The New York herald., 1870-01-26

on Political Disabilities reported favoraoly bill to
relieve certain persons from legal and political dsa
Dliitic5.
CALIFORNIA wHIsKEy SEIZURES
MT HAMLIN, Eepl Of Me- called up me Joint reso.
non relating TO the seizure OF distilled spirl,s IA
California, the question being upon itS indefinite
postponemcnt
Mr. COLE, in reply TO previous statement by Mr:
Officers sent out Dy the Internal Revenue Depart
ment to investigate the seizures, said he desired TO
truth or lalsity The oficers VINO made the seizure
originally had no appeal to the Secretary OF tine
Treasury though tns claimants ann & OF the he wnsKey s
being subordinate oicers could not appeal from the
decision OF their superior, and therefore the qnes-
property ana the government. He believed the mat
ter Involved the success defeat OF the concerted
efiorIs OF parues in Ohio aud Kentucky to control
this trade ON the Pacific coast IN the hope OF reaz
ing millions OF money at the expense OF the govern
ment.
Mr.. HAMIlN preferred the reference OF the contro-
versy TO the authority appointed by law for the de-
termination OF sucn questions, asserting his conf
Commissioner OF Internal Revenue.
Mr.. THURMAN could see nothing OF unusual I'm
portance IA the matter and deprecated the intro.
ducton IN the Senate Of questions OF wnskey frauds
exclusively pertaining to the province OF another
branch OF the government.
Mr.. CAssERLY, tdem.l OF CAL, sympa'hized with
much OF what ms colleague (Mr Cole) mad said, and
added that the ANALYSIS OF the liquors, which was
made IN California developing the presence OF
Baccharlne matter, did not correspond with the
results Of the analysis made in the East. In reply
TO letter OF the special revenue agent sent out 10
the community, he could say without the least hesi
tatl0n, that IN no other community in the world dd
faithful public officers receive more cordial support
Believing the assumption by COngress OF power
specially vested by law In tine officers OF another
department would establish dangerous precedent
he would vote for the indefinite postponement OF
The subject was then Informally laid aside, and at
two O'Clock the Currency Oil was taken up.
THE INCOME TAX FOR 1870.
Mr.. SHERMAN, from The Committee on Finance,
reported substitute for the House bill relating to
provides tnat sections ll6 to 123 inclusive, OF the
act OF June 90 1904 and the acts amendatOry thereof
comes, dividends and salaries Imposed by said
sections shall continue for and during the entlre
year OF 1870 and no longer, and 80 much OF such
taxes as are not paid or payable during said year
shall be collected and paid during the year 1871, In
the mode prescribed by said section.
PUBLIC LANDS IN THE SOUTHERN STATES.
Mr. OSBORN, from the Committee on Public Lands,
reported favorapy the Joint resolution providing
tnat all public lands In Florida, Alabama, Mssls-
spp1, LOUISIANA and Arkansas shall be subject to
disposal under the homestead laws, BY preemption
ana by location, under the same general laws as
govern public ands In other States and Territories
excepting such reservations and grants a. have
already been made
At two o'cock Mr.. Sherman's Currency bill was
taken up for consideration.
Mr.. FENroN, rep.l OF N. Y, OF the Finance Com
mittee, SAID the measure now under consideration
naturally suggested the great financial problem
which the country had to solve. Partial measures,
n une m 70 & rnsv sr M os
framed upon broad and comprehensive policy,
having In view clear and distinct end. The SUBJ
ject was one OF wide scope, embracing the questions
OF debt and taxation OF banking and currency, all
distinct In their character yet all neraced In their
influence and bound up together he SAID we were
paper currency, which mad the effect Of raising
prices, Of giving an extraordinary impetus TO tralc
and exchanges, and stimulating speculation, thus
creating an appearance OF prosperity an deceptive
as 1t was glitterng, All sound men recognize the
calamity OF such q currency and are looking with
1everish anxiety for an avenue OF escape. The re-
turn OF the country TO specie basis n generally
conceded TO be an object OF paramount importance.
