The New York Herald Newspaper, February 7, 1862, Page 1

THE NEW YORK HERALD. WHOLE NO. 9280. NEW YORK, FRIDAY, FEBRUARY 7, 1862. PRICE TWO CENTS. IMPORTANT PROCEEDINGS OF CONGRESS. Debate in the House on the Finances of the Nation. Passage of the Treasury Note Bill by a Vote of Ninety- three to Fifty-four. whe Legal Tender Clause Retained. Debate in the Senate on the Govern- ment Eizpenditures. _ Proposed Retrenchment to the Amount of Thirty Millions of Dollars, Test Vote on the Bill Reducing the Pay of Soldiers, Sailors and Civilians, The Bill Virtually Passed by the Senate. Reduction of the Mileage of Congressmen. PROGRESS OF THE WORK ON THE TAX BILL. Important Notice to Holders of Govern- ment Bonds, &., ‘Wasmnaton, Feb. 6, 1862. PAGEAGE OF THE TREASURY NOTE BILL, WITH THE LEGAL TENDER CLAUSE, BY THE HOUSE. At last Congress has acted, and the legal tender Trea- sury Note bill has passed. The opponents of the bill un- éertook to worry out the supporters of it by amendments anda long session, but the friends of the measure had ‘notice of the fact that the Treasury was empty and must ‘be replenished immediately, and therefore insisted that ‘the Dill should be passed in order wo restore public conf. dence. A teat vote, at about four o'clock, was decisive ta favor of the legal tender. A’ motion to strike out the Joga) tender clause obtained only fifty-four votes in favor and ninety-three against it. After aeevero struggi¢ the “ House, at about haif-past five o’clock, reached a vote on ‘the main question, and the bill passed by ninety-three yeas to Sfty-four nays. ‘There is great rejoicing in the city to-night among the ‘Damkers and merchants from the principal cities of the Union now here. PREPARATION OF THE TAX BILL. ‘Fhe statement sent to the country yesterday that the Bob-Committee of Ways and Means have prepared a vough draft of the new Tax Dill, for the private use of ‘the committee, is not true. The additional statement in the same paragraph that a fow days only will elapee be- fore the bill will be matured, is another mistake, as] am authorized to say that it will probably be ten or twelve @ays Ddefore the dill will be ready. The Sub-Committee are working with great energy. PAYMENT OF INTEREST ON GOVERNMENT BONDS. ‘Me order of Secretary Chase directing the payment of ‘the coupons of the 19th of August, 7 30-100 bonds in New York, will be so far modified as to make them pay- able also by the Treasurer of the United States at Wash- ington, and by the Assistant Treasurers at Boston and Philadelphia. The Secretary desires to afford every facility to the hollers of the bonds compatible with the fall security against fraud and counterfeiting. This security is thought to be as important to the holders as te the government. SCARCITY OF SMALL COIN AT WASHINGTON. ‘Small coin continues scarce for business transactions Iu order to preciude the flood of smal! notes from a dis” ance, many of which are counterfeited, a bill was intro- duced in the Senate to-day, authorizing the Corporation ‘of Washington to issue notes of less denomination than five dollars, to an amount not exceeding $100,000, re- @eemable in current bank notes at par in Wasbiugton, or in United States Treasury notes. APPROVAL OF THE BILL STRIKING REBELS FROM THE PENSION ROLLS. ‘The President has approved tho bill authorizing the- Becretary of the Interior to strike from the pension rolls ‘the names of all such persons as have or may herea(ter take up arms against the government of the United States, or who have in any manner encouraged the rebels or manifested a sympathy with their cause. It is known that some persons in the West, after draw. ing their pensions, have openly joined the enemy, while others who have not taken this extreme step bave openiy sympathized with the rebels and drawn their pensions. ‘The law just passed affords @ partial remedy against disloyal pensioners receiving money from the govern- ment. €HE STATUS OF THE HOMB GUARDS IN THE BORDER STATES. Some difference of opinion has arisen in Congress upon the question of the status of troops raised in some of the border States for the defence of the Union. The question has been sottled in regard to Kentucky by a provision in the bill for the defence of Washington and other pur poses. The question of the troops of Missouri and Mary land has been made the subject of a committee of con. ference. The committee this morning agreed wpon an amendment, providing that troops shall not be raised in thone States for service limited to the States, excepting ten thousand in Missouri and forty-five hundred in Mary Jand, The committee consisted of Messrs, Wilson, Hen. doreon and Grimes, of thé Senate, and F. P. Blair, Frank ‘Thomas and John Hickman, of the House. APPOINTMENTS CONFIRMED BY THE SENATE. ‘The following confirmations were made by the Senate to-.day:—Aroh. McIntyre, Treasurer of Mint at Philadel. phia; Isaac ©. Hunt and John S. Hogeboom, Appraisers, New York; Charlog H. Eldridge, Geo. B. Thornton, Geo, Plunkett, Fdward Foster and Geo. Lawrence, Paymastors of Navy; James May, Thomas C. Martin, L. ©. Morrill, F. ©. Cooly, A. J. Clark, George Cochran , Thomas T. Caswell, Benjamin ¥F. Camp, H: M. Denniston, R. H. Douglas , Clit- ton Hellen, Charles Hoy, Rufus Parks, J. 8. Post, A.J. Pritchard, R. J. Richardson, J. A. Smith, L. 8. Stockwell, George A. Sawyer, W. Il. Thompson, Richard Washington ‘end William 1H. Weldon, Assistant Paymasters of Navy. NO ENEMY NEAR GENERAL M'CALL’S LINES. General McCall denies the statement, published in a Philadelphia paper, that there is a large body of the enemy eneamped ueur his picket lines. A troop of seo fing cavalry returned thie morning from a thorough eonnoissance of the whole length of the picket lines, and Ave thie a8 the result of the reconnoiseance. OUR RELATIONS WITH MEXICO. The Senate Committee on Foreign Affairs are busily en, @ eed upon Mexican matters. A special meeting of she MreaaiAvoe wil) bo Leid on be subject to-morrow ae, &e. ‘THE ARMY. General Fitzjohn Porter, having been summoned on im- portant business to New York, his division is at present imcommand of General Morell, of the Second brigade, one of the ablest Brigadier Generals in the Crmy of the Potomac. It is stated that Major Guiney, of the Ninth Massachu- setts regiment, will be appointed Lieutenant Colonel, to fill the vacancy caused by the recent decease of Lieute- nant Colonel Peard. Major Guiney came out as Captain in the Ninth, Captain Mott, whose illness and temporary withdrawal from his battery I mentioned a few days since, returned to-day, restored in health, THE CAVALRY SERVICE. General Cooke is working hard to make the cavalry under his command efficient in every respect. Twice a week the cavalry here are required to drill insquadron, regiment and brigade drills. Lieutenant Benjamin T. Hutchins, by the promotion of David McM. Gregg, becomes commander of Company i of Sixth United States cavalry. SENTENCE OF A DESERTER—IMPORTANT ARMY ORDER. Private Railton B. Stalker, of Company A, Nineteenth New York Volunteers, was convicted on a charge of desertion by a Court Martial, January 15, and his sentence has just been promulgated. He is to be