Evening star. [volume] (Washington, D.C.) 1854-1972, 1874-01-17
EVENING STAR.
DOUBLE SHEET,
CONVERSATIONAL.
Conclusion Yesterday Proceedings.


| sENATE;-After our report closed, discuss
ing the resolution on the finances
| MT sherman said ali writer's recognized the
fI 'S metals As the only proper standard of
circulation. For all practical purposes gold
can be regarded as the only basis of values
specie has, however, lost much OF its sovereign
changes it Is too bulky to be transnorted
Ninety nye per cent. OF the commercial trans
actions are made up of hills of exchange. promis-
sorry notes, &c. But, although spe sic Is n more
the medium OF exchange, il is the unaIterable
standard OF all values. Mr.. Sherman then
| quoted from the act to strengthen the public
credit that the legal tenders should be redeemed
| IN specie at the earliest possible moment and
said the government was solemnlN pledged IN DO
ms. on the strength OF this promise made in
Msreh, lst9, the value OF our greenbsCks ap-
| precisted most materially. We are living In
daily violation now of our promises. aud, more
since the passage in March. lSG9, OF the act
| promising TO redeem our currency in coin, We
have actually added TO the currency. ON the
| seth of June, 1869, the amount of legal tenders
outstanding was S}56. 900 GOO. On the Ist of last
January the amount outstanding was $751;
| tel COO He had no doubt whatever that
thlS craving upon the revenue was in
violation of the spirit of the act of
March, 1853. Then the fractional cur
rency had been increased enormously On
the 3Oth OF June, 1853, the amount out OF
| s4s,5d,I92 The amount OF bank circulation
row outstanding WAS SiS9, >Sl 600, a. against
SO SS,oCO at the time OF the passage OF the
| act Thus. since the passage OF that act. the
currency has been increased $50 900. One
'enth OF the amount used to pay the public debt
not due would have brought Us to a snpcie
standard. There had been no day since the
obligation was put on the statute-books that
| we should not have addressed ourselves to the
| means OF fulfilling it. But, to the contrary not
| one single move had been made toward carry
| ing out the promise made so solemnly. Ii we
| yield one single inch to the desire Tor more
paper money we have passed the Ru blcon and
no one could tell where il would stop Vow was
the time to take a stand to initiate measures TO
| redeem our promises. He then sent to the desk
no nod ftaa Ia -aav. a..
II all the provisions of that act had been faith
| fully adhered to we would now have specie nav
| ments. The act of April r. 1866, had done
| more to inJure our financial system than auy
other act OF Congress. By that act the Secre-
tary vas authorized to bond all interest bearing
| securities of the United States in six per cent
| BONDS without any limitation. No more power
was ever given before to any man. Under IL
| the SIX per cent. bonds were run from seven
hundred millions up to about one thousand
| four hundred millions. The act also separated
the greenbscks from the right to be exchanged
| for bonds.
Mr.. Boutwell, remarked that il was the onin-
| ion OF the Treasury department that the re-
| serves could be drawn upon, and this view had
| been sustained by the Attorney General, and
no opinion TO the contrary had ever been eS-
| pressed by either house OF Congress, although
| the subject was before them. He said that Al
periods il had been absolutely necessary to is
| sue portion OF the reserves to maintain the
public credit.
