Chicago Daily Tribune Newspaper, March 2, 1874, Page 1

VOLUME 27. DRESS GOODS, &o. TN EL WA a0k Dress Goods! FIELD, - LEITER & CO. State & Washington-sts, ‘Will offer, on Monday, March 2, a handsome line of 8-4 and 8-4 Grenadines, new make- $Mode and Fig’d Stripe do.; All; 8ilk Plein Brocaded do.; a full assortment of Cashmere, Mer- inos, Tamises, Empress Cloths, Serges, Cretons, Henriettn Cloths, and Bombazines; best makes Eng. Crapes and Crape Veils; and latest S;pring Styles ‘'of Cambrics and Prints, to ‘which attention is imvited. STATE AND WASHINGTON-STS. FINANCLAL, TOBINSON, ORASE &G0, BANERRS, No. 18 Broad-st., N. Y., Transact & genoral hanking ‘ bustures in all its details, . allowing imerost upon dopostis to "BANKS, SAVINGS INATITUTIONS, PRIVATE BANKERS, AMD INDIVIDUALS, Particular attentlon ‘paid to the invostmont of LESTATE AND TRUST KUNDS, And information regarding tho same furnishod upon ppligation. Buy and soll upor commiission Gold, United States Bgocin, Sou il scouriticn dealt ' sl tho Now York Slockk a. 41 e 1% Muntolpal aud Tiallroad Bonds nogotintad. 7.7 e N. RODINSON, Tnostas B. ATKINA, amstdd. '\gy; H, Cirast, WILLIAX T, MORRIS, JENS’ BANK OF CHICAGO, .. Oor. Madison and LaSalle-sts. PITAI: = $100,000 DIRFOTORS: de it ' Dank, r'??u.""c‘hfiq‘n'fl’.’fd‘. towniof Claaro, 10, 3 (ifl& ornesn. & Co,, Real Kfllm. of Sweot, Dempster & Co. 0f Gookins & Roliorts. - Prosidont Dizon National Bank. ol J. T, Matth & Co,, R, Estato P 0y atthom jilor Cltlzons Dank. A gengrat bankiog buinoes transnoted, Colloctlons mado, | Doposiis maelved. Govarment honds bousht Kirdhenotclisugo for sais. o solci ac- 5. 1 tho b = pub) TENRS: Trose P45, NEXSEN, Cashlor, Guns Agaigt e i ) Liae Tusnrance Company, ofBoston, m Bupromo Judicll Conrt, or somo ono of {h thoreot, Auall othiorwise nrdor, upon spacial application belag mada therofor, ‘his notico 8 given in pursuatico of an ordor mado this day by ono of tho aaid Justices, JAMES 0, DAVIS, Rocolser. Boston, 30 Conrtst., Fob. 6, 157, FINANCIAL,. Iam solling Rxchango on Eagland, France, and Ger. BTt ey a8 AL Kt et oa 0 my dapmatiee B 3 LABARDS SLLY BRMAN, Naukors ‘Chiambor of Commeree. MONEY TO LOAN On Chicnrzo City Property, improved pro- forred. $30,000 in hand. MBAD & COH, 163 LnSallo-at. ROBERT WINTHROP & CO. BANKERS AND BROKERS, 9 Wallat., Now York, oxccute orders for STOOKS, S, AND GOLD, atfow 4 Pox cont litorost on Dis , and transaot gonoral Uanking aud. Brokerago oss, No. 1 ON| 0. JMEN'S FURNISHING GOODS. SHIRTS, Collars, CUEFS, WILSON BROS., 07 & 60 WABIINGTON-8T., CHIOAGO, d Piko's Opora Huma OClncjunatl, o JIRM CHANGES. COPARTNERSEHIP. 7' he undorsigned bave this day formed a 7 Sinorubip under o Srm namo of REER & HINDLE, & o purpose of continuing, at the old utund, . No. 166 South Clark-st., The Printing, Binti ¥ d business of the lnmcnnrmew :}‘H&gjfl:‘(&%%%’f 3 R, kiny, [ KRR, Chioago, Fob. 9, 1874, o 1 HINDLE. GENERAL NOTIOES. e Lumber Trade, The oldest, oheapest, and boat publication fn tho coun~ try dovotod to the Lumbor interoats, WEEELY, §3a yoar. Sold by nows-doalors ovorywhora, Specimons froo, J. HENRY SYMONDS, Publisher, L Dlv—l_zfl_hjrn-nt.. Tloston, Baes, AN W are prepared now to load 50 to100 oars Ice daily, from 12 to 10 inches thiok, deliv- ered in ‘Ghicago on track, Purties who nro n want :f Icewill pleaso oall or otherwise ngtily TAB. P. SMITI & 0O, Room 13 Falnier Housv, Ohiongo, 111, NOTICE. Fobruary 1, 1674, tho promium upon parohiaso of REIFIOATHS, hold by the city for olty tazos of oralsed to § PER OKN'T' % Jan 2, 1574, B, 8, H/AYES, Comptrollor, — o ! Josting lor tha Flatidgn of Oeses will by Leld h R Srouiig, DIATGR 3, ISHAALS Wrolugk b b et CARL SCHURZ His Great Speech in the Senate. The Currency Question in All Its Bearings. Total Demolition of the Tufiationists. Morton,Loganand Cam- eron Pulverized. A Speech That Everybody Can Understand. And Which Everybody Should Read. Tho Bonate having undor considoration the bill (8. No. 482) to nmond the aot entltled *An act to provido for the redemption of the 8 por -cont tomporary-lonn cortificates, and for an {ncroase of National Dank notes," approved July 19, 1870— Mr. BCHURZ saidl M=, PresioexT: It will bo observed that from the statoment of tho question as it hos come from tho Chair that the domand mado at prosent by thoso who dosire an expansion of the curron- oy falla far short of what it originally waa. It may fairly bo assumed that, it we adopt tho presont proposition, it will serve merely ns an ontoring-wedgo to prepare the way for greater exaction, It wns not my intention to addross the Senato at length on the bill bofore us until on Friday, whon wo took the last votes on the instructions to ba given to the Committeo, I liad hoped that from tho confused jumblo of propositions and countor-propositions with which this bill bad been incumbored nothing would issuo that might ‘o soriousy dotrimontal to tho beist interests of the country. That hapo has been turned into something like approhension, and I feol it my duty now to submit some obsorvations to the Sonate. The Sennto hiaa beon during theso weeks of do- ‘bate presenting n ’ MOBT EXTRAORDINARY BPECTACLE, In tho socond balf of the ninetcenth contury, with the uniform experience of ages before us, inaporiod of profound peace, with no public dangors pressing upon ua the nccestity of ox~ coptional measures, with amplo resources to de- frny tho expenses of tho Government and to do- velop the resources of the country, the highest legislative body of this Ropublic, which is proud of calling itself tho most progressive stato of the world, is soriously debating tho question whether now issuca of irredesmable prper money shull not be resorted to ju order to promote the prospority of the nation ; aud euch nu almost in- crodiblo proposition is supported by argumouts which will make tho civilized world stare if they ovor becomo widoly known boyond these pro- cincts, 1t hios netunlly been asserted in this body that TUE PRECIOUS METALS can 1o longer remain the standmd of value in any country. Why? DBocausa the aggregato quontity and value of the precious motals in ox- istonco do not equal in value the aggrogate amount of all tho products of industry and ng- riculture; an ides just as original and as lumin- ous a8 it would be to say that n yard-atick cannot remain o staudard mensure of length because & yord-stick is not as long s a roll of cloth or of carpot whoso longth is to be ascerteined, or be- cause oll tho existing yard-sticks in the world put togother would not have the same longth ns all thoe objects whose longth is to ba mensured. Wo hiavo beon gravely told that conclusive proot of the insuflicienoy of the amount of cur- roncy in this country Is furnished by tho fact that INOLAND AND FRANCE hove o Inrger volume of currency than wo have, and that there are many people in the country who caunot got all tho loans andall the discounts which thoy desire. Wao bave heard it asserted that an irredeemable curroncy must be a good thing after all, becauso thero aro throo countries in Europe— AUSTRIA, NUSEIA, AND ITALY~— whoee