The New York herald., 1873-12-04

cent bonds, to be made by tne United states gov
ernment to the State OF New York Tor the purpose
OF enlarglng the aqueducts and one tier OF locks
on the Erie and 0swego canals TO capacity 10
pass vessels OF war 25 ieet In width ana o zee. II
propelled by steam, wherever said canals are less
Than 80 feet wide upon the bottom.
The bill also provides that after the payment
OF the debt for winch these canal revenues are
now consttutonally pledged, and after these
canals are thus enlarged, their net revenue snaii
be paid into the Treasury OF the United States nm
til the proposed OF s. 0o0 Is repaid. Bonds
are to be issued upon the report OF the Commits
sioners as the work progresses, every three
months. -
SENATOR MoRRILL,s FINANCIAL SCHEME.
At half-past twelve O'Clock Mr. MORRILL,, (rep.)
OF Vt. began to address the Senate on his resolu-
ton offered on Monday, instructing the Committee
on Finance TO consider the expedency OF reporting
bin providing for free banking and resumption OF
specie payment on January l, 1875.
Mr.. MORRILL, said it might not be the best time
for discreet legislation during panic, but Ia view
markets for all our products, &c., ne thought IL
would be inexcusable neglect on the part OF our
legislators not TO take advantage OF all concurring
'pra Of papf ssa " What SFSke
would have yentnred at the close OF our war IN
1865 to nave predicted that nine long years WoHiu
eapse and not bring our currency TO specie
standardf How could 1t be demanded OF the Sec
retary Of the Treasury to enunciate any 1nan-
cal policy whine Congress remained silenn
He would not attempt 70 PLACE gravel in the shoes
Of the administration, but he would endeayor to
the present Congress- to INT the country out OF the
present slough OF deprecated currency. On this
financial subject tho people expect Congress to
lead the way. 1t is the duty OF the government 10
provide sound currency. not only for itself but
Tor the people. Our commerce H to be regulated
by Congress, but 1t can only be regulated through
tine instrumentality OF a sound currency. Gould
Congress shrk the duty OF statesmen and in
deprecated paper currensyY He did not dare to
hope tnat he would be able TO remove the objec-
tOns lingering in the minds OF many, but would
try TO show the evils arising from our present con-
dition. Our experience does not dif1er from that
OF other countries. 1t was easy enough to plunge
into paper currency, but the return was diffcuit
Paper money (so-calledl Is not redeemable at the
will OF the owner, Is not money. 1t had been
claimed that our paper had not deprecated,
often been said before with us. IL could not be
reasonably claimed that gold had risen In value,
Pacific coast and from Australia had decreased
its value. Some had gone SO lar to
claim that the government might transfer Its
whole Indebtedness into the sembance OF money,
but they forgot the manly utterance OF General
Grants inaugural Again the champions OF a
paper currency appeared with their argument OF
the confidence the people have in the government.
1t is not question OF doubt Of ability, but ques-
tion OF the intention Of the government to pay.
There was plenty OF confidence in the ability or the
governments to pay, butt unfortunately, Congress
would not let 1t pay. The perpetual now OF gold
abroad had been perpetual advertisement OF the
depreciation OF our currency. All OF our bonds find
their highest appreciation in specie paying markets
abroad, and he must ask how long tins state OF
affairs must continue Should no effort be madeto
cure IL, our deprecated currency would be handed
down from generation to generation as an ncurable
malady. Let the growing suspicion that no steps
are to be taken towards the resumption OF specie
payments go on and we shall surely recede from
such payments. He referred to the banking rates
now being in excess OF those OF years ago, and
said the poorest money is always the dearest. The
expansion OF paper currency shipwrecks many
undertakings which might have been successful
with sound currency After referring TO the
banks locking up such sums as part OF their re-
serve, thus reducing the amount OF money IN the
hands OF individuals, he spoke OF the Inconvenience
stantly subjected by the large operators in Wall
street. he did not approve OF the proposed issue
OF government bonds interchangeable with United
States notes, and thought the promoters OF that
scheme sought an indefinite expansion OF the
currency. The seductive influences OF an excessive
paper currency were terrible. Some seemed to
be willing TO trust to time and nature to cure our
financial evils With all due respect TO time and
nature he was unwilling 10 hand the matter over
10 be cured Congress must be equal to its consti-
tutional duty. The people, who are deficient in
neither strength nor courage, long to say Ameri-
Can money is second to none In the world. They
long to handle once more the sound cash, and see
the vain attempt to compete with paper against
dations awaited usf No one could tell Where,
outside OF our own country, does our money pass
st parf Mature s naa bestowed upon our land WITH
seemed as II we had failed in converting it into a
circulating medium. Our deprecated currency, or
ought to be, was held By the people pc % without NJ 1t
being frugal and was working ruin TO the
contract, was disgusted. and work seemed to be
going out OF fashion. LoungIng was the autocrat
OF the times. How could we expect to tram up q
conscientious people when the governm ent itself
gave q bad example by the Issue and reissue Of
paper currency above It's valueY With return TO
removed, and the legitimate business OF banking
would be restored to all parts OF the country:
en6 these reforms qns sod not be brought
was not welded to any special plan,
but favored that proposed py prominent lnancier
OF New York, that the Secretary OF the Treasury
shall issue certificates payable in four years. with
interest AT S.65, at par in United States notes or
gold at the option OF the holder, requiring the
banks to keep one moety OF their reserves in these
certificates, and Tor the government to give notice
that on January lS.5 II will pay Its notes IN cash
tate loan OF 100000 900 in coin at SIX per cent
per annum. The certificates, as fast as re-
deemed, may be paid out BY the Secretary OF
government. The return to specie payments
would, OF course, be attended by some inconven
fence, but reasonable time and notice being
given the notes would gradually approach par.
All sound banks would be glad to return to a
specie basis. few mushroom institutions might
not be able to stand but no one would regret their
loss. He thought the republican party had done
mucn towards advancing the national prosperity,
ana ne Oi specie AZ was the no only Sn one
this dark cloud OF greenbacks should be swept
away, and he hoped soon to submit bin providing
tor the desired return to q specie basis.
Mr.. FERRY, rep.) OF Mich, moved to take up the
resolution offered by HIM on Monday to provide
for the settlement OF the financial arrangement.
Mr.. WRIGHT, trep.) OF Iowa, moved tnat the
Senate proceed to the consideration Of executive
business, with the understanding that Mr.. Ferry be
entitled 70 the noor' on his resolution 10. morrow
Agreed TO.
Mr.. STEVENSON. (dem.) of Kv., presented a Pc
ttion OF $500 citizens OF Kentucky. asking for the
passage OF law prohibiting the manufacture of
sprituous liquors In the territories OF the United
States
The senate, at two O'Clock, went into executive
Cpg la 20.
opened and the Senate adjourned until tomorrow.
HOUSE OF REPRESENTATIVES,.