The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-06
THE PRESIDENT SPEAKS.
He Will Sign the Inflated Cur
rency Bill.
The Late Treasury Issue 10 be
Again Withdrawn.
Dim Hope Of Specie Re-
sumption.

To-Day-Merrimon's Eight Hundred
Million Substitute to Pass-A Strong
Battle for Free Banking-Provision for
. Return to Specie Payments.
The eliminating point will be reached In the
Senate tomorrow, as relates to what has been
done on the financial question, in the adoption OF
the amendments offered by Senator Merrimon.
These constitute the first and second sections,
and, as such, having been moved by him on FRI
day as substitute Tor the whole bill OF the com.
mittee, viii come up as unfinished business In the
Senate to be regularly voted upon now as Senate
bill. The reason has not transpired, in anything
which con be cleaned from Senator Sherman, why
he was anxious that the financial question should
20 over until Monday; for II there were
anything In the way Of compromise or con-
Citation to be effected between the op.
posing sides he disavows that any such
thing is definitely known by him, or that any
measure or proceeding contemplating such re.
suit has bese matured by him or his friends.
There is n0sdoApt that ne Ia anxious and exactng
about the adoption Of some plan for specie re-
sumption, and that he is firmly pledged TO con.
ttnued effort and advocacy In behalf OF the success
OF his five per cent gold bond vessel of con-
vertiblity. On the whole he, as well as o large
number OF other Senators, will not be satisfied
without the adoption OF some additional measures
to be provided in the bill, for the two remaining
most important elements of Its efficacy and COM
prehensibility, which they contend to be, nrst
cOnvertibillty and, second, nxed time at which
specie payments shall be resumed. Some OF the
Senate propose give these issues the by for the
present, being anxious now only to secure, in ad-
dt1on to what has been done, to supersede it as
far national bank circulation is concerned, the
provision for free banking which they want, with
the most liberal circumscrption possible. The
New York system OF free banking is being more
and more generally quoted within the last few
days as the criterion whereby the measure can be
satisfactorily and safely secured to it's friends. A
vete viii be had tomorrow on the Merrimon sub
stitute, and Senator Sherman will ofYer some
amendments, as he proposed to do at the tempo
rary dismissal Of the finance question on Friday
last, looking in the direction OF convertbility and
specie resumption. But he has nothing to offer
which will be acceptable to the majority, and the
passing Of Merrimon's substitute, which makes the
limit OF the currency $500, 900, equally divided
as to greenbacks and national bank circulation,
will comprehend oil that viii be done, SO far as
now agreed on.
The objection to the Sherman proposition to use
i've per cent gold bond, and the return to specie
payments at an early day, is that It increases the
public debt and mutipiies it every time redemp-
ton OF notes takes place. 1t is not thought
probable that greenbacks would appreciate
i've per cent bonds. The plan is not re-
garded by leading Senators as practical, because
the bond looks to Investment, whereas the object
sought Is not to provide for investments but to
produce convertlbility. Some effort will be made
TO get back to specie payments; but 1t will not
carry the support or the whole majority, because
It Is feared that there is such diversity OF opinion
in the House that to cucumber the bill with
anything beyond the present provisions
for an increase to $500, 900 would be very
likely to defeat 1t in the House, and
further, as to Senator Shermans BILL 1t is opposed
because 1t complexities things which must be made
plain to be understood. Besides this, there is
measure under consideration which, in all proba-
bility, Will be offered in the Senate, which con-
templates that Omitted States notes shall be re-
deemed IN gold and silver coin at the Treasury Of
the United States and after January l. 1875 and,
for the purpose OF supplying the necessary funds to
provide for such purpose, the Secretary is author
tied to reserve and set aside from the surplus
revenues, $25, 900 OF gold and silver CON- and II
the surplus revenue Is net sufficient for such pur-
pose the Secretary of the Treasury is authorized
to sell any part OF 100000, 600 OF five per cent
twenty years gold bearing bonds, for the purpose
OF procuring coin at the rate OF $25, 100000 per
annum. Another provision will require the ma
tional banks to retain as part OF their reserve q
certain amount OF the coin received by
them as interest on United States bonds. The
objection to this plan Is that gold will be kept
out OF the market and the government will hoard
IT without interest. The loss In the way OF in
terest, however, 1t is es'imated will not exceed
$1Sc,oo0, and is therefore regarded as q trifing
sum compared with the advantage OF return to
specie payments. Another objection urged is
that 1t would produce some scarcity OF
god In the market and possibly an ad
vance In the price OF gold. AS a set or to
this. however, the greenbacks, ana therefore the
whole OF the currency, would continue to apprec-
ate and approximate TO q gold standard until the
day OF resumption. 1t is said the great objection
to this would be that 1t requires some expense and
sacrifice on the part OF the government. The
Is that there is return to specie payment
without q sacrifice, and the sacrifice in this case,
1t is claimed, Is as nothing In comparison with
the great end to be attained. There is reason to
believe that Senator Sherman will give his sup
port to such abi as this If better terms can be
secured, but he IL, OF course, enthusiastic and
acting in regard to the adoption OF his own
method, as explained In the second section OF the
oil originally reported from the Senate Finance
Committee.
The President ON Finance-The Four
Hundred Million Act VIII Not Change
the Authority OF the Treasury to Keep
Portion of the Currency I'm Reserve
The National Bank NOTES.-The Veto To
BE Expected.
The question having been raised whether the
President Will sign act increasing the legal
tender circulation to $4oo, 100000, in connection
with the proposed increase OF national banking
capital it can be authoritatlvely stated that such
an act win be promptly signed BY the Presi-
dent. In this connection the President
has said that the proposed enactment re-
speeding the legal tender circulation would
only be regarded as definitely settling
an Interpretation Of existing law, about which
members OF Congress had honestly Differed but
respecting which ne had entertained no doubt as
evidenced under Mr.. Boutwel's ana his successors
administration OF the Treasury Department.. So