economic development hos been some- what rapid of late, while those conntries have an irredeemable paper currency. Nobody who knows anything about thoso countries can bo ig- norant of the fact that the sudden dovelopmont roferred to has boon brought about by great and boneficent changes in their political aud social organization, setting freo and putting to work all the productive forces of soclety, and that the leading statcsmen of those countries aro day and night racking their braing to find moans by which to get rid of that curse of an irredeem- able paper money, which 18 here reprotonted as the very source of prosperity. And I would sny to the Beuator from Indiava (Mr, Mortou), who advanced that proposition here, that 1f he should hold up to thosa leading statesmen their irrodeomnablo currency ag an clemont of progress, they would raceive the asseition with a melau- choly smile of derision, , ‘Wo hiavo boon nssured here that & sufliciont I~ suo of irredoomable paper mouey will mako monoy a8 casy in CGeorgin as it is in England ; and that the rates of intorest will go down as tho quantity of irredeemable currency inoreages, It hms been asserted, in an endless vutiety of forms, that OATITAL AND CURRLNCY aro materinlly the sume thing, Bub (hs very olimax iy resched whon we a0 told that such docetrines, n hundred times exploded a8 hollow fullactos by the oxporience of conturies, ara in reulity tho most progressive idons of thisngo; that this 1s tho age of rallronds aud of tole~ graphs ; that society is transformed ; and that the notion of tho preoious motals remuining tho staudard of value aud a medium of cxchange is one ot thoso obsolate ideas whichonly vld fogles will adhero to, Bir, lot us exawine a littlo into the progrossiva charncter of theso idous, lloro in my hund I hold an edition of i MARCO TOLO'S TRAVELS j showing thut this progressive idon provailed i China tony conturios ago ; and I think it will Lo instruotive to the Scuate to learn how much of this pmg‘rmss of ideay lios already bobind ua, Marco Polo tolls the following stoly & Now that I Linye told you fu delail of tlie aplendor of {lda ity of the Empezois, Tuiil procecd (0 tell you of the raint which ko huth fu'tho sama city, i which hio Luth his mouoy colned and niruck, g lyllmll Tolate (0 you, And in dolug 80 I sbull mako wunifest to you ww 1t I8 thut tho Great Lord mny woll be ablo to ue- } complish ovon much moro thun 1 binvo told you, ae ora going to tell you in this book, Ior fell it Low £ Hllfill(, flu uover would be satlsflod thut I wus keoping wilhiu &‘{l‘ nl‘-m nsn.anu t, then, I8 In this o mporor's mint, thon, 1 In samo clty of Cambalno, snd the W 1t Iy ’wwuam. 1s sucl, nmyyau ifage Dailp CHICAGO, MONDAY, MARCH 9 . . 1874, miglt say he hath the scoret of nlchcmi in perfection, | in France and in England the volume'of curren~ :}1‘;3&:‘(;‘;\)\‘;:“0{3‘- right1 For ho makes his mouey | gy {s much largor then hore, nlthough nefthoer o makes them tako off the btk of n cortain tree, in fact of tho mulberry tree, tho leavea of which nra tho food of tho allk-worma; theso trecs leing &0 nuacroud that wholo districts aro full of them, What thuy tako f4 o cortnin ino white bast, or nkin, whicli tiew hotween tho wood of tha trce nnd the thidk outer bark, and this thoy make into somothing resemabling slicels of papor, hut black, Whon thiceo sheots hnvo been prepored, thoy are cut up into pleces of difforout sizes, Tho smalleat of theso alzes 8 wortl o half for~ neeol, tho mest n littla larger, ono torneacls oiie, o iitelo Targor atill, 1n worth half silver grontof Veus feo; nuotlicr n wholo gront: others you two gronts, 1ivo grants, and ten gronts, 'Thicto s also b kind wortli ono bezaut of gold, and otliorn of {hreo Vozants, ind #0.up to fon, Al Of 11030 pleces of paper aro eeuied Wwith ns much solomnity and authority ax it they were of pure gold or silver; and on overy pleca o varlty of ofliclals, whoso duty it fe, invo to writo their natics nd to put'thetr aealn. And wheh all f8 prepared duly, {ho ehief oflicor dopuied by tho Koan ameatn tho ser intrusted to him with yermilion, and impressca 1t on tho paper, so that the form of tho eeal remains atwmped upon it in red ; tho money 18 tlen authentio, Auy ouo_forging it would be punished with death, And thio Knait catiacs overy year Lo bo mado aiich a vaal quantity of this monoy, which costs bim nothing, that it must cqual in smount all tho treasure fn tho world, With tlicao pleces of paper, madoas I iavo deacribed, he enutscs nll paymon(s ou bis own account to bo mudo and hio makes tiiom to pasa current universally over all Liw kingdoma and provinces aud territorics, and whithoraogver bis power nud sovorelgnty oxtends, And toborty, Liowover fmporiant o muy think bime solf, dares {0 refuso them on pain of doatl. Ho you seo they undorstood .$hon the art of how to mnko PAPLR MONEY A LEGAL-TENDER | And, indecd, cverybody fakes them readily s for whioregoover a person muy go _throughout the Great Xnan'a dominions ho shail Hud theso pleces of paper current, and shall Lo ablo to transnct all sales and pur- chaso of goods by means of them Just 54 well as i flney wero calua of pure gold, And all'the whila thoy ar so light, that ton bozants worth does not weigh oo gold- cn bezant, Now ho goos on to show how the Knan is ablo with this money to buy all {yrcuimm things, and how his treasury 18 gradually being flled, and thon concludes Now you have heard tUo ways ond means whereby 1ho Groal Kaan may have, and in fact hins, moro troas~ nro than all tho kings in the world; aud You know all nhout it and the reason why.—7'ravels of Marco Polo, Volumb 1, Pages 378, 379, Yes, wo do know the reason why? and lnow stlirmothing of it from our own oxperionce. Now, Bin, TUE PINST I8SUES OF PAPER MONEY, as thoy aro traced in the history of Chinn by the loarned oditor of this work, aro as old na'thoe be- ginning of tho ninth contury of this orn; some- thing over a thousand years, Whon tho systom Lind provailed a cortain’ period, it was found that the paper monoy becamo more aud nmoro worth- loss ; thon now issues wore mado to take up old ones, and one pieco of the now issuo was ox- changed for five of tlio old onos; thus moking n rottloment ou tho basis of 20 por cent, tho poople losing 80 per cont. Wo are informed that sucl procoeding was twico repeated, and probably a number of such soltlements were made, “of which no kuawlndgu lias renched us; so that while the Great Kaan grow rich, the poople grow poorer and poorer, THEN UNDER THE MINOK DYNASTY tho Government found still auother micthod of more efiiciontly turning the system to the nd- voutaga of the rulor; for the Govornment paid in paper, but took only its duos in the precious moatals; and ho who would not obey its behests was put to death, The paper monoy deprecintod to almont nutmnfi; and the whole *“progressive” eystem finally broko down. As Msico Polo would eay, ** You know tho reason why." In 1294 o Porsian monarch initinted n similar systom, which produced great distross, greatly impoverlshing thio poople, and he was murderod in & popular revulsion. I