The New York herald., 1870-01-27

issssd bonds for equal amount payable IN coin IN thirty
ceaAss note. i.scsa % The banks hs Comptroller %
from p.n on spop il ~ aamsns o. Il:
70
srsr A. any time when the amount Of con held by the bank
THE CURRENCY BILL.
Tne consideration of the Currency bill was then
Mr.. CoRBRrr rep, OF oregon referred to the pres.
ent financial status OF the government. and said the
country was gradually returning TO a sound basis.
held in che place OF three per cent? certIicutes
wiIicn setne bili very properly proposed TO
pav o " woa % rn hs prropossn TO sx
nevng IL 10 be dema aded by the immediate neces-
sines oi those sections. lie also favored the pro.
visions for the establishments OF banks on
gold basis, and thought these would
eventually superseae the present national banks
lie had recently introduced resolution lnstructIng
the Flnance Committee 10 inquire INTO the expe.
diencv OF compelling the banks retain the interest
paId them semi-annualiy until 1t snail reach the
amount OF the reserve required under the present
law TO be kept in legal tenders said reserve OF gold
10 oe used rs substitute iOr SAID legal tenders BY
pohCy ike This the banks would be IN q condition
10 return To specie payment when the government
80 oracrtd. In the event of contrary policy being
pursued inc banks might upon the resumption OF
specie payment, present their legal tenders and de-
nand from the government payment for them in
gold. He had also introduced bil for the gradual
iundpg OF the debt when he would discuss at the
proper tiue.
Mr.. SUMNER, rep.) OF Mass, said simple reuistri-
button OF the existing currency could not be made
without consequences to the business OF the
country, wl,e 1t would do nothing Tor financlai
reconstruction. Nor was It easy 70 lsee now any
feulslrlbutluil could be made which though Just
toaay, would not be unjust tomorrow. In 1851
when tAe national securities had received terrible
shock, Tie banks OF New lork, Philadelphia ana
Boston furnished the means by wncn our forces
were organized against rebellion, one hundred and
them. OF wsich rity millons were subseauently
Subscribed 0y the people. Not from the South
nor from the West dld succ0r come at that time
ana he was not ne said, now disposed to DO any
Injustice To tine banks oil Lhe North ana East. The
prominent features oi the bill werenrs to enlarge
the national bank currency; secondly, to create
system OF free banking, founded on coin notes. eav-
lug out vi view the questions Of refundinV and con-
soidating tue national debt and the great question
OF specie payment. The first proposition would be
unjust TO the North and East and inadequate TO the
south ana West. The second proposition would
banks He believed tins to be mpraclicable primer
paIy upon the ground that national bank could
not issue and maintain circulation OF coin notes by
q reserve OF twenty-five per cent a. long as gold
remained at premium. because IN br3SoFiioh ii3
the premium On gold would be the run on
were y s vaults smpeu notes s
stead OF supplying the bill proposed to amplty the
form, forms OF .ne carrencv. he proposed On amend
bhi 10 provide for an enlargement Of the present
limit OF circulating notes Irop three hu4!red mil-
ton OF TINS volume among the States and Terrso-
,,.- ,..-, r.ysss l1as sr ssca additional dollar Of
C,r ency iysdtd Under the PROVISIONS OF this act
tnere seall be Withdrawn que dollar q tne le2al
Nj. SHERMAN. (rep.) OF ono. regarded tna anlepd.
ment as inrenaed 10 defeat the oil by ENGRAVING
upon IL a proposition embracing the funding
bi, when wo1d create DEBATE for sew
era days. The amendment would withdraw Ave
hundred millions OF greennacks and substitute m
their place olnk notes II III an evil Gour the
senate adopted tnat amendment there would
De an end % all measures for the REDISTRIBUTION OF
tne oank circulation. Inc Senator would wlhdraw
two hundred millions greenDackS before the bank
notes We're issued: out where did he propose to get
the money to pay these two hundred millions OF
grecnbacks. not out or the surplus revenue2 lie
must 40 it ny ncreas ng the bonded debt. Mr. Sher-
man suggested that II more thorough measure
than that recommended Dy the committee was de-
inanded by the Senator from Massachusetts he
would ask MN to come forward and nelp to carry
out the existing law; for II was only by violation OF
law thai thus unequal distribution OF the currency mad
occurred, resulting most exclusively III The benefit
OF that senator's constituents. That senator asked
why withdraw the three per cent certlficatesg He
(Mr. Slerman) would tell hlm why 1t Was-because
the government Was now paying TO the Senators
currency The fosty-ive million dollars nov bro
vded Tor, he thought would be enough for the South
and West, IN view OF The fact that banks could not
years ago ana the pronts OF banking were not az
large as during lae war; AS preliminary measure
Tia souk and Weft during the few years preceding
specie payments. TAe complaints OF the Senator
from Indiana tdr. Mirtonl concerning the abuses
which had grown up IN the banking system were, he
admitted, wen founded, but ne would remind the
Senator thrsz ssy -tem that could be devised would
ba enGlreW free from abuse, while the present
the best tlat nad yet pseg tyled'
Mr.. THURMAN, (1eIn.y Of Ohio, opposed the amend
ment and also THAI portion OF the bill which autho
rized free and unlimited banking In the country for
all time TO come he believed that the remedy In
regard TO equalization Il the present volume OF cur
rcncy IN reality would perpetuate the evil which
had originated under the Illegal administration OF
an act OF Congress, and would make it more difficult
or equalization in the future New England With
one lentn OF the population OF the country, would
Still have under the Dill nearly one-tlrd OF the cir
cuatlon. THIS bill did not propose TO take one dol
lar OF circulation from that section.
Mr.. CoYKLING trep.l ol n. y, stated his under
standing ol the basis upon which the amounts OF
currency allotted To New i0rK was regulated, claim
Ing that II there had been no departure from the
law The state would have been entitled TO about III
teen dollars per lnhabltant, whereas toe existing
ratio IN That state was sixteen dollars ana irac
ton.
MIR. MORTON. trep or Ind, gave notice OF an
amendment TO substitute fifty-two millions for forty
five millions III the bi as the former amount would
have to he provided to insure the latter amount
OF actual circulation. he proDosed to substitute
tor q portion Oh the bill two sections from the b
passed by the Senate last spring FOR Redistribution
oil the currency, SO amending them TO take from
the states having an excess but thirteen million, II
tIs amount shall be demanded a,Ger the ngty-two
mlllioas have been exhausted This would make
The additional volume sixtyfve millions altogether
wbicn ne thought would he sufficient Tor the wants
OF the West and south.
Mr. MORRILL,, OF lie, Illustrated the circumstances
attending the increase IN the volume OF circulating
notes in England. The distribution OF one hundred
ana 1fty mil Ions of the circulation had been based
upon resources, the other hundred aud hfty millions
upon population.
redistribution OF tue volume oil circulating notes
authorized by Law as measure OF justice and one
winch the necessities OF the Soutn and West for
banking facilities demanded.
Tue Senate tnen. al twenty minutes past four
O'CLOCK, adjourned.
HOUSE OF REPRESENTATIVES,.