The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-02-19
THE CURRENCY.

Efforts OF the LIMA tionists In the SEN.
ate-Patent Ideas for Returning Specie
Payments Theories Unbou ndcd-LO-
gan and schurz In Verbal Warfare
ScOtt's Motion Lost.
WASHINGTON, Feb. Is, 1874.
The Senate to-day resumed the consideration OF
the bito equalize the distribution OF the currency
Mr.. CHANDLER, trep) OF Mich, said that at the
proper time he would offer an amendment which
he had read Tor information. 1t provides that the
Secretary OF the Treasury shall retire and destroy
a dollar Of legal tender notes for each dollar in
national bank notes issued. Mr.. Chandler said he
believed his proposition in regard to resumption
OF specie payments made some days ago was
feasible. He thought the nation could give notice
that 1t would resume specie payments at an early
day, say July l. 1876, or even January l, 1875 and
coin could be accumulated in the Treasury by that
time which, with loan of 500. OOO, OOO that could
be negotiated, would enable such resumption.
That would be the greatest measure OF relief ever
proposed for the nation, and the result would be
beneficial to all classes. There seemed to be
rabid mania here on the part Of some Senators
against the word "coin." Increase the circulation
and the purchasing power OF money would be d.
minished just in proportion. Imitation was the
greatest curse which Senators could in1ict upon
the nation or their constituents He quoted the
price Of Confederate money from time to Time,
until at last it took 200 Of 1t to buy 81 green
backs, and said that was imitation carried out to
its bitter end.
Mr.. LOGAN, OF Illinois, said he was surprised that
the great war Senator should be comparing our
notes with Confederate notes. Did he not know
that those notes were based on prospective gov
eminent, and the moment that government de-
cllned the money would be worth nothing? He
(hr Logan) was ashamed OF his country II such
stuff as this was to be received as argument in this
Senate
Mr.. HOWE gave notice that he would submit an
amendment as substitute for that to be proposed
by Mr. Chandler, providing that the Secretary OF
the Treasury shall once in each month,
sell to the highest bidder for United States
notes coupon bonds equal to eighty-fve per
cent OF the additional bank circulation issued
during the month preceding. which bonds shall
bear interest at the rate OF five per cent per an
payable at the pleasure OF the COVE rninent after
ten years from their date, both principal and in
bonds shall be sold at less than their par value and
the United States notes received in exchange
therefor shall never be ressueo, but shall be de-
Mr.. MORTON SAID he thought the argument on the
other side might be said to be on its last legs when
an attempt was made to compare our money with
that OF the Confederate States. He would call the
attention OF the Senate to one evil which would
Dollar bill. it would work contraction Of the
currency to the amount OF $685. 0OO OO0 because the
would understand that they would be liable to be
called upon any day to return the money, and
they would not lend it.
Mr.. FRELINGHuYsEN, of New Jersey, said it might
produce good deal OF contraction, put he thought
cuation be Increased SIS, oOo,ooo Or $4,000 900,
United States notes to an equal amount The
result would be that without increasing the paper
those sections wanting it and there would be no
withdrawal OF money from the East to give to the
bank currency should be confined to those States
which have not their share. Again, there should
banks should have their notes returned to them at
stated times. Thus the circulation would be local.
ized; he would not allow any one to have the
pllcant produced license from the State or Gov
ernor thereof. This would secure the proper To-
cation or the banks as well as proper men to whom
this valuable franchise should be committed. He
hoped THIS whole subject would he recommitted
10 the Finance Committee. In conclusion he said
he favored the proposition authorizing the Secre-
tary OF the Treasury to accumulate gold with a
view to specie resumption.
MI MORTON said there had been some improve.
ment In the country since the panic but that lm-
provement was not complete, and the result OF the
panic was lelt to-day IN every county IN the
country.
Mr. scHURz, trep:) OF Mo-, read from the Chicago
market reports and argued that money Was easy
In the West, and that there no scarcity of 1t.
Mr. FERRY, of Michigan said 1t was not fair to
paper reports. Business men, when they wanted
more money, went to their accustomed places or
letter from company in Missouri which had a
capital or $4,000 and not an outstanding note;
yet 1T could not obtain oan OF $4,000 by paying
plenty OF money in the West
Mr.. SCHuRz said he thought the gentleman must
De excessively hard pressed Tor argument when,
III reply to the regular market reports OF the
papers-undOubtedly good authorlty-he produced
letter here from man who could not get
money Or course there were men all over The
country who could not get all the loans they
wanted; there were plenty of men in the country
who had not as much money as they wanted.
Mr. MORTON said many of the newspaper articles
were OF political nature.
Mr. LOGAN said the Senator could not show such
articles as he referred to IN the Chicago papers.
The gentleman had read statements to show there
was plenty OF money IN the country. or course
there was plenty of money to be had at eight per
cent on call. During the panic, when banks were
gentleman read produced statements which caused
the failure OF two OF the best banks there. 1t was
well known the paper advocated specie payment.
Mr.. SCHURz said the paper was in favor Of specie
payment. An the great papers OF the country
sumption, and why2 Because they had too much
sense to be in favor of anything else. He read
from Chicago paper of recent date state
ment as to money being easy and borrowers few.
MIR. LOGAN said he did not doubt money was
easier than 1t was two months ago, and the cause
its $44, 200 reserve. He said the gentleman
could not produce IRON the paper quoted any
a in et the west The money Sentleman p saa
all great papers were in favor OF specie
payment. What great papers? The Chicago
paper which supported Greeley in connection with
The Senator from Missouri, and the Chicago paper
which agreed with everything the Senator mir:
Schurz) said. He tMr. Logan supposed II all
great papers were on the side OF his friend that he
lMr Schurz) must be great man. This greatness
favored monopoies. Mechanics and farmers must
not have national banks; they must be left for
great men like mis- friend. Gaughter),
the question OF national banks.
Mr.. LOGAN said the gentleman had said all the
papers which had sense supported his side, thereby
implying that all others were FOOLS
Mr.. SCHURz said he did not mean that none eX.
cept those supporting his side had sense. He had
lald down a line Of policy for himself, and those
who went with him he thought had more sense
than those who did not