The New York herald., 1868-03-05

accommodated With seats, leaving tho passa'e en-.
foreign iegations; that each senator shalt bo
entitled 10 four tickets and each member of the House
TO two the Chez Justice and each Judge OF the Supreme
Court 70 two each Judge OF the Court of Claims TO
two, the reporters OF the press 20 have sixty
tickets, and tho remainder TO be distributed by the
Sergeant Arms who authorized 10 carry these
regulations and to employ under directions Of the Com
mittee on Contingent Expenses sufficient means or the
Al the suggestion Of Mr. SHERMAN Il was laid on the
table.
SETTLEMENT OF ACCOUNTS or CAPTAIN rRrRtx.
ssa tna o. m q ep Of Iowa ae - M se 70
navy was taken up and passed.
EXTENSION OF THE CAPITOL GROUNDS
On motion OF Mr. FEssENDEy (rep) OF Me-, the Senate
took up the bill for tho extension Of tho Capitol
grounds II was amended and passed.
PUBLIC LANDS IN NEVADA.
Mr.. STEWART, ep) Of Nevada, called up the bill TO
further provide for giving effect to the laws in regard 70
public lands in Nevada and for other purposes which
was discussed amended and passed.
TIE FUNDING BILL.
The Funding bill was again taken up, and Mr. HINDER
ep o. Mo addressed the Senate Re said after
authorized to be funded under the bill was
243 645,4s5 but that holders Of gold certificates
s4Oo 600 OF the debt in legal tenders the funded
annual interest would o ;llss1., ssa The %
1852 could probably be paid of II natures The
tr0versy wholly about the payment OF vetwentes,
amount TO ST. 700 0O0 The saving the public the
debtor class IL the funded debt should be paid in cur
rency with GOLD 2. l4o would be $50 600 in paper
portance 1t plain tnat currency pay the funded
debt Of $4,000 600, 600 could be purchased for
81, ,428 57 428 In gold To realize the importance OF
this matter could be that If the government
able to pay that and should hereafter execute
eonas @ for & the balance due at the end Of forty years
compounded, the government would owe debt nearly
equal TO oneourh Of the aggregate wealth OF the nation
to-day The creditor class would be much the richer
the debtor class much the poorer The senator from
Ohio tMr Sherman) had claimed that il the creditors
should reduce their Of interest from six TO five per
cent IL would be fair 10 both classes He oontended
that yielding up twenty millions per annum for ten
years at five per cent interest," payable half yearly the
ceiving in return $l55 1872 To make the exchange
equivalent the interest should be reduced 81 per
able semi -annualy. The public securities being largely
held the older Sato5 for the interest arising from
them and by Of the limitation banking facli
money in the West except ruinous rates. was there.
fore absolutely precluded and the contraction
left great dearth OF money there giving rise to bitter
complaints. This had caused them to seek O remedy
Mr. Henderson then instituted comparison of the debt
Of the United States with that OF other countries the
necesstated high tariffs and burdensome taxes result.
ing 10 throwing the balance OF trade against and con-
aggravated the evil and to send gold would drain the
country in five years time, and resumption would be.
come myth. Indeed, importatons ceasing, and gold,
therefore, to pay the accrung interest being longer
forthcoming at this polnt which could only be averted
by tho most radical measures. the public credit
msans Of resnsGanS H. TO those wen who vous ,hs
Call him aarmst he would point out the fact
these bonds in foreign markets sold at II to r. and in
New York at 70 to IS. He quoted the rat o. stocks
&C. In New York. and said their preponderence In value
over government securities showed want Of confidence
in the latter That doubt must be OF the ability of
the disposition OF tho government TO pay and the last
Treasury report would strengthen the confidence OF
the people The purpose had seemed IN the past to be
enhance the value of bonds by contraction dis
gard Of the interests OF OF the people,
He satisfied that reasonable increase OF volume
of tho currency would in aiding tho material inter.
