The New York herald., 1870-03-01

than one year. refusal TO register the name or to
receive count give proper iega! effect TO the vote
0i any citizen under any prctencs OF race color &C.,
shall be punished by fine OF not less than $500 or
more tnan "a 4,000 and by imprisonment OF not less
tnan three calendar months nof more more tnan TWO
exclusive jurisdiction IN these cases, and are re-
CURED 10 enforce the law Referred TO the Commit-
'ee on the judiciary .
The CHAIR announced the appointment OF Mr..
Revels on the Committees of Education anu on
Labor.
Messrs. Hamlin and Anthony upon their own
request, were excused fIom serving on Tue commit
ices ON Disabilities aud on Mines, respectively.
RAILROAD LAND GRANTS.
Mr. HOWELL trep.l OF Iowa, offered resolution
fnstructlng the Committee on Public Lands TO IN
Sert IN al bills hereafter reported for grants OF
land 10 aid IN the construction OF railroads pro-
vision which VIII secure the rights OF settlers 70
nomesleads on said grants, ana to require that the
sales OF such lands shall DO made Ut the same
price as the alternate sections OF the government
lands, ~ order to promote the speedy occupation
tions OF country In which they may be located,
aud 70 protect the people against the evils OF
land monopoly Mr.. Howell SAID he would speak
It was LAID over for the present.
AMERICAN INTERESTS IN CHINA AND JAPAN
tion, which was agreed TO- requesting the Secretary
OF State to furnish any Information In that depart
ment as TO wnat legislation Is necessary to effect
the administration OF justice and 10 protect Amcrl
can interests In CHINA and Japan and whether any
funds have been received from those countries
when can be applied TO the erection OF suitable lega-
tIon buildings court houses ana lails, ana that sne
Secretary be requested 10 make any recommenda.
tlons on TINS sublec. ne may deem proper.
THE FUNDING BILL.
At one O'Clock the Funding bill was taken up.
MIR. SHERMAN, rep OF OHIO, made statement in
the ponds into which the public dcbt was 70 be
funded aud the agencies for disposing the bonds.
The seventh section looked 10 the reduction ul.
Innate payment OF the puollc debt, not only the Old,
but the new debt now created The remainder OF
the bill consisted In important changes OF our bank
Ing laws. requiring the banks to aid IN the work Of
funding and maKingt the system free. Referring to
the history OF the public debt he great act
OF February 1862. conferred extraordinary power to
were TO be short loans, redeemabe after i've
years, and that the gold interest was
not TO exceed six per cent; and the cur.
renCy interest WAS not to exceed seven and three
enths per cent. II provided for the first time tn at
United States notes should be legal tender In the
payment OF all debts and should be convertible into
bonds ut the option OF the holder. It was clearly
the intention OF this act 10 make the notes legal
tender in payment Of prc-existing debts. II was
tors would refuse to take them In payment OF pre-
existing debts He then read from letter OF Mr.
chase ant IRON his own speech on the legal tender
clause that this was The object or the legal tender
clause. He referred TO the subsequent enlargement
OF the legal tenders u three hundred millions then
to four hundred and fifty millions and to the provi.
son for q large amount Of interest bearing notes,
which were not convertible into bonds. These were
all revolutionary experiments growing out OF the
doned the moment the war ended. In this
connection he said three legal errors were
Treasury 1854 In allowing the holders OF seven.
thirty bonds Ae option TO convert them into nve-
twenty bonds. This was not authorized by the then
existing law, but was justified by Mr.. Fessenden on
the ground OF its necessity to their sale. The
second error was by MI. McCulloch, rs the war was
c.osing, IN continuing the option TO the holders OF
seventhiity bonds aud long after the war had closed
In issuing 600 ot these notes convertible into
bonds The third error was in the failure OF Con-
legal tender NOES the right OF conversion into bonds
The acr OF Ap.i ~, 1865 under which the great
OF our noasing Indebtedness was converted into gold
bonds was great misfortune. In the then cOnd-
ton VI the public DEBT tile great mass Of II might
have been easily funded into ten-fOrty bonds, Dut
under the authority Of that act the whole OF II was
converted INTO the rve twenty bonds p0spOnin1 the
time OF their redemption several years. Mr.. Sher.
man then detailed the history o. the different funding
bills from April o. 1865, until the present lime, lnt-
mating that The proWacted po,ticsl struggle be-
tween Congress and the President preventei the
adoption OF much needed financial measures. The
situation mad changed. The legislative aud execu-
tive authorities were now In harmony wniIe no
doubt existed Of the payment OF the bonds IN gold.
