - I2Iy{F%
PROCEEDINGS or CONGRESS.
Speech Of Senator Sherman on the Bill
Taxing Bank Circulation.
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The President Severely Denounced by
Senator salisbury.
Lively Debate In tho House on
National Questions,
a.. &C.. Ge.
THIRTY.SEvENTH COGGRHSs.
SECOND SESSION.
THIRTY-sEvENTH COG0RHSs.
SECOND SESSION.

WASHINGTON, Jan. 8, 1858.
NcRxAsa or CONVERSATION
Mr. WILSON, (rsp) Of Mass presented petition Tor the
increase Of tho compensation to paymasters' clerks
UNIFORM SYSTEM or BANKRUPTCY.
Mr. FnD. trep.) Of N. j., presented petition for
uaifoxm system Of bankruptcy.
NAnABLx NATTER
Mr.. CsLLArnx, (rep) or w., from the Committee on
Post ocss and Roads reported back tho bill allow ad.
dsona nailabls matter with the recommendation that
n ought not 70 pass The bill proposed - allow bundles
parcels, b., TO DO sent through the mails.
voLuxnuss FOB TIE DxpxxcE or KENTUCKY.
NJ. WILSON, frep.) Of Mass, from the Committee on
Military AArsr back tho bill 10 raise volunteers
Tor the defence Of Kentucky, with al amendment
THANKS TO GEN. rosscRAm.
Nh WILSON also offered joint resolution giving tho
thanks Of Congress TO Major General Rnsocrans the
ocers and men under him. for their gaantry and good
conduct 1t Murfrecsboro Tenn.
had reached the exploit Of General was un
exampcd In the military annals Of the country. He did
gould have performed such gallant exploit But the
6cia report not yet before aud he thought re-
81 Or Se % co
tons offered for every bats fought. He chose mako
TIE point in this He moved to refer the resolution
Mr.. WILSON said he perfectly willing TO have e 70
fsrred No agreed with what the Senator said about
General Rosecrans.
n The resolution was referred
fAx Hills AND FRACTIONAL cuRREScY-srzEcH OF
On motion Of Mr. SHERMAN, lrop) or Ohio the hin 10
ear bank bills and fractional currency was taken u and
~ to address the Senate In favor such taxa
Mr. SHERMAN sad:-Mr. Prcslden.-It may BIO difficult
Amid the exciting events Of the day to gain tho attention
ono that IL dry fun OF details and difficulty But the
currency OF tho country Is sensitive go directly
70 Tho national safety that must receive from senator's
tho most anxious consideration Shall bank notes
nting as money be taxeds This proposition has been
1wico urged upon by the Secretary Of this Treasury
ter full reflection and with tho great responsibilities Of
his Office upon him. II proposed TO the Senate at the
che vss,ibnle OF any system OF finance tina. can be
adopted. Il must be definitely determined, and upon its
Ssw the o he ha%
short bi presenting in two sectons the whoio question
ps a IL % 81 s a, Of Two
The second provides for tax Of thrse per all
notes under ono dollar commonly called "shinpasters"
He firmly convinced Of the necessity and Importance
Of this legislation and would clearly and briefly
he could tho reasons for this conviction They must
koop view the distinction between banks Of circua
zion and other banks. Banks OF circulation
creatures Of law. Their privilege 70 issue bills 10 IN s
% % %
not n al necessary for the business Of banking Tho
largest banks 10 this and Other countries do not issue
millous, hss circulation OF less than two Thousand
dollars. TIA famous banking houses Of Europe
The Rank q England has two distinct departments
do one aitends 70 the business q banking; the
Soss circulation in proportion 70 capital, and yes an
obvious ana remsrkabls distinction Is made 81 our
Iaws T. favor Of banks Of circulation and against
every oonmsrcisi instrument; notes. checks, bills Of
so1.crciai pspe, taxed, and yea there i NO tax on
ssak s.!ls SSsk nSss are specially exempt from the
ras Stamp {: must p.5 ss -:
% NJ The money Invested In commercial other pur.
