The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-01-29
FROM OUR SPECIAL CORRESPONDENT.

WASHINGTON jan 2s 1878.
PROPOSED SUBSTITUTION OF TREASURY NOTES
FOR NATIONAL BANK CURRENCY--A BILL
FROM THE BANKING AND CURRENCY COM
MIrrEE.
Mr. Buckner, from the Banking and Currency Com
m.ce. this morning introduced bill OF considerable
importance II provides for By the govern.
mont Of s316, Ooo 900 of Treasury notes
place OF national bank circulation. These Treasury
notes not to be legal tender as between private
persons. but they are TO be legal tender
Tor all debts due TO the government, GUS
toms included, and Tor all debis payable by the
government except where payment Is expressly
promised in coin. These Treasury notes are them
selves mado acknowledgements Is tho word
used-in TOUR per cont bonds par but not ntercon
vertblc and the Secretary OF tho Treasury IS IN
structed 10 use them in such way no may ind most
advantageous IN the purchase aud redemption Of Inc
6ve-twenty bonds outstanding. The national banks
required to turn In Tor cancellation five per mt
per month OF their Circulation receiving their bonds
in proportion, the Treasury notes being issued as the
bank notes returned aud destroyed.
II Is further provided that II there should not BIO
soiu enough in the Treasury at any time TO pay in
terest the debt the Secretary may sell bonds Of
any denomination authorized to purchase coin.
Mr. Buckner says the purpose OF the bill is to pro-
vide against the general surrender OF circulation by
tho banks the Resum ption bill is repealed,
and he docs not expect the repeal to pass
He was asked why not at tho same time call in
present legal tenders ana substitute for them
these Treasury notes, and he replied he
could sec no good why this should
not be done Ho said the bill was not
directed against the banks which would be inter-
Icred with, except far they should longer issue
their own notes He was asked why tho word ere
deemable" in four per cents could not be used In
stead OF "convertp.e'' as it stands in the bill, and
replied that 1t might well DO SO changed; and whom
particularly asked whether he would in any case
make these Treasury notes intercon vertible he
Piled decidedly, .No not at ALL" What :he bill pro.
poscs therefore, is to substitute for the present irrc
deemabie bank notes Treasury notes redeemabe on
lemand at par in tour per cent bonds.
rHE SILVER QUEsTIoN-MR. BUCKNER ON THE
ACTION OF THE BoUsE-wHAr THE PREsI-
DENT WILL DO.
Mr.. Buckner said this morning that he thought the
House will pass the Silver bill, It may come back
from the Senate, without delay or attempting 10
change 1t further. He expects that 1t will be re-
turned with amendments, but does not profess 10
know what their nature Is likely to be. He has no
expectation that tho bill repeating the Resumption
act will pass tho Senate
All rumors that the President will not veto the
Bland bill If It should DO sent him false. 1t is
the belief in administration circles that Bland
bill will pass, will be VETOED aud will be passed
over the veto
Some OF the silver Senators begin to think that the
Bland bill is not very practicable way Of getting Sill
yer into circulation, and that Is what they wish
several inclined to fave substitute which
should actually and practically bring the dollar Of the
fathers into speedy circulation. They say that even
II the Bland bill law silver would neces-
sarily get general circulation among the people,
WHAT SECRETARY SHERMAN SAID ABOUT TIE
PASSAGE OF THE BLAND BILL.
Secretary Sherman to-day reported to have said
that he was certain the Bland bill would become law
In spite of the This report attracted so much
attention that Mr. Sherman asked this evening as
to its correctness and he replied at that he1 had
not said He had said that the Bland bill would
pass both houses but not that it would pass again
over the veto. On that he mad expressed opinion
~ ALL
THE ANTI-sUBsIDY RESOLUTION IN THE HOUSE.
The House expressed itself very torc,bly TO-DAY
against subsidies. Mr. Baker, Of New York, having
the floor after the morning hour, brought in his
luton totally prohibiting subsidies. and the House
promptly passed It by more than two-thirds vote
This clears away great deal OF lobby work for the
present session, and will leave the time for
real and useful work Of the House.