The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-01-17
Speech by Senator Sherman on
the Buckingham Bill.
NATIONAL FAITH AND NATIONAL CREDIT.
Resumption Proposed for the LIST Of
January Next.
United States Notes Redeemable in Coin or
Five Per Cents.
SENATE.
WASHINGTON, Jan. Is, 1877

SENATE.
WASHINGTON, Jan. Is, 1873.
bill was introduced authorizing the Secretary
of War to contract for the building Of several light
draught snag boats the Mississippi Missouri and
Arkansas rivers.
Mr.. NYE, rep.) of New, from the Committee on
Territories reported the House bill. fixing the sal
aries of Territorial officers and legislators and the
length OF the session of the Legislatures which
was passed.
THE VIENNA EXPOSITION.
Mr. SCHURz dbl of NO., from the Committee on
Foreign Relations, reported the House bill to en-
able the people OF the United States to participate
In the Vienna Exposition, with an amendment in
creasing the appropriation from 900 to 100000
Mr.. CHANDLER, repJ OF Mich, opposed the
amendment. and said he was opposed to making
any appropriation for this purpose, because expe-
rence had shown American inventors that the
main result of taking part in such expOsitons
to have their inventions appropriated by for
eigners.
Mr.. SCHURZ replied that in the first place, II for
eigners wished to steal our inventions they could
do so at any time by copying our models In the
Patent once. In the second place, those inventors
who feared take the risk might keep their inven-
tions at home; and IN the third place, the Austrian
government had issued decree designed to pro-
tect the rights OF foreign inventors.
Mr.. CHANDLER said that many of the exhibitors
would be wealthy, and he did not think the United
States should be asked to pay their expenses. He
would not object TO the original bill, but he was
opposed to the amendment.
MesSrs. CAMERON, (rep.) OF Pa, and HAMLIN,
(rep.) OF Me- advocated the amendment and the
latter said the members OF the Committee on For
elgn Relations We're OF OPINION tnat even larger
sum than $500 600 could be probably used Tor this
purpose :, , ,,ns sofa -, s...,
had haAp mis- tad fhn nn1n onh Dor
exhibitions. and he was in favor OF our country
either making worthy exhibition at Vienna or
making none at all.
Mr.. SCHURz, as an additional reason for making
liberal approximation, mentioned the fact that
conspicuous place in the Exhibition building in
Vienna.
Mr.. SAWYER, trep.) of S. c., also advocated a
Mr.. SALISBURY, (dem.) OF Del, moved to make
the amount s15o,o0O Instead OF s3OO,OoO Lost
The amendment Of the committee, making the
amount $500, 900, was then adopted.
Mr.. CARPENTER, rep.) OF Wis, said he had voted
TO increase the amount to $4,000 because 4 an
enough; but, 80 long as the Washington Monu-
ment stood IN its present unfinished and delapi-
American. in the eyes OF every foreigner visiting
our land, he would never vote 100000 any sum
an amendment approprating 1900 oC0 for the com
pletion OF the Washington Monument
MIR. TRuADULL dbl OF H., predicted that before
this Vienna Exhibition business was ended it
would cost the United states 100000. ~.
AT the expiration OF the morning hour the bill
went over.
SPECIE PAYMENTS.
Mr.. SHERMAN, (repD OF ohio, called up Mr.. Buck
tnghams bill providing for return to specie pay
ments, and addressed the Senate upon IL.
Mr.. SHERMAN showed by reference to the history
OF our existing currency that the public faith was
pledged 10 resume specie payment, and argued
that the time for resumption had almost come.
Passing then to the question Of policy he sad:-
have presented the argument Of public faith in the
foreground Tor 1t is the first to be considered but
specie payment is not only required by the public
fafh INIT dame nfinh ht 1t,
policy, or. to use narrower phrase, IL is wise
political economy. Experience has established
rency loses in exchange with O nation having a
better currency. If we buy abroad, specie is the
standard OF value, and the cost OF the article too.
Is at once increased by an addition OF the deprecia
ton OF our money and percentage for exchange
and risk. What we sell abroad is also measured
by the specie standard, and the loss by exchange,
whether we buy or SELL is paid by US. This loss is
more severe when applied to contracts to be paid
IN the future, and especially to railroad and other
bonds payable after period OF years. These bonds
must be paid in gold, whether the gold is stipulated
for or not and yet the price paid for them usually
PAY IN GOLD AND RECEIVE IN CURRENCY,
and thus at the outset submit Us 10 loss OF the en-
paid on this discount OF our bonds would in many
cases II applied AS a sinking fund pay or the whole
ton OF the currency always injurlousiy affects a
community in which it exists was shown by the
experience OF the colonies before the War OF indie
pendence. In each OF them. some form
OF tue pound and shilling In current
the value Of the standard COIN Of Great P Britain,
and this DEPRECIATION often measured the poverty
rency In common use before the late war, and
which depended entirely upon the law Of theRState
were, as rule, deprecated and these states sni.
fered the loss; while in the Eastern States, in
which better banking system prevailed, the notes
were maintained at the specie standard, and great
profits and accumulations were made by their prac-
teal monopoly OF the banking business. The great
loss by the use OF deprecated money. 1t Is
lawful money; IT buys all the necessares
to and Of Uniform Saus
she United States and is amply secured. Their
advantages are obvious and satisfactory, but all Of
them can be better secured with a currency that
will purchase much food or clothing as the
same sum in gold coin; that will measure the pro-
ducts OF all other nations as well az and is
not subject to the fluctuations and speculation
changes OF our present currency. Again, it is im-
Saay of sxibity Of specs p ave
ments necessarily suspends all redemptions Of
paper money: The United states notes being ir-
BILE; all OF them being once paid out there Is no
object to return them, and thus net only the United
States get the benefit Of forced loan from the
people without interest and without the burden OF
redemption, but
THE BANKS ALSO GET THE BENEFIT OF FORCED
from the people without interest and without the
burden OF redemption. II IL true that the banks
Are required to maintain q certain reserve OF
United States notes to secure the redemption Of
their notes; but, practically, we know that no
notes are furnished for redemption. II Is on this
grouno tney apply to TO relieve them from the
burden OF maintaining reserve. We are told that
we require them TO Keep idle in their vaults cur
Iehcy sorely needed by the business community
merely 10 secure the redemption of notes that are
never presented for redemption. 1t Is true that
pank reserve Is unnecessary and indefsnsible un-
less lor the redemption Of their notes m the idea
OF redemption Is abandoned, or indefinitely post
poned then all reserves should be dispensed with
III the only object Ia to make the currency ahupda
without regard TO its value compared with cain
then any reserve Is q folly; indeed the whole na
tiOnal banking system would be indefeos,n,s ~ nnr
currency II to be permanently irredeernable ~ 20
impossible TO state reason why the whole ~ ~ ~
should not be issued by the United states or WIN
any OF IL should be issued by q bank The on,y
benefit the public derive IRON bank OF issue az
distinguished from the private interest OF its stoc&