need notgo through tho whole history of papor _monoy in Asia to show that the progros- sive iden of superseding tho {rrnciom« motals with paper money, and especially with an irre- deemable paper monoy, was discovered and tried thero ; aud_ that the progressive goutlemon who roitorute the enmo Idon ns & now discovory aro na progressive as the Chinese woro over a thousand years ago. DBut, sir, tho samo progressiva idoa which Hx“ tried sud exploded thore was discovered by o GREAT BCOTOR FINANGIER, LAV, onco more, at the beginmng of tho oighteonth century, with tho samo success, Law catried it to tho tull extont of its progressivoness, and had to fleo for his life aftor the Lubblo had collapsed. I'ried and exploded again! Then we had tho French assignats. ‘Cho country was mado im- mensoly rieh ; there woro pieces of paper monoy enough'to covor all the land, and to wrap up all tho nrticles bought and eold, Thon tho collapse came ; and at present you find them as wall-paper covering tha cottages of Fronch pons- ants, to sorve as warning oxasmplos. ‘Iried and exploded once more | OTHER EXPERIMENTS. - ‘Wo had our own Continental monay, tho his- tory of which 18 familiar to you, Tried and ex- ploded ngain! ‘Tho thoory of the progressive system was dia- cussed with moro than ordinary thoroughness in the British Parlinment in the debates on tho ro- port of tho Bullion Committee, Tried and ex- ploded again| And now, ofter all these teachings of bistory, tho same progressive ideas ?;’Iimr a8 somothing now in tho Senato of the United States, But, #ir, when those suma fallacios, so hoary with ago and go oversuadowed with the condemuation of exporience, nro still repeated again and again in tho Sonato of the United States, in spite of over- whelming refutation on thoepot; when thoy still soom to be belioved in by some; and when, fiunll,\" the voucrable Seuator from Ponnsylvania r. Cameron) rises and tolls us that tho vory act of the abundance of monoy in the preat con- tres ot the presont momont is couclusive proof that thero is not enough of it in tho country; and when the sanio Benator trics to mako ua beliove that by voting for intlation we shall, with him, mako war upon the monopolists and tho wicked wpeoulntors and monoy-chiangors,—thou, sir, I may bo pardoned if, at this lutostage of "the do- bate, I come forward onuco more to speal of ficat principles, T want it distinctly undorstood that tho objoct of tho remarks I am going to mako will be dis~ tinctly this: I desiro to show, first, that tho gontlowon who favor AN EXPANSION OF IIE OURRENCY Tabor under an ossentially crzoucaun concoption of tho naturo of the diftieultios for which ihoy want to provide ; and, sccondly, tual tho reme- dics winels they proposo will not efiect o care at all, but will rather aggravate the ovil. An inlation of our Tapor moncy i domauded of us in any form, the form of greenbacks, the form of National Bank curroncy, or both cowm- bined, but an_inflation in auy event upou ono single ground—that there is at present an in- slmllv:lanh supply of currency in this land to fiil the LEGITINMATE REQUIREMENTH OF THE DUSINESS of tho country. No other reason is given; and upon that ground the Awerican people are to bo put througi the samo oxperienca which has cost ourselvos and other nations which hnve tried it so denrly, and o gratuitous ropetition of whicl will be Justly looked upon byevery sonsible man in the world” as littlo short” of an act of mad- uos. T'ho assumption that the volume of our car- rency falls ahiort of the actual requiremants of tho Jogitimate business of the country forms the busis, sud (he ouly buals, ot all the argumants that are minde hero in favor of expansion. Is {hnt wsswmption correct? Ideny its correct noss. In the first speech that I mnade ou this unbjeet, I stated u principlo which furnishoes a taut, suid, vssuming that tho poople have conildence in the Governmont iBsuing an irro- decuinulo ourronoy, that currency will not necersarily depreciuto or stand at a discount ns to gold, o long as It simply suporsedes and does not excead in vatuma the gold and silver, and tho banlk_currency basod upon gold and ltvor, which formarly sufliced to transuct tho business of thut country; but, the condition of confidenco the population nor tho oxtent of tlio country cqunly ours, Chat mny bo truo ‘ but I ask, What aro tho clroumstancos detormining the volumo of currency nocessnry for the real roquiromonts of tho businoss of a m“““{ ? laitaren? Isit oxtont of torritory ? Is it the number of squaro miles ?_ Why, siry look at all the now erritorics of the United States, and thoro is_mnot n man in this body who will nusert ihat, large ns thoy ara, thoy ol togothor combinod wold roquira for tholr businuss as much currenoy as tho Oity of Boston. Thoreforo, it cannot "be areaj it cannot bo oxtont of totritory alone, WIIAT 16 11 P Is it spopulntion ? Look at tho whole intorior of Aftlou, with ity tcoming millions of popula- tion, and Tam_sure tho buelness of tho wholo iutorlor of Africa dooy not roquire half as much cutroncy a8 the single State of Rhodo Island, Thorafore it caunot oo pouniation alono, I ask, thon, Is it} tho nmount of productions, thio numbor of oxchangosand of valucs involved # DBut tho snmo amount of production, the snmo number of exchangos, the samo values involved, will require for loss ourroncy whore tlioro nr suporior facilitles of rapid communication, of banking and clearing-houso systoms, than whoro thoy do not eoxist, Neithier of those clomonts alono, thorofore, will dotermine the amount of curroncy which is necesenry for tho businoss of o country, but ail of them combined will. Of course I uso tho word ' ourroncy” hero in tho most restrictod sonso of the term, not includiy, doposits, Dbills, aud chocks, a4 some political economists justly do. Whero banke and cloar- ing-Louses oxist, and tho uso of bills nnd cheoks in tho transnction of businoss is common, cur~ rency 1s mainly used for daily running expenscs, for tho paymont of wagos and salarics, and for tho sottlomont of balsuces. Business transac- tions in which the wholo amount of the value of commodity passes from _hand to baud fu the shiapo of money nro oxcoedingly rave. Lot us in thislight COMPANE ENGLAND WITII THE UNITED STATES, In England, aswoll asin all Buropoun countries, tho number of persona recolving anlaries an wnges is_far groator in proportion than in tho United States, and evory ono who is acquaintod with those countries knows it. ‘There are large nrmica there, lnvgo navies, which we havo not. “Lho number of private servants s much largor than horo. 