The New York herald., 1870-01-28


not be endangered II care was taken
!nas one class Of paper should be ro-
The The objection 81 @ 70 A' this was S based '0 upoa assi
the snpposltl0n that The people would prefer ma
uonai notes TO bank notes, Dut the answer 70 that
WAS that tAe good sense OF the people would give
preference to the best clrcua0n ana that woulu be
the one most readily convertible into com. II this
OBJECT could not Ut once be accomplished Congress
should az least start out on the road that would
reach to It. As o Western man he asked that the
West should nave che banking facitities waich they
neeue0, or which they were deprived by the present
grossly unequal distribution.
Mr.. SAWYER rep.) OF S g., favored the PROPOSE
ton suggested by AR Morton, as calculated TO meet
tile pressing requirements without creating any
disturbance OF the business Interests OF the couutr.
Tue oili Us thus amended would De more likely 10
meet with favor In the House. wlis the amendment
proposed Dy Nj. sumner ne believed, could not
pass that body.
Mr.. MORRILL,, lrep.) OF VT, said there was scarcely
member of the Senate who either officially or IN
ms private capacity dd not suppose hinlseir be
good Hnancier, and therefore, seats were generally
vacated whenever financial bill was taken up IL
was very dtfficut to induce Onehalf the senate to
surrender their pet theories to the other half but
compromise was necessary II any pracncal measure
WuS 10 De auOpLed. Referring 70 tue assertion tnat
the Northeastern banks had derived an undue
advantage IN the disposition Of the present BANKING
capital VI tao country. he said the circumstances
under which the present system was adopted should
not pe forgotten. 1t was ao0pIed as u war meas
ure, as the only means to sustain the credit
OF tne haton. The law authorizing IL went so
lar US 10 Impose upon the New England
and New YORK banks u tax almost amounting
system. Ine West Declined to avail itself OF the
system and the South, owing TO the war; was not IN
condlton TO avail Itself of the banking privilege.
IL should not now be made reproacn upon the
ioyal States mat the law making the present dlstr
button was then accepted. lie would support the
proposition presented by the committee Tor ioity-
nVe million dOars, on account oil its harness ana
necessity and asserted his 0pposluon 70 any present
Increase Of tlat amount.
Mr. MoRT0,, lfeiJ OF Ind, said the proposition to
init lne increase TO fortyhve miiiion dotiars, on
the ground that tns would satisfy the south
ano west Tor year or two was confessediy a nait
way measure. He would rather nave Congress
grant too much than TOO ittie and therefore pro-
posed tue Increase Of sxty-livc million dollars. IL
t'iis were not All taken no harm wond result. The
States or New York, Pennsylvania, Delaware
ana Maryland, with little over one
fourth OF the population, had two hundred
entire amount OF s500000,O 900 OF circulating notes.
Tue other states, having nearly threefouths OF the
population, had less tnan S5S000,00o the addition
of s6J ooO,v ,v0o as proposed ny the amendment would
make an aggregate oI less than $780, 00o, 900 Tor
neariy-tnree.lOnlt1s oil the entire population, While
nearly 900 would De preserved to the States
WIN one-lourih OF the population. He would ask
why IL was the south anu West were so grudgingy
aliowed the poor piltance OF Sd5.0ooo0J IL was TO
the interest OF the New England states to be liberal
HIS amendment would only take $4,000, 0o0 from
Tie States having the largest excess, in case tD
$o2,oOo, 900 Tor winch he provided was exhausted.
cincinnati, WIN population Of $50 900 anu an
mense commerce and manufactures, had S3,3a3 900
Of national bank currency; Chicago, with 30J,003
population and q commerce only second to New
YORK. had sb4Oo.o 900; indianapolis wllh population
OF 10000, nad so ,0O0 Detroit with population
Of 1000, had SS575,00o; Milwaukee aud st. Louis
mad like proporlons; New York, with about 600 600
population, has about sex, ,00o, 900; Boston, with
250000 population, has Sal. 00osUO0 Providence Win
$4,000 population, had neary $1d,0j0,0d0 Hartford
with 35 900 population, had 81, o62 900. The Western
cities he had named, with population Of loo 0JO
had The entire sum Of 0oo wnlle the Eastern
cit,es, with united population Of l,2z5,ooo, had
$50 940,00O showing That the great cities OF the
West In point OF population were entitled to more
than double the currency they now have. Unaer
the provision OF the bill FOR the Issue OF coin notes
the banks, which might be established east or the
Rocky Mountains would, he believed, be used Tor gold
gambling purposes. Referring 10 the Pacific States,
Tor whose benefit The bill was chiefly designed, no
SAID that fnaLcally they had been unfrendy To the
credit Oi the United States, having uniformly re-
Jected our cdrrency, preerring to adhere 70 gold
aud silver.
