New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-01-25
XLIsT CONGRESS-2D SESSION.
SENATE. WASHINGTON. Jan. "a

Mr. Fessenden the vacancy having previously filed
by an appointment by the Governor. The credentials
were read and the oath Of office administered to
Mr. Morrill, by the Char. , ..
Mr. FENf0N ep ~ presented 10 CERTAIN in
manufacturing interests embracing the OF
borderprayng Congress TO remove the present duty
OF twenty per cent upon timber brought VA rom .n'u.,
which enters into these productions, aud that the TAX
resting this class coming from there sha oe re-
moved. AlsO petitions relating 10 tine apoh'Ioh Va '0
Numerous petitions presented for the abolition OF
NJ C0NEIING fIter " W presented the petition Of
Che Board ofrade Of Buffalo against the continuance
MIR DRAKE Rep MOI from the Committee on Naval
Affairs, reported with amendments and asked Tor the I'M,
contractors for The construction of vessels OF war and
steam machinery. Laid over.
THE PUBLIC LANDS. -,
Mr. CASSERLV Dem. Cali offered resolution, when
was agreed TO. iIstructing the Committee on Public
for division for sale OF the public lands in California
Into various classes such as timber agricultural &c
THE GEORGIA. MILITARY COMMISSION :,
Mr. NORTON Dem. Mimi offered resolution di-
rs soon as possible 6y what authority if any, Gen.
Terry has organized and convened military commits
sentatyes elected the Legislature Of Georgia. and
night hold seats in that body and for the purpose
States ana the Secretary war b6 and hereby
qucsted c communicate to the senate copies OF an orders
which they have issued and me correspondence viii
Gen Terry the Governor OF Georgia. ana an mlormi
they may have with reference TO the action OF such
Military Commission. LAID over.
4 PENSION TO MRS. LINCOLN.
JOut resolution Of granting pension to the widow OF the
late President lincoln Referred.
THE NATIONAL CURRENCY.
On motion of Mr. SHERMAN liep.. Ohio), Chairman
Of the Finance Committee the senate proceeded 10 con-
notes. aud equalize the distribution and circulation OF
Mr. sHERNfsN Rep, Ohio said he did propose to
into elaborate financial argument in opening the
debate on the BILL but would eontne himself 10 Two mann
propositions. u presented first the partial equazation
Of The distribution Of The banking currency among the
States Second free banking ON com basis tle pesSn
distribution OF bank circulation was grossly and palpaDy
unfair Three States, Massachusetts, Rhode Island and
Connecticut. containing P0poh les tah V GO 5
teenth OF population have thus one-thrd of all
the bank circulation The rapidly growing western
States where credit most needed have scarcely 50 to
cally without banking circulation THIS unfair disl
button he said ont OF papable violation 6fthe law
by the then Controller Of the Currency and the Secretary
of the Treasury The first banking act Feb % 1865 pro-
vided rule Of distribution by which the whole amount
of circulation was not TO exceed SOOOOOO OF
which 10 be apporoned among the states according
TO the population and the other $l50OOO0OO according
TO the banking capital aud resources The revised act OF
silent as to distributions but gave 70 ex
system without limit Tie growing inequality of the ais
tlbuton becoming apparent Co9g5ess 10y aG1 OF H9Te9
time there was than Sl50OOOO00 OF banking circua
and II this law had been observed each state would
have had reserved for less than So for each nhab
This law hagranty and boldly disregarded,
teTna Revenue act Of March g. 1866 which continued up
until July l. 1865 giving the privilege to exiSng banks TO
become National banks. On the LIST OF October 1867 the
whole banking circulation was ss0OOOOOO leaving three
5j"triL1tIon according TO population. but, in open
disregard of the law, the remaining circulation
was issued to the old States, to The exclu-
sion of the Southern and Western States, thus
increasing the difficulty now complained or Under the
system as it stands National banking was, he sad.
monopoly confined to few States, where the population
was not ncreasng excluding a the rapidly
being from States less than 0neseyentA OF the
and would inevitably overthrow IT unless corrected.