'Iho numbor of operatives and daily Inborors 18 still groator, Now, although tho population of the United Kingdom is ouly 32,- 000,000, whilo ours is 40,000,000, yet the number of porsons rocolving ealuricn and wages is not only in proportion, but actuslly groator, much groator, in England than horo; and, nlthough wages rule higher hero than they do there, yot I think I do not venture much whon I eny that tho aggrogate amount paid in wagos aud salarios m England is muck larger than itia in tho United States, . . . But I nm willing to admit that the presont abundance of monoy in the loan market is of a precarious nature. Asan irredoemablo rnd rodun- dant currency always begots SPECULATION AND GAMDLIKG, it will do 8o again m spite of the check that was put upon it by tho rocont eriss, It is alroady iving, although carried on, as I am Informed, to o corthin oxtent by n difforant sob of pereons and in difforent ways ; but its rovival will une doubtedly bo quickoned, as is alwava tho caso, by overy addition to our irredeomablo ourroney. Tt may rovive more rapidly ovou than logitimate business does ; and as it grows to grouter di- monsions it will draw away from legitimato business and pross into the servico of speculation as Inrgo an amount of currency as it can luy hold of. Tho oxpansion of spcoulation, therefore, is likoly, nay—it is cortain—to reduco tho prosent abundanca of monoy in the loan market, and again to bring forth hore and there o feoling of g;:nm(ny. "This I think will only bo a question of imo, But now, sir, I maintain, first, that, although thoro is an excess of currency it tho country over and above tho real roquivoments.of logit- mato busiuoss, a feeling of scurcily why—nay, I gay 1t will—cnbuo as speoulation oxpalids ; and, accondly, that this ovil will not only not bo rem- cdied, but will bo aggravated, by intlation until tho next crash comes, . And bere I will call the attention of Sonatora on tho opposite sido to TIE FUNDAMENTAL ERROR which lics at the bottom of ull their arguments, TFrom the fact that o scarcity of .currency is sometimes felt' by logitimato Lusiness, they diaw the conclusion that the aggregato volumo of currency in the country is insuflicient for tho real roquiroments of that business. This con- clusion is uttorly and glaringly fallaclous, Gon- tlemen coufound two things which aro vseential- lf difforeut from oue another. Ona ig an insuf- ficiency of the aggrogato amount of curronoy in the coitutry, and tho otver is a vicious diffusion of that curroncy roally sufliciont and more than suflicient for ol lufillimuto purposen, The diflis culty id not that thore is not enough currency on the wholo; but, first, that ono part of tho country is not as rich as tho othor; and, socond- ly, that legitimato busineys is apt not to control eniongh of curroncy, boeauso illogitimate busi- ness, speculation, and gambling, control too much, This is orlo of tho ovils inherent to su irredeomablo and fluctuating paver monoy; aud 1 ropont that evil cannot only not bo remedied by an inflation of the anme papor monoy, but it will be seriously aggravated bg it, for tho simplo ronson that inflation always stimulates speenta- tion nud gambling. I'lhe Sonator from North Csrolina (Mr. Morri- mon) having beon quito prominont in_this de- Dbate, I take his State as an illustration, He com- plaing that in North Carolins the people aro im- poverishod, that BUSINESS 18 CRANTED, that banking capital is searce, thut rates of in- torest aro hfi;b. and Bo on, All this is true. I sincoraly sympathizo with tho Souator and Lis people, and Lo can scarcely bo more anxious to do something to nid thom thun I am, Wo aro entirely agreed s to tho object ; but now let ua serutinize the mosns, The’ Senator wants more paper money for his pooplo, and thorofore ko advocates an oxpansion of tho auzrency, At first he ndvacated an expansion of the legal-tonder cavroncy, and I admit that would certainly bo the most efficient moans, Now, uup([)oun it were mady; supposo wo 1esuc one lundred or two lundred ml‘lliuus of ourirredcemnblo legal-ton- dors, Low will it oporato ? _Goutlomon sponk n if the Governmont of vhe United States issuing an additionnl amount of paper money wore at the same time jssuing = proclamation to the conntry running somewhat iu this way : All yo who are weary aud heayily Jaden, como to mo that T may put monoy into your pockets ; you, gaod farmer, huve a mortgags on your farmn and cannot pay it, horo aro the $2,000 you want; ay them back whon you can. * You, entorpris- Tng manufacturer, want to éxtend your busi~ ness and employ more workmen § you want, say £200,000 or $800,000; you cau have thom im- modintely ; horo thoy are. You, good merchant, want to carry on & lnrgor trade aud you nro cramped by 2 want of monns ;. thoro is nothing in the world easier thoun to help you." Geutle- mou, this sounds extromely propostorous, and vot I aesert there lave boon arguments mado in the Sonato of tho United Btates which would apply only to such a condition of things, and_thoro are {housands aud thousands of peo- lo in tho conntry who huvo beea made to bo- tevo that an issuoc of additlonal curroncy would worle in juat that way, 7 But lot us ses how it will' operate in reality. Thoro are ! ONLY TWO METHODS of sottlng an addilional amount of curroncy afloat, Ono is by dofraylng tho running ox- ponsss of tha Government, Thut will uot ap- ply here, bocauso wo can rafse revonue onough for that purpose, ‘Ilio othor is by tho pnrchuse of bonds DI the United Btates in the markot, #Lhat will necossarily havo to ba resorted to, ‘What, then, will the Treusury do? ‘'Yho Trens- ury goes to buy bonds whore bonds aro nold ; that 18 to eny, the T'roasury poos to Wall stroot. 1t enrrics this additional issuo of enrroncy thoro, Tomuiumg the same, tho irredeomablo | and thero it buys its bonds. What is the conse- curroncy will doprecinte, will bo at o [ quence? Tho additionnl smount of currency is discouny ws to- gold, s woon i | ihrown ab onoo into the vory hot-bed of spoculns it valumo oxceeds that quuutibty. When such | tjon, What will bo tho flwt offact 2 As soon dopreclation steadily continuos under tho samae conditions of coumf;ucn, itis o suro sign that the volume of ourrency I8 in oxocss of tho resle| roquiremonts of tho logitimato buslness of tho conntry. I asliod the question, If our ourroncy wero msufiiclent, wonld it havo been possiblo for tho goneral prices of gommodities to romnin so long at the Ligh inflation point st which thoy have stood for yoars? If ronlly the mmount of surroncy were so insufticiont s to impedo the uccensary transnotions of the businass of tho couutry, i it not cortain that the gold in the country, whiclv'is now hiding ituclf, would hayvo beon drfven out of ita hidiug placos’ o Hil. the vacuum oceasioned by tho insuflsienoy ? "o proposition bns romained abolutoly un-" answoied, Iudood, very ingonlous offoris” have beon mude tu obseura’the quostion, Benators have triad vory hard to shed o brithent flood of durknons upon thia snbject, aud in a mousuro thoy hnyo suoceedod, We linve beon told that o speoulation is rovived, to flont spoculn- Aivo entorprise suoh as conventrates there ; aud it you want to have a proof of the fact that cur- Tancy %0 issnod will stay Enet, that Yroor Is fur- nished by the figures which I rend to the Seunto only n fow minutes ago, showing that the banks in“only throe cities—Now York, Boaton, and Philadolphin—had sabsorbed tho wholo of tho Tiow issuo of $25,000,000, with tho exception of Tous than 62,000,000, % Now, sir, how will North Carolinn, how