The Tiffin tribune. (Tiffin, Ohio) 1868-1887, 1874-12-31
Shermsn's Financial BIZ.

The following is therepOTt ofthe de-
bate on the financial bill which passed
the Senate the 22l inst, by nearly
a strict party vote:
Mr5Sherman moved that the pend
/ ing bill to provide q better govern
ment for the District of Columbia be
I laid aside and the Senate proceed to
| the consideration of the bill to provide
for the resumption OF specie pay
ments. Agreed to.
Mr. Sherman said be did not intend
to reopen the debate on the financial
I topics of the last session. The Senate
was composed Of the same persons
now, and it was idle to reODen il. 1t
was now less than three months from
| the time of adjournment, and there
was a general feeling that Congress
should do something. He desired To
say 70 the Senate that every wori
and every line of this bill tended to-
ward the announcement in the title.
The bill might fail short ia many par
tieulars, but it was one which de-
manded reasonable concession from
every Senator.
He then explained the various pro-
visions of the bill, and said the first
section, providing for the redemption
of fractional curreaey with coin, met
with the approval of both the Secre-
tary Of the Treasury and the Presi-
dent.
The second section, which repealed
the law making 8 charge of fifth of
one per cent for converting standard
gold bullion into coin, required q
sacrifice on the part of the Goyern-
ment to the extent of SS5, 900 per an
nun, that being the amount levied
last year on those who brought gold
bullion to be made into coin.
The third section of the bill provid-
ed for free banking. Under the pres
ent law banking is virtually free in
some of Western and Southern States,
but in the great commercial cities of
the country it was not free. This free
banking section, therefore, provided
for the enlargement of the volume of
the currency in case the business Of
the country demanded it.
1t is also proposed to redeem the
| United States notes to the extent of
eighty per cent. of the amount of new
bank notes issued. The section did
not propose either the contraction or
the expansion of the currency, leav-
ing it to be governed by the business
wants of the community.
The bill also provided ample means
to maintain and provide for specie re-
sumption, and no Senator could doubt
that if the bill became a law, specie
payment would be resumed on the 1st
of January, 1879. If an effort should
1 k. 10 h. GnnnNDr, 70 o.
other questions on this bill, they
would lead to its defeat. He review
ed several plans for specie resumption
heretofore considered by the Senate,
and said he had been compelled to
surrender his ideas in regard TO re-
sumption.
Mr.. Schurz inquired il the eighty
per cent. of legal tenders redeemed
were to be reissued.
Mr.. Sherman said that that would
be 8 question for consideration four
years from now, or as soon as the
amount of legal tenders be reduced to
$500, 900, 900. He did not think any
thing should be said in this bill as TO
whether that eighty per cent. should
be destroyed or reissued. No man
knew how fast new notes would be is
sued, but their issue would undoubted-
ly revive the business interests of the
country before the arrival Of the time
when the legal tenders would be re-
dueed to $500, 900. One or two Con-
crosses would have met and disap-
peared, and he thought it much better
to leave TIE question OF destroying or
reissuing that money to the future.
Mr.. Sehurz-The Senator then ad-
mits that the Secretary may reissue
the eighty per cent. again.
Mr.. Sherman-I do not make any
such admission.
Continuing his argument, lie said il
would not oe wise to introduce into
this bill a controversy which would
destroy that unity by which the good
it contained could be accomplished
He approved the bill because every
portion of it tended to specie pay.
ments.
Mr.. Schurz said that Congress
! ought to make the bill as clear as pos.
! sible. The Senator (Sherman) knew
from his own experience that il the
least loop-hOle be left, the Treasury
might reissue thirty or forty millions
as it did once before.
Mr.. Thurman said that the first and
second sections of the bill were all
right. but the third section he thought
very weak. This was the bill of 8
great deal of omission and the least
possible commission. For year past
there had been free banking in many
portions of the country, and the con-
sequence was that the currency had
J increased about one and a half mill
ions of dollars. Pass this bill, and he
ventured the assertion that the in
crease of the national bank currency
in the next four years would not be
over ten million dollars, and the re-
tirement of greenbacks not over eight
millions. The panic upon the coun-
try was the result of overtrading and
extravsganee until at the last tine bub-
ble bursted, and there came q season
of retrenchment and economy. In
the history of this country it was
shown that the business of the coun-
try never revived in less period than
four years after a panic. Nothing
but time, honesty and economy
would set business in motion, and
make the country prosperous. II
could not be by tinkering, or by bills
which omitted everything and con-
tained nothing.
He offered an amendment as an ad-
ditiOnal section, THAT from and af.
ter June 80, 1875, One-twentieth part
of the custom duties shall be payable
in United States legal tender notes, o.
in national bank notes, and after
June 80, 1876, One-tenth, and after
June 80, 1877, One-fifth part thereof
may be paid"
Mr.. B0gy moved to amend by strik-
ing out all after the word "that," in
the first line, and inserting in lieU
thereof a provisO that, on and after
, July l, 1875, the duties on imports be
paid in legal tender notes, or coin, al
the option of the importer.
He spoke at length in support of his
. amendment, and said he would vote
for the bill reported from the Finance
Committee with his amendment at
tached to il, otherwise he would vote
againgt the bill.
Mr.. Bayard Inquired of the chair
man Of the Finance Committee tSher
man if he would object tn inserting
the word "destrOyu after the word
. REDEEM" in the third section, SC
that it would read SIT shall be the
, duty Of the Secretary Of the Treasury
to redeem snd,destroy the legal-tendel
United States notes in excess only o
$500, ,O00, ,000," etc.
Mr.. Sherman said he had stated be.
, fore that, in his opinion, that ques-
ton should be left to the future, and
be could not consent to the amend
, ment.
Mr.. Bayard said that the honora
, ble Senator Sherman had betrayed
here both his embarrassment and die.
pleasure. when such questions wer,
asked him. Mr.. Bayard hoped tht
country would notice the answer Of
the Chairman of the Finance Com
mittee, who, representing his party
friends here, declined to allow the
, bill to be amended. II was wei
known for years past that the Treas
ury Department had been governed
without law, in a manner, and thI
money redeemed would be reissueC
unless a prohibition be inserted in the
bill, and il seemed to him to be jug
Cling with the question which ough
. to be q matter OF honest business.
The question being on Mr.. Bogy'i
amendment to the amendment, i