The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-02-25
N ationa1 Bad Faith in
a'@ Finance.
Sohurz's Second Speech for Specie
: Resumption.
THE FRANKING PRIVILEGE,
The Attempt to Smuggle In tie Old Jacob
in New Dress.
l&~-WDy--
----'-~.-sx. - ~

toms Reconsideration TO Sneak To-
day-RumOred Detection in the Inna.
Zionist Ranks.
In the Senate, conformably to his announcement
on Friday last, Senator Schurz held forth on the
much abused finance question in prepared
speech. which ne delivered from manuscript, TAX
ing up nearly three hours OF valuable time without
saying anything especially new. He dealt severely
with the policy OF tnnation, and pronounced most
decidedly against 1t as course OF action fraught
with danger, II not ruin, to the national credit.
The galleries were completely filed The Senate
was full, and several members came over from the
House to listen TO the Nominations Of the leader OF
liberal republicanism In the West He was listened
to attentively throughout his DISCOURSE in which
he analysed the evils Of paper CURRENCY quoting
from the experience OF foreign countries In
the conduct OF. their finances. He ex.
hibited as usual, his familiarity with book
knowledge, reviewed Senator Merrimon's asser-
tons disapprovingly, and reiuted in general the
arguments Of the infiationists. He avowed him.
self In favor of free banking accompanied, how
ever with the taking away from national bank
notes Of their legal tender feature. Senator Came
ron interrupted him three times, denying the cor.
RICHNESS OF his assertions, which brought forth
some lively, good rej0inders on both Sides
In which Senator Schnrz exhibited jaunty facility
In making prompt and telling replies. for which he
was strikingly applauded by the canatAe in the
galleries, who manifested their appreciation IN q
disrespectlul and uncalled for manner. The
Chair notified them sharply that q repeti-
ton Of the abuse would cause the gal
Iertes to be cleared. Senator Conkllng
looked up from bis easy and sans S0uct repose,
glanced about with semi-astonished and semi
indignant pallor on his authoritative looking face
and there was shudder at the manifest impro-
priety OF the crowd, which must have been CON-
posed in large part OF opponents to the republican
party. Senator Schurz closed with animated force
and positive depreciation directed against the
course OF the innationists, decryug the deprecia-
ton OF our six per cent bonds, showing that the
rate Of interest would be aggravated by the de-
probation Of our currency whenever there was an
increase Of IT, and condemned the speculative
spirit Of our country, which, he contended had
brought 1t to the verge Of Reputation and danger
Gus embarrassment. Senator Morton, who
was on guard like q Roman soldier, pro-
ceeded to reply to him. and promptly ar
gued, in his vigorous, responsive and versatile
way, efectually in derogation Of Senator Schurz's
speech, and strenuously endeavoring to break the
force Of his arguments. He was particularly
severe and telling when he stated that Senator
Schurz did not understand this country and had
got his ideas Of finance theoretically from books
and he peremptorily declined to be interrupted by
the apt and pedantic Teutonic statesman, who en-
deavored to put in word as to prevent the accu-
INFLATED and positive force Of the strictnres OF
Senator Morton, which gathered in effectiveness
as the latter proceeded. A leading in1ationist
Senator, though quite conservative. said that
Senator Morton mad completely demolished the
arguments Of senator Schurz. Senator Schurz has
already made one speech on this cues
ton, and 1t Is impossible to conceive
why he added another, having for its only
object to reiterate after different manner what
he had already said, unless, perhaps, he also
thought he could create some reactionary tnnu-
ence upon the minds OF few Of the not too eager
and mild lnnatonists 80 as to demOraize their
orthodoxy, and. since they had but bare ma
jority, win them over from their not quite fully
settled convictions and secure them to the ranks
OF the contractionists, and thus be justified in
moving reconsideration Of the vote on Senator
Merrimon's amendment, which was the covert 0b-
jecttve point Of Senator Schurz's speech and to
eject which will be the inspiring motive of the
deluge Of oratory and debate we are likely to have
for the balance Of the week. There will be an at
tempt, most decided and vigorous, to reverse the
action OF the lnnationists, ana 1t is rumored
that one or two who voted with them
on Saturday last are wavering in the faith that
was In them and that they Will vote for o recon-
sideration, which, with an absentee will enable
the contractionists to carry the day and effect q
recommittal to the Committee OF Finance, without
Instructions, Of the bill of Senator Sherman for the
transfer Of $25 000 900 OF national bank notes. This
Is that for which the contractionists most de vouty
wish; but unless there is a detection among the
innationists, which will be regarded almost as bad
faith, II not treason, the present activity skill and
generalship Of Senators Morton and Ferry, of
Michigan will preserve their hard earned victory
intact, The highest skill and utmost earnestness
now evident In the moves made on the Senatorial
chess board, and not thing will be overlooked in
rendering The triumph already achieved perma-
nent and productive OF the financial relief of the
West and South. The Senate adjourned pending
the debate, and tomorrow 1t Is expected that
Senator Fenton will speak, having well prepared
himself. He had changed his intention to speak
at this stage, and had decided to walt until the
whole question came back full nedged from the
Committee Of Finance. Now, however, 1t Is sup
posed that he Will be dragged into the contest,
and will do his best to second the mastery EFFORTS
already made BY senators Sherman and schurz.
Senator sherman's Plan OF Approach
ing Specie Resumptton-Curronc Con.
vertible Into Five Per Cent Bonds and
More Banks for the South and West.
Senator Sherman. Chairman OF the Committee on
Finance, in giving his views to-day on the nnan.
Ciul pohCy Whlch IN hls OPlulOn IL WOulO De OcSG
to follow, In reply TO the question, ''what would
no do as to national finances II he had the
powerf' said, 81 would do I'VE things in the order
IN which name them. First, would definitely
settle as fixed policy that not one dollar more
Of paper money should be issued until what we
have Is at par wtth gold and silver. Second,
would allow national banks to be organized In
the south and West until each state had its share,
and would withdraw circulation from banks In
States that have more than their share. In doing
this know It Will not prevent the notes from
going where rrade carries them but 1t win
give each State the benent Of local banks
and stine local clamor. Third, would get back
the greenback circulation to the old limit OF
$685. 900 and establish the 81 900 of retired
and cancelled notes as reserve to be- used only
for exigeneies defined BY law. Fourth, 10 appre.
ciate the greenback, would authorize II TO be
converted into I'VE per cent bond at the option
of the holder, 30 be paid out again ~ the option
IS &hn oovarnrnont the VINO nnrcho 90 ~