dishonorably dis- charged from the service of the United States, and then committed to the United States penitentiary in the Dis- trict of Columbia, at hard labor, for the term of two years and six months. An impression existed in the minds of some that this regiment was held only for three mouths’ service, and the prisoner, with others, governed himself accordingly and deserted the service. ‘The order in this case shows that the Nineteenth New York regiment is subject to service until April, 1863, and conchides in the following words:— Nothing could be more calculated to demoralize a mili- tary body than such conduct as the accused stands con. victed of. When a soldier wishes to lay betore ,the Major General commanding any grievance under which he imagines that he labors, let him, through the proper channels, make known his com: plaint. ‘To all well founded’ complaints an attentive ear will be given, and no known abuse will be allowed to remain unredressed. ‘The same considerations which make the Major General Commanding anxious to aid any subordinate, who, in a proper manner, seeks a re- dress of wrong, render him determined to vindicate by all due means the sacredness of military discipline. In both cases he alms at promoting the good of the service. He has gone at great length into the explanation of this eso, because it was necessary to correct misapprehensions widely spread and likely to do great mischief. No one in a similar position with the prisoner will, after the publication of this order, be able to plead ignorance to excuse his insubordination. The proceedings of the Court Martial in the case of private Railton B. Stalker are confirmed. The prisoner will be dishouorably discharged from the service of the United States, will be conducted to Wash- ington City, under charge of a guard, and will there be delivered, with a copy of this order, to the Warden of the penitentary of the District of Columbia. SALE OF THE ALEXANDRIA RAILROAD. Joseph B. Stewart, substitute trustee, announces that he will sell at public auction, in Alexandria, the fran- chises and property of the Alexandria Railroad Company ‘on the 10th day of April next, in default of the payment of interest on the company’s bonds. GAYETIES OF THE CAPITAL. Speaker Grow had a splendid reception at his residence to-night, Mrs. General Fremont being among the distin- guished guests. A fashionable hop came off to-night in the old church in F street, near the corner of Fourteenth street, where the Peace Convention was held. Thé hotel hops are very good here when managed by the guests. PROCHEDINGS OF CONGRESS. THIRTY-SEVENTH CONGRESS. FIRST SESBION. Senate. Wasnrncton, Feb. 6, 1862. ‘The Senate met at twelve o'clock, but at this hour not a single Senator was in the chainber, and very few persons were in the galleries. A few minutes afterwards three Senators came in, and the Chair called the Senate to order. Mr. Howarp, (rep.) of Mich, presented resolations from the Legislature of Michigan, asking a grant of lands to endow a military school. Mr. Kiva, (rep.) of N. Y., presented several petitions asking that 300,000 copies of the Agricultural Report be printed in the German language. Mr. Kixe also presonted several petitions for the emancipation of slaves. REDUCTION OF THE PAY OF KHE NEW YORK SURVEYOR AND NAVAL OFFICER. Mr. Cuaxpier, (rep.) of Mich., presented a memorial from the merchants of New York that the salary and fees and perquisites of the Naval Officer and Surveyor of the Port might be reduced. 4 SENSIBLE MEMORIAL. Mr. Canine, (Union) of Va., presented a petition, nu. merously signed by citizens of Boston, Massachusetts, asking Congress to leave the negro question alone and at: tend to the business of the country. SUPPRESSION OF THE LIQUOR TRAFFIC. Mr. Harms, (rep.) of N. Y., presented petitions against the sale of liquor to officers and soldiers of the army. THE RECIPROCITY TREATY WITH CANADA. Mr. Haris algo presented a petition to repeal the re- ciprocity treaty between Canada and the United States. SMALL NOTES IN. WASHINGTON. Mr, Guimes, (rep.) of lowa, introduced @ dill to allow the Corporation of Washington to issue small notes. Re. ferred. RETRENCHMEN? IN THE GOVERNMENT RXPENDITURES—REDUC- TION OF THE PAY OF SOLDIERS, RAILORS AND CIVILIANS— MILBAGE OF CONGRESSMEN CUT DOWN, ETC., ETC. The bill to define the pay and emoluments of officers of the army was taken up. It is as follows: — Be itenacted ly the Senate amd House af Representatives of the United State in Congress assembled, That oflicet ing brevet commissions not be entitled of pay or emoluments b of the exercise of com ‘according to their | revet rank, BeCTION 2. And be i further enacted, That officers ot the army entitled to forage’ for horses shatl not be allowed to cutninute it, but shall draw the allowance in kind for each horse actually kept by them as authorized by law, Seo. 3. Ani he it further enacted, That major generals shall be entitled to draw forage in kind for four horses; brigadier generals for three horses; colonel 4 Jn, and majors, two horses each; captains and lentenancs walry and ariillery tor two horses each; and ebaplaing for one horse, ee. 4. And be it further enacted, That whene or expended by the ‘on account of said soldier, and every officer of the army who shall fail to make such deduction shall, on conviction before a general court ial, be cashiere:l, Bc. 6. And be it further enacted, That the first section of the act approved August 6, 1861, increasing the pay of privates in the United States service, shall not be so construed, after the sage of this act, as 0 increase the emoluments of the ‘and the eighth seetion of all be so construed aw fame compensation as sof the army; Teh, chapter 9, 18, d, That so much of the act horizes each regiment of volun: teers in the Unite’ States service to have twenty-four musi’ cians for a band, and ixes the compensation of the leader of saine is hereby, repealed; and such xd out of the service within thirty days is act. Bec. 7. And te it further enacted, That each brigade in the volunteer service shall have sixteen musicians asa band, to be selected from the regimental bands mustered out of ser- view by this act, Who shall receive the pay and allowanc w provided by law for regimental bands, except the lead the band, Wao shall receive forty-five dollars per month ly. Shc. 8. And be it futher enactet, That in lien of the pre- sent raie of mileage allowed wers of the army when travelling on public duty, where transportation in kind 1, not more than if not furnished to them by the go six cents per tuile shall hereatter be cents p the army or ni ~~ except for travel actually performed at his own expense and in ovedience to orders, 9. And be itsurther enacted, That, during the continu. the present rebellion, there shall be deducted from pensation of all persons employed in the military, naval and civil service of the United States, except warrant oflicers and sailors in the navy, and non-commissioned ofl cers, mnt ‘and privates in'the army, ten per centum of the Amount of their compensation, 10, Ane be it further emacted, That in each of the p manent hospitals where the President may deem It nece he int a chaplain, who shail receive the san now allowed 40 post chaplains in the gular service, SRC. 11, Anil be it further enacted, That, so much of section if chapte 0 nih tion seven ot cl ‘approved July 22, 1861, and of sec. y-two, approved Auiust 3% 1861, pe Suites Army who is nota re religiov denomination, vod or not lex tha: religious denomi- nation. BKC. 12, And be it further enacted, That xo much of the: fifth section of the act approved July 22, 1861, as allows forty conta por day for the use and risk of the horses of company onicers of cavalry, be, and the same js hereby, repeated. 