New-York tribune., 1867-02-20
FINANCE IN CONGRESS.
rap ovr nrNppYD MILLION LOAN Bill.

fHk ONE HUNDRED MlILdON h'AN ''''''
wAsrrvGrCN Feb. lG. 1851
There is no question but that the bill which P.SNeu
Che Senate on Thursday TO create lWO'o" NR''
tenders. payable on demand, and drawing P,t c'u'
interest IA bill n the interest Of The NaliOal Dh'
and bankers do not say II Is not bill lh the III
terest of the Treasury also. but tins Is not SO eSN
eeen The bankers, who have already made ehor-
nous sums out of the Treasury are always on the
alert and their interests are represented III both IL
panoial committees of Congress. IL is misfortune
a - so becgnsc however honest aud honorable man
may be if il is understood that his private interests
are involved to any extent whatever in the measures
which he urges opposes in Congress, there are
always those who are ready to attribute interested
motives to his action.
This s1OOOOOOO0 loan bill il in the interests
of tho banks and bankers, because it is i'll the
interest OF expansion BY it the per cent compound
legal-tender notes. due this year which Air McCu-
loch proposed to pay and ia authorized to pay and
which it has been well understood were 30 bc paid at
maturity. 10y this bill liberated and modified
and their payment deferred indefinitely, at the
pleasure of the holder. that fixed reduction of
$iOOOOOOOO of legal tenders agreed upon last year is
by this bill stopped 1t i, not, strictly speaking, an
expansion of the currency. bat if is stoppage of
contraction of $lOOOOOC00 which was to take place
this year And. as the Finance Committee reported
the BILL and Mr.. McCullooh favored 1t, 1t went
through the Senate without debate Any critical eX
position would have shown that, if any loan at all
was wanted to take up the compound legal tenders
il was an ordinary loan, and not by any means loan
which should be kYal icadcY in the hands of the
holders Unless the policy is to stop contraction, it
is but grotesque performance to prOOng the life of
the bearing legal tenders, is done by this
bill; and. unless pressed by the banking interest, l
thot DrVy think d
doing it who was earnestly bent specie payments.
quite apparent from Mr. Shcrmans speech that the
last thing he wants individually is resumption. He
is like every body engaged in banking at the expense
of the Treasury in favor of nOn-cOntractOn first,
and initiation afterwaId. That may not misrcprc-
sent his position in the least quote from the report
of his remarks in favor of this bill. Mr. Sherman
said, the compound interest notes should be mot
either by a temporary Loan or by tho current re-
cc!pts by a further issue Of legal tender notes
Why, thought it was agreed and understood, and
by everybody declared, last session that the COM
pound interest notes were TO be paid when due.
Paid howg BY money in hand, or by money bor-
rowod On regular loan for the purpose But
now Mr. sherman declares they are TO be
paid by "GUther issue Of legal tender
notes. And this is exactly what this bill
which he has put through the Senate does. The six
per cent legal tenders we to be retired at maturity
Now that the time is approaching when this was 10
be done it turns QUA they are not to be retired but
are to be converted into fresh batch of legal tenders
drawing three per cent interest be kept ont at the
pleasure of the holders. Here is flat opposition 10
contraction. | do not wonder ut such opposition
But cannot help feeling surprise at the way lt
comes The Finance Committee of the Senate and
Mr.. McCuiloch are friends of resumption. And this
blow comes from them There is something about it
of an insdious character. which needs explanation
In the absence of all debate in the Senate and with
only the exposition of Mr. Sherman to look to for
lghtenment, we mnst conclude that, Willingly or un-
Willingly the Senate has placed itself on the side of
expansion, against contraction of the currency.
l have said Mr. Sherman favored not only non
contraction, but initiation. Hear him. Mr. Sherman
said: % IL not the policy of the Government now
increase the volume of legal tenders unless TO meet
a temporary reralsioa which could not he guarded
against" Precisely. MIR. sherman. Whoever hearC
of increasing the volume OF legal tenders at any tim
except from the pressure of neccSSyg So, then, w
are to understand that in the first place contraction
is 20 I've stopped s is effected by the bill just passed
aud that no increase i'll the existing volume of cga
tenders is 10 take place, acss 70 meet an urgent dc
mdRd This. then. Is where Mr. sherman himself a
spokesman of the Finance Committee, stand,
Whether it is where the Committee stands, or TIN
Senate stands, or the Government" which Mr.
Sherman assumes to speak for stands it is very in
teroSiiug 10 the country to know. J.S.P.