The New York herald., 1870-01-25
FoRTY.FRsT CONGRESS.
Second Session.
SENATE.
WASHINGTON, Jan. "a, 1870.

WASHINGTON, Jan. "a, 1870.
CREDENTIALS or SENATOR MORRILL,.
Mr.. HAMLN, (rep.) or Me-, presented the creden-
tias OF his colleague Lot NJ. Morrill, elected by the
Legislature OF Maine for the unexpired term Of the
late Mr. Fessenden, the vacancy having been previ-
ously filed by an appointment OF the Governor. The
credentials were read and the usual oath OF one
administered to Mr.. Morrill, by the Char.
PERSONAL EXPLANATION.
| Mr.. STEWART, (rep.) OF New, said ne desired TO
| make a personal explanation in order to correc;
statement by Mr.. Sumner In the discussion between
| that Senator anu Mr.. Trumbull on Friday last.
Mr.. SUMNER, repl Of Mass said II the request
length, and would 20 into the whole history OF the
| question, upon which remarks would be made re-
Tne order of business being called for the request
| Of Mr.. stewart was not granted.
THE GEORGIA MILITARY COMMISSION
Mr. NORTON (dem OF Mlnn., offered resolution
directing the Judiciary Committee to report TO The
Senate as soon as practicable Dy what authority. II
any, General Terry mas organized ana convened u
| military commission 10 inquire into the engblity OF
Senators and Representatives eected to the Leglsla-
ture OF Georgia. and their right to hold seats IN that
body, and for the purpose OF facilitating such III.
quries the President OF the United States and the
to me copsS m All 70
which they nave issued aud the correspondence
with General Terry or the Governor OF Georgia, ana
generally all Information they may have with refer
| ence to The action OF such Military Commission.
MT. SUMNER objected TO the present consideration
PENSION no THE WIDOW OF PRESIDENT LINCOLN.
Mr. WILSON trep.) or Mass, offered for reference
the Joint resolution OF granting pension 10 The
widow OF the late President Lincoln
Referred to the Committee on Finance
SPEECH OF MIR. SHERMAN ON THE NATIONAL CUR
RENCY BILL.
On motion Of Mr.. SHERMAN, (rep.) Of Ohio, the
Senate proceeded TO consider the bill TO provide
national currency OF com and nOtes and TO equaze
the distribution ana circulation of notes which was
| read.
| Mr. SHERMAN. chairman OF the Finance Com
mittee, said he did not propose TO enter into an
elaborate financial argument IN opening the debate
| on the bill. but would coniine himself to TWO
propositions 1t presented, rst, the partial equali
zauOn OF distribution OF the banking currency
basis. The present Distribution OF bank circulation
! was grossly and palpably unfair Those states
| Massachusetts,, Rhode Island and Connectcut-con-
taining population less than two millions nave over
ninety-sx million doIla. circulation. One-hfteentn
| OF our population nave thus one-third OF all the
States, where credit is most needed, have scarcely
three dollars to an lnhaoitaht, wnlie all the late
cuation. THIS unfair distroution, he said, grew ont
OF palpable violation OF the law by the then Comp
Toer OF tne Currency r ana .ae secretary Of tue
provided q rule OF distribution Dy which the whole
amount OF circulation was not to exceed three hun
dred millions, one hundred and fifty millions Of
| Whicn was TO be apportioned among the States
according 10 the population, and the other hundred
| and ffty millions according 10 the banklug capital
and resources fne revised act OF June 8, 1864,
silent as to distribution, but gave to existing State
without llmu. The growing Inequality Of the dis-
| tribution becoming apparent, Congress, BY acc OF
March 3, 1863 restored the old rule OF distribution
| AT that time there were less than one nun
| dred ana fifty millions Of banking circulation
and II this law had been observed eacn Srate
dollars Tor each inhabitant. TINS law agranIly
ana boldly disregarded, and the pretence to justify
| 1t was provision In the Internal Revenue act OF
March 3, 1866, which continued until July /, 1885,
the privilege to existing banks to become national
banks On the LIST OF october 1855, the whole bank
Ing circulation was one hundred ninety million
dollars, leaving three months alter The expiration
Of this act one hundred and ten million dollars for
| distribution according 10 the population; bul in
open disregard Of the law the remaining circula-
ton was issued to the old Stales TO the exclusion OF
The Southern and Western States thus increasing all
| the dlficulty now complained or Under the system
as 1t stands national banking was, he sald q mo-
nopoly confined to q few States where the popula
tlon was not increasing, excluding all the rapidly
l growing States or the West. majority OF Senators
o @ SeTe ae STATES less Imam
the sy stem, and would inevitably overthrow 1t un-
less corrected.
