The New York Herald Newspaper, December 17, 1868, Page 3

WASHINGTON Tho Bill for the Resumption of Specie Payments. Speech of Senator Morton in Favor of Its Passage. The Workingwomen’s Question in the House. Men’s Wages for Men’s Work Conceded to the Female Clerks. New Drawing of Seats Among the Representatives. Butler and Farnsworth in the Democratic Camp. Wasninoton, Dec. 16, 1863. Senator Morton’s Speech on Resumption of Specie Payments. Senator Morton’s speech in the Senate to-day on the finance question was the great sensation of the seasion. He delivered it sitting in Senator Sprague’s chair, and for nearly two hours commanded the Closest attention from the whole Senate. The gal- Jeries were crowded with ladies and gentlemen, who honored the speaker with an interest even greater than that displayed by the Senators themselves. . Secretary McCulloch and Attorney General Evarts were also on the foor of the Senate chamber during most of the time. Mr. ‘Morton’s speech was generally conceded to be the ablest delivered in either house for a long time, and at its conclusion the gentleman was warmly con- gratulated. Proceedings of the Senate Finance Com- wen mittee. ‘The only business transacted this morning in the Senate Finance Committee relates to the Copper Tariff bill, which it was agreed to report in the shape it passed the House, and which has already been published. No action was taken on the nomina- won of Alexander Cummings for Commissioner of Internal Revenue, and the belief obtains credence that it will be allowed to lle over at least till the ex- piration of the holidays. The Alaska Investigation. The first meeting of the House Committee on Pub- Ue Expenditures, to whom was referred the subject of the alleged bribery to secure tne passage of the Alaska appropriation, held tis first meeting this Morning on that subject. Two witnesses were ex- amined, to wit—George Riggs, the banker, and United ‘Btates Treasurer Spinner. These two gentlemen were examined at considerable length as to their knowledge of the disposition of the $7,200,000 ap- Dropriated by Congress. General Spinner testified He that the whole amount of the Alaska pur- money, $7,200,000, was paid by tho Treasury Department to Baron Stoeckl, the Russian’ Min- ister, who left the com im the Treasury \vaulta, deposited to his credit, On the lst of August George W. Riggs presented a check for the Yul sum, endorsed by Baron Stoeckl to him, and (Grew in the form of a transfer check on New York ‘$7,000,000, and afterwards on the same day he drew {9100,000, Mr. Riggs subsequently obtained from the United States Treasury the following amounts, which he paid to Baron Stoeckl:— the 84 of August, $25,000; on the 4th of ugust, $85,000; on the sth of September, 000, and on the 26th of September $20,000. ‘W. Riggs testified that Baron Stoeckl em- him to collect the Alaska purchase money to transmit it to New York. He then testified, , the same as Genera] Spinner in regard ‘to the sums he drew from the Treasury, Mr. Riggs knew nothing of the disposition made apy portion of the money transmitted by to New York. After it .had reached lehere he forwarded to bankers in New York named I ‘ard the transfer checks amounting to $7,100,000. ‘Of the remaining $100,000 he knew that $26,000 was paid to Robert J. Walker for legal services, and he bimeelf received one-twenties of one per cent for collection. The remainder of the money was paid fy himto Baron Stoeckl in the amounts called for by the Minister, and Mr. Riggs knew mothing of the way in which it was expended. Who $26,000 was paid to GovernOr Walker the 4th of August, and the balance of the $35,000 was paid over bo.Baron Stoeckl. The sum drawn by Mr. Riggs on fhe 8d-of August, $25,000, was paid to the Russian r, and it is understood that whole amount ‘was paid by him for telegraphing. Robert J. Walker $bas been summoned to testify before the committee 2o-morrow in, to what he knows of the dispo- aisjon made of the money. Removal of Political Disabilities. ‘The Senate Judiciary Committee held a meeting ‘his morning and agreed to report favorably on some and adversely gp other bilis for the removal of po- litical disabilit Drawing for Seats in the House. Drawing Tor seats in the House is always attended ‘with a good deal of confusion and mpre or Jess mer- riment. It is not usually done except at the begin- ning of a new Congress; but there has been no draw- ing since the “‘carpet-baggers” came in, and many of them were dissatisfied with being compelled fo “take back seats.” They, together with a few old members not well located, succeeded in get- resolution through to-day for anew drawing ‘Beate. The members who had good seats of course fought against the resolution to the last. Consideratie time was spent in filibustering, and at fone time the resolution was actually laid on the table. The “carpet-baggers,” however, went to ‘work among themselves, and, with the aid of the Gissatisfed among the old members, were able to move a reconsideration and to pass the resolution, The first name drawn out of the box by the little blindfolded page was Broomwell, of lili- ois, who had the choice of seats, “Shake up the ox more, MacPherson! was called to the Clerk from a dozem members, who feared some foul play. Sypher, of Louisiana, was the second name caljed, ‘With modesty well becoming @ carpet-baggér the Tepresentative of the New Orleans district walked @irectly to the seat formerly occupied by Old Thad Btevens and sat himself down with an air of assur- ‘ance which seemed to say, “I am the man to step tato old Thad’s shoes.” It was noised that carpot- Daggers and several members who are of little ac- count im the House had their names calied first, and, of course, got the choice of the best seats, Schenck, Boutwel!, Bingham, Butler, Kelly, Wilson (of lowa), BE. B. Washburne and other leading members were kept out in the cold untii all the best seats were taken. ‘The irrepressible Mullins, of Tennessee, who ts a character in the House, and has heretofore occupied @ seat on the first row, directly in front of the Speaker, ran down the mainj aisie when his name ‘was called at arate of speed remarkabie for an old ‘man, amid a roar of laughver from all parts of the House. When he reached his old seat and found it till vacant he kicked up his heels after the manner of a young colt, to the infinite amusement of all pre- went, and then took his seat, When Dickey, of Pennsylvania, was calied he walked over to the seat next the one formerly occupied by his predecessor, old Thomas. The modest Sypher, to show his generosity, arose and tendered him the ‘OM man’s seat, which he accepted and Will hereafter ©ccupy. Washburn, of Massachusetts, the brother of E. B. Washburne, was called before E. B., and in order to secure the latter nis old seat occupied it ‘Gutil E. B. could get a chance, By this means the ‘Kather of the House’ was enabled to his old seat again, and bis generous brother got one just behind him, Garfleld, NEW YORK HERALD, THURSDAY, DECEMBER 17, 1868—TRIPLE SHERT. of Ohio, took Schenck’s old seat, and the “Leader of the House” was forced to take a back Seat. Quite an amusing scene was a race between Glossbrenner, of Pennsylvania, and Plantz, of Ohio, for a seat formerly occupied by Glossbrenner. Both of them are fat men, and the manner in which they tumbled over chairs and desks in their effort to reach the seat afforded great merriment, Plantz Was the successful man. When Ben Butler's turn came nearly all the good seats on the republi- can side of the House were occupied, After surveying the field Butier walked deliberately over to the democratic side of the House and took a seat on the same row with Brooks, of New York, amid general applause from the floor and the galleries. Some one cried out, ‘That is where he belongs,” and another, “That is where he came from originally.”” Hooper, of Massachusetts; Farnsworth, of Illinois, and several radicals were forced to take seats on the democratic side, where the carpet-baggers used to sit. Ross, of Ulinois, the author of the resolution for a new deal, was among the last ,cailed; but he got a front seat to the right of the Speaker. The utmost confusion and disorder followed the drawing for seats, Members began to move their papers from their old seats to their new ones, and though the Speaker kept his gavel coming down heavily upon the desk constantly but little attention was paid to his appeals for the House to come to order. At last, losing his temper, Colfax turned to his page and in a loud tone said, ‘Is the Sergeant-at-Arms in the hall? whereupon the tall form of the Sergeant- at-Arms (Ordway) made -its appearance, but still the confusion continued until the House adjourned. Eulogies on the Death of Thad Stevens. The following named gentlemen wiil to-morrow deliver eulogies in the House on the