New-York tribune., 1874-06-13
WASHINGTON.

PROSPECTS OF The NEW INr bhiio ''i
,rs p.ss.GK BY THE sENATE-ITs FATE IN THE
uousr UNCERTAIN-LTTLE INTEREST FELT IN
TIE MATTER, BECAUSE OF THE PROBABILITY THAT
rrK BrIL WILL NEVER BECOME A LAw-vIEws
OF THE HONEST CURRENCY MEN-PoslIloN of
THE DEMOCRATS.
IBY TELEGRAPH TO TIE TRIBUNEl
WASHINGTON, June l2.-The Senate debate on INC
Joint Imitation bill TO-DAY was in no way slr'kns'
and the vote was simply as anticipated. Inc oh'y
converts the infationists got were Senators oher-
man and Scott Senator Howe having voted for the
last bill.
What the fate of this measure VIII be IN the
House no one predict 1T 1t should nave the
support of the same strong men who managed the
last compromise bill that failed in the House Tor the
want of only six votes, it would undoubtedly pass
But that support is by means certain. Speaker
Blaine, who was instrumental in arranging
the provisions of that bill, is claimed by
the leading men of the Honest Currency
party to be opposed to this conference report and 1t
is probable that if he does not labor for Its defeat
he will not at least, work for its:passage Very few
of the advocates of an early return to specie pay
ments will vote for it. and many of the Demo-
Gratis who have sustained imitation whenever they
have had an opportunity, have concluded to assist
in the defeat of tins bll The course of the Demo-
Gratis is very natural one. Convinced as every one
it be submitted to him. the only object there can be
in agreeing to the condemnation reported by the
Conference Committee is to save the Republican
marty from the demoraliZ itiOn which III
il expected will result from an ADJOURN
mont of Congress without the passage OF a
financial measure of some kind. In this the IN
terests of the Democrats are i'll exact antagonism
with those of the Republicans They have nothing
to gain by voting bill that cannot pass unless
Al |, ,,.1y thntr
approves while they are bound to oppose any meas
ure the only merit of which is that it may by some
remote chance strengthen the Republicans
Some of the clearest thinkers on finance in the
House on the aDti-naationis side were won over to
Blaine's last compromise measure. THESE men VIII
not generally support the bill that passed the Senate
to-day Some of them who are in favor of policy
that will gradually bring back to specie
payments look upon this bill with alarm,
rs one that is likely to produce so rapid contrac-
ton of the National bank circulation as to cause the
most disastrous results The outline Of their areri-
m, mt has heretofore been given. They say that
if the theory of the Conference Committees
bill is accepted, per cent bonds, that
are now at about Is per cent premium III green
backs will at the end of 81 be worth only par
in the same currency, plus what little appreciation
In their value will result from the strengthening of
The loss on the bonds, when compared with
greenbacks would therefore be about 10 per
cent: that is the man who keeps his paper
money until Jan. 1, 1885, can then buy for 800
the same bonds that he must now pay Sll5 for. Ii
he controls National bank he will therefore make
money by selling his bonds and banking on the
greenbacks, unless the profit on the circulation
of the National banks amounts to 10 per cent IN
81 years but the fact is that the profits on circuia-
ton are actually about per cent year. or ID ~
years, 5. per cent. Surprising the appreciation OF
the bond for the eause mentioned to be per cent,
the actual gain of the national banker by selling his
bonds. withdrawing his circulation. and banking on
legal tenders, would be S. per cent as soon as this
became apparent.
1t is argued that the withdrawal of National bank
circulation would be so rapid as to cause panic
The supporters of the bill reply that if this theory
is true the contraction could not govery far since the
offering of a great number of the bonds now used
as the basis for bank circulation would cause them
to depreciae in price, and this would stop the con-
version The absence of interest IN the bill III the
House is very noticeable.