New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-01-26
XLIsT. CONGRESS-2d SESSION.
SENATE. WASHINGTON, Jan. IS, 1870.

Mr.. THURMAN Dem., Ohio presented the
proceedinqs 90 publle meeting OF merchants OF Ceve-
land Ohio against the continuance OF the income t"A'
The FRASKISG ABUSE.
Numerous petitions In favor or the abontoh Oh tHo
Franking privilege were presented and referred
Mr. CHANDLER Rep., Mich) remarked That II Ihe
petitioners would pay postage on their petitions they
would give a practical Illustration OF their sincerity III
asking the reform.
Mr.. SUMNER Rep, Mass), from the Committee on
Foreign Relations reported joint resolution au'hor
ing the Passport Clerk the Department OF stare 10 au
minister oatbs and afrmatons on Applications LOT pass
porte The bill was passed ,v s,,zrpr
Mr. UlMLIN Rep., Me- called up the JOINT resolution
relating TO the seizure Of distilled spirits III taorna'
the question being upon its indefinite postponement
Mr. COLE rep CALI in reply TO previous statement
by Mr.. Sherman concerning accusat0hS hganst To
cal officers sent ont by the Internal Revenue Depart
10 investigate the seizures said he desired 10 have
the bill referred to committee, TO show their truth 0,
fasty The officers who made the seizure originally had
no appeal to the Secretary OF the Treasury though
the claimants OF the whisky would be heard before ha
appeal from the decision Of their superior and there
fore the question was exclusively one between the OWL
the matter involved the success defeat of the con
certed efforts OF parties in Ohio and Kentucky 10 coho
the whisky trade Pacific coast in the hope Of re-
azng millions Of money at the expense OF the Govern
MIR CAssERLY Dem CALI sympathized with much
OF what his colleague r Coel had said and added that
tho analysis OF the liquors, which was made IN California
developing the presence OF saccharine 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 to investigate the seizure containing lenecuons
upon the community he could say without the least mes
itation that in no other community In the world ara
faithful public officers receive more eordla support
vested by law in the officers OF another department would
establish dangerous precedent he would vote ior Inc
indefinite postponemont OF the resolution
THE CURRENCY BILL
The subject was then informally laid aside, and at
o'clock the Currency bin was taken up ana MT IENlOS
Rep N " addressed the Senate length. His speech
will be found on the second page.l
THE INCOME TAX.
Mr. SHERMAN Rep. Oho), from the Committee on
Finance reported substitute for the House bill relating
The Substitute provides that section, 10 inclusive othe act
OF June 90 1864 and the acts Auenda,op thereof shan be 50 amended
aid sections hall confirm. during th. eure 1870 aud no
longer and 80 much payable during said
shall be collected aud paid durng the year 1911 in the mode pre-
PUBLIC LANDS IN THE SOUTH
Mr.. OSBORNE REP FlaJ from the committee on
Public Lands, reported favorably the JOINT resolution
providing that all public lands IN FLORIDA Alabama, MIS-
sssipp Louisiana and Arkansas shall be subject to dis
posa under the Homestead laws by preempiion ana 10y
taxation under the same general laws as govern pubic
lands in other States and Territories excepting such res
ervatons and grants as have been already made.
tung for the bill a similar bill recently introduced by
him. for increase OF the bank circulation TO sVOOO
upon the retirement OF greenbacks.
Mr. RAMSEY (Rep., MIMI inquired whether IL was
proposed to take vote upon the bill today r,,.
