The New York herald., 1870-01-26

asuostitue for the other BILL In which case he would
not favor IT, because IT would not give currency
enough 70 the West. Discussing II IN the lignt OF
substitute several things might be said OF inrst,
IN us present form the bin would substantially result
IN 2 contraction OF currency TO the amount OF six
because IL would require the withdrawal OF that
amount as reserve to be held oy the banks issuing
sae @ millions IN point OF 'acs there would
he showed that since January 80, 1853, there
had been an actual contraction by redemption
OF three per cent certificates OF twentyslx mil
lions OF dollars which the country had lelt, though
tn9 @ cause OF the stringency was unknown This
nearly tnirtytnree mill,ons snH lie said the sense
OF congress had been repeatedly declared In oppo-
stIon 10 contraction Of the currency and he charac-
Wells that depreciation or currency rested upon ITS
excess, ana that there was an excess Of some two
or three hundred millions. The Commissioners
comparison was between the volume OF currency In
clrculatiOn In England. Scotland ana Ireland and
olner countries with that IN this country, yel our
that OF the United Kingdom while lhree.fOurLhs OF
our people did not possess facilities OF bank credit
the present yonme ~ the currencv wtn that
before the war was equally deceptive In view
OF our territorial expansion and the fact that
~ they had before the war; while that OF the gov
ernment - used In every part OF the country Guam
titles o. IT were In actual transit over the country
rency which did not exist before the war. The actual
value q the currency today was not more stable
opinion That the price OF gold would continue to de-
cline until the return OF specie payments. IL was
cntlrey within the range OF pOBsibitY that gold
would be 1t forty cents WITHIN tour months. Many
OF the gold gamblers at New York had been deeply
wounded, and 1t would be some time before Others
TOOK tner places. But their places would be taken,
and intelligent inancers IN New York are looking
FORWARD to rise IN gold at no distant day. The con-
dltion OF the crops also entered the question.
Therelorc, IN providing Tor system OF banking It
was not SAFE to calculate gold would never above
eighty cents. There was no security whatever
n I for
establishing BANKS on q coin basis requiring them
to redeem their notes IN gold and only to have
thought the principle might be successfully carried
out In the Pacific states; but he 1et confident IL
would practically fal on tins side OF the Rocky
Mountains IL would, he thought, be danger
GUS Tor the government to attempt TO cstab-
lish banks on that basis. In reply TO q remark OF
Mr.. Sherman he claimed tnat the transactions in
gold IN New York city were In the main limited 10
transactions between importers and persons IN for
egn countries with whom they dealt. The import
ers sell their goods TO the obbers and the latter TO
the Western merchants on gold basis, but there is
no gold In the transaction They sell Tor gold with
they are to be paid In currency according 10 the
value OK gold on that day. These gold notes pro-
posed by the bill could not 60 into circulation any
more rapidly than the gold they represented and
could not be kept anoat except by the bank Keeping
adoiar IN gold for each dollar it had out In case
OF the price Of gold these notes would
be run nome for redemption IN order to procure gold
TO sell 10 Importers VINO were required 10 have II.
The banks would then have 10 60 out and buy at a
their suspension. Two crculations unequal
IN value could not long exist at the same
times Tor the deprecated circulation would
drive the otber out OF existence. In this
connection Mr. Morton referred to the abuses
70 whicn the banking system had become subject.
lie SAID the national banks could afford TO loan mo-
ney cheaper than other banks, because they not only
got SIX per cent interest on the bonds deposited with
the governnent, but received ninety per cent cur
rency. Notwithstanding this, in many states these
banks loaned their money aLhe same rates oDtained
by private bankers; when II required TO loan money
La pQ M hn Eaav, ,Icy,
the rates OF interest OF all other money lenders,
making the national banks public blessings and the
system popular. They ought not to be allowed to
invest the money they should loan the people in
STOCKS, ana make prouts ON the interest Of LhOse
stocks Tnis was al war with the purpose fJr which
they were created. Special privileges had been
granted them To enable them TO furnish special ac-
c0mmodati0ns to tue people OF the country and they
should not be permitted 10 loan more than ten per
cent OF their money on coaterals Money obtained
In that way and call was used for
stock and gold operations, and not in the pro-
ductive busioess OF the country; the stock and
gold brokers being able to borrow money nc SIX and
seven per cent, while the business man and manu-
iacturcrs mad 70 pay ten and twelve per cent Thus
STOCK ana gold speculatiOnS were fostered, money
received Dy banks On depesit and which they paid
Interest, beng loaned upon caii to STOCK and god
speculators a..d not upon regular paper 10 Iner
chants ana traders.
Mr.. STEWART, Tep) OF New. favored the bill as ar
experinens expert calculated to prove beneficial to thu
Mr.. DAVIS, tdem) OF KY, advised the friends o
more equal distribution OF the circulating notes no
to allow thus bill to be defeated by beng complicated
with generxf measures. Threefourtns OF the people
or the country asked for the proposed redistrlDu
tlon and their representatives In the Senate had h
power In numbers to pass the measure He movet
10 amend 80 as 70 present the simple proposition
more equal distribution OF the bank circulation.
The Senate, at twenty-minutss past four r. NJ. ad
journed.