The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-03-24

Substitution of National Bank
Notes for Greenbacks.
IlLEoAlITY OF the LAST ISSUE.


0ications that the majority in the Senate will
not accept the bill now reported from the Senate
Finance Committee, by Senator Sherman. as sub
stitute for the pending amendments on the
$25, 900 National Bank Circulation Transfer
bill. No one OF the Senators, who have been
prominent in their advocacy of an increase OF the
currency circulation is willing to depart by pres
ent change OF consideration from the ground which
they have taken on the floor OF the Senate
since they commenced to discuss the financial
question. They think that Senator Sherman's bill
10 delusion and snare, and that by 1t If they
leave their own domain they may be entrapped
into entangling businesses and secure successful
results to their further efforts, which they tee
they can come to q winning test vote Another
view OF the Is that they do not wish to accede
to Senator Sherman's Overtures to have this las.
bill substituted, as IL will give him the opportunity
to say that he solved the financial question, while
they contend that they have wrung all that has
been yielding in its provisions by persistent fight,
force OF numbers and the merit OF their case from
the resumptionlsts. As the Senate stands now
they Will insist upon the measure OF In
creased national bank circulation, the facilities Of
which are to be applied to the South and West ex-
clusivey, and, If there is anything in the bill Of
the Finance Committee favored by them, they Will
adopt 1t from the floor OF the Senate and seek TO
prevent the committee from deriving any credit
rom the final disposition OF the question. They
say that they have fought this issue against all
odds, and that they are not now going to sur
render their hard earned victory. The latter senti-
ment was reflected in the closing remarks of
General Logan at the close of to-day's debate. 1t
Is certain that little or no spirit OF compromise Is
felt by those favOrng an increase in the currency.
Senator Merrmon, of North Carolina, who has,
during the debate On financial matters, been
a nf tha inp IN,
national banking currency, against Senator Sher.
man, says of the bill reported by the Finance
Committee to-day, that the volume OF greenbacks
allowed by the bill reported by the Com
mtttee on Finance IS $685. 000, 900. This
volume is to be reduced to $500, 10000 in the
following way AS sl,ooo,Ooo bank notes
shall be issued to national banks, seventy per cent
Of this sum Of the greenback circulation Is to be
retired until the volume Of the greenDacks Is re-
duced to $300.0oo,o00. The account will then
stand tnus:-Seventy per cent of So, o0o0 600 IS
f67, 200. That leaves the net increase Of bank
circulation at the time the volume OF greenbacks
snail be reduced to sSoo,ooo.ooo s24,e 600.
Add to this the present volume Of bank
currency $35400O, 900. Add to that the
$780, 100000 Of greenbacks allowed by the
bill. This will make the gross volume allowed
by the bill $67S, GOO, 000 The present volume of
greenbacks ana bank currency is $7iO,0Oo,O0O. Up
to this point the new bill will contract the
volume OF currency $31,40o,000. Fixing the
volume of greenbacks at $500, 200, as
by the bill hall OF this amount under the Bank
act win be used as reserve to pay deposits,
$150,0Oo.00 OF the same viii then be left
Tor bank reserves to pay bank circulation.
This reserve Will allow bank circulation
not exceeding $3.50, 100000 This would increase
the present volume Of circulation just $40, 900.
This Is the effect OF the bill. He does not think it
answers the purpose at ALL In the first place,
as measure looking to specie payments, 1t is
mockery, because there Is no provision for an accu
mutation OF gold, and 1t does not put in the
possession OF the people OF the country the gold in
small amounts; but 1t requires that, in order to
get the gold, person must have at least 81, 00O
He objects to the 1fth section because, as meas
ure looking to a return to specie payments, there
is as much reason for the banks keeping the whole
OF the interest received in gold from the Treasury
as for part, and the banks can afford to do this
as their earnings in the past show. 1t does not
bring any present relief. Its tendency is to con-
tract until the volume OF greenbacks is reduced to
$500. ,00O AS measure Of increase of circula-
t0n 1t Will allow an increase only OF $40,0O0000
long way In the future. part OF the title Of the
bill suggests Tree banking; whereas, in fact, the
limitations provided by the tenor and eject Of the
bill retain as thoroughly the monopoly for the
future as the present Banking law. The last section
OF the bill conradicts those provisions Of the bill
which authorize the issue Of a Ave per cent bond
for the redemption Of greenbacks. He has no idea
that it will pass 1t cannot and the only effect of
OF 1t will be to get up long discussion on the
finances, the effect Of which may be to distract the
friends OF an increase Of currency. The judg-
ment OF the Senate as has been ascertained
IL In favor Of an increase In the cir
Culation. He Is in favor OF an increase of
the currency, with view to present relief, and
also iavCrs a better currency and therefore be-
lieves that the present Congress ought at it's pres
ent session, to establish permanent financial sys-
tenn, based upon specie. The increase of currency
does not mitates against such a policy, for he
thinks the want OF the country is more currency,
even II we mad better currency.
The Decision Of the Financial Question
I'm the House-Thc Compromise Between
the Two Factions Successful-Fccling
II the Members.
The Speaker raped very full House to order to-
day. and, under the inspiration Of future prospects,
despatched the call OF States in a manner which
indicated something unusual on the programme
OF business. The morning hour would expire at
ten minutes past one, when Mr.. Holman, OF Indiana
was entitled to the floor. There remained ten
minutes, ana word was sent to Mr. Dawes
mat now was his chance. The Chairman OF the
COMMITTEE OF Ways and Means appreciated the
opportunity and asked that the rules might be
suspended and the bill fixing the legal tender cir
circulation at s4oo,ooo,ooo be taken up for consid-
Grafton. The House, with unanimity only paral-
leled by the readiness with which tr accented the
invitation to 20 to snip launch, suspended the
rules and put Mr.. Dawes in possession OF the floor
He led or with an amendment dxing the circu,a
ton at $3.50, 200, oo0 About seventy members were
all whom MI. Dawes could get to support his
amendment; so the House passed to the consid.
GRAFTON Of the amendment OF Ellis II. Roberts, OF
New York, fixing the amount as It now stands at
$685., 10000 The House rejected this amendment
by the same vote, and this brought the bill as re-
ported from the Committee Of Ways and Means