The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-01-17

eminent more than any other blunder 1t had ever
made Sherman replied that he now and always had
stood for the reception OF legal tender notes
in payment for bonds. Mr.. Allison here charged
that Secretary Of the Treasury McCuloch had
abused his authority In Withdrawing $4,000 900 OF
currency in two months from circulation, instead
OF $4,000 900 per month as prescribed by law, and
he consequently contracted the currency so that
when Congress met 1t took away the power from
him. and has never given it to q Secretary OF the
Treasury since. There have been, Mr.. Sherman
continued $500 000,0 900 OF bonds retired and
celled, and he then announced that there were
now before Congress three proposed methods OF
returning to specie Observation-Disclosures OF
gold. actual payment Of United States notes. or In
other words, contraction, and finally. what he
thought the easiest and best, by taking United
States bonds the standard which should be equal
In value to gold. He did not intend to commit him
SELF He had no plan Of his own. and no one, he
thought, would propose to go back to the
old plan; for in Great Britain, where they
had given more attention to this subject than here,
they had decided It to be unwise to have more
paper currency In circulation than there was
specie as basis to Ort1fy 1t. He cited the volume
OF specie which 1t took to do business in France,
c0ntrasted with what 1t takes in the United States,
and that the amount per capita in circulation was
greater in this country than any other The only
way, he commended In which could be ascertained
the amount Of money necessary to do the business
OF the country was by ascertaining the amount
required 10 40 business on q specie basis or the
amount Of currency which can be maintained at
par in gold. 1t was an axiom with every political
economist who had ever written that when the
currency is increased the value Is deprecated He
was the first to declare that the currency was not
the cause OF the panic that the money was good,
but not as good as gold. He believed that the
attitude OF the Senate in the direction
OF specie payments would inspire respect
and confidence throughout the country.
He closed with q fervent and glowing
perOraton, and IL was generally remarked that the
speech made to-day by this great political econo-
mist was the best he had ever made. and through
out the three hours and half Of Its delivery he
commanded the closest attention on all Sides His
remarks are entitled to the highest consideration
on account Of the position he had 80 long held as
chairman Of the Finance Committee OF the Senate
Morton's views and plans are entirely different
and Will be announced in q few days. He Ia in
favor Of additional national bank circulation and
its equalization throughout the States. The South
will stand with the great West and Northwest. and
the contest for mastery in the policy to be followed
is looked for with great interest. The present
discussion OF this financial question win mark one
of the most interesting epochs of our history and
show much more research and ability on finance
than have been exhibited perhaps ever before.
The Pruning Knife OF Rctrench ment-
Corruption, Favoritism, Idleness and
Waste in tho Trcasury Department.
The Investigations Of the various subcommittee
OF the Committee on Appropriations into the ex-
travagances of the executive departments are
daily resulting in new discoveries which 20 to
show most emphaticaly the useless and reckless
extravaganza in the administration of the govern
ment. The committee are decidedly astonished at
The degree to which these excuses have attained,
and II not evidences of corruption they are at least
indications that the heads have not given proper
attention to the internal management and organi.
cation Of their respective departments. The Com
mittee on Appropriations have suspended their
meetings for q few days, In order to afford the
members an opportunity to spend more time in
the executive departments. After the failure
of the committee to secure any proper reductions
In the estimates as called for by the resolution OF
Congress, it was agreed among themselves that
the only sure method Of reaching any satisfactory
results would be in personal investigation Of the
estimates in detail. In speaking of the Legisla-
tive, Executive and Judicial bin. General GARFIELD
stated in conversation to-day that the develop
ments so far attained, as the result OF personal
investigation, plainly pointed out the absolute
ucCcsSlty lOI tuOKVu8u OtcIu6ulluR VI every De-
partment of the government He saio that it
would be some weeks before that important bill
could be put in shape but that it was his determi.
nation to root out every vestige of extravaganza
If it took three months to complete the bill
for the action Of the House. The members
OF the committee were greatly encouraged by the
decisive action Of the House on the Navy bill yes
terday. 1t was the arst real test OF the sentiment
OF the House on the subject OF the contemplated
retrenchment and reform. The bill was passed
exactly as reported from the committee. Instead
OF over 49, 100000, 1t now stands SIC. 500 00O In
1859 the amount appropriated for the naval
establishment wss $13, 900, which brings the
amount for 1915 but So 0O0 900 more than before
the war. General Garfield, who has special charge
of the Legislative, Executive and Judicial Appro-
priat0n bill, this morning spent three
hours in the Treasury Department. he mas
found that the clerks on the Official register
are not all in the department. but scattered
around in all directions and acting in divers CO.
pacities which have nothing to do with the busi-
ness Of the government. Some are acting a. pri-
vate secretaries to Senators and members, and
never 60 near the department except at the end
Of the month, to sign the rolls and draw their un-
earned pay. Others under various pretexts, are
sent on missions OF no practical use whatever ex-
cept to the parties themselves, it enables them
at the expense OF the government, to make visits
Of q personal nature to different parts OF the
country or on trips to Europe. The extent of this
species of useless expenditure has been greater
during the past few years than at any time In tine
history of the government and the evil Is
on the increase. ALL 1t would seem, that
is required is the wish OF some favorite
clerk to visit certain point at
home or abroad and the imperative necessity
OF sending out an agent Of the department imme-
diately occurred No reports are ever made or
other trace left to show what was accomplished
In former days express companies carried the pup-
lie funds. In these times Of departmental liberaty
few clerks are despatched, ostensbly to carry
the money. 1t does not make any difference to
the express companies. The money goes the same
and the clerks have their visit The Syndicate