13, And be i further enacted, That whenever an officer be put under Arrest, except at remote milllary posts or is, it shall be the duty ‘olficnr by whone orde: hele eee Oe hel peony of tae hich he pgs buen arrested and 18 to be trhed shall penn eight days thereafter, and that h tat ait Ron ange thereafter, unteas (I ow revent auch trial; and’ then h ‘ter the ex pirati chin univiy days ten Provided that if the copy of the charges be rot aerved bea rested over ae herein provides the arrent abal) upon cease; and provided, further, secti ane; and provided er, that the provisions of this section fre. persons now arrest and awaiting Buc. 14. And he tt further ‘That whenever the name of any army officer now in the service, oF who may hereafter be in the service of the United States, shall have been, borne on the Army Register forty-five years, or shall be of the age of sizty-two years, he shall be retired from active service and his name entered on the retired list of officers of the grade to which he belonged at the time of such retirement. Sx. 15. And be it further enacte’, That the President of the United States be, and he is hereby, authorized (o assign, any officer who may be retired under the preceding section of thi act, or the act of August 3, 1861, to any duty; and such officer thus aesigned shall receive the full pay and’ emoluments of his grade while s0 employed, Mr. SusxmAn, (rep.) of Obio, eaid that, although in favor of the bill, yet it did not go far enough. Itdid not reach the desired point. The great problem of this war is not a physical but a financial one. One year ago the President crept into the capital in disguise. Five hundred determined men could then have taken the capital and all the archives, and this capital might have been the Manassas of the rebellion. Then we were weak physically, but we had scarcely any debt. Now the condition of things is changed, and we are strong physically, but weak financially, and the question must be met how we are tocarry on the financial measures of the government. The delay in military movements for the last three mouths, in my judgment, has crested financial diffculties which it will be hard to surmount. Ido not know the reasons for delay. They may be justifiable; but whoever may have been the eause 1 think will have a grievous account to settle with his country men. I do not blame any one. We have also been delay- ing. While we have sat here the credit of the country has been impaired, and we have taken no steps to maintain the credit. of the government. The Secretary of the ‘Treasury, in his recent annual report, states that for the Hirst quarter of the current fiscal year the receipts and expenditures are ascertained; for the remaining three- quarters they are estimated ‘as follows:—For the tirst quarter of the year ending June, 1862, the actual ex- penditures were $98,239,733 09; for the second, third aud fourth quarters the estimated expenditures are $302,035,761, with additional appropriations, in the naire of deficiences, of $143,130,927, making & total for this year of $543,406,442; and we know that this amount will be increased by various Dills, especially from the Military Oemmittee, The de- ficiency since the last session, in the war estimates alone, is $121,434,488. We are told also that the esti- mated expenditures for the year ending June 30, 1863, are, for the Civil List, $23,086,971; for the Interior De- partment, $4,102,962; for the War Department, $360,159,986; for the y Department, $44,164,994; on ‘account Of the Public Debt, $360,159,330—making an ag- gregate of $476,331,245. These estimates of the Secre- sary have beeu considerably enlarged by the Committee of Ways and Means of the House; and they do not include the bounty granted to soldiers if the war should cease, nor the large sums for damages to private property, or for property taken for public use. We cannot doubt that the amount of appropriations necessary for the next fiscal year will not be less than $550,000,000. We are so much in the habit of dealing with largo sums that we do pot retlect hew much these are in excess of the sums to which we have becn accustomed. But our annual appropriations will now be four times the entire paper eurrency of the country, and six times the expenditure of any previous year of our government since its foundation—more than Great Britain ever expended in hor contest with Napoleon. When you *add to these sums the difficult amounts collected for State, county and city taxes—for the authorities which disbarse all the internal expenditure of the government, amounting to not lees than $150,000,000—we have an aggregate expen- diture for one year of $700,000,000 per annum! ‘The populationrof the loyal States, including one-third of Vir- ginia, is about 23,000,000 souls; this would be an expen- dituve of more than $30 per head. The expenditure of Great Britain is but $10 68 per head; her expenditure during the war with Napoleon, at the highest rate, was but $20 per head,and no uation has borne a higher rate of taxation; 80 that we are called upon for an expenditure nearly double of that borne by avy nation in ancient or modern history. ‘ Ido not make this comparison with a view torestraiuany justexpenditure, I donot make it to ‘oppose the war, for Tiwoulg stake every species of property and the life of every matin this nation upon the prosecu- ‘tion of the war. Nor is it to affect the public ¢credit,for the public creditor is well informed of the extent of your wants. I know it is @ most difficult task to oppose any appropriation asked for. If an objection is made to the creation of a new office, it is regarded rather in tne light of @ narrow parsimony, or as a disposition to restrain and cripple the administration in its eftorts~to suppress the rebellion. In my judgment every bill should be testeu by its effects on the finances. We have appropri- ated and spent es if we held the lamp of jin or the purse of Fortuuatus, untilnow we are compelled to re- sort to the issue of demand notes, and may be compelled to make them egal tender in order to secure their cincu- jation. The condition of our finances has already at- tracted the attention of foreign Powers. Ina recent ar- ticle in the London Post, the government organ, it is said “that national bankruptcy is mot an agreeable prospect, but it is the only one presented by the ex- isting state of American finances. Never was there a career more reckless and extravagant; never before so prosperous and flourishing a State making such gigantic strides toward effecting their own ruin.” Phe