Mr. CAssERLy, (rep) or CAL, said that California
had never rejected the currency OF tine government
always been ready to receive paper At It's fair value
There could be, he Thought, no valid argument
against their right to do tnat.
Mr. CORBEfT, (rep) Of oregon, explained that la
the Pacific Sta.es, after the premium on gold had
advanced. 1t was very dinicuiI TO establish q bank
ing system under the National Currency act. There
was bat one bank III the State OF OregOn-tnat at
Portland--which issued u national bank note. THIS
condition OF inngs was attributable to coin clrcu-
latlOn and not TO any unfriendy feeling toward the
government currency
Mr.. MORTON sad the banks there were constantly
resisting the introduction OF currency from this side
oil the Continent. While this was to their interest,"
he charged was against the interests OF the people
there and serious misfortune to them.
Mr.. CAsSEKLY, by way OF correction OF what he
supposed to be Mr.. M0rtOn's mistake, said tue most
strenuous opposition 70 the Introduction OF paper
currency and the exclusion Of their own came rom
the body OF the people themselves Values In Gait
forna were gold Values aud business was conducted
on chat basis
MIA had treated our currency exactly did the peo-
pie OF Canada. When he went to Canada he had to
snI S ans Se ana mad oHy and when
Here gold Is ut a premium and paper at par, while
in California gold IA at par and paper at discount.
THAT was the difference. He argued that the effect
OF the amendment of Mr.. summer would be TO
increase the interest bearing debt two hundred mil
lions Of dollars, and compel an additional payment
by the government OF eignt millions Of dollars
nuaily In interest. He referred to the law which
pledged the government TO redeem all the United
ing the alh OF the government TO pay the bonds In
gold. He advocated the adoption OF practical inca
Sures with q view to the accomplishment OF this
purpose. HIS amendment would Obylatc the co.,
traction OF nearly seven millions OF dOiars when
tho bill as 1t stands would create.
Mr.. PATTERSON, (rep.) OF N. H., said New England
had been made the scapegOat IN the present discus
sion without slincent provocatl0n. 5ne had been
made accountable 1or the stringency OF the money
markeL at the west and SOUTH The facts were that
the 1rst banking act was provided that hun
dred AND fifty millions were to be distributed accord
ing TO capital and business or the various states In
the next acL tnat provision was left out but in the
act OF 1885 1t renewed, because the government
found itself IN want Of money. Congress did not
think best To more greenbackS or legal tend
ers because by so dong they were lnterruptin4 the
business OF the country, and 1t was necessary bus.
ness should continue IN order that the war might be
carried on. But the government needed moro
money, and the money was IN New England, and
some provision waE necessary by which New Eng
land money could be secured to the government 70
carry on the war; and so the State banks were taxed
ten per cent to make the capital III those State
banks unpr0iucttve.
MIR. MOTION remarked that 1t was necessary to
drive the State banks out Of circulation IN order to
give 10 the circulation Of the national banks.
MIR. PATTERSON continued, remarkfng that 1t was
necessary by crOwdng the state banks OF exist
force the capitalists OF New England to take
this national Dank stock and thus AID the govern.
ment. New England was thus forced to take this
national bank stock, aud gentlemen sh0uld not now
come here from the South and West and complain
that had the lions share Of circulation; she had
simpy done her duty under compuislon. twas not
her fault that the South and West had not taken their
quota
Mr.. SAWYER said he did not complain OF the IN
far distribution by which New England enjoyed
more than her share OF banking capital unoer the
law, but desired to protest against the Claim which
mad been here that she entitled this uu-
que preponderance on account OF ner patriotism. He
claimed the facts ed that AT the Close OF the war
not ne-tnird OF the bank circulation mad been
distributed, and as the law required the distribution
OF one hundred and fifty million dollars, according
to population the South was tnen entitled TO receive
her snare and would nave received II II the law mad