Ss.s \ ssss s.ass, ana he profit: arc taxed why
every expoynsps Of life with lsoenss tar. But banks
& oreulssioa ere cxprcesly exempted from liceass
psivlsass, bavs % psy : license, and yet banks
crsolAsioa arc expressly eIemptsd Why =
privileges, b sxsmpssd nom tho burdens We have
put upOa private banks and on other pursuits
sar upon oan1o o. circulation eass S an
deducted from the stockholders This Insignificant
tax, only fifteen cents on one hundred dollars Of crcnla
ton n bank issues hundred dollars in bills,
pAys interest the public. and this draws pro-
on the entire issue Of not less than Ave per cent On
this pays only fifteen cents What other employment
escapes so easily. manufacturer borrows this paper
mouey from q bank, he pays stamp tax On his note
q sr 70 Ten per cont be pays three psr cent on
the entire product Of his sbor aod then pays three per
ssnt Cd his gross profits Out Of the balance he must
live The bank only three per cent tho net pro-
an. md y exempted from all the other taxes. Is
this Z uniform, just and equitable mode OF taxa
corporatops Railroads pay three per the gross
receipts from passengers Insurance companies per
per- esn on ONE s
senator's without deduction for any necessary expenses
manufactures three per cent on gross products private
persons three 70 two per cent their gross incomes
Banks of circulation pay three pcr cent their net ia
comes and that Is deducted from the income tax Of the
stockhoder There why banks Of circulation
should pay higher rate Of taxation than other pur
su Their profits are vastly increased by the business
Of the The net profits o. the New York banks last
year were twelve half per Their burthsns are
greatly ossened by the suspension Of specie payments
They are hsreiore bette, able TO pay nrcs when they
paper money Is reasonable that they should least d.
vide equally tho profit with the public They avail them
selves OF the suspension q specie payments to largely
increase their Issues, and thus at deraDgs the
rency and make barge profits, without corresponding
risk and burden II sad this tax ncrfercs with vested
rights but II docs than oil taxes All taxes
imposed 70 maintain vested rights TO property liberty
and lie. The franchise Of corporation is moro
sacred than the property Of individual state may
BY an act OF corporation, contract with citizen, and
cannot impair tina. contract By taxation or otherwise but
state cannot, by any act Of Incorporation, withdraw
any property from the power Of taxation invested In Con
uess AN objects or taxation must be HIT Congress.
Tho only limitation 10 that they must be uniform In all
parts Of tho United States All arn and excise laws dis
crminate rates and objects Of taxation Our Internal
certainly those who claim that Congress may levy high
duties for protection 20 domestic industry cannot
asPu, .so,, the power o. Congress 70 protect 4,
o credit Tho only question whether the rate proposed
too high y but onethird Of the prof, derived from
tended greatly % initiate destroy all Of
vaus The alarming Of bank paper can only be
checked BY tsxascu The rate proposed may not DO iui,
ssas bss certainly s mot so5 high The proposed
are will Yield four millions annually bat he did not
vgs simply - question Of TAXATION His great 90 ct
vas 10 induce the gradual withdrawal "a local bank
pper, with View TO @tabish national currency All
stIss have sought 70 esct I'm object The arst bank
dths Vused 6atss vas placed expressly on this grouud
mr Madsoo proposes The second bank ia order % sct nj
q local task paper and provide national substnts Tor
s gold apA sver then drawn q clrc a,ion by M
var 1hs controversy IN General Jackson time was only
whether gold ard silver, or fap-r money was
tie best national currency. Fcr reasons OF ,he
highest policy the sub Treasury system was estab.
lshed upon the basis Of gold and silver alone
An United States Bank no longer necessary The
GIFTED states o debt aud needed no such agency
Local banks had exploded The time favorabls f1r
the best national currency which undoubtedly is gold
sad silver coin. This currency must be modified by tho
Necessities ~ tho times Paper money IA a nsceS.
sty. We must depend upon the national credit All
nations have felt this necessity he referred % several
historical cases 10 show that could only he conducted
~ resorng 70 government credit In tho form u PAPER
Money. War boards god aud silver Whenever this IN
the "a 10 tho duty % Congress furnish subsi
tu'e The question not between coin aud paper money
but Between national currency and Tho paper Il local
bank corporRtans. Local banks arc subject 10 ma.
e. I,p.f hauH -