London ‘Times has repeatedly, and in the most bitter manner, arsailed our financial system, and endeavored in every possible way to prevent the negotiation of our securities abroad. It may be that our hnglish friends are willing prophets of disaster; but, at least, we could learn reason from their warnings. It may be necessary for us again to recur to the simple habits of our forefathers, and our prosperity may be now checked by adversity for our own good. Iagain repeat that the chief difficulty of our position is financial, and not physical. We must at once, and without delay, adopt a liberal, broad financial’ system, which will enabie us to meet the large demands upon the public Treasury. In my judg- ment, three propositions will embrace all the legisia- tion needed to place the public credit upon a dasis to yield ample revenue for the progecution of the war. Firs:—The prompt levy of a tax, other than duties on imports, to produce not lees than $150,000,000, to be levied as far as may be upon certain luxuries other than upon persons and property. Second—A careful revision of the laws reguiating salaries and compensation, and « correction of the abuses growing out of existing laws for the purchase and transportation of property. Third—A rigid serutiny of the disbursements of the public fands, anda prompt punishment of every officer who either takes himself, or permits others to take, money for cer. vices or property of which the government do not receive the benefit. It is not my purpose to discuss the subject of taxation; the constitution provides that ali revenue bills shall ‘originate in the House; in a few days we shall have the result of the detiberations of the House and we can then act definitely, 1 will only say now that we have ample resources of taxation, Under our present system the States rely mainly on direct taxes collected by annual asseesinent. The general government bas relied upon duties on imported mer- chandise. The vast field of taxation whick in Eu- ropean governments is the main reliance for revenue— taxes classed under the head of imposts, taxes of var kinds—have not been resorted to by us since the payment of the debt from the war with Great Britain, and when we are bow again compelled to resort to this’ mode of taxtion, we find the people willing to respoud. Your assessments will be cheerfully paid; but if #0, they must be wisely expended. You cannot take fromthe people their resources and their earnings to pay Mr. Morgan $ for four weeks work, You ean- not employ their taxes, to pay useler gress, nor to pfice holders extravagant compensa. tion; nor will they allow yon to pay officers of the army and navy unreasonable salaries. If sacrifices must be made, the officers of the government must share in these sacrifices; and it is proper that the commence. ment should be with us. No one should receive from the government more than similar services are worth in private life, All privileges, perquisites, and irre. ularities must be surrende: In the early days of the French Revolution we have the historical examples of priests aud nobles, of cities and towns, and of all classes of men freely surrendering their privileges for the public good, We must imitate their example, or the people will not sustain us in the prosecution of this war. When the Committee on Compensation and Expenditure were called upon to frame the bills now submitted to the Senate, the firgt question to be decided was, Upon what principle the reduction should be made? Should it be pro rata upon ail salaries and compensations? If go, the present ine- qualities would be continued. A reduction of twenty per cent on the present rate of mileage would # leave the amount of mileage to be paid excessive; while the same rate of reduction applied to the private soldier, or person receiving but a small com- pensation, would be the groxsest injustice, A pro rata reduction would only take away a little from the luxuries of thove who recoive large salaries, while it might bring ruin to those who receive v stall salaries It is manifest that this rule, though tho easiest of execution, and the most plausible in theory, would be unjust. The plan ado; by the committe was to revise all salaries in separate bills, each bill to embrace a single department of the government. The question*then occurred, How shall this reduction be ef. fected? The easiest mode of revision would be by amendments to the appropriation bills; but this He make it necessary to embody many charges in the ap- propriation bilis,and bea vi m of the rules of the House, and contrary to the practice of the Senate. But if the Senate is so disposed they can adopt these bills as amendments to the appropriation bille, The committee, however, bad but one course to purtue—that of framing separate bills. In attempting thie there was no #tan- dard of compensation; it wae impossible to frame any bill embracing a large number of officers, in whieh plausible criticism could not be made by a compari¢on of one office with another. A® there can be no fixed standard, every officer will think he is unjustly dealt with. Jt is natural for every man to magnify his own position. ft is impossible to satisfy the holder of a nominal and sinecure office he can be dispensed with, It is impossible to convince @ messenger or other emplaye of the government that he should not re- ceive more than a person employed in the same services in private life who makes more hours than he does. The character of the eorvices required from the committee wore demanded by the most pressing public Beceesity but they were unpleasant, invidious and disagrecabie, ‘They required ue to affect the pay of thousands of per. sons, of families and friends, of near associates and those with whom we are brought in dawy contact, aud for whom we feol tho bigot respect. Their pay i@ a part of their daily lif#, affeotin social pleasures and cherished plans, the education of cbildren, and in some casos, especially where officers are dispensed with, the very means of sustaining life 1 trust Senators will remember these difiguities when they come to criticise these bills. 