The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-12-06
Action OF the Banking and
Currency Committee.
GENERAL LOOSENING OF PARTY LINES.
A Plan to Set Gold Afoat
Among the People.
FROM OUR SPECIAL CORRESPONDENT.

DEPARTURE FROM THEIR RECOMMENDATIONS
TO CONGRESS.
Some Western republicans have allowed their
element over tho Presidents and Secretary Sher-
mans financial recommendations to carry them away
30 completely as to lead them into misrep-
resentation of the opinions of these officers
as privately expressed. It was reported by
several Western republicans that both the
President and Secretary had. In conversation with
them. shown that they desired no action from Con-
gress in accordance with their recommendations,
and that in fact. they had merely talked for bun
combo in the Message and report There is sufi-
cient authority for saying that this report
gives an entirely false impression, and that. SO
far from retreating from their public po-
sitions. both the President and Secretary
consider their recommendations about the legal
tenders to be Of the greatest public Importance.
The following letter. written by the President to
personal friend yesterdays friend who does not
agree with him. by the way-shows accurately
where he stands and what he thinks to be advisable
and necessary for the country
EXECUTIVE MANSION.
WASHINGTON. Doc. 4. 1879.
My DEAR --:-You want money to be plenty,
the rate OF interest to be low at the time you
want the money to be good. You only have
dence in the stability of the currency. Capital
will not 60 where it is uncertain in what
next year. Il the legal tender for debts depends
the uncertain action Of Congress there viii be-
want OF confidence. The only constitutional legal
hdence is gone. All the world now believes that in
vestmenA In America are likely to BIO profitable. A
sound financial policy will bring money from all
the commercial nations OF the EARTH In good
times prepare for hard times; in good times pay
debts. The legal tender notes debts. Let them
be paid by the coin in the Treasury and the coin
that Is coming In from abroad and it will not
tract the circulation. Let ship be headed in
right direction. It is u sound policy which has
brought good times; the same policy will continue
good times. Sincerely. r. u. HAYES.
This letter shows that the President IL in earnest
about the financial policy which he has recon-
mendcd 1t seems doubtful at this moment whether
the republicans will. to any extent. support his
views. They are much alarmed at the prospect Of
the currency question coming up and the resolu-
lions of Messrs Fort aud Price in the House, and of
Senators ingalls, and Carpenter in the Senate in
favor Of retaining the legal tender quality Of the
greenbacks being assiduously urged % the
proper republican ground on finance.
THE LEGAL TENDER CLAUSE BEFORE THE BANK
ING AND CURRENCY CoMMIrrEE-pRoposr-
TON TO COMPEL NATIONAL BANKS TO HOLD
RESERVES IN COIN.
There il certainly curious condition Of things
here In relation to finance questions, shown
to-day In the Banking and Currency Committee.
Mr.. Fort Of Illinois. republican. called up his reso-
luton condemning any attempt to withdraw the
Rreenbacks OF to repeal their legal tender quality.
Thereupon Mr.. Lounsbery. democrat. Of New
York. offered as q substitute o brief bill
repeating sections Of the Revised Statutes which
make the greenbacks legal tender. There ensued
discussion In which Mr. Ladd. greenbacker of Msine
took the side of Mr.. Fort Mr.. Buckner, (dem.) of
Missouri. chairman of the committee, agreed with
Mr.. Lounsbery and did Mr.. Chittenden. (rep.)
OF Now York. The whole matter will be considered
by the committee next Wednesday, but 1t is probable
that report will be made until after the holidays
Mr.. Buckner said this evening to your correspond
emit
Il am ready to vote for such proposition as Mr.
Bayard's or Mr. Lounsberys IL it is brought before
the House. l do not think the Legal Tender act
adds whit to the value Of the Treasury notes. and
do think its passage garng invasion Of
the constitution and admitted rights of the States
over contracts"
Mr.. Buckner wrote two years ago very able let-
ter to his constituents exposing the unconstitu-
tionslity Of the Legal Tender act letter which then
attracted attebion. although the repeal of the act
was not then even hoped for. In that letter he
showed that all the authorities the formation Of
the government were arrayed against the power to
make paper money legal tender, excepting the
Supreme Court in its notorious decision. and no
pointed out that the Legal Tender was the parent
Of the whole fat money and unlimited inAation
heresy.
The Banking and Currency COMMITTEES to-day
agreed to bill OF Mr.. Buckner's compelling the
national banks to keep large part their reserve
IN con His object H. in part to distribute through
the country most OF the coin which tho Treasury Ia
now boarding. and which, o. he probably
sees, IL exciting the financial genius Of differ
emit Congressman. Mr.. Fernando Wood. for
instance proposes to have great part Of this store
OF gold spent to buy maturing bonds. and II he does
not succeed In that somebody presently will want to
lay hands 1t to build Mississippi ievecs or i'm
prove harbors and slack water navigation. Mr..
Buckner said this evening to your correspondent
The main purpose of my bill is to set gold and
silver anoat among the people. II they IL
and get II they will get accustomed to the of 1t
and get over the prejudice they have in favor OF
paper The OF gold and silver has been
on the increase In my State Of Missouri
for some months past. II the legal tender sections
are repealed by this Congress then the national
banks must have coin to redeem their notes. qnd
want to hasten their acquisition Of It. We arc to
have. believe. largo paper money imitation. In
the next twelve months the national bank note cir
Sulaton will insrcase. believe at least $50 900 oo0
and ny bill compelling them to keep coin on hand
viii serve to check this unwholosome imitation and
keep within safe bounds My desire is also to get
out silver which now lies in the Treasury"
FROM OUR REGULAR COPPccpONpcNT