The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-07-12

due on footing OF equality, and restores TO all
forces no funding, and In this respect may
be considered defective. II could have
clause, directing the Secretary of the Treasury
TO apply the notes received for the new ponds 10 ne
payment of the matured nve-twenties in the order
OF their issue, and thus without expense to the
government fund the public debt at lower rate OF
interest and bring both bonds anu notes 10 the specie
standard without contraction, CONFUSION or mus
tice and In strict accordance WIN the letter ana
spirit OF the law appreciate the dellcacy OF deal
ing with this question now and am willing 10 sup
port this bill which is impartial only in that it kes
an offer instead OF enactng law that would exc
cute ITSELF The provisions OF the bill simple and
easily understood; contains four independent pro-
posons they may be separate but ought not 10 be.
The first contains an authority TO sell hve per cent,
bond the redemption OF six per cent, bond. The
second makes distinct provision which, If left I'M
disturbed, VIII pay on tne entlre debt In thlry'nve
years. The third gives TO the noteh0lder the precise
privilege that IL given by the first section to the
bondhoder, and the fourth authorizes contracts in
gold. II these propositions are to he discussed, |
prefer do 1t questions arise the debate, and
content myself now with expressing the earnest
hope that Congress Will do something 10 make good
our promise to the people in the Chicago platform,
to reduce the interest OF so much OF the public debt
as is now subject 10 redemption.
Mr. SUMNER, Qep) OF Mass, then took the floor.
He commenced by saying that, after the tempest
that mas recently swept over as 1t was wei TO en-
deavor comprehend the actual condition of AFFAIRS.
| What has brought u aboutY IL was impossible 10
separate the financial question from the political
question, our present responsibilities in both re-
spects having sprung from the rebellion, together
constituting fearful sum total OF disorders. After
abored In that connection ne SAID that financial re-
construction depends upon politics, and that in both
We must fellow nature and restore by removing the
disturbing cause. security was the first condition
OF the former, and he knew OF no road TO II except
through political reconstruction. So long as dol
lar OF irredeemable paper was forced upon the
country rebellion Still lives in Its spurious pro-
geny. All that Andrew Johnson had done tended
TO proiOng the rebellion and to continue financial
disorder and so with the democratic party. Others
not indifferent to the latter had looked with lndiler-
ence upon Johnson's criminal conduct, and mad
prpd m was
should suffer. Also, when the nation was again IN
health nconvertible paper would be as impossible as
bill OF sale Of human being. For the sake OF the
national finance the freedmen should be secured and
maintained IN equal rights, as danger was to be APP
allies. He dalated at length on the Importance OF
preserving the public faith which he styled
treasury, tariff and an internal revenue all in
one, as with that, even if they lost, would be
but for day. He likened the Outcry for taxing the
bonds to the exclamation of the rogue in Shak-
speare-"What a fool is honesty and trust 1s very
simple gentleman" Pointing out the original bar
gain that the bonds should not be taxed, he said
proud nation sensitive Of its honor could not do this
| thing The proposition to pay the bonds in green
backs he pronounced similar in spirit to this, quot
ing the declaration of government officers about the
time of their issue that the fve-twenties were pay
able in coin and denying the assertion of Mr. Sher-
which assertion he claimed to be an admission OF the
| force Of acquiescence if ii could be shown as he
| claimed to have done. He insisted that the
face OF the bond promises TO pay dollars; not
vertible paper, but established measure OF value
| 1t would make no difference if the payment of the
|
| tmatey be paid In coin; but all OF these pretexts
were nothing but reputation. Referring to the re-
| pudiation Of Mississippi bonds and the connection
| OF Jefferson Davis with it, he said ii was not I'M
natural that state mad with slavery should reject
the obligations of public faith Slavery was In
| itself perpetual reputation but such an example
unfit for our nation at this period OF its history.
| Commenting upon the cutlery against the bondhod-
ers, he said every such loan In the time OF the ma
| toms peril was contract OF bottomry on the
| tion conditional upon its success, quoting Milton's
! lines
lIa ,bv
For what can war but endless war stu breed
| And public faith cleared from the shameful hand
| OF public fraud.
| Mr.. SUMNER then urged economy and the diminu
ton far possible Of the public debt the only
present means OF tightening the public burdens, and
went on TO cite the probable increase OF population
and material resources of the country in The future
to which he thought we may TRANQUILITY leave the
final settlement Of the national debt. He knew OF
per cent less than English bond while 1t pays one
hundred per cent more interest except in England g
| lesson Of public faith Proceeding to consider
the bill before the Senate he argued that only
| confidence in the public faith would induce the
bondhoders 30 make the proposed changes OF bonds.
! any menace OF conpulsion would defeat the trans
! The bill however was free from any such implica-
ton. He assured 10y men who ought to know,
that those bonds would be rapidly taken for the five
twenties. After examining and approving the pro-
visions OF the bill he went on TO urge the necessity
OF speedy return TO specie payments, describing The
multifold evils of our present ds0rdered currency
| and insisting that fluctuations in the measure or
values announcement and fatal az in the meas
ures OF length breadth. They had made the Stock
| Exchange a faro bank, and materially injured our
| foreign commerce, assuming that few would deny
| The transcendant evil which had set forth and
Wind Gated inconvertible paper as currency. The
| legalzation OF contracts made payable In coin
would also have an immediate tendency TO
| this result, or rather would establish specie
| payments whenever parties desired, contracts
In coin would increase and multiply until
| the exception became the rule and the better
currency would gradually prevail. Referring to the
fact that this legazation IL proposed only on future
contracts ne claimed mere ccuS oe 40 dOnp, Oh 1ts
Their important step forward toward the resumption
OF specie payments especially. He then commended
the provision for the contraction OF the existing cur
rency measure OF great practical value. and TO
exhibit Its necessity quoted statistics showing the
total circulation Of the currency 70 have increased
from $542 900 in 1880 to 81 900 900 In October
1s62-an increase OF 100 per cent, or emitting bank
deposits Is8 per cent, which he claimed was at least
80 per cent more than the increase OF population and
business would warrant, which difference he said
represents the difference In prices the two periods
OF the corresponding OF currency above the
| quirements OF the country To secure reduction In
| prices, therefore, the currency must be reduced
| some 5000 600, 600. He condemned both the stand
still policy and that Of the nfiationsts, who, he
said. pandered TO the morbid appetite for paper
money and played the discarded part OF John Law,
| blowing up bladder without thinking that IL was
nothing bat bladder ready to burst. AS the volume
| OF every dollar was reduced in proportion and the
| prices OF goods were marked up higher without in
creasng their value Already, said he, the currency
| Is corrupted. DO not corrupt II more; the cream
not not let it be reduced to chalk and water
| Give us national cream. He then enume
| rated feasible expedients all calculated
10 operate in the same direction OF contracting the
currency and Ringing about resumption OF specie
payments without violent change or spasmodic &C
ton; first, provision that any holder OF greenbacks
| may fund them in bonds a. he may desire, so that
| coin increased they would be merged In the
funded debt; second the cancellation OF greenbacks
or the payment, SO far as the coin may permit when
received at the Treasury; third, theI conversion
| into compound interest notes, to be funded IN
monthly instalments, running over q period OF
years. thus reaching specie payments within short
time; fourth the application Of the coin on hand TO
the payment OF bonds at given rate, say So 900 900
| q month, selecting for payment those holders who
present the largest amount OF fve.twenties for con-
version into long bonds at low rate
| OF interest, or who shall pay the high
| est premium on such bonds. He continued
with 80 great object in view do not doubt Its &C
complishmen at early day Il the nation only wills