8. Lg -omng the bill under consideration. It ia the mileage ten cents a mile, making a sav! im that one item of over $200,000. The bill is fr upon the supposition that the franking privilege would be abolished, and makes an allowance for postage, abolishing the al- lowance for newspapers and stationery, reducing the of employes about twenty per cent and abolishing a number of supernumerary offices, and tly reducing the eontingent ex, of Congress.) ‘ho bill, as framed, does not propose a change in the com- pensation of members of Congress. Upon this subject there was a difference of opinion in the committee. It was urged that the present compensation was not too high, as a member was compelled to leave his business, proba- bly sacrifice it, and either bring his family here or be sepa- rated from them. If the salary was decreased it would tend to prevent poor men from coming to Congress and give a monopoly to rich men. But I will not repeat the argument, but simply say it is a question for the judy: ment of Congreeg. In my opinion, a more noble act could not be done than for Congress promptly to apply the re- duction to their own compensation, which must be ied to other officers of the government. If members of Congress would now voluntarily, either for the time or for all time, surrender re, or twenty-five per cent of their pay, the act itself would be equivatent to a victory. It would show a spirit of determination to prosecute the war, and to apply all the resources of the country fo its prosecution; and I will. heartily vote for such & proposition whenever it is offered. (Mr. 8. then explained the billf in relation to the army, which sub- stitutes fixed salaries for the allowance rations, kc. ; changes the rate of mileage from ten cents to sb retains officers sixty-two years old who have forty-five years, unless in exceptional cases; making a re- duction of about fifteen per cent, saving from $6,000,000 to $10,000,000, on an army of 500.000; reducing the pay of chaplains to abont $1,000 a year. No change is proposed in the pay of soldiers. They were enlisted at $13 a month and they cannot resign as officers can The bili of the Senator from Massachusetts (Wilson) proposce to reduce the pay of soldiers and officers alike by an arbitrary per centage. He was the author of the bill increasing their poy before enlistinent, and immediately after decreasing it to about what it was before enlistment. ‘The bill in relation to the navy corresponds in its iain fea- tures to the army ‘bill. 1 am happy to say that among tho numerous letters 1 have received from officers of the army and navy, most of those whose opinions are entitled to respect have promptly responded vo the demand for the decrease of their pay. ‘They desire only that the same rule applied to them shall De applied to ail the other departments of the govern- ment, and they are perfectly willing to bear their share of all necessary reduction, Other bills will be framed to extend to all other departments of government—courts, custom houses, land offices, your police aystem—indeed to every officer whose name or office is to be found in the blue book. If these bills are adopted you will save halt the interest of the public debt, yon will win the hearty respect and confidence of the people, and you will have their acquiescence in any scheme of ‘taxation which you may adopt; you will have the respect of foreign nations, ant tt would belie the reported declarations of the rebcls now in arms against the government, who con- stantly attribute the large army now in the ficld as affect- ed and brought together by the consideration of high pay, and not by @ patriotic devotion to their country. Mr. Doorn, (rep.) of Wis., suggested that there be added to the amendment, that all mileage be computed by the most direct mail route, and that the mileage of members of Congress be reduced nifty per cent. ‘Mr. Suerman accepted that as a part of his amendment. Mr. Doourns said that he wanted to correct the abuses of the present system of mileage, especially the systein which had grown up of late of computing mileage Dy the old routes. ‘Mr. Pomeroy, (rep.) of Kansas, was perfectly willing to have his mileage reduced, but there was no direct mail ronte to some places. How oould the mileage of the Senator from Teanesree or his own, for instance, be computed? He thonght it better to have mileage com- eal by ‘any gafe and competent route for a Senator to wel. Mr. Swenvan modified lis amendment so as to com- pute mileage by the most direct travelled route. Mr. Cowa, (rep.) of Pa., thought it would be better to abolish the whole system of mileage. He (Mr. Cowdu) always cousidered ita sham by which a man got more ‘than hoe entitled. It would be better to abolish it, and provide that @ disbarsing officer should pay mem: bers their actu pp ot and no more, Mr. Peance, (Opp.) of Md., said that mileage was no part of the original compensation of members of Con- grees. They used'to be allowed only ight dollars a day ‘as their.salary and eight dollars a he while travelling. ‘Mr. Wrzon, (rep.) of Mass., said he hoped the amend- ment would not be adopted. He (Mr. Wilson) was in favor, in the main, of the bills reported from the Com- mittee on Compeusation, &c. ‘Mr. Nesaomn, (opp.) of Oregon, said that the most direct travelled route from the Pacific coast was not # safe one for a man to travel at all. His illustrious predecessor (Mr. ane) when here as a delegate drew mileage to the amount of $5,964, and then when Oregon waa admitted, he was ‘elected Senator, he drew $5,964 again as for walking from the House of ves to the Senate. Yet he (Mr. Nesmith) thought that some- thing was due to the met 1 Pacitic coast, He Qtr. jhesralih) Devens his family here last year, and it cost him $3,000 to get to New York. He might be told that he conld leave bis family athome. That was some- times inconvenient, and, by the of Oregon, if a man was absent @ year from his wife she was enti- tled toa divorce. (Laughter.) He was willing, how- ever, to submit to anything, to any reduction, to enable tho government to prosecute the war. They ‘could take away all bis salary if need be. Mr. Semwen, (rep.) of Mass. , thought the subject ought not to be considered in a military bill. Mr. Doourrns was in favor of finishing the abuse of mileage, and would finish it now. We ought to make the very lirst reduction here in the expenses of the govern ment by beginning with ourselves, Then we will be able to meet the oilicers of the army when they come here to remonstrate against the reduction of their pay. Mr. Surkmax again modified his amendment so as to read what be first offered. Mr. Hows, (rep.) of Wis., moved to strike out the whole section. He thought the resources of the people sufficient. Mr. Wirson said the people might have resources, but the government had none. The government was in debt forty millions of doljars today, and there was not’ a dollar in the Treasury to pay it with. We are here to-day complaining of want of progress in the army, but if we made any more progress than the army did, he (Air. Wilson) would like somebody to point it out, The government was reduced to the condi- tion of issuing paper money, and of making ita legal tender. If anything is needed, it is to show the people of the country that we are willing to make some sacritice. Why, the view the world hus of us is,that we are a nation, be had almost said of ‘thieves,’ but be (Mr. Wilson) would say of ‘‘plunderers,”* in the midst of a war for the life of the country. Even yet committees of the House are reporting on great frauds, ke. Mr. Dixon, (rep.) of Conn., thought that the credit of the country Was not so bad, though he agreed with much the Senator (Mr. Wilson) had said. He (Mr. Dixon) be- lieved that if a patriotic appeal were made to the peuple, they would raise one hundred millions of dollars. He believed we should begin within ourselves first. He would be glad to vote for & reduction of twenty-five per cent of the pay of members of Congress, The public ought to bo satisfied that we are willing to moke a sacrifice. He delieved tho resoarees of the country were ample, but some sebeme must be devieed to raise a suff cient revenue. Great