will any othor Southorn Htate, ba beuefited by an operation llko this? North Carolina will not got auy sharo of the additlounl ourroncy for nothing. North Onrolina will have to buy that "idditional owrioney by oftaring hor products on tho werkot whore thut uqrmauy i dingribuled ust us North Caroling has, to do now, Blio wil havo to buy that ocurrency, just nushe would linve Lo buy that ewrroney If it wero not paper but gold. If those vrovucty of North Onrolina B ara in domand, thoy will bo bought, and citrronoy will go to Noith Onroliua in payment thercof as it dous now, and only to thut extont ; no more, BUT TIE ADDITIONAL AMOUNT iannied by . tho Govornmont boiug right in the Itot-bed of speculation, and having grently stim- ulated that Apeculation, the ria govorning tho dlfTusion of gurronuy wiil bo Just {ho Fovorso of what it would bo_under a heéalthy condition of business, Inatond of ro much cutronoy bolufi wiod to float speculation as can Lo uparo from logitlmato business, only ©o Inuoh curronoy will bo apt to go into legitimato busineri as ean bo gpared from floating speculn. tive entorprisos, Upon tho oxtent of that specu~ lation, thoreforo, it will dopend how large a pro- portion of eurrenoy will go from that contre of upeculation to North Carolina and other points; aud tho mora oxtensive that speculation is, tha geortor tho quantity of eurroncy it will strive to press Into ity sorvico and it will succeed in con- lrfl"hl‘:, and tho smallor the proportion, there- foro, that will go into tho channela of logitimato busiucss, It follows, as o natural consequonco, that ovorything which tonds to oxoite, to stimu- lato, to ineronge spoculation and gambling, will not romedy, but will aggravate that ovil. Naw it is & notorious, undonbted fack,a fact not quos- tioned by any eano man, that Irredesmablo paper currency will spoculntion ond gambling to o fearful dogroo; nay, that bf' its fluctuntions it will forco paople into spoculation and gambling. Tho groater tho inflation, therofore, tho more speculution will eontrol the ocurronoy, and tha 1088 proportion will bo left for logitimato busi- ness. Far from giving grontor facilitios to tho transactions of legitimato business, incronsed inflation will only tend to incrense tho want far in oxcons of thie uurply. Tnflation will incronso the want, for it will run up the promium on gold, aud hayo tho offect of raising gonoral prices, rondering theroby o greater volume of currency nocossnry to effect tho sume oxchanges, Inila- tion will not in proportion increnss thoe supply, far it will drive o larger proportion of tho cur~ rouoy into the ehannols of us:cuulnuou. and di- yort it from tho channels of logitimate businoss, Ono hundroed millions will not help you, and if ou put out £200,000,000 it will help you still 038, for tho appotito will nok Lo satistiod ; 1t will ouly bo slimulated by the supply. . .« . . SENATONS FROM THE BOUTI Bay their people need more eurrency. No, sir; thora is anothor thing they need. Thoro id an- other and far fironmr dififoullty, They neod morae capitnl; and thoy indulge in o most fatal dolusion if thoy thinl that tho trick of watering their currency can supply thom with that eapltal, Thore aro somo most obvious causes ot tho bot- tom of their ditticulties, \''ho peoplo of tho South have govo through o wasteful war, which Lins cousumed and dentroyed o very largo pro- portion of thelr woalth, nnd thus their cnpit Lins dwindled away, The waste has boon in- cronsod in some of tho Southern Btates since tho war by vory bad governmont; and finally our teriff and tho fnfluonco of an Jrredoomsblo currency have produced upon them the saumo de- preasing offoct produced by tho snmo influonces evorywhoro upon the agricultural intorest, I'hus the peoplo of the South have to make up for n vory large doflcit, and that deticit cannot bo cov- ored by papor promisos to pay. If they want to regain tl{\efi- former wealth thoy must adopt tho samo methods by which wealth is created olso- whero; thoy must produco moro, much moro than thoy spond, snd_ they must carofully’ busband and gradually ace cumulate their swplus emmings, That 1s the way to creato wenlth and capltal available for futuro production, It is asomewhat slow and painful procass, but it is tho only offectivo pro- cess that will bo.really elfcolive. ‘F'ins applicy more or less to the peoplo of tho whole conntry, ‘Tuis is n hard fact. But, sincerely as I doplore tho misfortuncs and ombarrassmonts of tho Bouthern peoplo, I cannot refrain [rom saying that they lose vory precious time,nnd wasto their euncrgien aud their ingenuity, if thoy look to any artificial contrivance for their salvation. They scom to havo mado themsolves bolicye htat an inflntion of tifo curroncy will aid thom in gotting upon their foot ‘again’ and nccolerato their re~ cuporation. [ am strongly convinced thab it will not, aud I biaye olready givon somo of my rengons, First, I have shown that an inflation of curronoy will stimulate Liunurnl speculation, and that this stimulation will so divort the cur- roncy from logitimnto business that tho lattor, aftor the oxpansion, will not only not have a groator, but a lesg proportion of for ils pure posos than bofors ; and, socoudly, inflution will still moro DEPRESS THE AGRICULTURAL INTEREST, which iu tlio principal ourco of properity in the South as” woll as tho Weat, than it ia do- pressed now. I made that argumont bofore when I had the honor to address tho Sematoon this subject, it argumont hus boon nttacked by soveral Bountors; and I shall, thereforo, reatate it, and nl-y l[; domonstrate its corroctnoss still more cloatly. = A considorablo portion of somo of the mostim- poriant products of agriculturo is oxported, and tho homio price of the wholo orop of thoto spo- cific articles Is rogulated by tho foreign mavkot. "That is u universally-known and recognized fact, The prices ruling in tho foreign market are, fieat, depressed by tho froo compotition of the wholo world; and, secondly, o specio standard provailing thero they aro not drivon up by tho inflation that Loy onhanced the pricos of all othor articles in this country. Tho farmer or thio plantor has, therofore, to scll these staplo crops at the low prices rogulated by tho foroign market, while for all the necessarics he has to buy he pays tho prices grown up to an ox- orbitaut - height, far beyond the premium on- gold, by ~our home iuflation, This was my originol statomont, Tho corroct- nens of that etatomont I say has boen ques- tioned, The Senator from Massnchusctts on may loft (Mr. Boutwell) said thav the influence of o doprecinted currency does not raiso gonoral priccs nioro than the nmount of gold promivm if tho depreciation of tho curroncy romains steudy ab the samo poiut. But tho diticulty is that the deprecintion of the curroncy dpos not remsin stendy nt the snme point. You might justas woll say that whon wo bavo a heavy full of snow lato in the winter or emily in tho “spring thoro will bo no freshots in the rivers, forif tho snow doos nob molt it will not increase the volume of tio wator, That iu porfectly