The difference between United States notes and gold
had been reduced, aud our dve.twenty bonds were
almost on par with specie while but slight mar
GIN existed between the market value oi the tenforty
Dunds and gold and SILVER. IL would be witn,n our
power TO pay OH more than thousand mi ons OF the
debt witnn the present year. Under tlese favorab
circumstances tho Finance Committee had consid
cred three plans:-Flrst tne bills formerly reported
by II, and winch were uialnly based upon the auop
OF ien-iorty Ave per ponds; second, TN
an an ampllacslon % ot the the funding funding bill Of las
year, but In many respects more rapid u
promoting specie payments; third, the bli
prepared by the Secretary OF the Treasury. The b
now reported had been carefully framed, after full
examination or ali The previous bills. ana was ap
tee nus one, ana had the hearty sanction OF the sec
retary OF the Treasury. The duration OF the bonds
and the exceedingly low rate OF interest were dwell
upon-Mr. sherman expressing the oeeIif that q i've
per cent bond was the lowest rate ut which the mass
OF our debt could be fundod bur the Secretary was
more hopeful. lie then discussed the purp Jses foI
winch these bonds could be used, and questioned
their exemption from taxation IN the manner OF
negotiation. The necessity OF employing pr.
by the most powerful governments. The
question Of employing foreign agents was
one Of greater difficulty, but the amount OF United
States bonds now held abroad was estimated al
nearly one thous ana millions, and we should borrow
money where IL can be borrowed cheapest. The ac
cunulation OF money III Germany, Holland and Eng
land would enable us TO negotiate upon more favor
able terms by paying TO investors the interest II
those countries. TINS consideration was decisive
Tne payment In foreign coin was no addlIional bur
den to The United states. but might lead to an inter
national coin system.
The seventh section redeemed the pledge OF the
United States by establishing sinking fund OF one
per cent on cur whole Indebtedness. Since tht
close or the war the government had reduced tne
debt three hundred and three millions and had paid
six hunored millions OF uniquidatcd debt uue vi
the close OF the war, but not then ascertalned OF
computed. Ths had all been paid out OF surplus
provision for the sinking fund before we reduced the
taxes, and this bill supplies the best mode In sum.
ming up he said-It Inc sl,20o,o 900 were taken.
It would be reduction OF our annual taxes OF
S1S,0oD 900 Of g0ld representing at 1--WE per cent
capital OF $3.50, 10000. The bill would result
in the adoption OF policy OF establishing
the minimum to he applied TO the payment OF the
pubic debI ilu5 enabling Congress 10 ascertain pre-
csey the amount Of taxes necessary. Tire public
debt would be represented by an annuity OF
S,90C0o,000, which would pay every dollar OF 1t
within thirty years. It's tendency was To return
TO specie payments. We now again restore to the
United States note its quality or redeemabillty OF
which 1t was deprived bJ the pressure of the war,
30 that while specie payments arc suspended the
note will not fall Ill the market value below the
value OF your bonds. A mode Of redemption and
the limits OF depreciation beng fixed, we might
nope soon 10 see these broken promises redeemed
and their place supplied with paper money
convertible at pleasure into gold or silver. The
bill would compel a reduction OF the rate
OF interest on the capital employed III pri.
vare enterprise. Then, 100, II compelled the
national banks to AID the government by some
SACRIFICES on tneir part though this was voluntary
with each bank II Dankera, whose PROFITS had been
largely increased by the hign premiums In gold re-
ceiyed by the government, would not now aid US TO
reduce our interest, let them take their money and
try other Investments Others viii gladly avail
themselves OF the privilege Of buying these bonds