Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1871-12-05
Forty.Second Congressional Session
WASHINGTON, D. c. Nov. 4, 1871.
GsI'IN

. W H. L,
SENATE.
UP to within ten minutes of the time when
the senate was called to order not more than a
dozen senator's were within the chamber, and it
looked as though no quorum would be present,
which, however, did not prove to be the case
when the vice president called the senate to
order.
The first business was the swearing in of Gov
Alcorn as senator from Mississippi followed by
the presentation of credentials
Mr. Sumner presented petitions for the pas
sage of his civil rights bill.
Mr.. EdmundS introduced bill for reform in
the civil service.
Governor Fenton introduced a memorial ON
the removal of General Pleasonton, which. after
4 brief debate, was referred to the senate in eX-
ecutiye session.
Senator Sumner introduced the following bill
to authorize compound interest notes as a sub
stitute for legal tender notes.
Be it enacted etc. that the secretary of tho treas
ury is hereby authorized and di ected to prepare for
circulation compound interest notes equal in amount
to the outstanding legal tender notes and fractional
currency of the United States and in all respects
similar to those heretofore issued under the act APP
proved March 8, 1853.
Sec. g These notes of different denominations IN
the amount of ten millions of dollars shall be dated
on the first day OF each month commencing with the
hrSt day of July next ensuing, when the amount
named shall be ready for ISSUE and then aferyyard
ON the first day of each month until the requisite
amount has been furnished.
tor all disbursements of the treasury, eXc2pt thos
due in coin, as long they are sufficient for the
purpose and if the whole monthly instament is
not thus disposed Of it shall be the duty of the
rotary of the treasury to exchange the surplus TOR
the present legal tender so far as practicable
and the full sum OF ten millions may be put in cir
cuation each month.
Sec. 4. 1t shall be the duty of the secretary of the
treasury to cause the destruction, each month"; of
legal tender notes to extent equal to the notes
issued under this act
Sec. 5. The notes issued under this act shall, at
the option OF the holder, be convertible at the end
OF two years in sums of one hundred dollars or its
multiple, into bonds of the United States not hay-
ing less than ten or more than forty years to run
and bearing interest at the rate of live per centum
and the secretary of the treasury is hereby author
lied TO issue such bonds
Sec. 6. Whenever these notes or the bonds into
which they may be converted can be sold at par in
gold the secretary of the treasury may sell them in
such sums as may be called for, and apply the pro-
ceeds In gold to cancel legal tender notes they are
paid into the treasury.
Sec TO- The notes issued nnder this act shall con-
sttue no part of the legal currency reserve required
by the national banks.
Mr. Sumner said compound interest notes
had been already tried, so their operation
is known. 1t is their peculiar quality that,
at the time of issue, they enter into the
national currency, and become part of the
active circulation; but, as interest accumulates
they are gradually withdrawn and held as Sc
curties so long as there is little apprcciable ac-
cumulaton of interest These notes pass from
hand to hand. as ordinary greenbacks, but this
ceases with their increase in value Now if
these are made a substitute for greenbackS
the currency is gradually contracted accord
ing 10 the laws of trade, until 1t is
on par with gold and we arrive at specie pay
ments Until this is established, the nation is
bankrupt and its outstanding notes are no better
than failed paper. Suspension of specie nav.
ments was a war measure, like the suspension
of the habeas corpus, or the draft, and, like
those, it should have been discontinued at once.
The presidents message was read, and ordered
printed.
Adjourned
Members OF the house of representatives be-
gan to gather at au early hour, half past ten
O'Clock, this morning, and the usual personal
congratulations were offered. Republicans and
democrats for the time being laid aside all feel
ings OF partisan strife, and had only for each
other expressions of personal good will.
The galleries were well filed with spectators
at an early hour, and there would doubtless
have been much larger attendance but for the
weather outside, which was lowering aud I'M
pleasant. The hall has been newly carpeted
aud otherwise lmuch improved during the re-
cess, and presented a very handsome appeal
ance.
Neither republicans nor democrats would say
much OF their plans during the session, but will
leave them to be developed as the session pro-
crosses.
At twelve o'clock Speaker Blaine raped to
order aud said; 'This being the day appointed