Britain, in times of peace, raised $250,000 600. Mr. Hows was opposed to the ninth section on the grownd that employes of the government, if their salaries were not too high, ought not to be taxed any more than other persons. If their salaries were too high then they ought to be reduced for ail time, not meroly during the rebellion. Mr. Simmons, (rep.) of R. 1. , contended that the resources: of the country were abundantly able to support the ex penditure. He had faith in the people, and they were able and willing to meet ali expenses. We never resorted to any other branch of taxation except customs. The coun try was full of immense resources. If we would only dorrow of our own country we would never be impove- rished, He had no idea of submitting the country to an irredeemable paper currency. He did not believe there was any necossity. The banks of the country had been very patriotic so far, but the main reliance was on tho people, the magres of small means. Mr. Wrison said he had an abundant faith in the re. sources of the country, but the government had not yet drawn on those resources. Mr. TReMHULE, (rep.) of Ill., said bore was a bill cor- recting great abuses and saving $15,000,000, carefully considered, and how was it met? By propositions to re- duce twenty-five per cent, and the questions of mileage and taxation, and told that Congress was to blame. If you waut to raise money, tell the generals to go forward and give us victories. Has not the government had men ‘and money , and did not God Almighty give such weather as never was vouchsafed before? ition is not what we want. We want strong arms and somebody to lead our armies and put the rebellion down. He hoped they would pass this bill, and then make other reforms. We can do ‘one thing at any rate; we cannot do all at once. Mr. Doourrri said it was the first duty to reform our own abuses, and then look the officers of the army in the face. Mr. Dixon thought the people demanded taxation and victory both, that Congress would proceed to ation and leave fighti lone, and let the army do the fighting. Mr. Sherman's amendment was adopted. Mr. Davis, (Union) of Ky., spoke at some length, con. tending that we could not raise enough = taxation, and the government must issue ‘intoreat-bear "7 . Nir. Doonrrrix offered an amendinent reducing the mile- age of members of Congress fifty per cent, tw be com- puted in the most direct tra route, provided until a railroad was built to the Pacific coast, the mileage of members bo fe the Rocky Mountains be computed by the usual route. Agreed to—yens 29; nays, Messrs. Clark, Collamer, Henderson, Latham, Meliougall, Morrill, Nesmith, Trumbull, Wilkinson, Wilson, of Mo.—10, Mr. Hows moved to strike out the ninth section. Disagreed to— Yeas, 2 (Messra. Howe and McDougall); nays, 36. ir. Howe moved to recommit the bill to the Military Committee. ‘The Senate went into executive session, Adjourned. House of Representatives. Wasinnoron, Feb. 6, 1662, PASSAGE OF THE TREASURY NOTH HILL. ‘The House went into Committee of the Whole on the ‘Treasury Note bill, Mr. Kexioas, (rep.) of Iil., said that in ordinary times he might have some doubts of the umonstitutionality of this measure, but in this extremity. when we are strug gling for national perpetuity, he was willing to go to the Verge of the constitution to sustain the government. Ho Tegarded this as a war measure, and in the course of his Temarks he said:—We must have no more surrenders of rebel prisoners cheerfully made, though Russia, France, England, Spain and the combined Powers of the world de- mand it, We must stand by our integrity and by the honor of the nation, and % we are worthy of the name of people we shall be sustained. The exigencies of the timer would never compel him (Kellogg) to vote for a bill which is in violation of the constitution, for when Con- gress violates the constitution it is but mockery to say:— “We are carrying on a war under that instrument to maintain the constitution.” He (Kellogg) argued that it was clearly within the power of Congress, under the con- stitution, to make the notes proposed a legal tender, and give them value by pledging the entire property of the country for their redemption. Mr, Tuomas, (Union) of Mass., gave the reasons which would induce him to yote against the Dill as itnow stands. and in the course of his constitutional argument said that the making of these Treasury notes a legal tender for all past public and private debts would be a breach of good faith, It would change substantially the condition and impair the obligation of contracts. Mr. Epwanps, (rep.) of N. H., opposed Mr. Morrill’s substitute, an@’gave among other reasons for doing so that it exempted the government from receiving the notes in payment of foreign imports. This being the cage who would take the paper at par? With regard to the bill reported from the Committee on Ways and Means it was based on the faith of tho country to meet the indebtedness incurred. It vuld farnish the means directly without looking to ine termediate negotiation for furnishing them, and therefore it ehould receive his (Mr. Edward's) support. Mr. Seoawick, (rep.) of N. ¥., said they all agreed upon taxation in some form, by which one hundred and fifty millions annually can be raised. They all agreed that hereafter the war should be carried on vigorously on the credit of juhe government. They all agreed that the ‘amount of notes and bonds to be issued must be equal to the demands of the government. ‘The amount of the notes to be issued can be limited only by necessity. The difference betweon the amendments and this bill was, that the latter had the advantage of giving the notes cir. culation as money, while the former would cause them to depreciate. ‘The Cuarmman announced that, by previous agreement» debate now closed, with the exception of the reply. (Cries of “That's right.’?) Mr. Spain, (rep.) of N. ¥.—Leaving to the honora- ble gentioman from Pennsylvania the duty of closing the debate, I desire merely to say a few words— Mr. Lovesor, (rep.) of Il., rose toa question of order. If the debate had closed, the gentleman's remarks were not in order. ‘Leave was given to Mr. Spaulding to proceed. Mr. SraunpinG said—First, we all agree that taxation in the various forms must be imposed to the amount o¢ at least one hundred and fifty millions of dollars, on which to rest the credit of these notes and bonds—a sum sufficient to pay the ordinary expenses of government on & peace footing, the interest on all the war debt, and a sinking fund to liquidate annually a portion of the pria- cipai— Mr. Lovmoy (interrupting)—I understood the gentle- Man to say yesterday that we already had an account about equal to the proposed issue. I want to ask him how be proposes to get the balance of what we need imme” diately? Mr. Spavipina—I propose to show how we intend to pay that off. Inthe second place, we agree that here- after the war must be carried on principally upon the credit of the government, and that paper, in the form of notes and bonds, must be issued to an equally large amount, which ever plan is adopted. After deducting the sum raised from revenue by taxation and