death of Thad- deus Stevens:—Messrs, Dickey, Moorhead, Kelley, Broomall, Miller, Koontz, Woodward, Cake, O'Neill, Lawrence of Pennsylvana, Poland of Vermont, May- nard of Tennessee, Robinson and Wood of New York, Lawrence and Ashley of Ohio, Farnsworth of Illi- nois, Orth of Indiana, and Sypher of Louisiana. The following named gentlemen will deliver eulo- gies on the death of Finney, of Pennsylvania:— Messrs. Pettis, Randall, O'Neill and Lawrence of Pennsylvania. - The Case of Senator Hill, of Georgia. The case of Joshua A. Hill, Senator elect from Georgia, whose application for admission was re- ferred to the committee at the opening of the ses- sion, occupied some time in its consideration by rea- son of the large number of documents necessary to examine in support and in opposition to his claim. No conclusion was arrived at and the committee agreed to adjourn until Friday, when the investiga- tion will be continued. The indications are favor- able to his admission. Georgia Radicals Opposing Further Congres- sional Interference. Colonel J. E. Bryant, Chairman of the Republican Executive Committee of Georgia, authorizes the statement that he is opposed to the bills of Messrs. Sumner and Butler affecting the political interests of that State. While he, in the Legislature, was op- posed to the expulsion of the negro members, and isin favor of reseating them, he will oppose any measures having for their object the throwing back of Georgia again under a military government. Trouble Ameng the Missour} K dicnls, It appears aa feaales Henderson's rag Me for Governor of Missouri and the canvass of the State is entirely dependent upon the success of his enemies to read him out of the republican party in Missouri. He says the telegrams sent from here for the purpose of excommunicating him are false and intended to drive from him his friends in the Legislature. No vote was taken or proposed to be taken to remove him from the chairmanship of the Indian Committee of the Senate. If his opponents beat him by fair means he has not one word to say; but he insists the party in Missouri has no right to set up a platform and principles in Missouri different from the national platform, or to excommunicate him while he is recognised by the party here. He ‘wants his party position recognized and his claims considered as a member of the party, and he will be satisfied. If he should run at all it would be as a re- publican, and resone the party, as he says, from a clique of selfish politicians, who have continued to destroy every public man who refuses to submit to their dictation. . New Treasury Cireular. The Treastry Department has issued a circular of instructions giving a list of the legal Custom House fees and the construction placed upon the law in some doubtful points, and calling attention to the prohibitions of the law against exactions of exces- sive fees and illegal rewards. Compensation of Custom House Officers. A delegation of surveyors of customs and naval officers of the leading ports in the Northern States met at the Treasury Department this morning and had an interview with Secretary McCulloch with reference to revenue business and the construction of certain statutes affecting the compensation of customs officers, &c. The porta represented were New York, Boston, Philadelphia and Portland. Increasing the Pay of Female Clerks. ‘The House was in a merry mood to-day, The fan commenced with the introduction by Mr Jones, of Kentucky, of a resolution to make the pay of female employés of the govern. ment the same as that of males who perform the same Kind of service. Jones’ intention was no doubt good, but he couched the terms of nis resolu- tion in such an awkward way as to cause its reading to give rise to irrepressible laughter, The Cerberus of the Treasury, E. B. Washburne, of course led the opposition to the resolution increasing the pay of the poor women. When he found that a clear majority of the House was against him he commenced to filibuster, though hig defeat was only a question of time. After calling the yeas and nays several times, demanding ‘divisions’ and “tellers,” he was finally beaten and the resolution passed. Nominations Sent in to the Sennte. ‘The President nominated to the Senate this after- noon Thomas ©. McCall, Collecter of Internal Reve- nue for the Sixth district of Jowa; J. N. Marks, Col- lector of Customs for Philadelphia, in place of Coke to be removed; Archibald M. Green, Collector of In- ternal Revenue for the Twenty-fourth district of New York; Samuel T. Maddox, Assessor of Internal Reve- nue for the Third district of New York, vice Wellmore suspended; José Manuel Gallegos, Superintendent of Indian Affairs at New Mexico; Isaac Newton, War- den of the jail at the District of Columbia; Samuel 'P. Cooper, Marshal for Wisconsin; Frederick N. Dockney, Attorney for the Southern District of Florida; G Gordon Adams, Attorney for the Southern district of Mississippi; John P. O'Neill, At- torney for the Eastern district of Pennsylvania; J. . 