The Portland daily press., 1874-05-14
Forty Third Congress-First Session.
SENATE.

the Senate in favor of the bill introduced nv
him appropriating half million dollars to re-
imburse West Virginia for damages to bridges,
courthouse, &c, by the Union troops during
the rebellion. He appea.e ed to the Senate to do
Justice TO West Virginia, as well as to the bor
der and Southern States.
A resolution was passed authorizing Professor
Baird to have engravings for his fishery report
executed under the decision of the Printing
Committee
MIR. Sherman reported bill to regulate COM
merce among the several States and with for
eign nations, forbidding determinations in rail-
road charges and compelling the railroad
companies to post conspicuously full schedules
OF their respective tariff companies.
Inc hnance bill was then taken up.
MI. sherman lsaid it was not his purpose to
open any financial debate on this bill as every
topic embraced IN it was freely dis cussed in
tne carry DAYS OF the session. The central idea
OF this bill was to make the business of banking
free to all upon the same terms and conditions
The country now had nearly 1000 national
banks authorized to issue $345. 900 900, and the
proposition for free banking was an expert
ment, though he was willing to give il trial
Every dollar of national bank currency was Sc
cured by S1.15 deposited in the Treasury, Iyet
the circulation of the national banks was worth
only eighty cents on the dollar. 1t was not a
question of security but a question of when
will the notes be paid. He argu ed that free
banking would be fatal unless accompanied bv
some provision to provide for coin redemption
Ii the government should at once assume the
responsibility OF issuing all the circulating me-
dium the amount of interest saved to the gov
ernment would be about $l3,075,OOO, but to
abolish the national banks the government
would lose about $18000000 of taxes now i'm
posed upon them. Another difficulty in regard
othe United States issuing all the currency
was, that it could only be paid out for govern
ment duty. Government notes had not that
hexibility which is indispensable to circulat-
ing medium. The government cant OF loan
money, cannot move crops or enter the bus-
ness of banking. Another objection was that
with but one-third of the currency issued by
government there would be no possibility of an
equal distribution and nothing to secure loans
or promote discounts and exchanges. He knew
mauy Senators feared free banking and would
some advantages in the system which he would
not pass by, and one of the first was it would
repeal the monopoly in banking, and if here
was anything which the American people hat
ed it was monopoly. The word monopoly
was one of the most odious in the English
demption contained in the bill and said without
them be would never vote for free banking.
The Finance Committee had gone just as far
as it could consistently with duty and honor of
the government. The 8th section of the bill
authorizing the retirement of fifty per cent in
greenbacks as the new national bank notes are
issued till the volume of greeDbacks shall be re-
duced to 100000, 900. he regarded as one of the
most important features. He submitted to the
Senate that it should take the bill as whole
and not tear it to pieces
Mr.. Logan inquired what would be the gen
eral result of the bill, whether it be for infla-
tion or contraction.
Mr.. Sherman replied that one of the sections
provided for expansion and another for contrac-
ton. The general effect upon the whole would
he to expand the currency, but with such re-
strlctions and limitations not to cause dep
recitation.
Mr.. Logan said that the End and Sd sections
of the bill would work the contraction of over
$50,O00,000. The bill did good deal more than
it intended to do. He denied that it gave any
increase to currency AID that there was any
thing in 1T except the name of free banking 1t
provided for the retirement first of fifty per
emit. greenbacks as the new natioual bank
notes were issued, and also compelled them to
keep twenty-five per cent in legal tenders upon
the amount of their deposits and an additional
five per cent in the Treasury for redemption
purposes so that it worked contraction to an ex-
tent of eighty per cent.
MIR. Wright gave notice that he would offer
an amendment providing that au amount of
United States notes eqnal to % per cent. OF
additional bank notes issued should be retired
instead OF 90 per cent as reported by the COM
mittee.
MIR. Scott called up the amendment of the
Finance COMMITTEE presented by him yester-
day.
Published in yesterdays paper.
Mr.. Scott said that he offered the amend
ment in the interest of the governme.t It and for
the convenience of the banks.
Mr.. Schurz said that the reserve which the
banks are required to keep is for the purpose of
paying depositors should they demand it, that
the reserve should be in the currency yf the
country. Gold is not currency at this time apd
had no business in the bank reserves. The
amendment was rejected-yeas 16O, NAYS 13O
Mr.. Wright submitted the amendment of
which he gave notice. to strike out the 80 per
cent. aud insert 25 cent. as the amount of
greenbacks to be retired.
MIR. Chandler said that this amendment was
evidently Intended to kill the bill and if it
prevailed he would move to lay the bill on the
table.
Mr.. Wright said he offered the amendment
in spirit kof fairness and with the hope of
agreeing on bill.
Mr.. Howe said that if there was anything he
deemed deep national disgrace it was the fact
that we had millions and millions of national
promises discredited and discounted at every
peanut stand in the country. He wanted to
get rid of this state of affairs, although he de-
sired to avoid contraction if possible as that
would be injurious to portion of the country.
Mr. Chandler said he was willing to meet
those who favored imitation by voting for this
bill, but if it was to be amended as proposed he
had no doubt it would be met by another veto.
The chair (Carpehter) called the gentleman
to order, and announced it was improper for
the Senator to alude to prospective Veto
opinion was founded upon the sentiments ex-
pressed by the President id his veto message
Mr.. Morton said he did not believe it was for
the interest of the government to convert any
terest paying debt. 1t seemed to be generally
conceded that free banking should be authoriz-
ed and that the monopoly feature of the pres
ent national banking system should be destroy
ed which had made it enemies but the price Of
| free banking was to be retirement of so Der
N orpaphacks IN which ha
| He argued that the bill was in the interest of
| contraction. He would vote for the amend
| ment though he opposed retirement of any
greenoacks as he did not believe that was
proper step toward a return to specie payments.
The President in hls late message, boldly met
the issue by stating substantially that the way
to return to specie payments were first to get
the gold to do it with. 1
MIR. Sherman said if the Senate wanted to do
away with reserves in national banks it could
| do SO, but they would break sure as fate If
| they did not keep from Is to % per cent in re-
serve for emergencies. He was not sure but
| that he had gone to far to meet the demands
of those who wanted more money, and now
| tion to allow banks to issue $4,000,000 upon
retirement of 81 300, ,0O00 in greenbacks
Pending the discussion on Mr.. Wright's
| amendment Mr.. Anthony moved an executive
| session.
Mr.. Sherman gave notice that tomorrow he
l
| finish the finance BILL
Mr. Sprague. from the Committee on Public
Lands, reported with amendment the House
| bill to secure homesteads to actual settlers on
public domain. Placed on the calendar
Mr.. Salisbury gave notice that on the 26th
| he would call up the Alabama contested cleo
ton case of Sykys against Spencer 9
| The Indian appropriation bill was received
| from the House and referred to the Committee
on Appropriations.
The Senate went into executive session afte r
which it adjourned.
| HOUSE.
Mr.. Butler of Mass, obtained leave from the
Judiciary Committee to report at any time the
| Geneva award bill.
The House went into the Committee of the
| Whole on the bill to amend the law of Feb.
2S, 1871, for the better security of life on board
| steam vessels. ----rs.sa-
The bill was finally got through the commit
tee and reported to the House and passed, the
title being amended so as to read: ITO revise
amend and consolidate the laws in re-
iatlon to the security of life on board vessels
propelled in whole or in part by steam.
- The House at 245 p. m went again into the
committee of the Whole on the deficiency bill.
Alter progressing as far as the 18th page with
out any noteworthy discussion the Committee
| rose.
The Senate bill to distribute the Geneva
award was taken from the Speakers table and