duties on imports, the amount of paper to be issued can only be limited by the actual expenses of the government. The respective plans of Messrs. Vallandigham, Conkling and Morrill require the same amount of paper to be issued as the legal tender bill proposed by the Com- mittee of Ways and Means and supported by the Secro- tary of the Treasury; third, the main difference between the several plans is, that the legal tender bill stamps the demand notes as money, with the highest sanction of the government, to circulate as # national currency the same as bank notes, in all the channels of trade and business among all the people of the United States, whilst all the other plans proposed contemplate the issue of an inferior currency, that will not, in my opinion, circulate as money either among the banks or the people, but will,on tho contrary, be depreciated and sold at a largo discount by all officers, soldiers and others, that are compelled to receive it from the government in payment for services, supplies and materials furnished, For myself,1 prefer to issue the demand notes, based on adequate taxation, and with the highest legal sanction that can be given to them by the govern- ment. Mir. Srevays, (rep.) of Pa., in closing the debate, said— This bill is a moasure of necessity, not choice. Noone would willingly issue paper currency, never redeemablo on demand, and make it a legal tender. It is nover de. sirable to depart from the circulating medium which, by the common consent of civilized nations, forms the stand ard of value. Butit is not a fearful measure, and when rendered necessary by exigencies it ought to produce no alarm, Is the measure necessary? The Jate administra. tion left a debi of about,$100,000,000, and bequeathed ug, also, an expensive and formidable rebellion. ‘This compelied Congress, in extra session, to authorize a jean of two bundred and fifty millions. A bundred mii- lions were taken at seven-thirty per cent; fifty millions at four per cont; fifty millions were used in demand notes payable in coin; leaving fifty millions undisposed of- Before the banks bad paid much of the last loan they broke down under it, and suspended specie payment. ‘They thon contrived to pay this loan, not in coin, but in demand notes of the government, which kept them at par. But the last of that loan was paid yesterday, and on the same day the banks have refused to receive them. ‘They must sink to depreciaved currency. The remaining fifty millions the Secretary of the Treasury has been un- able to negotiate, A small portion of it—about ten millions—bas been issued at seven-thirty infpayment of debts; and ail this bas been used, and there is now a floating debt , audited and unaudited, of at least one hun- daed and thirty millions. The Secretary intended to use the balance of the authorized loan by paying it out to creditors in notes of seven-thirty. ‘This becoming known, they immediately sunk to four por cent, and if the Secretary had persevered it is believed they would have run down to ten percent discount, But even if these could be used there would remain due about ninety millions, the payment of which ie urgently demanded. The daily expenses of the government are now about two millions, To carry us on till the next meeting of Congress would take six hundred millions more, making, before legislation could be had, about seven hundred miilions to be provided for. The grand question 4g, how can this large amount be raised? The Secretary of the Treasury has used his best efforts to negotiate a Joan of about fifty millions, and has failed. Several modes of relief have been suggested. The most obvious is to borrow on government bonds bearing an interest of six per cent, which it is known can only be effected by put ting the bonds into the market to the highest bidder. f{¢ but a small sum were wanted it might probably be had ata small discount, but if sufficient to meet our wants up to next December, seven hundred millions, wore forced into themarket as it is wanted, T have no doubt they would sellas low a8 sixty per cont,as in the last war, And even then it would be found impos. sible to find payment in coin, A large part of it must be accepted in the depreciated notes of non specie paying banks; for I suppose no one expects the resump- tion of specie payment until the war shall be onded, But as this Congress must provide for appropriations to the end of the fiscal year 1863, seven months more must be added to these expenses. That would require four hun dred and twenty millions, addod to the seven hundred millions before estimated, and the aggregate would be eleven hundred millions. ‘The discount on that sum, at forty per cont, would be four hundred and forty millions. At the minimum discount that any reasonable man could fix, say twenty-five per cent, it would be two hundred and seventy-five millions. Tt would, therefore, require at least bonds to the amount of thirteen hundred and fifty. millions to produce sufficient currency to make eleven hondred milliongand carry us to the end of the next fixoni year, This sum is too frightful to be tolerated, Cortain bankers have suggested that the immectate wante of tho government might be sppplied by pledging soven-thirty Per cent bonds, with a liberal margin, payable inone year in gold im part, and the next payable in currency. The effect would be, that government would pay out to its creditors the depreciated notes of non-specie paying Danks, and as there is no probability that the pledges could be redeemed when due, they would be thrown into the market and sold for whatever the banks might choose to pay for them. The folly of this scheme needs no i!- lustration. Another plan is to strike out the legal tender clause, and make them redeemable for taxes.and all public dues. But it is not proposed to make apy provision for redeeming them in coin on demand. I do not believe that such notes would circulate anywhere except at a ruinous discouut, No notes not redeemable on demand, and not made a legal tender, have ever been kept at par. The knowledge that they were provided for by taxation, and that they would surely be paid twenty years hence, would not sustain them. The Secretary of the Treasury in bis report recommended a scheme to produce # uniform pa tional currency and furnish a market for good ioans. It pro- poses, then, that the banks shall receive their cireulation from the government to the amount of government bonds “pledged with the Treasury for their security, and that no more notes should be issued than the par value of such bonds, and should be redeemed by the banks. Ae agencral system of banking, in ordinary times this plan might be very useful in regulating the currency, and by the tale of the bonds the government might command coin. But while the banks are in suspension it is not easy to nee how it would relieve the government, If the notes wore” procured, it must be by accepting payment by the government in depreciated circulation. These would not be better than the government's own notes. The security of the government is equal to that of the banks, and would give as much currency to the banks. I can see its ad” vantage. They