Mr.. sherman referred to the ADVANTAGES of the Ma
with the correction OF the injustice OF distribution would
be the best permanent banking system that could be
Cd Yves demanded circulation, and
deprived Of it by the violation OF the law Inc East
enjoying its monopoly, demanded contraction yet
was not willing to yield the West dollar Of circula
three years remedy for this had been sought
During the last Congress the Senate and House each
passcd bills recalling from some of the Eastern States
portion Of their excess distribution in the West and
tent III doing The House insisted upon general, and
the senate counseed only partial distributors not ex
eeediug $OOOOO Objections was made that the Eastern
banks innocent OF fault and that the withdrawal OF
greater ey than the one to be remeded 10 avoid this
the Committee Finance made the following sug
freasrry proposing to increase the limit of
bank circulation s45,OOOOOo. the circulation TO be
distributed the Southern and Western states,
TcM Was n vas ta} rhis was an EXPANSION Of the
currency which the Committee opposed, and Mr.
Sherman said in event during suspension or specie
banking circulation without diminishing the circulation
In other form To avoid expansion OF the currency
two measures had been proposed First the withdrawal
of tie reenbacks: but This plan would the
sanction OF the House. The other plan was the one
adopted by the Senate Committee the withdrawal OF the
three per certificates held by the banks as part
OF their place OF legal tender notes lie then
gave the history OF theSe thfee per cent ceTtncates
which substituted for the compound interest
notes. and were temporary expedient to avoid
an increase bonded debt. They the least OBJ
iectiOuab.c being payable on demand, they might be
presented the Treasury when most announcement They
draw interest and are mainly held i'll the Eastern banks
where the circulation is IN excess BY their paynent
the United States three per cent interest," and VIII
get three per cent taxes on the new banks 70 be organ
ized The committee then proposed 10 withdraw tnese
banks organized. and thus
leave currency without either expansion or conrac
ton The remaining propositions OF the bill authorized,
lie said flCe banking, on com uOlth 4uS Was an
nugurati0n Of the true system OF banking embracing
absolute security 20 the nOtchOder ana the Cued states
Tie agency Of private corporations as banks to give Hex
fby TO currency, aud 10 meet the eDD ana now OF eA
changes its redemption demand in gold. coin, and
freedom from monopoly or restrictions except sucl as
are necessary protect its debtors and creditors The
banks 10 be authorized viii be organized only ON the
PACING coast or III New-York, and the South where
large transactions based upon gold values lie
answered the possible objections TO the propo-
si,iou Tbe b would be followed in due time by bill
Tor funding the public debt aud for the revision Of the
Internal Rev cuue tax and tariff
Nj. HOWE Qep, WIS., then delivered long afguW ZEN,
IN review financial propositions when hau
been suggested. He said that the country would be
content be honest without being particularly anxious
be smart, the difficulty TO be encountered Woud DC
lesseped There might be way ont OF our enDar-
better than the right way but there was ne
would not attempt TO point u out Tor ne Iaa not al.
for individuals honesty j. the best pocy MS purpose
would be TO point out the course which Ae DeheVed
Mir SUMNER rep, Massl believed the proposition to
supply SiOOOOJ additional would not meet the present
Iequiremeuts The proposition 10 provide ndllOLa cur
reIcv coin notes instituted stem OF free banking upon
special basis which was impossible until we had specie
payments. Besides, tins would create thrd currency
In addition 10 that geeubacks and gold notes. He III
nated that he would propose all amendment IN the ma
ture of "A substitute for the bill.
Tie proposed amendment a bill recently introduced
and explained by him TO provide national currency com
notes and cquaLe the distribution OF circulating notes
amendment III Leu Of the former portion OF the
soa 70 Tue amount Of United heretofore issued
and circulation the Sse Of The treasury - ss,I.eo