Mr. SHERMAN referred to the advantages OF the
| national banking system over that OF the State
BANKS, which, win the correction OF the lnJusGlce OF
| system tnat could De adopted. The West demanded
more circulation and were deprived Of 1t by the vlo
latOn OF the law. The East enjoying It's monopoly,
demanded contraction yet was not willing TO
yield TO the West dollar OF circulation three
years. remedy ior tlls had been sought. During
the last Congress the Senate and House each passed
bills recalling from some OF the Eastern States IA
portion OF their excess lOr distribution In the West
and South but there was q difference as to manner
and extent In doing 1t. The House insisted upon a
general and the Senate consented only to partial
ustrlbutlon not exceeding forty millions. Objection
| was made that the Eastern banks were innocent OF
| fault and that the withdrawal OF that circulation
would Gerange business and inllict greater evil than
the one to be remedied. To avoid this Committee
on FINANCE made the following suggestion 70 the
President ana nd secretary @ OF the lreasary proposing
lions, tue circulation to be distributed the Sou
| ern aud Western States, which was the proposition
| OF this BILL The first objection was that this was
an expansion or the currency, to which commit
tee was opposed, and Mr.. Sherman said IN no event
favor a proposition to increase the bank.
| ing circulation without reducing the en-
o u e 1ra1 fo TWO me ad
| been proposed-arst, the withdrawal OF the
| greenbacKs; but TINS plan wouiu not receive tue
sanction OF the House. The other plan was the one
| adopted by the Senate coInmltree-tne wltndrawal
OF tne three per cent ceruncates now neld by the
banks part of their place OF legal tender
nores. lie then gave the history OF these three per
| cent certificates, which were substituted for The
| compound interest notes. and were a temporary
| expedlent to avoid an increase the bonded debt
| They were the least objectionable; being payable
| demand they might be presented 70 Inc Treasury
| are mainly held Ill the Eastern BANKS where
| the circulation Is in excess by their payment
| the United States saves three per cent IuteresL
| and " III get three per cent taxes the new banks
! TO be organized. rhe committee then proposed 20
Withdraw these certliicates az rapidly as banks
are organized, and thus leave the currency without
either expansion or contraction. The remaining
! banking or coin notes. Ihis was an inauguration
or a true system or banking, embracing absolute
security 10 the note.hol0er and the United States.
The agency OF private corporations banks to give
nexDliity to currency and to meet the ana now
| OF exchanges, It's redemption on demand gold
| com ana freedom from monopoly restrictions,
except such as are necessary to protect debtors
and creditors. The banks TO be authorized Will he
organized only on the Pacific coast or in New orK
| and tue south, where large transactions are based
upon gold values lie further answered the possible
olsectons TO the proposition, Tue blll would oe
followed In dne time by bill for iunding the pubic
debt and Tor the revision OF the internal
| and tariff
MIR. DAVIS, tdem.) OF Ky., remarked that the chief
value OF the gold notes was dependent upon the
| facility with which they were redeemed. 10 maze
them equal In value to gold tneir certain prompt
redemption must be secured when presented by tne
| holder 10 the bank. In the bank lailed To
| make them equal 10 coin the government must be
| ready and abe To step IN and redeem thu notes.
Mr. SHERMAN replied by reference to the iourth
seclon OF The Dill requiring every national bank to
Keep hand at least twenty nve'per cent Of It's CIR
culation gold or SILVER coin. 1nen, TOO, the laH
under the present system was that II note was
presented 10 bank and not paid the notc-holder
might at once present II to the government, which
would redeem IL within twenty days. The banks