The New York herald., 1876-03-16
The Danger of Substituting Silver
for Fractional Currency.
THE CLYYER INVESTIGATING COMMITTEE.
Agreement Of the Democratic Caucus Commit
tee on the Payne Bill.
THE EMMA MINE INVESTIGATION.
FROM OUR SPECIAL CORRESPONDENT.

WASHINGTON March Is, 1876
THE DIFFICULTIES oF THE CURRENCY QUEs-
TIoN-PLANs SUBMITTED 40 BRING GREEN
BACKS TO PAR.
In view of the radical differences upon the currency
question among the democrats in both houses and the
preponderance OF sentiment among them in favor Of
Rreenbacks and against national banks and the
uous opposition TO contraction, member of
the House, who has made very thorough study
of the whole currency question: has prepared measure
which he has submitted to the criticism of friends and
which is likely TO be presented in the House. Its
principal features these:-The Secretary Of the
Treasury Is directed to notice the 1st day of
July next that greenbacks will be received deposit
at the New York Sub.Treasury in sums OF
$1,000 and multipes thereof for which cer-
ti6caes shall be issued drawing two per cent
per interest, and this rate of interest
Ehal be increased the OF one-half OF one per
per annum until green par with gold
the interest not to exceed six per cent at any time
The greenbacks so deposited are 10 be kept separate
and the holder of the certificate is TO receive
the notes which were deposited and the
notes may be withdrawn at any time by the
depositor. But national banks prohib
tied from depostng their reserves. When greenbacks
have been maintained at par for two years tho Secre
iary may pay gold in return for greenbacks deposited
new notes issued place of them redeemable in gold
and for the redemption of these tho Treasury keep
On hand at all times equal to thirty three per
cent Of the notes issued up $500 600 O0O all
Issues beyond that to keep dollar for dollar In gold
Mr. Edward Atkinson. of Boston, has plan some
what similar, which he has laid before prominent
member of the House, and which said to have the
hvor OF some New England members. The following
s his plan
RoSrov March 10 1874
take the first leisure moment after my
nucc my suggestion to form. The worst form OF cur
liability. Its nuctuation since 1870 is represented by
lhe SO called premium on gold ranging IRON 1861 TO
tween the two is there not form
,ridgey Possibly there IS iity-year four per
bond, interest payable quarterly gold would If
ued, become established at something less than par in
yold say ninety three to nnelyhve Itwould luctuate
put little but its tendency would be constant toward
par in specie
PROPOSITIONS
Frst-lssue $400, 900 fifty year four per cent
bonds and give the privilege TO legal
Totes into them at par.
Seoond-Permit conversion of said bonds into plain
Treasury notes not legal tender hut receivable Tor all
axes aud dues ike bank notes. such notes reconver
Die into bonds Lawful money is only needed in settle
nenIs at law For ordinary purposes note of the
iame value would all requirements and if the
bove plan adopted, the standard OF value would
DC the bond. Hence the legal tender note, the bank
tote and the Treasury note would take the
Resth.-Contraction OF legal tender money ovi-
ieLce OF debt now niorced circulation coupled with
N abundance OF currency OF equal value for all ordi-
lnry purposes.
Conditions n&-Banks must continue to redeem their
pwn notes In lawful money greenbacks, only but
mould be empowered TO take special deposits and
grant discounts, payable in Treasury notes
C0RseQHenceS-Banks viii surrender their notes and
Dell their bonds They will invest proceeds in y-
fear our per ccnts hold portion in reserve take
Treasury notes for circulation and do regular bank
ing business ON this basis There viii be no uctua
lion in the value OF the currency except upward
tendency TO par When par is reached the prices of
bll merchandise will also be at par specie Then
she Treasury notes may be made redeemable in
Banks may then be prohibited taking deposits
or granting discounts on any basis cxcept coin III tho
people then elected TO keep the Treasury notes
rs currency, well and good; II they preferred bank
notes banks would again deposit bonds as security and
take out hank notes payable in specie demand
Respectfully submitted EDWARD ATKINSON.
THE PROPOSED SUBSTITUTION OF SILVER FOR
FRACTIONAL CURRENcY-oEPosITIoN DEvEL-
oPING IN THE HoUsE-A PROLONGED DEBATE
on THE QUESTION ANTICIPATED.
1t Is probable that Mr. Randall will to- morrow ask
tho House to postpone the consideration Of the egsa-
tive, Executive and Judicial Appropriation bills in
order TO take up the Silver Resumption bill The
Secretary OF the Treasury finds himself with SIS 600
Df silver his hands purchased under the Resumption
OF last year. and for which he paid about 57d
sterling ounce. while 1t Is worth only 53l,d
and It generally believed among experts that il will
fall TO 4sd He Is naturally DESTROYS get this cle
phant or his hands but there will be strong opposition
In the House to the passage Of bill substituting silver
for fractional currency. Mr. Hewitt OF New York has
prepared Speech which he will show the mischief Of
such step, the losses which 1t will certainty impose
upon the country and the persons who will suffer loss
who are tne working people; and other speakers
will also be heard the same side and
iho debate will be earnest and probably pro-
jonged 1t Is not improbable that the House
n It rejects the general substitution OF silver for
fractional currency ns II ought TO, may allow the
secreary to put out the SIS 5oOo 900 he has coined
and on hand as 1t is believed that this will remain in
the pockets OF tho people, tokens and in any
rase, II the issue stops there, there will not be
, redundance OF SILVER coin. There arc members
pf the House infatuated with tho idea
pf silver resumption, called, that they already
speak OF further legislation making silver legal tender
Tor sums Of ten, twenty aud even hundred dollars
Tne question puzzles a great many OF the members
and thorough discussion Of It needed TO make the
danger generally understood with which the country
Is threatened BY this so-callcd silver resumption
scheme.
FROM OUR REGULAR CORRESPONDENT.