, 1874-02-05
SENATOR BHERMAN'H BILL,

Tho bill introduced in the Senate on TuoBday
lust by Senator shvrlnuu dosorvcs commenda-
ton, as having for ita ultimate object tho roRto
ration OF specie standard. Tho bill provides
that On tho Let day Of January, 1876. the secre-
tary Of tho Treasury shall pay on demand at tho
sub-Tteasury in Now York City to any holder Of
United States notes presenting thom in auma Of
81, GOO, Or any multiple Of TINT sum, in exchange
therefor an equal amount Of gold coin, or in
lieu thereof an equal amount OF bonds redeem-
ablo in coin after ten years., and bearing per
cent intereat. The notes go received in exchange
for coin or bonds mny be relsRued either to pur-
chase the public dobt or to meet tho current pay-
mnnts for tho public service. Tho second Soc
ton establishes FREQ banking.
The effect Of this law, passed, will bo to aa-
vance the value OF groenbaoks to par with TINT
Of q per cent gold-interost bond. These bonds
aro now worth par IN gold. Tho value Of tho
groonback, therefore, boing advanced to that Of
epocio, aud as tho National Bank notes arc re-
doemablo in grcenbacks, tho valuo Of the whole
$3.50, ,000, 600 Of currency will be soon brought to
par In spccio. II will at onoo tost tho question
whether there Is moro currency IN tho country
! than tho business demands. II there DO moro
currency than is needed, it will so into the
Treasury in exchange for 5 per cent bonds; this
currency will then DO at the service Of tho Gov
ornment in roleeming or purchasing tho G poi
cent dobt Of tho country. Tile bill US it now
stands permits this money to DO raid out again
| for that purpose or to meet curront expenses,
anl this il open to tho objection that there
may be q largo surplus in tho Treasury
| always On hand inviting extravagant ex-
ponditurea. II tho money thus received
wore held exclusively for the redemption OF
other dobt, thon there would be no danger Of
ino<oaBing tho bonded debt, o. will bo the case
| 1t it la or may bo used for general purposes.
For oaoh dollar Of new bonds issued there ought
to bo corresponding reduction in the amount
OF tho other bonds. else we may so on and fund
tho s400, ,000, 900 Of greenbaoks over and over
two or throe times. Tho intereat-boaring debt
ought neyor to bo increased, and, by making
groonbacla equal in value to tho gold bonds OF
tho country, all occasion for the increase Of that
debt will DO removed. So long az the Govern
mont notoH may bo converted into gold or gold
bonds, tho demand for thor redemption will
ceaBo, and tho great problem how to got gold
enough to rosumo specie payments will diHap.
pear also. Tho present premium on gold will
DO sponged out, and the Gold-Room will oloao ita
doors, to bo opened no more.
Tho bill authorizes FREQ banking after July l,
| 1874 ThiB measure removes all complaint aH tC
tho unequal distribution OF currenoy. It author.
izea any persons having tho requisite capital te
organize bank aud locate 1t wl,oro they please
Localities now babbllng for q redistribution ol
the banking privilege can then avail thomselyeE
Of that privilege to an unlimited oxtont. It Ii
not likely, however, that thoro will bo any groa
inoroaao of tho bank-noso circulation, eYon II IL
bo mado sroo Tho redemption OF uoteau apeclt
or III logal-tonder at par with spooio will proyou
any redundancy Of bank notes, while 1t will, 81
the same timo. guarantee that there shall Away
bo enough.
Tue great point In this bill Ia that It is til,
Arat step by tho Government to bring tho bust
ness Of tho nation baok to the baHia OF ron
values. For twolyo years We have boen tradinl
with false weights and measures. Amost
generation Of ous people hsye grown up tgposan