New-York tribune., 1874-04-27
THE CURRENCY QUARREL.

EFFORTS OF REPUBLICAN FACTIONS To SETTLE THEIR
DIFFERENCks-FEArCREs OF TIE PROBABLE cVii-
PROMISE
fFRoM A REGULAR CORRESPONDENT OF THE rpIhuHEI
WASHINGTON, April 26.-A number of prominent
Renublicans belonging to both the imitation ard
resumption factions are working with great dill
Qence 10 arrange compromise that will tide the
party over the threatened danger of splitting upon
the currency question. At present the prospects OF
success are pretty fair the only obstacle to be over
come being the obstinacy of a few of the extreme
infationists The resumptOnists very magnanl-
NOUS in view of the fact that with the President on
their side they hold the trump cards, and are sure
of defeating the plans Of their adversaries for three
wears to come They offer to consent TO an increase
of the volume of the bank currency, provided such
increase is accompanied by withdrawal of green
backs TO the extent of 80 per cent of the additional
bank issue.
The inGatoniss would under this arrangement
obtain two dollars of currency for every one dollar
retired and would have no reason TO complain.
Most of them are disposed TO consent to tins az
fair compromise. There is a class however, who
are insincere in their professions of belief that
there is not enough money do the business Of the
country and who want the currency watercd 10 ID
fate prices relieve debtors from part of their obi-
cations and encourage speculation, and these men
are still too angry and resentful at their defeat 10 bd
willing treat for peace. Beside the 90 per cent re-
tlrement provision the Conservatives are inclined
TO demand provision for the conversion Of legal
tenders into bonds. They think that the bonds
should draw 5 per cent gold interest, as pro-
posed by Senator Sherman. The in6atIon-
lists insist that they should bear only ot5
per cent interest, and that in currency, and
further that the bonds should be reconverted into
greenbacks. The currency-interest feature the
70 w
defeat the chef purpose of conversion, which to
establish a connecting link between greenbacks and
gold. They are willing to consent 10 ~ per cent
GOLD bond running 30 years, but not to the intro
convertibility feature
There ia still another open question, namely,
shall the increase of bank currency be the definite
sum of S4G0O0000 as contemplated by the vetoed
hill or shall it be obtained through the operations
of Free Banking lawi The Senate appears TO pre-
fer the former and the House. rejecting better the
popular feeling wants to break up the bank mo-
nopoly by making banking as free as any other bnsi-
ness. From present indications, the compromise
measure which is to barmonize the warring factions
of the Republican party will contain the following
provisions:
First Free banking on the basis OF present law,
possibly liberal provisions respecting
Second The retirement and cancellation Of one dol
lar of greenbacks for two dollars OF bank notes
Issued, until tue volume OF tne FORMER 10
$500, 900 900 or less amount
Third A provision for the conversion OF greenbacks
a per gold bonds and for or the notes
converted 70 purchase aud cancel bveweny bonds.
This provision for the conversion Of the legal ten
dsrs, although not acceptable 10 the iniationists
as Kelloggs Three-sixyfve bill, WILL il is believed,
be agreed to. 1t accomplishes two desirable ends,
in establishing connection between the green
back and gold. and in reducing the interest on the
debt by substituting 4. per cent bonds for 6 per
cents to the extent of the conversion Of greer
into the former At the same time it does not con-
tain the much-dreaded feature Of contraction, be-
cause the converted greenbacks are to be paid out
for the purchase Of the five-twenties.
The objection to the S.65 scheme is that IL
depreciates instead of appreciates the currency.
This was lucidy explained by Mr.. Dawes Oh Satur-
day in the following words:
OF course exchanging nback for 36S currency.
bond would make the greenbaok and the bond st th>
same rate Now everybody knows that II a per cent
gold bond stands today IN the market at par gold
bond would stand at 50 cents aud 365 currency bond
would be below that. aud when tue greepbsck 10 ex
changed Tor the 365 currency bond will bc worth
just US much as the other and II the bond Is not worth
more than ~ conts the greenoack VIII not be worth
! more than Laat