correct; bub tho difliculty is that tho snow will'molt, just nsanir- redcomanble and inflated curroncy will fiuciuato oud dopreciato, Our experience shows us that thie promium on gold in this country has not ro- maited at the sama point for a sivglo weck, searcely for & single day, The Bonator from 1llinois (Mr, Logan) enid that ho thought tho eame law way GOVENNING TUE PRICE oOF ABTIOLE that was govorning the price of an exported ar- ticlo in the case of o dopreciated and fluctuating curroncy. Now, #ir, L am going to show that tho samo law doas nob govern those two things. Lot us ueo how it works, 'Lhe importer or the wholesalo merchant in Now York, when putting up hiy goods for salo, will first ndd to the gold price the premium on gold, I'hat i8 universally conceded, DBut he knows that the premium on gold or the discount on the currency fluctuntes, and that if it bo infiated it will ecrtainly dopre- cinte. If ho solls on credit, howoyor short that credit may bo, ho runy this rislk : that tho sum ho reccivoa in paper monsy for his goods will not represent the samo gold valug which the unme sum ropresented at tho timo when the salo wos made; and hero an important elomont comes iuto tho ealoulation of prices, which hos beon Joft out by ull tho Henators who, taking the op- posito viow, have discussed this subject. It 18 tho oloment of risk, The importer, or the manu- Incturer, or tho wholesalo denler, must protect nimsolf against tho eontingenvy of fluctuation ; and thus he puts upon tho prico of his goods . cortnin peroontuge to cover that con- tingonoy. In other words, ho mules Lis cus- tomors pay for the gambling risk which ho him- self has to run. T'ho jobbor who buys from the impottor or the manufacturer has to put his umbling rwk upon tho price again, for he runa o snnio ohanco, - Tho" Weutorn ot Southorn wholesale denler who buys from the jobber has to do tho eamo thing onco more, for ho aguin runs tho same chnuco, Thou the Westorn or Southorn rotailer, into whoso handy the 'i‘mfl“ {lually pass, has to do tho samo thing again, if Lio volls on eredit, for Lo again runs the samo chance, Thus two, three, or four gambling rigks aro put npon the prico of an articlo before tho conunodity, ns it issucs from the hunds of the otiginal sollor, passcs into the hands of the consumer ; and thuy tho rise fn iho prico of commoditles goos far boyond tho promium on gold, espeolully whon tho fluctuations of tho curreney, as inflation will always make thom, uro tonding in tho way of (lulwrcomtlmh Now go to Now York, and overy oandid mor- chang will tell you tho samo storv, I know of merchants in New York who actunlly ohanged tho prices of thelr commoditios duribg violont fluctitationy of tho curroncy six timoes In ane weolt ; nnd one told me himwolf thut ho had douo Ho #evoral Limos in ouo day, always lowor- Ing or raising tho gnubling-risk ho had put upon AN TIPORTED -n tho prico of his commoditics as circumatancos changed. And oxporionco tenchos us that mer- chnnty nro apt to bo vory quick In putting up prices, and very slow In putiing thom down, TRODUCK AND GOLD, Ionce it is clonr that, whilo tho farmor or planter gots for his produco only the gold price, with the gold premlum added at the placo of sale, o miist pay for all hoe has to buy tho gold {n‘lco. with the promium added, and an addi- fonnl amount covering the gambling-risks of threo or four dealors throngh whose hands tho purchnsed articloa pasa bofors thoy rench him, and that additional amount covering tho gam- Dling-risk will nntumllf' row very much higher when the eurronoy is inflated and in process of doprocintion, 'I'he conclusion is inavitablo that in this point of view, Lho corrcotnesa of whioh eannot bo questioned, an irredoomablo fluctuat- Ing currency eatmot bo anythung but s ourso to tho agricultural intorost, a ourso more opproasive a# fntlation goos on; and the moro tnflation thoro in the moro the farmor will love in baying lrmpm'uan to the prices at which ho has to soll. AT THE BOUTI, ‘The other day I hnd n vory interesting convor. sation with a Southorn plantor as to the effeck which an intlation ot the currency would have upon his intorosts ; aud I would nsk thoso gon- tiomon who huva tho intorosts of tho farmors 8o donrly nt boart to give mo their attontlon. Tho plontor sald to mo, I am in favor of inflatiug tho curroncy; but as to whothor tho currency should bo Iuflated just at_this presout momont, Iamn litile doubtful.” I nsked why. *Wall" 8aid bo, *“I hinvo sold my wholo cotton crop al- roady, and received the monoy therefor, There i8 only a very small quantity "loft in my hands. Igold my crop, sud recoived tho money when gold was down to 10 per cont. If wo inflate the eurroncy now, and gold runs up to 15 or 20, I shall bhave to luy in my supplice and buy my necossaries whon the curroncy ia do- prociated, and pricos bavo risen nccordingly,. Thus I bave sold at cheap rates and shall bave to Luy af high rates. This_would bo for mo n lositys busiuess, I should profor, thorefore, that tho currency be not intlated just now, but that tho offect of - ilution take placo whon L have to soll my noxt crop.” That plantor was very sousivlo, That the currency should be inflated when you have sold yorr erops, nud whon you havo to buy your snpplies, that isnot what you bargained for, Ifthe farmer or plantor could inflate the our- roncy and run up tho premium on gold whon he solls his crops, sud thon so manipulato the cur- rency a8 to ralso the valuo of papor moucy and dopross the promium on gold when 1o buys his supplics, of courso that would bon wihniug trick. But thoso who buy from and who sell to him would try to play tho same game; and in this tricky game the honest farmor would bo suro to come to griof, n8 o ling como to griof alroady, No;if the farmor or plauntor wants to prospor ko will, above all things, e overy offort within Lis powoer torid the country of n systom of cur- roncy which obliges him to soll atlow andto buy at high prices. Io may for a moment think that inflation will aid him in paying off his dobts, ifho has any; but upon cousidoration he will discover that DERTS ARE PAID OUT OF SURPLUB EARNINGS, ond that his Bmllluf:u will bo depressed whon tho prico of what lie buys is highin propor- tion to the price of what lio solls ; that his sur- plus earnings will grow larger a8 soon ns tho prico of what he sells is put upon an equal foot~ g with tho prico of what ho buys, Ho will dls- covor that the trick of depreciating the logal tendor by inflation, in erdor to Pny what ho owes in a curroncy less valuable, will not redound to his advantnge in tho oud, and that in this, all other things, honosty is, attor all, tho bost policy. Ho will discovor thay un lorlest curron~ cy, which pormits him to buy and sell on the samo basis of value, is for him tho safest basis of prosparity ; and 1 trust tho time is not far dis- tant when tho farmors, whatover artillces of demngogiem may bo uzcd at prosent upon them, will, as one man, stand up houestly aud Intolli- goutly for the enrliost possiblo roturn to specio paymonts, - Anathar schamo by