The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-01
WA SHINCTON.
Development of the Opposition t.
Free Banking.
TEE BATTLE OF THE INFLATyONISTS
The "Hard Cash" Senators Accepting
What They Can Get.


The possibility OF neac issue OF iaconpe,tt0le
paper Iregard aoith dDaazement ana an1tety, and,
In mv Judgment, such an issue you'd be detri-
naeYt and shanae.-CHARLEs SUMNER.
WASHINGTON, March 81. 1874.
The Majority Following Up It's Victo-
ries-The Third Triumph OF the Infa-
tionfsts In the Defeat Of the Fourth
Section-The Currency in New Eng
land.
In the Senate the victories OF yesterday were
followed up by an unhaggng perseverance on the
part OF the majority, and as some random
picket firing with the outposts, owing TO the pre-
vaiing difference of opinion on the subject OF
amendments and parliamentary ruling. was over,
In which Senators Sherman, Thurman, Carpenter
and Ferry participated, the engagement COM
menced all along the line. The attack was re-
newed by Senator Morton the committee bill
in his motion to strike out the fourth section,
which, he said, contemplated contraction. Sena-
tor Sherman, as usual resisted the striking out OF
the section, and pursued a more conciliat0ry
course in his appeal asking the majority to pause;
hut the time for Cancellation or the commencing of
the bill had passed. Just vote was to be taken
the datory process was again resorted to, and
Senator Morrill,, OF Maine, Introduced an
amendment, providing for the retirement OF United
States notes equal to ninety instead OF seventy per
cent OF the circulating notes. to be issued under
the provisions OF the fourth section. This dis
cussed Tor some time, and when brought to vote
was lost by a vote of 30 nays to yeas Nothing
haunted at this, he changed the same amendment,
taking out some OF the Objectionable clauses, and
offered it again for approval. 1t, too was killed
by vote OF 80 nays to II yeas. Senator Logan
then took up the fourth section. critcisng It, and
ms do hat rod ha inf ir in
that it increased the gold interest which the gov
eminent would have to pay at the rate OF ooo 900
per annum Tor six years. vote was then
taken on Senator Mort0n's motion to strike out
the fourth section, ana the third triumph Of his
forces was obtained by Its being carried by vote
Of ~ yeas to % nays as 1t was stated in this cor
Tespondence OF yesterday would be the case. The
question which then came before the Senate was
upon the amendment of Senator Logan, which was
for free banking pure and simple, to which Sena-
tor Gordon offered, as an amendment, the third
section of the committee BILL striking out New
York" and inserting "Maine." The latter was ac-
cepted by Senator Logan, and was more lavorably
regarded, as it furnished restriction to the crcu-
regarded in the Senate unless restrained and some
basis OF converiblity provided, OF course 1t occa-
stoned considerable opposition, to which Senator
Fenton gave expression in an amendment which
was characterized by Senator Morton as calculated
to impair the value OF fractional bank notes.
The amendment OF Senator Fenton was lost by a
vote OF IA to 81 after which the question of free
Banking being withdrawn in it's nakedness, the
nearest approach to it in the amendment of Sena-
tor Gordon was then taken into consideration.
The fate OF this measure is doubtful, there Will
he strong objection to free banking until con-
vertibe basis is secured, and that long way Off
just yet, every proposition to convert the legal
tenders into coin or gold interest paying bond
having Jailed to receive respectful consideration
thus lar. The end to be accomplished by the in
sorting OF "Maine" instead OF "New York; in the
third section Of the bill, intended by
General Gordon's amendment, is with a
view to preventing the other States
from taking a larger proportion of the
bank circulation than that which the stare of
Maine now has, and which is regarded as nearly
the smallest. though by the report of the Comp
troller of tine Currency she has now over
$3,09S, 234 more than she Is entitled to-.
BY this provision OF the bill the other Eastern
States where there is large accumulated capital,
will be prevented by law from absorbing these ad-
tlitonal banking facilities. According to the an
nual report OF the Comptroller of the Currency for
1873 Maine has over sixty per cent Of circulation
above her apportionment, and, carrying out this
proportion to the grand total OF the States and
territories, 1t is estimated by a good banking
pert and financier among the Senators that this
section, If adopted. would give in circulation
$500, 600 OF national banking currency.
Owing to the occupation OF the morning hour in
debate between Senators Mitchell and Scott the
motion to discharge the Finance Committee OF the
Senate from further consideration OF the financial
question was not made to-day, as was Intended
but will be at the first available moment. The
mir
banking continues firm and immovable up
TO late hour this evening, in the known
convictions OF Senators Merrimon, McCreery
and Bogy, with two additional doubtful votes OF
Senators Dennis and Godthwaite and the possible
accession OF one more In Senator Allison, making
six strong impediments to the favorable consdera
fion ofree banking pure and simple. In lact may
he said to be temporarily abandoned in the acce pit
ance, by its mover, of the amendment, OF Senator
Gordon consisting OF the third section OF the COM
Mttee's bull with only the alteration of the words
sNew York to Maine" There are good reasons
for saying that this amendment as also
two-respectively naming New York and Pennsyl-
vania-which IL is contemplated to offer as
soon as the opportunity can be reached, will be
lost, and that then the amendment OF Senator
Merrimon, providing for s46,ooOo 900 increase of
national bank currency, will be taken up and
adopted az the measure which, OF all those now
extant for consideration which have in view the
lowest increase of the currency circulation; and
hence the contractionists may be glad to take
TINS as the best they can have. Though
free banking in some quarters is strong
tonight yet the loss Of four or five votes to the
majority who have controlled everything thus
far Is not compensated for by an accession OF
strength from any other quarter, with the ex-
ception Of Senator Buckingham, who wants strong
restrictions. The detection of the Senators named
from the majority argues that free banking cannot
be carried without beng restricted and hence, in
Senator Logan's position OF today accepting the
Gordon amendment, 1t would seem that the project
Is virtually abandoned now, unless some change
would occur which Is not now talked Of.
The possibility or a neac issue Of anconre,toIe
paper Ire0ard 10Th anaazen,eat and anxiety, and,
IN nly judgment, such an issue could be a detr-
1lelI and n shdaae Gu SUMMED