8. C. Rowland, Marshal for the Western district of Arkansas; Peter P. Bailey, Postmaster for Fort Wayne, Ind.; Walter M. Smallwood, Postmaster for New Orleans, vice Taliaferro. Return of Judge Fullerton. Judge Fullerton turned up here again to-day and had a Jong interview with the President respecting the alleged intent! Fevéfine frauds ad the 2! against certain United States officials. It is under- ftood that Judge Fullerton insisted upon the point that no progress could be made towards clearing up the revenue mysteries while officials suspected of complicity are retained in the confidence of the gov- ernment. Judge Fullerton, accompanied by Charles O’Conor, subsequently had interviews with Attorney General Evarts and Secretary McCulloch. Judge Fullerton will remain here for some days, at the re- quest of the President. Internal Revenue Collectors. The following nominations were made to the Sen- ate to-day:— Archibald M. Green, as Collector of the Twenty- fourth New York district. Thomas C, McCall, a8 Collector of the Sixth lowa district. Promotious im the Navy. The Senate Committee on Naval Affairs held a meet- ing this morning and agreed to report the following names for promotion in the naval service:—To be rear admiral, Charles H. Poore; to be commodores, George F. Emmons and Edward Middleton? to be com- manders, Jas. P. Fife, R. W. Meade and R. Boyd, Jr.; To be lieutenant commanders, Edward Hooker, Alonzo Muldeans, Charles O'Neill, N. Mayo Dier, F. M. Green and H. H. Gorringe; tobe captains, Richard T. Renshaw, Johnson B. Creighton; to be lieutenants, Eaward 8. Keyser, Dewitt ©. Kefl, George A. Durand, James G. Green, Thomas M. Gardner, Charles M. Anchory, Felix McCurley, John McGowan, Edward H. Miller, Thomas Wilson, H. ©, Neil, Charles H. Rockwell, Gerhard ©. Schulze, ©. A. Svbiteky, Thomas F. Wade, John K. Wynn, George F. Wil- kins, George E. Wingate; to be first lieutenants in marine corps, James M. T. Young and A, S. Taylor. Naval Bulletin. Commander Henry Wilson has been detached from the Saco and placed on waiting orders. Ensign W. H. Brice 1s-detached from the Saco and ordered to League Island. Ensign B. 8. Richards is transferred from the Saco to the New Hampshire. Master E. 8. Keyser is detached from the Saco and ordered to the receiting ship Portsmouth, Lieutenants R. P. Leary, C. H. Pendleton and G, W. McClure are or- dered to the Portsmouth as supernumerary watch omcers. Acting Ensigns R. K. Lambier, L. K. Ches- ter, Arthur O’Leary and John H, Gigon are honor- ably discharged. The United States steamer Shamokin has arrived at Norfolk from the Atlantic squadron, Improved Nickel Coinage. Judge Keliey has received from the United States Mint specimens of the new proposed copper nickel coinage representing one, three and five cents, with improved designs and less likely to tarnish than the one, two and five cent pieces now in circulation, and which itis the purpose to withdraw from circula* tion, Judge Kelley, as the chairman of the Commit- tee on Coins and Coinage, has devoted much time to this subject, bis former occupation as a jeweller giv- ing him practical advantage. The Proposed Irish Fair in New York. The Committee on Ways and Means to-day referred to @ special committee an application to import, duty free, articles for the proposed Irish fair in New York. Affairs in Georgian and Mississippi. The Committee on Reconstruction to-day farther examined witnesses as to the affairs in Mississippi, and also Governor Bullock relating to those in Georgia. Supreme Court Proceedings: The Supreme Court was engaged to-day as fol- lows:— No, 249—Bank of New York vs. The Supervisors of New York—commenced yesterday; concluded, Ar- gument was made by Mr, O’Gorman. No. 2—Drury and Page, assignees of the Boston Locomotive Works, aj Picea vs. The Milwaukee and Superior Railro: ‘ompany