The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-02-17

ate-Frce Bsnktng Brought to the
Front.
The opening of the twelfth week of this
session OF Congress marks, in the Senate, All
approach to o distinct issue between the East
and West on the banking and currency ques-
tions, and foreshadows a vigorous and pro-
tracted contest. On Mr.. Sherman resolution
for redistribution of the existing currency,
which will transfer from the East to the West
twenty-five millions, substitute was offered
yesterday by Mr. Cameron which enlarged the
field of debate to the widest proportions. His
proposition was free banking, embracing the
removal of all existing restrictions as to circu-
lation. His argument was ingeniously
adapted to the occasion and to the purpose OF
rallying the infationists to free banking We
infer from our special reports that, as Penn
sylvanian, General Cameron was placed In the
front of this column by the Western men in
order to break or weaken the line Of Eastern
contractionists. The supporting speech OF Mr.
Pratt, of Indiana indicated an understanding
and a common base of operations.
Mr.. Cameron commended that under free
banking the increase in the national banks
would be determined by the law of supply and
demand; that this increase would not be in
flation, but supply; that the circulation would
be regulated by the wants of the country; that
the gradual absorption of greenbacks by the
banks would facilitate the return to specie
payments, and that, meantime, our national
currency, the best we ever had, in being rem
dered elastic, would meet all the fuctua-
tons of trade. Mr.. Pratt followed in the same
line OF attack on the restrictionists contending
especially that this existing monopoly of the
national banks, which has become rich and
imperious from the exclusive favors of the
government, should be abolished Mr. Freling-
huysen, evidently alarmed by this develop
ment of free banking as the ultimatum Of the
West opened at once scorching fire upon it.
He denounced it as the most ruinous scheme
of finance ever suggested in this country; that.
if adopted, it would prove more dis
astrous than the rebellion; that it limited
the imitation OF the currency only to
the seventeen hundred and fifty millions
of bonds of the government; that it
would reproduce the imitation, specu-
lation, depreciation and universal chaos
of the free experiment of the French
assignats, and that Of all things he
should deplore the adoption of any such reck-
less scheme of bad faith, speculation and bank
ruptcy. The fiery Mr.. Flanagan, OF Texas,
who in discussing anything discussed every
thing, came up like a southwestern hurricane
to the support of Mr.. Frelinghuysen but
the contractionists were frightened, and,
in moving the recommitment of the whole
subject to Mr.. Sherman's committee
they only embroidered the Western men.
Mr.. Logan advanced to the attack and
charged that the motion to recommit was
q flank movement dodge, manoeu-
vre to avoid a vote on the pending question
that the Finance Committee were attempting
to steal off in retreat with mufned drums,
but that they could not smother the pending
questions nor evade them. They would have
to meet them, and might as well meet them
now as at any other time. Without vote
upon the question to recommit the Senate adj
journed.
The general impression from the days de-
bate is that the contractionists have been
thrown upon the defensive, and that the
infationists, having assumed the offensive,
will push on the battle They appear con-
fdent of decisive majority in the Senate and
OF success in the House. They certainly have
assumed, in the Senate, the attitude Of mas
tiers of the field.