We cannot remain lOr any protracted period In the
present exceptional condition. The gold basis
through resumption. or the gold basis through more
sented. lhe RECORDS OF France Austria and Rus
sla convey impressive warnings upon the dangers
OF further extension OF the currency. They have
III the past followed this inviting course to this dis
astrous end. EighG years ago the issue Of incon
vertible paper money, based on credit, was univer
sally regarded as deporable evil, only 10 be lusuL
1ie0 by the necessities Of war. Five years ago the
gradual withdrawal OF this paper and the restOrA-
ton to sound basis were equally regarded as
measures to which the government must steadily
direct itself. To-day, under corrupting influences
OF its continued presence, o portion OF the peop.e
and from some quarters further expansion has been
demanded. lie SAID tnat while lie could not exag-
lnderrate dlIHcultles in the way OF It, which might
be cassed under two heads:-FIrst, Q heavy I'D
aition 70 the burdens Of the DEBTOR class, and
second, general decnne OF prices aud prostraton
OF trade. The individual Indebtedness OF the coun-
try ID seven or eight thousand mllons and II debts
gold that ADDITION OF fourth or itn would or ITSELF
nearly equal the amount OF the national debt.
Though this would produce great hardship and
DISTRESS lapse OF time would only make IL greater.
In one sense there never can be redundancy OF
currency; for prices adjust themselves TO the
amount The value OF the circulation Is regulated
by the volume. In 1860 the currency OF the United
States including the specie reserve, was less than
three hundred million collars ana no .s one claimed
amounts to seven hundred million dollars, and IL Is
fairly GAINED that on the present basis there is
none LOO mucn. There ID no arbitrary law OF
amount. II was said 10y some the rate OF interest
determines the amount Of currency required. No
reasoning could be more spurious, no more un-
sound The history OF the country shows the rate OF
interest Is highest when the volume OF circulation
Is largest and lowest when the volume Of circulation
how TO make our paper money and gold equivalent.
The pending bill does not relard nor (he regretted
TO say does tend TO advance thls most desirable
result Tie three per cents are, indeed, equivalent
to SO much currency; but Will he seen IN practice
that, While there mas been simply an exchange OF
one form Tor another the fortyhve millions OF notes
VIII be found far more difficult to get rid OF than the
same amount OF certificates. Illustrations IRON the
financial history OF England were cited by Mr.. Fen
ton show that contraction Of The currency should
be gradual, in order 10 avoid commercial distress
ana The impOsslDility Of retaining gold upon re-
dundant currency In some quarters where the
present currency difficulties were recognized IT was
suggested they would disappear with the develop.
menu VI tThuc JHht WduIS OI tn6
currency would soon grow up even to the plethora
OF the present supply. This idea contained plausi-
blly and something OF TACT; but, after all, 1t was
based upon u. fundamental mlsconception OF the
character ana purposes OF money. The circulating
medium or . country bears no such relation to its
wealth and business that II needs to expand IN the
same proportion.
The second part OF the bill under consideration,
that which provides for new banks with specie
notes and specie redemption, Is much more serious
II designed to take eject az q present practical
measure. The principle Ii SOUND, out II IL Is worth
much for immediate application 1t should be ap-
Piled to the whole bank system and the impractical
Diity OF this Is apparent. The proposed nOtes being
convertible into gOd and equivalent TO gold, could
not be kept In circulation, except perhaps on the
Pacific side, where gold Is the circulating medium.
History does not furnish an instance where two
equal cerrences have been maintained side by side.
On the contrary, from the time OF the clipped
OF Amsterdam down 70 the present whenever Two
currencles OF different values have been cstab-
lished the one Of greater value has
invariably retired from the field. BY way OF sum-
mary OF the dill he said he saw In 1t bur little to
aggravate the evils Of the hour. In view or the
Secretary's plan for funding the debt and furnishing
the new bonds Tor banking purposes instead OF the
Old 1t might be the beet we could hope to get; at all
events, ne came forward with no pet measure OF
his own. The difference was not material regard
ing SPECIFIC measures as upon the general principle