ests OF the country appreciate The security OF the
bondholdera Replying TO the argument that the
debt contracted in gold should be paid in gold, he
held that II the government could make paper
legal tender II was as much currency as
gold, of which the government could not increase
rect. Tho specific agreement having been made, he
held that both parties made the contracts subec. TO
future legislation. Mr.. Henderson then detailed tho
the failure of Secretary Chase to pro-
specie to meet the expense Of the war; &C. which
led TO the passage OF the act Of February, 1862
claimed that impossible from the itself stIpu
lapg that the interest should be paid In coln that The
pay ment Of the principal contemplated In paper He
quoted the other show that such must have been
the intention, and that no limit intended 70 the
issue of legal tender notes until the Limitation in green.
backs tho of juno 20 1864 which the same time
authorized the or fifty millions IN Treasury notes.
and also made them legal tender. He then replied TO
combated the rlam or Mr. sherman that the gov ern.
ment is IN honor bound 70 KEEP the legal tender ccu
could be issued by IT, and Treasury notes could be
issued dd H6ium, the promise was worthless He
argued that greater volume OF currency was needed,
since the seeding again shared with the use
OF our currency, than during the Instead OF in.
creasnQ the amount Of currency meet the wants of
population thus increased by nine ten millions, the
opposite policy had been adopted by the Secretary OF
the Treasury, who had even contended that
o country was index to It's wealth and
prosperity Mr.. Henderson believed II was TO the
interest OF nations TO accumulate oy industry as much
interest low and the people prosper crisis
every fifteen years. and are caused by paying
much interest, not by over trading. lie read state
ment which ne had prepared showing the amount of
circulation per capita at different periods since 1853
TO show that it was much less than during the war
The decrease graduarom 20 TO- June, 1884 10 2S
February 1885, He said the Secretary OF she Treasury
Gar Fessenden) IN 1894 had issued nearly ninety mil
lion OF legal tender carrying weieht OF accumu.
lated interest. and many more millions OF small seven
thirty payable to bearer. afterwards putting
the market loan OF sSe ooo 200 for which bids were
that loans should be negotiated
IN the same manner to take up the six per cent debt,
which daily gnawing at the vitals Of industry
Mr. Henderson wished to pay every farthng OF tho
debt though the bonds were purchased at 1ty
enty cents on the dollar 1t beng quito he said to
regulate the interests as to do justice to debtor and
creditor. He would waive the terms OF the con-
tract and admit payment in gold TO be obligatory pro-
vided the creditors would reduce their interest
compensate for appreciating their bonds even from
seventy one the present value to the par Of gold He
read tables showing the value OF securities at from
to per cent interest for different periods from five to
fifty years. from which IL appeared that II per cent
ten year bond Is worth only sevenyone the ratio per
cent on a par bond, assuming money TO be worth six
per cent would be little oyer two per cent. The propo
stion to fund at five per cent that the debt
is worth 9250. II was not worth so mucn, nor did the
creditors pay much for IT, He said the creditors
refused TO fund fair terms be would fund II ALL
but adopt such policy will enable us TO take up the
securities as they mature, at which time all can pro-
coed by taxation and new loans al three and half
four per cent TO take their place He denied that de-
precated paper was the greatest of curses six per
cent loan equal In bulk TO oneeghth OF the nation
wealth. worse. England has two noted ipsttu-
tons-a national debt and poor house system Let
beware that we not also cursed with tho latter He
contended that every one thousand mions OF crcula
tion would become deprecated. That the amount
in March, 1866, when gold fell to l25 lie contrasted
iavoraby our condition now with condition
at the close OF the Revolution and with
that OF France when she entered on a
system Of I paper Issues and contended that the
difference was so great 10 make their citation rs
warning inappropriate. lie claimed that larger circu-
aiion was needed account Of the great extent COM
paratvey, and sparse population our country, and
because tho old credit system nearly abandoned for
which and other reasons he thought double the amour
per capita needed here OF that required In England
and France or, making allowance tor thor greater
wealth. bait AZ much more, which would give ag
gregato circulation Of 81 500 600 600 He claimed that
the rise go'd owing the iron policy OF
NNRN NAd VNA ARAEN N1 2..A