would have the whole benefit of the cir- cuiation, without interest, and at the same time would draw interest on the government bonds from the time they got the notes. It is very plain that if the United States issued those notes dirget they would have the benefit of the whole circulation. Ip other words, it would be equal toa loan without interest. to the full amount of the circulation, ‘This project, there- fore, however desirable as a banking system, coul:: afford no immediate relief, especially as it would afford no sale for additional bunds, as the banks have already as many ag would form the basis of their operations. Having, as I think, shown the impossibility of carrying on the government in any other way than that proposed by the bill, I will notice some of the objections urged against it, Is it constitutional? Myr. Stevens pro- coeded to sustain by arguments the constitu- tionality of the measure, In the course of his remarks he said>—Now it is for Congress to determine whether this bill is necessary to raise on | support armies: and navies,to borrow money, and provide for the gene- ral welfare. It is for those who think that it is not ne- cessary, useful and proper, for those purposes, to pro- pose some better bill, and vote against this. If @ ma- jority support the Dill, its constitutionality is ests blished. ‘The next question is, if constitutional, is it expedient ? ‘The necessity of the issue of these notes is admitted, but objection is taken to them being made money. It is not easy to perceive how notes, issued without being made immediately payable in specie, cam be made any worse by making them a legal tender. ‘This is the whole argument, eo far as expediency is concerned. It is contended that the bill would impair contracts, by making a debt payable im other money than that which existed at the time of the making of the contract, and on this ground that it is unconstitutional. Mr. Stevens proceeded to shew that this provision of the Dill would not tend to impair contracts, and that there — was no prohibition to the power of regulating payments» in connection with contracts, contained in the con- stitution. Contracts, he said, are made, not only with a view to present laws,» bat subject to the future legislation of the country. As to the talled/ of depreciation of the currency from making these notes a legal tender, how do gentlemen expect that issuing the same amount of notes without the legal tender will in- finte the currency less? It will take the same amount of millions, with or without legal tender, to carry on the war, except that in one case they would be below pary and in the other at par. No instancecan be given of a currency , not redeemable on demand in gold, that did not immediately depreciate; but if made a legal tender, and not a redundancy of it emitted, it will keep at par. Mr. Stevens quoted McCulloch in support of his argument on this head, contending from this, that daring the suspension of specie payment by the banks, which would continue during the war, bank paper would greatly disappear before thi® par paper of the government. Having reviewed tho pro- posed substitutes to his bill, one emanating from the mi- nority of the committee, and those of Messrs. Conklin and Vallandigham, and commenting on their efficiency to meet the emergency, Mr. Stevens continned—I flatter myself that I have demonstrated, from reason and un- doubted authority, that these notes, made legal tender, ‘and not issued in excess of the demand, will remain at par, and pass in all transactions, great and small, in full value of their face, I will say, in conclusion, that unless this bill is to pass with the legal tender clause in, it wiil not be desirable to Sts friends or to the administra- tion, and those who think as I do will have to vote against it if it shall be mutilated and emasculated, If it is to be defeated, I should bo glad if we bad the power which the British Parliament possesses, to resign our places on the Committee of Ways and Means, and leave it to those who oppose this bill to mature some other measure. So far as Jam con- cerned, I shall be modest enough not to attempt any other scheme, ‘The Committee of Ways and Means have labored anxiously, and to the best of our poor abilities. We are not infallible—we do not come near it. We bave given it our most anxious consideration, and have con. sulted those whom we believed to be dest qualified to advise us, We have sought to harmonize conflicting views on the substitute which the majority of the com- mittee have prepared, and we hope it will pass. We believe that the credit of the countty will be sustained by it, that all classes will be paid in money which all classes can use, and that we will confer no advantage on the capitalist over the poor laboring man. If tbe bill pass I shall bail it as the most auspicious measure of this Congress. wie should fait the result will be more deplorable than any disaster which could befall us. Mr. Campnsts., (rep.) of Pa., said he was for the bil, with the legal tender clause. With him the only question was the necessities of the government to put down the rebellion. He would not be controlled by very Bice scruples when the constitution and the Union were both in danger. ‘The committee proceeded to consider Mr. Cris- field’s amendment, to strike frem the Dill that part which proposes to make the notes lawful money and @ legal tender in payment of all debts public and private within the United States. Incidental debate was had, during which Mr. Moanni, (rop.) of Vt., mentioned the fact that the pending bil) 9. reported by only one-balf of the Committeg of Ways ana: Means. Tho other four wished it to be understood thas. they were as cordially united on their own project as the others were on theirs. The substitution proposed by him ‘wae not his particularly, but had been modified, in order to meet the views of those who had submitted amendments. Mr. Hickmana, (rep.) of Pa., desired to have the bill re- committed, with instructions to frame one with @ clause driving back to their homes all depreciated bank notes. There should be no paper currency not easily and readily convertible into gold and silver, sir. Roscor L. Conxuw, (rep.) of N, ¥., viewed the bill as the commencement of @ paper system which \SOwe plunge the country into an abyss from which ther® Would be no resussitation and resurrection. Mr. Hoormn, (rep.) of Mass., briefly argued that to strike out tho legal tende# clause Would render the bin usoless to the Treasury Department, Mr, Cristield’s amendment was rejected—ayes, 63; nays, 93. Various amendments were rejected, when Mr. Tonton, (rep.) of Ohio, offered Mr. Morrill’ substitute, with amendments to the bill. Mr. SmavENS presented a modification of the original bill, Tt was agreed that the committee should rise and re- port these measures to the House, Tn order to obviate all difficulties in regard to the great number of amendments which were pending or about to be offered, it was agroed that the question ehould be nares Towed down to @ vote between the substitute of Mr. Hor. on, agreed tipon by one half of the Committee of Ways {CONMINUED ON KIGHTH PAGE.)