, 1873-01-17

pectation. With specie resumption the system
becomes free. The fluctuations OF their cur
| reacy will be but the healthy ebb aud flow Of
commerce. Redemption then will become 3
| fact, and will check the tendency Of country
banks to employ their currency In Wall street
speculntions. Az they may redeem in coin Or
in United States notes, they will havethe benefit
Of the alternative redemption provided IA to
United States nore7, that the sacrifice OF their
securities thai gsnora1ly follows specie pny-
n:ent during panic can go 20 further than
the payment Of their bonds for their notes,
par for par. Again the specie standard will
also bring gold and silver into actun use. Tho
amount now boarded has been va1iouaIy esti-
mnted, and with that deposited in the Treasury,
and in circulation in California, cannot be less
than 5000, ,000, COO. This will probably take the
place Of legal tender as bank reserves, and thus
add to- the present volume OF the currency.
Even II 5pecio payments should cause retire.
mcnt in the coin~funding Of ESQ, 600 OF
United States notca, their place will be more
sent banishment. I therefore conclude that
the fears Of evil results from Il specie standard
ara greatly exaggerated; that there will be
no contraction Of tie currency no disturbance.
our present United States and bank notes will
pass as usual in ordinary exchanges Of life, in
creas1ng the value of al produced here or
abroad equal to real money Of the world, and
with no taint Of diBhonor depreciation about 1t.
Alr. Sherman continued at length, showing
the obligations and necessity Of specie pay
ments md how the anticipated evils Of resnmp-
tion::can be avoided; and said TINT among the in
Vulnerable schemes proposed for resumption,
several were practicable, but careful considera-
ton Of the whole subject lead him to tho con-
clusions that tho simplest and most expedient
measure is to declare by law that, On aud after
tho first day OF January next, the United States
will redeem it's notes either with coin OF, at
bonds of convenient denomination, boariug S
per cent interest in coin. It will provide also
for the possible, but not probable, contingency
that moro notes will be presented than can be
plain equity that we cannot literally perform
our promise by payment in coin. Wo will st
least give to tho public creditor, who holds notes
of tho United States, bond bearing T.
notes aro in excess Of the wants OF the people
for currency, they will be presented for re
demption, and ought to bo redeemed. II :not, ,
their value will be appreciated to = gold stan
dard, and this is specie payment. Tho modifca-
tions OF the Banking act Gun properly be post
poned until future time, when the practical
effect Of specie standard upon United States
notes will test the ability Of the banks to main
tain their notes at par with United States notes.
Whether they should be relieved from maintain
ing 80 large reserve whether there. should ba
ono centre Of redemption, are questions OF
practical legislation for tho future. -,
The moment the notes are redeamable in coin,
tho banking system ceases to be limited IN the
stand like all other business pursuits, open to
al who will give tho requisite security for their
notes, and will obey the general faw.
Ar. SIBERIAN reported from the Committee
on Finance the following substitute for the
Buckingham bill: :.
1874 the Secretary OF tho Treasury be authorized and
required to pay demand, At the oce Of the Assist
Of United states notes to the amount Of oo any
multiple thereof in exchange for such notes an equal
amount Of gold coin Of the United States; Or n Leu
said notes equal amount Of coupon or Registered
bonds of the United states In such form he may
2. Denominations Of $50, OF Of multiple Of
that sum, rcdeemab1c at the pleasure Of the United
stses sitter ten years from Tie date of their and
rate Of pe- ceuum per annuI and the Secretary Of
tho Treasury nay reissue United States notes TO
States notes to the Same amount either TO purchase
redeem the public debt OF meet current payments for
the saa te ana u
taxes Or dutics Of tho United States, a.
well from taxation in any form by or under State,
have set forth anu pressed upon their face the aboTo
specified conditions. and sha1 with their coupons, be
SIC Thst from and after tie flrst day Of July ne1t
the limit Of the aggregate crealaan of The National
Banks nov prescribed By law repealed and III hants
thereafter organized shall depostt security for their
circulating notes, bonds Of the United States Issued
der this ac: under act entitled An act to
thorze the sefundtng OF the National debt approved
81 szo. - ~ 5. That an banking associations which
slal On and af,ef July 1871 redeem their eF;ula
After, designated by law, either in coin Or IN United
States legal tender notes shall be exempt from tho re-
quirenents under the existing law to holding
ferve Of the lawful money Of the United States. Pro-
rtded that nothing herein contained eha1 authorize
any NATIONAL Gold Bank, established under set
titled "An act to provide for tho redemption Of the
per cent temporary loan certificates aud for an In
Of National Bank notes. spproved July H. 1870.
in Yf3f1
coin Of the United States.
SIC 4. That Section q Of the act entitled "An &C.
porary loan certificates, and for t1czeaec Of Nj
tonal Bsnk notes "-opproved July H. 1o'o.-bo' aud
SEC. s. That banks without circulation may be or
gsuized under provisions Of An ac. to provide NJ
onal currency secured bJ pledge Of u;:!te1 States
thereof" approved Juno 8, 1854, upon deposit with
the ot the United satea Of not lee. than ten
thousand doais U9e5 "a: s:ates registered bonds As
SEC. g. That It Abau be the duty Of the Comptroller
of tho Currency to to 10 examined, each year,
With the National BsnF circuiston ia printed, IN
whole OF tn part, AID file In hls office annually coz
rect list Of the same md auc material - shall bare
Banks which are III liquidation or have closed hua-
ne.s ahan 10 de4troycd, under sneh regulations ~
and approved by the Secretary Of tie Treasury. and
the expense Of such examination aud destruction
shall BE- raid out Of any appropriation made BY Con-
and bank plates~
The bill was ordered printed.
ATa1osPHE11c TELEGRAPH.
The House bill to incorporate tho Loomis
Aerial Telegraph Company passed.
THE LOUISIANA HdBno0I1o.
Mr. MORTON offered resolution instrueting
Ehe Committee On Privileges and Elections to
inquire whether there Is legal State Govern
ncnt in Louisiana, and, il 80, BY whom constt-
:uted. h said he was authorized BY majority
If the Committee to offer the resolution, and
'tated that the deagn Of it was to give tbs Com
nittee authority to go INTO the whole subject |
natter Of Investigation already committed to
hem.
Mr. SALISBURY offered an amendment d. |
ectine the Committee, il it found no legal Gov
,rnment in Louisiana, to inquire When it ceased
% exist, and whether any Federal officer, execu- |
i've or judicial, had anJ thing to do with over- |
hrowing it. Loot.
Mr.. Mortons resolution WIS then adopted |
THE PACIFIC RAILRoAps. |
On motiun Of Mr. CABBERLY. the 6ooTstau