which moro curranoy is to bo introduced 1nto tho Wost and Soutn, ’fmd L3 lurger amount of clrcalating medium is to bo mado available for logitimate business, is the os- tablishment of o GREATER NUMDER OF NATIONAL DANKS OF 18SUE, The complaint is that the Eustorn States havo ar unduo amount of Nutional-Bank circulation, and thereforo onjoy in & monsuro & monopoly. L adwit this to ba true. I will not discuss hore the system of baukivg iu all its nspeets, but I will inquiro liow far tho ostablishment of moro ‘Nationa! Banks of {ssuo in tho West and South will romedy tho resl evil complainod of—which evil consists in a lack of loanable capital thero. If tho romedy.proposed is to serve nuy good purpose at all, then the establishment of now National Banlks of issue must increaxo tho avail- ble nmount of lonunble monoy, 1If it doos not do thiat, it 1enders scarcely o sorvico worth men- tioning, Now, willit do that? Tho Senator from Indiann, who is alwnys ready with bhis an- Bwers, saya yos ; that it will increnso tho amount of Joanable ‘monoy by the amount of bank cur- rency put out ; for, ho argues, tho curroncy is~ sued will be givou out in loans and discounts which overy tlurty, sixty, or ninety days will ro- turn to the bauks. The currenoy will, therefore, Btay whoro it is issued, and not flow Enst, Is thid sonnd? Inssort thatit is fallncious in the highest degreo, %o Senntor simply forgzots to toll ns how thoso now banks are to get thoir is- sues, Lot us look at the provisions of tho NATIONAL DANKING ACT. It provides thut in order to vstablish a National DBank United States Louds must bo deposited in theTreasury of the UnitedStatos, and that 90 per cont of tho nominal amouns of thoss bonds muy Do issued by tho Nutional Bank as ourrency. Now, in tho fitst placo, thoso who want to oatab- -ligh o National Lauk will have to doposiu the bonds. It is o notorious fact that in the West tho amount of United States bonda hold is rath- or small, and in tho South still smallor, and the Douds which are thero are mostly leld’ an fixod invostments, 'ho persons who waut (o estab- lish National Banks must, therefore, buy their Londs, Thoy must buy tliem whero' bonds aro sold, that is, in the Eastern markets; and thoy must buy their bonds with monoy. Where do thoy get that money? They tako that monoy out of their home ciroulation, and the monoy B0 a4 in taken out of their home circulation they carryto Now York. Now, seo how this operates, Fora §1,000 bond oy T to buy thoy oy, s B por coht Loids now stand, about 81,120 in currency. LU'hat sum of 1,120 is withdrawn from their liomo circula- tion and is addod to thut of Now York. “Lhen they tako the 1,000 bond so purchused to Wasbington, and for that §1,000 bond thoy got Y00 in bank curranoy, and tho Y00 they carry Tiomo, ‘Thon thoy lock up 16 or 25 per cont on the $900, as tho resorve prosoribed by law, in their bonk vaults, as they muy be country or city banks. For the 31,120 carrfed to Now York the country bank then puts out $865 and the city banle 075 to accommodato thoir customors with louns and discounts, ‘Thoso lonns and dis- counts may indend cowmo back to tho hank every tlirty or sixty or niucty days. Lut doca unob the Benator from Indioua #co, i thero anybody w®o blind o8 mnot to seo, that & much greater amount had gone East boforo the Western or Bouthern = bank could mako any loans and_discounts to_its cuy- tomers with its' Natlonal Bunk clrouluition? Is it not_as cloar na sunlight that for ovory £865 issued by & country bauk, or overy 3676 Issued Dby o oity bank, 81,120 had gono to Now York Lofore 7 Is it not cloar thut tho smonnt of loay- able monoy, iustoad of being incrensed, has boon diminishod_ 80 or 40 por cent by tho oporution ? Itis tiuo that by tho entublishmoent of Nutional Banks hore and thoro some groutor bunking fuollitios may be_offored, 'Thoy tuke doposits, aud thoy mnko disconnts; but the value of nll the facilitios thus offered will not make up for the dimunition which the lome ciroulation, tho mmonnt of lonnable money, hus actually suflored in that locality by the process, Whero, then, i the fncressed nccomntodation of tho businosy public? Nowhore ; but the rosult is just tho Toverso. TILE CREDIT WYRTEN, Dut, slr, in tho establishmont of & groat many Western und Southern banks things lave beon dono which show tho eFect upon the home elr- culation still moro oloatly, Banks have heon ostublished, not upon monoy {alkon out of their home ciroulntion, but upon “credit, Now York bankeys (and I Lhuvo this from ona of thom) wera applicd Lo by partles from the Wost to udvanoe the money for purchasiug tho bonds necowsary for tho ostablishment of u Nutlonal Bunk in the West. ‘Ihe Now York banker bought the bonds and ¢harged o commssion and intorost, Then ho doposited tho bonds in the Lrepsury b Wastington, and tho Nutlonal-Bank survonoy wa duaiod thoreon. Bub thut cursrenoy did not #o Wosl nt il The Now York hanker kept it as parl payiiont for his advancos and conumise slon in purchasing tho bonds for tho Westorn partios, and tho luttor bad to cover the balauvo NUMBER 191 by drmving what money thoy could from tho ‘Weat, Can anybody toll mo how the amount of loanablo ‘monoy was increased by this oporation in " that ‘Westorn locality whora tho bank wns established ? Not oven - tho currency went thero, but tho amount covoring tho diltarenco botwnan the ourroncy aud tho bonds was drawn frof e, boing thus a clenr doduction from tht o cirenlation. Iivorybody acquainted with t _ things lknows. that “this’ has beon tho caso 2 igront many In« stauces, ] But the Sonator from Ir many applieations are mado + establish National Bauks in ¢ That {8 probably true, Wh The porsous making them It aro doing, Tho bankers t# e solves may do n {:romnblu business, drawhi % itorost on thoir onds and on tho circulntion’ = a0 snmo tino, But tno difieulty" ia that il < profits aro their own and do not benetit the ous community; | for tho amount of loaunb! * >noy whicl is to nccommodato businoes mon and holp along ‘en-! terpriso is not only not incroased, but is sorions- Iy curtailod by the oporation, and the result is not that tho West or the Houth gets more, but! that tho Enst gots move nud the Wost and South loss avallablo fundy after it thau thoy had be-! foro. ‘Tho Sonator from Rhodo Ialand (Mr, Anthony) was perfectly candid whon he said, in opposing tho bill now beforo us, thnt ho did not du'it be- cnuso the translor of twouty-five or fifty millions: of*Natioual-Bank curroncy from Now England to thie West would decreaso the eapital of Now England one singlo farthing, for uvori‘lbnd_v can #oo_ that it doos not, but he was pleading more- Iy for tho interest of the banking inetitutions, which do not waut to have their business dis- turbed. No, #ir, enrry out this business on tho Inrgest gculo, by & froo banking act, and WHAT WILL DE THE RESULT ? It will bo oxuctly tho same, only much oxtonded and intousifled, And it is very probablo, nay, almost cortain, that what may he called tho banking-monopoly of Now York and Now En- glaud will, by 'a frea banking sci, not bo