The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-06-16

the Treasury circular question had been carried
into effect In New York only. The bill was passed.
RELIEF OF CONTRACTORS
Mr. DRAKE, (rep) OF Mo-, called up the bill for the
relief OF certain contractors for the construction OF
vessels OF war and steam machinery. He said the
contractors had been unfairly treated by the COM
mission appointed by the act of March 2, who re-
ported favorably in regard To six iron-cads built In
the East and unavOraby regard to the rest OF the
thrty-one, they having been built in the West; that
all the contractors desired permission to 60 TO
the Court OF Claims and establish their claims.
Mr.. CHANDLER (rep.) OF Mich as member OF the
late Committee on the Conduct OF the War, recol-
ected an investigation showing that number OF the
Western iron-clads would not nOat when finished,
and that after expensive alterations they were worse
than before. In reply to Mr.. Drake he said he could
not recoect that those named In the bill referred to
were among them, and he believed the RESPONSE
bility attached to the Navy Department.
Mr.. FRELINGHUYsEN, (rep OF n. j., representing
the dissenting members Of the Committee on Naval
Affairs opposed the BILL claiming that there is no
evidence before Congress that the decision OF the
COMMISSION against this claim was not just. lie ex-
planned that the government had allowed them nve
millions on their claim, which was fourteen millions
and that the bill recently passed gave them hun
dred thousand dollars after investigation.
Mr.. HENDRICKS advocated the bill. lie SAID that
the contractors by reason OF delay on the part OF the
government in furnishing specifications, NC, had
been subjected to- great losses from the rise IN gold
and consequently in material.
forbiddlng such reference OF any claim by secor
Co., OF the Atlantic lrOnworks, and others named.
Mr.. HENDRICKS moved to amend the amendment
by adding the words upon any vessel upon which
an allowance was made by The Board organized
under the act OF March 2, 1867
After further debate, during which Mr.. CRAGIN,
rep.) of N. H., urged the propriey of the re-
ference to the Court OF Claims, saying that the
present claims on account OF vessels other than
those on which the former allowance was made, and
Mr.. HENDRICKS amendment to the amendment
was adopted-2S to 10; and the amendment was
adopted as amended
The bill was then passed-24 to II.
THE CURRENCY BILL.
The bill supplementary to the act to provide that
the national currency be secured by pledge Of
United States bonds, and to provide for the circula
ton thereof, approved June g. 1864, was taken up.
The question was on the amendment OF Mr.. MORRILL,,
And the issue Of increase of national circulation
equal amount of United States notes.
Mr.. MORTON, Tep.l OF Ind, gave notice that when
In order he will move to add the following
the United States retired shall not be obtained
% as Ss the In the
Mr.. Cole, (rep.) Cal addressed the Senate in
twenty millions increase He argued at some length,
pointing out the unfair distribution of the currency
and urging that well secured paper is as good cur
rency as gold.
Mr.. MORRILL, (rep.l OF Vt, said II there was man
on this floor that should be sticker for resumption
the people OF California feel its want more seriously
than those Of any other section. In his opinion the
now as It had before the war; and money FOR BANK
ing purposes Is worth more than then. He argued
that one explanation of the greater wealth OF the
East s their people work fourteen or fifteen hours
day all the year round and loan their capital at six
per cent while the people, OF the West
Of the day, loanng their money at ten per cent He
closed by insisting that surplus speculation must
always tend towards the Atlantic coast, where there
is the greatest opportunity for speculation.
Mr.. CoNKLING, rep.) OF N. ", opposed the propo-
stion for the twenty million increase. He said he
banking facilities enjoyed by New York. and that be-
fore the war she had better system than the pre-
one completely under their control. But no financial
interest in this country came forward more readily
during the war than the banking interest OF New
York, which gave its entire capital and an enormous
sum besides. In regard to the twenty millions in
crease and the proposal TO Withdraw cor
sisted that when there Is surplus In the Treasury
1t should be devoted to paying off the interest on
the public debt which Is running up so high, If 1t Is
not required for current expenses and that the with
drawal of twenty millions OF n-lnterest bearing
greenbacks and the issue Of bonds bearing SIX per
cent gold interest would be loss instead OF gain.
Mr.. SHERMAN, (rep.) OF Ohio, denied that the bill
proposed to innate the currency, and proceeded to
claiming that during the war the banking circulation
could not be taken in the Southwest and the South
because OF the unsettled condition OF the country.
He pointed out the formidable opposition certain to
result from attempt to reduce the circulation In
and thai the Southwest and South had enjoyed
the advantage OF the banking system, insisting
that the proposed increase Is absolutely necessary.
Mr.. FEssENDEN (rep.) OF Me-, said that when three
hundred millions had been authorized as the amount
OF bank circulation 10 had been his idea that If the
system to remain permanent II must be increas-
ed from time to time with the increased business Of
order to prevent speculation and the postponement
Of specie payment subsequently. Congress adopted
the system OF gradual reduction OF the national cir
culatl0n with view OF resumption so gradual that
those engaged In banking could prepare themselves
for 1t when the time arrived He then pointed to the
action OF Congress forbdding the further decrease
but for which lie said resumption might have been
possible in year or two, when free banking could
that the unequal distribution OF capital in the
States would make trouble, and now that the West
and South want more Congress had placed IL out OF
tic n rtun IN Imam wi "A N I'm
decreasing the amount OF the national circulation.
The sacrifice was necessary, but 1t resulted from our
mistakes.
Mr.. CoNKLING asked how, when national bank cir
culalion Is legal tender and receivable for dues to the
government, we are any nearer 10 specie paymentby
replacing with 1t the grcenback circulation, and
whether the result would not be an Increase Of the
interest on the public debt
rid Of the national circulation that IL legal
tender and replace 1t with circulation that is
not. His idea was TO reserve a surplus from
taxation towards paying of the debt as the
only way IL can be done. Financial spectators
had been endeavoring to find some way OF getting
rid of the debt besides buying IL, but they must be
paid some time or other, and the only way to do II
was by raising money by taxation, paying something
each year and reducing taxation only 80 far as IL
consistent with that plan. First the legal tenders
should be got out Of the way as nuisance, next the
obligations payable In specie. lie deprecated legis-
lation TO meet any popular outcry, and advocated in
dependent action, predicting that It would meet with
Mr. MORTON threw the responsibility OF the mis-
taken financial policy upon Congress- He said this
bill was the beginning, If adopted, OF the financial
policy of the country. IL was not giving
additional twenty millions, but the commence
ment of an issue OF one hundred millions,
which must surely result United States notes, II
taken up, must be repiaced by issuing bonds, TO
which Congress was opposed as replacing non
interest-bearing with an nteresl-bearng debt In
regard to Mr. SLermans proposition for imitation he
pointed out that the result would be speculation and
consequent increase OF the price of everything but
labor Every interest OF the country demands sta
bility, but imitation caused two prices for every
thing-the real price and the speculative price
and as labor cannot he placed in warehouse
and held for enhanced price, the price Of
labor was the last 10 be increased. Every other
financial scheme but return TO specie payment
was q nOstrum. II would not turn up Micawber
style but they must take step in that direction.
In his opinion the way to do Il was to TX some time
for the return, and that time approached the pre-
MUM on gold would gradually decrease, and finally,
the paper being good gold, the specie would
not be wanted lie repudiaed the idea that with
drawing the United States notes viii promote u
speedy return. lit forced IL would be by panic