The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-03-25
WAsHINoTo ON.
The Old Democracy Opposed
to Imitation.
The COMPROMISE CURRENCY BILL.
Secretary Richardson's Theory of
Resumption of Specie.
THE GENEVA AWARD.

WASHINGTON, March "a, 1874.
Tho Compromise Financial Bill Ex-
pounded by Sherman I'm the Senate
Thurman and Ferry In Wordy Bat
tlc-Old Democratic Principles Opposed
to Imitation.
In the Senate, upon the agreement to Informally
lay aside the pending amendments and the main
question on the former report OF the Senate
Finance Committee transferring s25,o00,0 900 OF ma
tonal bank circulation, Senator Sherman took the
door In explanation and advocacy OF the bill ma
tured by the Finance Committee Tor redemption
and reissue Of United States notes and for Tree
banking Senator Sherman did his utmost as an
exponent of the merits or the bill and as well
versed political economist. He took up the bill,
section by section, and explained Its purposes.
He was frequently interrupted by inquiries
from Senator Morton, which finally were
relrained from, as Senator Sherman init
mated that they interrupted the thread OF his
argument. Considering that Senator sherman
has committee who are far from being unani-
nous, and that the same thing exists even among
those " no otherwise approximate to an agreement
on the general scope OF the BILL and that 1t may be
said that there is not only distinction without
difference, but there is q large difference oil opinion
among the five Senator's Sherman, Morrill, OF Yer
mont; Scott, Fenton and Bayard, who support the
bill, he did very well 1t was evident that Sena-
tor Sherman has been somewhat discouraged from
the start, and IN committee he has exerted him.
sell to the utmost to have the whole committee
stand by the bill; but from the avowas OF Senator
Ferry IN debate to-day it is plainly 10 be seen that
he does not feel himself at liberty to surrender his
positive convictions to the contrary, and, although
. member OF the committee, cannot support
the bill as reported, because he has
been 80 pronounced IN his opinions and
arguments averse 70 1t that to sustain 1t would APP
pear simply like stultiylng himself. Though the
family disagreement In the committee and the
promised antagonsm or Senator Ferry OF Michl-
gan, was enough to dishearten leader with only
demorazed forces behind him to rely upon, yet
Sherman made as brave and thoroughly devoted q
presenment Of his cause as If he were assured Of
the overwhelming justice OF It and had belief in
Its final triumph. He acknowledged, however.
that the bill was compromise and, like all other
compromises, unsatisfactory, ana it may be ques-
toned whether like the famed Missouri and Le-
compton compromises, 1t may not occasion %
much trouble ana unconvincng If not endless de-
bate Senator sherman explained the third sec.
tton IN favor OF free banking with restrictions,
so as to keep 1t in certain limits and SO
that the large accumulations of capital
in the East and in New York should
not absorb the free banks, and hence the COM
mittee fixed 1t according to the allowance given
to New York, so that neither 1t any other State
could get an excess to the detrlment OF the other
States. Sun he made the sweeping acknowl-
edgment that he was willing TO take free banking
without restrictions, as he mad always been in
favor Of it. He made thorough eTpose OF the
workings Of the succeeding sections, but did not
seem to be able to get the virtual effect OF the
working Of the sixth clause, which provides that
there shall be no increase OF the public debt
by the provisions OF the bill, which Is acknowl-
edged to be q contradiction and bar to the work
1ncs OF the other sections OF the bill. At Its close
Senator Thurman replied to the attack which
Senator Ferry, Of Michigan, made him
in his speech, charging that he had
lodged the financial issue all through the three
months debate. The venerable Senator was very
much aroused, and being generally acknowledged
to be IN line for the democratic succession as a
Presidential nominee he felt severely the, alega-
ton which had gone broadcast throughout the
country that he had appeared to shirk the respOn-
sioty of taking one side or the other in the fnan-
cial debate so he was forced to avow his senti-
ments explicitly to-day by Senator Ferry, who az
forwards arose TO a very courteous but firm rejOn-
der, and in response to direct inquiry from that
Senator, he avowed himself as considerably too
old q democrat and as having learned too many
solid lessons in that school to favor the views OF
the lDhatiOnists. He was in favor OF specie resump.
ton by gradual process and could not vote for
the pending bill, as its measures were too
harsh In that regard, making, as ne con-
tended. return to specie payments in
two years. Senator Thurman finally urged that
the bill, with free banking was perpetuation OF
the national debt, and that II the public debt was
paid Off there wonld be an end OF the business of
the national banks He closed with the usual
democratic campaign argument in favor Of fee
trade and inveighed against protective tariff
Senator Ferry, OF Michigan, who was in the chair
during this trying philippic came to his seat and
responded in rebuttai OF Senator Thurmans ar
ralGnment, closing with the pithy remark that II
the Senator from Ohio gave thrust he must ex-
pect tnrusts in return. Pending this discussion
In which the blood is now commencing to mount
up the Senate went into executive session and
then adjourned.
Ory-No Imitation, Free Banking md
Gradual Resumption.
There is good reason for the statement that both
the President and the Secretary of the Treasury
fully sympathlze with the endeavors to tx the
legal tender circulation where 1t at present
stands. The Secretary, granted a sufficient length
OF time, would reduce 1t. as he did the excess be-
fore the panic, to $3.50, 900, and in the same
period he would accumulate goId with the view
Of providing for gradual resumption during the
year. In an interview with an official gentleman
to-day he stated unequvocay, that between
the customs and internal revenue receipts the
Treasury was in ample possession OF funds for
all the purposes OF the government He
no use for the additional slsooo,o 900 which the
House has provided for, and unless some further
legislation is had on the subject is likely to be
locked up in the Treasury vaults. The Secretary
favors free banking in all the States In which
there is an amount of capital disproportionate to
that OF the more thckly settled States, and re-
CARDS the time as close at hand when 1t Will be
wise ior every banking institution in the country
TO augment its accumulation OF gold, inasmuch as
the solution OF the problem of redemption, that
must sooner or later be presented to the govern
ment Will involve Its financial tributaries in the
same principle. lie also favors the granting OF
permission to the national banks In cases Of great
emergency, to increase their note circulation to
u limited extent by pledge OF United States