weakoned, but it will Locomo ' stronger and moro firmly oatablished than ever before, And why ? Simvly becauso in tho East, in Now. York and Now England, they havo tho capital to invost in bauking catablishnionts; thoy hinvo tho bonds thomsolves, and can establish Nationul Banks without sending monoy awny. ‘Phoy will, thorefore, thon aa now have and keop & vast mn- Jority of the banks, and n proponderance of the Nationnl Bunking currency. ‘hoy will of conrso enjoy thoe lion's share of tho business. If gon- tlomon now complain of tho grasp the monotary powor of tho Enst has on tho West and South, wo slinll soo that grasp not wonkened bub very much strengthenod by what is hero proposed. SATIONAL IANK OIRGULATION, Mr. CAMERON—Will the Seuntor allow mo to intorrupt him ? . Mr. BCLIURZ—Cortainly. Mr. CAMERON—I think, in tho last remark homado,the Bonator has torgotton that National DBanks caunot havo moro thun a certain amount of circulation, so that I do notseo how it is possi- bio all tho money should got 1nto tho City of Now York, People lavo a right to establish banlks with as much circulation a8 possible, but, no matter what the eapitalmay bo, they can havo only 8o much circulation, Mr, BOIIURZ—Tho Sonator will admit that, although thoy have at present moro thun by tho upirit of tho law thoy aro entitled to, if wo pass o freo baiking act, they can, in New York and Now England, es:ablishagreat many more banks than now ; nothing is to hinder them; and in- asmuch 28 tho have the capital and the bonds, they have greator facility in ostablishing thpso banks thnen tho West and South. Mr. OAMERON—The Senator is right in part, but not altogother, Thoy may ostablish more bauks, but thoso banks caunot lnvens much circulation ag thoy had originally, Desides that, Ihopoif wapnes s goneral banking law thero will bo such restrictions ng will provent capital in Now York from controlling the system, Hr. SCIURZ — Unless thoso restrictions amount to thi, that the pooplo of cortnin Statos anall pa prohibitad from establishing now bunka ‘Whilo the peoplo of otlier Statos shall bo por- mitted to catablish thom, the restrictions wili not be worth n farthing, The banks will bo os- tablished whera the eapital is with grouter facils .ity thau whore it is not, . e Mr, CAMERON~Once mora 1 will say cap- ital wilt go whero it can_be most profitably ox- ercised 3 and therofore-T do not think it will go to Now York or the Eust, but to tho West, whera it is most wautod. L Mr. SCHURZ—ITavo not Now Yorl banks and tho moneyed meun of tho Last every fucility naw to establish baiiks in tho West as much ag they please? Why do_not thoy do it? What prevents o Now York bauker to-dny from cs- inblishing o bronch of hig establishment in Chicago or St. Louis or at St, Josoph 7 Nothing in the world. Air, CAMERON—~Because ho ean do bettor in Now York now, Mr, SCHURZ—Precisoly ; because ho can do botter with his banic whore thern s tho most business, sud thore ho remains; snd for tho samo ronson more banks will bo established where thore is tho most business. If weo com- plain now, I say, of tho fimap of tho monatary power of tho Enst over tho West aud South, wo shnll sco that grasp not weakoned, but rather strengthenod, by what is hero proposed, I have mado tiese remarks in order to oxplode that most oxtraordinary notion of the Schator Irom Indinna, that if wo only pormit the estab- lishment of moro National Buuks in tho West and South, moro curroncy will gound stay thero, beeauso tho loans and discounts of tha banks will return every thirty, sixty, and ninoty days : notdispol that genoral aud almost Incompre. hensible dolusion, that by the establishmort of such banks, under such laws as wo have, tho emount of lonnable cpita) in the West or South will be increased and not diminishod. Whatover results freo bauking under tho National-Banl act mny havo, it will certair y nob produco thoso effects which tho advocates of froc-bauking in the Sonate pretond to be working for. FREE DANKING. But tho frec-banking echicme, 28 pronosex hore, must also Lo looked at from anothor point of view. It hos heen argued that Ireo-banking, oven without any cffoctunl system of redemp- tion, but carried out to any oxtent undor our National Bank act as 3t now stands, will not lead to inilation, but rather operate in {ho dircotion of o return to speeio payments. This view ling been oxprosuod on this tioor ; and it is supported by onoe of the staunchest and ablest advocates of specie pavments in tho journulistic world, o journsl whose opinions on such questions are always ontitled to the highest respect, [ mean 'z "Omicaco ‘I'ninuse, I sboll request the Becrotary to rond the article I send to him, and I eall upon Senators who advacato Iree-bunking to listen o tho reading, bocauso the argumens runs in thoir way. T'he Chiof Clerk road the articto, Mr, SBCHULZ~Wlon I read that atrticlo I mmnut confess that it staggored mo n little nt st might’; but grent us my respoc *a for the sourco from whiclt it comos, I am 1 ablo to accent that viow of thocase, It se .8 to mo that tho paraltel 1y hore botwaeen tho issucs of ‘the Bank of England and of the counts * banks duving the suspension of spocio puymon's in England, on the ouo band, and tho’ leznl-tender notes and tho National Bank notes in” thi country, on tho other, fails in ONE VERY ESSENTIAL TOINT. ; I'ho Bank of England notes at that poriod woro virtuslly a logal-tonder, Ikuow very woll that thoy were not mnde go by the express lngungo of tho lnw, but to all intents and purposes they wera practically so, and vlrkunn{) reeognizod ag such by Inw, w)‘.nlu the conutry bank-notes woro nat, 1'ho vilue asourrency of the latter, the country bank-notes, dopended thorefore on their redeemability in Bank of England notos, snd on s w'in tells us that pormission to ~={oat and South, | o thoy mado? 7 woll whint thoy the credit™ of tho lssuing bank, The clroulation of the country bank-no'es was, _Uhorofore, essoutially - local. Dut our Nutional Lank wnowes are virtuully to all intonts and purposes u logal tondor, Just asmuch nt Lho Govornmont's logal toundor is. By Bew, 23 of the Nationnl Bank act of Jung i, 1604, thoy aro mado recoivable in all parts of tho United States in paymont of taxos, and sl othier ducs to the United States, oxeopt dutifa on imports, and also for nll etlaries and othor dobts and domands owing by tho United B!n}ufl‘ f oxcopt intorest on the natiounl debt, and in /ro- domution of tho natlounl curvoncy, Nuw,/sir, although they nra not litorally mado lognl(un- der in the diseharge of private debts, vot, coing received by tho Govornmient for what it u\\w‘ thoy ara praotionlly mado o logzal tondor fir al purposos, like the greonback, They avo, more- over, founded on the zecura basis of Govorus mont bonds, payable, principal and intorost, in sold, ‘Thelr ciroulntion is, theroforo, nut lucal, hm. natlonat in the widest sense of the tuna, Just liko thut of greonbucks, Thoy ave just a8 afe, and in one sonko TULY ARL EVEN MONE KO, for thoy hinvo bohind them the wolid foundation of u United Btatos bond, payablo i wold, aud ab ¥