MIR. SHERMAN Osep ONO, on behalf OF the Finance
Committee, desired the Senate to take action upon the
bill to-day. He said II was preliminary measure ana
upon its disposal the Committee would proceed to con
slider other important measures before them, among
which the now offered as an amendment, Dut
which had no pertlnence here Inc pan OF Iefihg the
three per cent certificates recommended by the sec,
rotary Of the Treasury and the PRESIDENT OF the Ihed
States and objection to it, that he knew or had been
made the public prints Ii seemed 10 be conceded tins
the most practical way in which the pressing heGes
sy for partial redistribution cOuld be made Inc otner
provision OF the bill also generally assented TO- The
only doubt now was whether such banks would be au'
thOrized Large corporations, chleny on the facmc
coast, actually organizing on the basis OF TINS Dill
aIr MORTON Rep. Ind) suggested that there should
be some understanding III regard 10 Wethei ths D was
to be inay upon the subject of the redistribution OF
the currency bill had passed the Senate and was be-
fore the House by which s0OO OF currency was TO DE
taken from the Eastern states having an excess and
given the Western states II this supplementary 10
the former bill the result would be redistribution 10 tue
extent of s75OOOOO but his inference from the state
ment. yesterday, by the Chairman Of the Finance Com
mittee led him TO consider this as subst-
tute for the other bill, in which case he
would not favor 1t, because Il would not give
currency enough to the West Discussing 1t In the
light OF substitute, several things might be said OF IT,
First IN its present form the bill would substantially
result in contraction Of currency TO the amount OF
Sc 10000 because it would require the withdrawal Of
that amount 10 be held by the banks issuing
the s5OOOO In point OF fact there would be an actual
contraction that amount He showed that since June
1885, there had been an actual contraction by redemp
ton Of three per cent certncaes OF sbOOu when the
country had felt though the cause OF the strngency was
unknown. This bill would increase the amount OF CON
traction To nearly $jOOoo lie sara the sense Oh oon
gress had been repeatedly declared In opposition TO con
traction of the currency and he as unsonh1
the argument Of Commissioner Wells that depreciation OF
currency rested upon excess and that there was IN
excess Of some t2O0OCOOoO or s3OOocOOCo Inc Comm
sOuers comparison between the volume Of currency
in circulation in England Scotland, and ireland, an,
other countries with that In this country yet our terri
toria area exceeded than thirty times that OF the
United Kingdom, while threefOurths Of our people dd
possess the business facilities OF bank credit and bank
checks enjoyed there The comparison OF the present
volume OF the currency with that before the war was
equally deceptive. in view Of our territorial expansion
aud that the States have now currency Of their
own as they had before the war, while that Of the Gov
eminent Is used In every part OF the country Quantities
of il actual transit the country. And thus the
demand is created for national currency which did not
exist before the war The actual value OF the currency
to-day was not stable than six months ago He did
not acquesce In the opinion That the price OF gold would
continue to decline until the return OF specie payments
was entirely within the Of possibility that gold
would be at forty cents within four months Many OF the
gold gamblers at New-Hork had been deeply wounded.
and would be some time before others TOOK er places
But their places would he TAKEN and Intelligent hnanclers
in NewYOrk looking forward TO rise in gold at no
distant day The condition OF the also entered into
the question. Therefore, IN providing for system OF
banking 1t was not safe to calculate gold would
never go above eighty cents Ihere was no security what
against IT, In regard to the provision OF this bill for
establishing banks on coin basis, requiring them to re-
deem their notes III god ana only 70 nave - per cent OF
gold IN their wants, he thought the principle might be
successfully carried out in the Pacific States but he felt
eonhdent wOuld pIacucaiy IAN on tiS sue OF the
Rocky Mountains. II would he thought, he dangerous
for the Government to attempt TO establish banks that
basis lnrepy TO remark OF Mr. sherman he caimed that
the transactions in gold In City we're In the main
limited transactions between importers and persons in
foreign countries with whom they dealt The importers
se their goods TO the obbes and tie latter the Western
merchants gold basis but there is no gold IN the trans
action. They sell for gold with the understanding that
when the debt due they to pad IN currency
according to the value OF gold on that day These gold
proposed by the bill could not 70 into circulation
any rapidly than the gold they represented. and
could not be kept aoat except by the bank keeplnga
dollar In gold for each dollar Ii had out In OF
increase in the price of gold these notes would be
home for redemption III order TO procure gold to sell TO
importers who required To have it, The banks
would then have go out and buy at large premium,
which would inevitably bring about their suspension.
Two clrcuatons unequal III value could not long exist
at the time; for the deprecated circulation would
drive the other out OF existence In this connection Mr.
Morton referred the which the banking sys
TEN had become subject. He said the national banks
cOud afford 20 loan money cheaper than other banks be-
they only got six per interest the bonds
deposited with the Government but received 30 per cent
in currency Notwithstanding this. many States. these
banks loaned their money at the same rates obtained by
private bankers when, II required To loan money at
sOnAbe rates. the effect would be 10 keep down the rates
Of interest OF all other ney-lendeIs, making the