| Mr.. Sherman did not blame the Secretary,
| but he blamed Congress for permitting It. He
| udu opposed the pOucH of Mr.. McCuloCh in
contracting the currency because it produced
great distress, but that policy would undoubt-
| edly have brought us to specie payment. He
did not care to commit himself to any plan, but
of all the plans brought before the finance com
| mittee the proposition to authorize the CONVEX
sion OF greenbacks into some bond which was at
/ par in gold-the ten-torties, for instance which
| were row quoted at a9A gold-stTUck him as
iudicious. In regard to the objections 10 specie
| resumption he said he would not favor an i'm
| mediate resumption, because il would undoubt-
| eUlV produce distress. hut W. ha
| picious time to make Preparations for resump-
| ton, TO fix some reasonable time in advance
| Another objection TO resumption was that bank
| notes would mouopolize the circulation. The
| bank notes were well secured, the banking sys-
| tenn was better than ever before, and il the
| government redeemed its notes in coin the
| banks would be compelled to do the same But
| he did not think when the greenbacks were at
| par that they would or could be driven out of
| thought was also iIl-fOunded, for the same rea-
| son that with currency at par there would be
| no call for contraction He indicated that the
| paper circulation of England was much less
| than had been stated. The Bank OF England
| was mot allowed to issue a note that was not
| guaranteed by government securities or by gold
on hand. The reason why we cannot keen gold
| IN this country, unless it is boarded by the
| Treasury, is because the effect of adepreciated
paper currency is inevitably to Danish gold The
cry Is TOR more money; he said more money, too
but good money was what he wanted. We had
| more paper money per capita than any country
in Europe. We have now seven hundred and
| sixty nine miInons OF paper money.
Mr.. Bayard remarked that it must also be
| considered that on the Pacific coast specie was
the only medium of circulation, and that also
| in New York and other Atlantic cities much
| business was done on gold basis, so that it
might be said there was a large proportion of
| the country not using paper money.
Mr.. Scott said that OF this seven hundred and
| sixty-nine millions, two hundred millions was
| kept as reserve by the banks.
| Mr.. sherman said in England and France
there was much larger per cent. held in re-
| serve, 80 that his comparison was not impaired.
| In conclusion, he said it was most unfortunate
| and inopportune at this time, these demands
| that the act of 1910 authorizing an Increase in
| the bank circulation had arrested the fall of
the faith of the government that its circulating
| notes should not exceed four hundred million
dollars, and he wonid never violate that pledge.
| More paper money will cheaper the debt due to
| a creditor; it will cheaper the price of labor;
| but it will not cheaper the price of food or
OF raiment He believed that nothing would
DO more to restore confidence, revive industry
and accelerate the progress of the country than
the indication of a deliberate and determined
| purpose to at once take the means to respond
| promptly and FULLY to its solemn promises.
MIR. Morton said the act of 1863 provides that
| at the earliest practicable moment the notes
| shall be paid in coin. The Senator (Mr. Sher-
man SAYS II Is practicable now to redeem this
pledge, and yet he does not propose to pay the
| notes In coin, but in a bond, and o bond
which is barely at par, and which huctustes
| constantly. Therefore the bottom tumbles out
Of the Senator's great moral argument.
After some further discussion the Senate ad-
| joUrned until Monday.
| HOUSE.-After our report closed
| Mr.. Kellogg, by unanimous consent, intro
duced bill to abolish the Office OF deputy
commissioner OF internal revenue. Referred to
| Committee on Civil Service Reform.
Mr.. Cox, from the Committee on Rules re-
ported an amendment to the one hundred and
second rule, so as to provide for a committee on
accounts for the Department OF ustice, and the
amendment was adopted.
MIR. Harris (Va.) said had he been present
when the vote was taken on the salary bill he
would have voted aye.
Mr.. Wallis (Fla.) asked leave to introduce a
bill for reference, presenting a mode for filling
the position of Chief Justice of the United
States.
Mr.. Hawley (Tlll objected, and moved that
the House 60 into Committee of the Whole on
the private calendar, which motion was agreed
to.
All the bills referred during the morning to
the Committee Of the Whole were considered,
and ordered favorably reported to the House.
The committee then rose, and the bills consid-
cred in committee were reported to the House.
bills for the relief OF the following persons
and they were passed: For the relief Of Joseph
X. Blackwell, George w. Reyes, Mary s. Lin
coin, james w. Glover, Willard Howe VIM. B.
Martin. l.. 8. Campbeil VIM n Princa Fran