The New York herald., 1878-01-10

bank circulation. on condition that the banks
should exchange the bonds they own,
ana pledge as security for their circulating
notes, which are mostly 1ve aud six per cents the
four per cen,s. The tax bank circulation yields
about $4,000. o0o The saving TO the government IN
interest by reiundnG the bonds held by the banks
would be Sc $4,000 annually, and tho net saving 10
the government from such an arrangement would,
therefore, be 50, G4o, 900 per annum.
has been suggested here that carry out to the
fullest extent the popuarzaton OF the four per cent
loan Congress ought authorize the Secretary Of the
Treasury 10 receive United States legal tender notes
at par for those bonds the notes received be
cancelled, Of course and not TO be reissued.
II is not known what Mr. sherman would
say 10 such proposition, but II Is
curious and almost forgotten tact that the Funding
bill OF 1870 as 1t was reported by the Senate Finance
Committee and advocated by Mr.. Sherman, coqtaned
Q clause allowing the secretary OF tho Treasury to sell
the four cent per loan authorized Eat his discretion
for United States notes. and another section OF the
same bill authorized the Secretary 10 issue to any
national bank which should pay into the Treasury
100000 in United States notes the same amount in
tour per cent bonds on deposit Of which the bank
might then issue eighty per cent OF circulating notes
In his speech in support Of this bill Mr. Sherman
said:-
We propose TO allow the United States notes 10 be
"
question that no doubt will give rise TO much diversity
Of opinion. Ny own opnlon would be that IN justice
aud equity the United States notes ought TO De con-
ver,ed into any OF these bonds. Why? Because the
notes are q deot OF the highest obligation Thoy are
due; they are payable and no discrimination ought
the holder OF United States notes should not have just
as much for his note as the holder OF bond for his
bond.
These were sound words. but Mr.. Sherman had al
ready said 1865. In speech the Funding bill OF
that dste:-
We propose to restore to the United States note tho
right to DO funded ut the pleasure OF the holder into
the new bonds You compel every citizen Of this
country 10 take the greeuback rs money, willing or
unwilling u is the measure Of .hs value
Of his labor; II may bo forced upon
be- applied to BAY taxes, but i. canno.
be converted into income except at discount Tho
no.enoider may under TINS e al MS option draw IN
and the popular cry Of demagsgues that nave pro-
vided gold for the bondhoder and notes for the people
Will be SILENT
United States notes are nearly at par that II
would surprising II measure should be ln.ro-
duccd IN the House authorizing the sale OF four per
scents for greenbacKs at par.
THE ELECTORAL COUNT AGITATION
CANS AND DEMOCRATS WHO WISH TO OPEN
THE SOUTHERN QUESTION AND THE REA-
SONS WHY.
Mr. william E. Chandler aud Mr.. Montgomery Blair
joining hsnds for investigation OF the Presidential
election Is not 50 unnatural a phenomenon as 1t al
first sight appeared The anthayes republicans have
an idea that the only way for Ihem 10 1880
to reopen the Southern question and keep the country
In turmoil about Southern ourages. but there class
OF Northern democrats who also think that 10 keep the
Southern question open will DO oil advantage to their
party They reason that It will give them griev-
apcc; that the people will grow and more tired
OF the republican bloody shirt cry, and that. however
the Southern States might suffer from becoming
the bone OF partisan contention, two things
would be certain-thc South would DO more bitterly
democratic than ever IN 1880, and the Northern dem
ocra,s would have hugo grievance with which TO 60
into tho Presidential canvass
1t Is quite natural therefore, that thcro should be
democrats we'll republicans ready to make at
tempt to bulldoze the President aud compel him, II
possible, to surrender hts Southern policy That to
say extreme partisans Of both sdos think they SEQ
their advantage in revivng the Southern msrue and
not unwilling to sacrifice the peace and prosperity
OF the country and tho welfare OF the whites and
blacks in the South political maneuvrc. Another
four years Of General Grants Southern policy would
please this kind OF politicians highly. Naturally the
prospect Is less pleasing TO Southern men, who feel
that they have been used as political football and
kicked by both parties as long us 1t was cndurable
They watching with keen interest this combina-
tion Of republican and democratic Bourbons, and
some Of them begin 10 say that II the south is again
to be exposed 10 attack they will look around for
their friends and let their enemies look for them
selves.
Many OF the Congressman who have returned from
their homes In the last report that peo-
pie are generally the side OF the President and
ike his Southern policy, because it has brought
peace, order aud revival Of Southern business.
THE DEPARTMENT INvEsTIGATroNs-CAm
OFFICERS IN FAVOR OF Mr. WOODS RRso-
LUTON.
In the last days before the Mr.. Wood brought
into the House u resolution authorizing general and
sweeping series of Investigations of the departments
and giving the committees somewhat large powers II
wasat once vigorously opposed by tho republicans who
fought II with parliamentary tactics, and
after q prolonged and exciting struggle. sue
ceeded not In defeating but in postpouing
it, and II comes up tomorrow or soon
after as unfinished business. Tne opposition caine
from the INSTRUMENTATION republicans and people
are to see If they will again oppose IL since
It has become generally known that the President and
Cab net iavor investigation. Several Cabinet Minis.
ters say that they hope the resolution will pats
thorough investigation Of their departments, they
say Will help them and save them much
labor, and they Will be only too glad 10
assist any Congressional committees, and will
thank Congress for thus helping to discover abuses
which they may so far have overlooked Secretaries
Sherman and schurz, whose departments the most
extensive, understood to be particularly ready to
welcome the help they reasonably nope 10 receive
IRON Congressional cowsnttocs OF inquiry.
Such Investigations were formerly matter OF
course. almost every House thirty or tnirty-Gvs
years ago appointing committees Tor this work, a
part Of the duty Of tho House OF Representatives 10
its constituents and as hep to the heads Of the do
partmen.s.