The New York herald., 1868-03-04

the bill more Objectionable than these After brior
review tho uiilcuitss which the country has sur.
mounted he said the government hai forced
tus people TO accept one-sixth OF ,Ae entire
IN sre.t 1.-The The holders Of which could csnrae debt IN
gold and then legally tender them IN return. The dan
ger Was that loan so cheapy made would never be d.
mnshed but Increased The increased volume OF cur.
that had contributed TO the of the country
tending to a condition from which there would DO
no outlet until II was worth no more than continental!
demand. The danger was that, having banisned
gold from use for seven years, we should oan-
lsh II entirely; that the taxation which which has has
be diminished because OF unwillpgness TO re-
place any portion OF the circulation with gold and silver
bonds and legal tender notes certainly an experi-
men, and while feeling dildent about expressing an
opinion adverse 70 Ma. o. majority 9. sns ,hst
be hazardous TO predict the practical results OF tns
born oscating, reciprocang contrvance he could
not welcome tho proposition, because unuer ~ ~
to approach any nearer 10
specie payments than We are now They mign.
take United States notes the Treasury and GET not
Specie but bonds or they might carry bonds there and
get, not specie, but notes II looked like long farewell
to anything but paper money HIS SECOND opeouod ssad
issue OF United States notes to the extent OF $44
equal to The capital OF the old United States Bank The
VIII make money abundant and lower tho
rate Of interest The fallacy Of this ap-
OF The country they stand and they stood ono
year ago. Fortunately the Secretary OF the Treasury
was not arrested in his policy unll some contraction
had been secured but money is now much more pen-
Iifu at all poins and the OF interest less by fuzzy
third or one.half. Nor have banking facilities been
curtaled but actually enlarged rs the report OF tho
banks January ls6S shows the loans and discounts
10 have been 1886 00o 900, while in April 1866
they were only S545 900 O00 These facts Ut
terly demosh The whole theory of the expansioniss
1t might be that need moro paper money
i would cer,uniy be very convenient 70 him INT
Mcrril 10 add hts stock; hut legislator he
must adhere to the old fashioned idea that when gold
is AT high premium above paper money We have too
much o the latter circulation and too little OF the
former He knew that the war had enlarged our ideas
and that the American eagle disdans his narrow coop
on our coin and spreads himself very condor on
would be maintained by the preachers Of the new gospel
but We are likely to enjoy ts exclusive monopoly,
pie pie excep. zee a. the aress necessity third and fatal
objection was its effect will be to reduce the value OF
UDted States bonds which, so long they be had
any time par tor legal tenders will not bring more
n the hands OF individuals. and ono OF the strongest
motives for the purchase OF bonds Will be thus exIn-
guished Should this bill be passed 1t would At once
reduce the price OF bonds to par and Keep
them there, or with only fractional az.
property to the extent OF hundred millions or one
hundred and fifty mlllIons would be felt to be severe.
productive OF no possible benet and justified oy no
paper Is redemption because they not to stay re-
deemed II argued that this invention Of the vibra
tory change legal tenders INTO bonds and rtcc
will give the exact amount OF currency needed
at all points, winding up in place
and unwinding in an ther. But now any person
holding bonds Who wants currency for them can get
anywhere with eight per cent per annum, whereas II
this bill becomes law he will be able TO get only dol
lar Os dollar. Mr. M0rril continued arguing that the
effect OF the bill would be expansion and not contrac
ton, and contended that there Inducements to
cause the investment IN the new bonds OF temporary
surpluses Of banks which could employ Their money
10 better advantage otherwise He then criticised the bill
reported by Mr. Henderson, saying It ended with pro-
vso which, ike the postscript Of ladies' letters. most
important OF all, and quite suggestive oil the proprey
Of those ominous words, Please burn soon as read"
He refer the lllmiabls expansion lurking
the which declares that the
OF United States notes and national bank notes
bined shall be in excess Of seven HUNDRED mion dol.
lars the Secretary OF tho Treasury is authorized and
required 10 retire United states bonds 10 the amount Qf
sucn excess, until the whole amount OF United states
and fifty millions. He said tho first part
of the bill opened wide tho door 10 expansion by pei.
da,e increase OF circulation from six hundred and ty
six mill on, which The amount OF United States
notes and national bank notes, to seven hundred
millions: and this proviso would allow the issue OF
national bank upon the deposit OF bonds wholly
without, limit. After the point reached when the
Secretary by its terms longer required to cancel
United States notes he conended that If this system of
free banking did not prove imperative there would
be no legal practical barriers against twice or thrice
the amount or currency now afoat. He thought the
by national banks or the bonds proposed
Tor those now held should be left optional At all
held should be worth more they would be sold for
the premium and the new ones purchased at par He
United States bonds was held by capitalists
The average amount owned by each stocknolder
OF tho national bank notes was $I,6S7.
Mr. Morrill, also gave statement OF the thirty
loan, which, he SAID, afforded the strongest evidence
that it mostly held by persons or moderate means
He thought any extraord mary gains bv the national
banks to be attributed solely TO deposits and tho
incidents Of the suspension Of specie payment Il was
better, " they could not improve their condition, to
show bnstling activity with nut questionable
resuIts Mr.. Morrill, after condemning tho bill
atcapt TO steer with every tide, concluded with hope
ful view OF the future should better financial policy
prevail
fhe further consideration OF the bill postponed
until TO. morrow.
MILITARY DISTRICTS IN THE DISTRICT OF COLUMBIA.
reply received from the secretary OF War to tho
resolution Of inquiry wnnthcr any and what military
districts have been established in the District OF Coum
bia, with the numbers, names rank a1d duty OF officers
and the expense involved; also whether officers have
been detailed FOR duties other than military aud IL
under what law or by what authority II is authorized
Referred to the Committee on Military Affairs
THE STANDING RrIys or THE srvATE-ExIcUrvE sEssoS.
On motion OF Mr.. ANTHONY. (repl OF r. l., the Senate
proceeded TO the OF the report OF the Select
Committee on the Standing Rules Of the Senate.
The Clerk read thu rules which laid over for
farther confederation and nj ten past three
motion OF Mr GRIMES. trcp) OF Iowa, the Senate went
INTO executive several messages having been
ceved from the President.
After coming out OF executive session the Senate ad
journed