and others—action on acontract; argument commenced. Personal. Fernando Wood, of your city, has purchased an elegant house, corner of I and Fifteenth streets, in this city, which he is about to fit up in lavish style as a private residence. Mr. Wood’s house is opposite Senator Morgan’s, and 1s one of a bran pew row just finished, after the pattern of the most sumptuous ‘New York residences, The Menard Case at Washington. (Washington (Dec. 16) correspondence of the Boston Advertiser:) Another complication has arisen in the case of Menara, the colored member elect from Louisiana, who claims the seat of Mann, deceased. It seems that the Louisiana Legislature at its last session re- districted the whole State, having reference in their action to the Son eg Congress. The district which Mann represented was very Pirorinne changed, and Menard, his successor, was elected the new dis- trict, corresponding to the old one in little eise than itsnumber. The Committee on Elections hold it to be a knotty case, THE FORTIETH CONGRESS. Third Session. SENATE. WASHINGTON, Dec. 16, 1868, REDEMPTION OF LEGAL TENDER NOTES. Mr. SHERMAN, (rep.) of Ohio, from the Finance Committee, reported back the House bill fixing the daties on copper, &c.; and algo the following reso- lution, which, on his motion, was laid on the table to be called up at an early day:— ate, That neither public poll good 11 allow the redemption o' ;wenty bonds until the United States shall perform its primary duty of paying its notes in coin or making them equivalent thereto; and measures should be adopted by Congress to se- cure the resumption of specie payment at as early a period a practicable. PAYMENT OF BONDS IN COIN. Mr. SHERMAN algo reported back from the same committee, without amendment, the joint resolu- tion introduced by Mr. Edmunds, in November, 1867, which reads as follows:— JOINT RESOLUTIONS PLEDGING THE FAITH OF THE UNITED STATES TO THE PAYMENT OF THE PUBLIC DEBT IN COIN OR ITS EQUIVALENT. the public debt of the United States was, except lally otherwise ordered, contracted and incurred the United States, that the same ‘or redeemed in coin or ite équivalent, and whereas have been raised as to the duty and propriety Of discharging such debt 1 coin or its equivalens re wt by the Senate and House of Representatives of ited States of Ameri That ‘canes Un: in Congress assembled, the public debt of the United States, except in the wherein the law authorizing the same or provision was ex- Drosaly made, is owing in coin or ite equivalent, and the faith of the United States 1s hereby solemnly pledged to its pay- ment accordingly. JUDGE UNDBRWOOD’S DECISION. Mr. WILLIAMs, (rep.) of Oregon, offered a resolu- tion instructing the Jadiciary Committee to Inquire into the ee and expediency of some im- mediate legislation to prevent the discharge of per- sons ‘convicted of crime by the extraordinary de- cisions of the United States district judge of Vir- ginia. Mr. FERRY, (rep.) of Conn., moved to strike out the word “‘extraordinary.”’ He knew little about Judge Underwood's decisions, and therefore he was not wat to vote for @ resolution reflecting upon them. Mr. HowarD, (rep.) of Mich., inquired what there ‘was extraordinary in those decisions. Mr. WILLIAMS said that he understood the Judgo to have decided that because certain judges of local courts in Virginia were not judges de jure, being disqualified by the fourteenth amendment, their acts as ‘Jodgea de facto in criminal cases were void, and therefore that persons convicted before them should be discharged; and he was informed that several such convicted criminals had been discharged. ‘Mr. Howarp said that Judge Underwood's dect- sion there seemed to involve a very Fare, question, in regard to which there was much difference of opinion—the b pera of the validity of the four- teenth amendment—and he suggested, therefore, that the resolution be modified so as to direct an in- quiry without characterizing the decisions, ‘Mr. WILLIAMS said he was willing to modify, but he did not think in tts original form it necessarily re- flected on the Judge; and as to the use of the word “extraordinary,” the extraordinary character of the decisions was the only reason for calling the atten- tion of the Judiciary Committee to them at all. Mr. Ferry’s amendment was adopted and the reso- lution then passed. PAYMENT OF SOUTHERN SENATORS. Mr. MORTON, (rep.) of Ind., offered a resolution di- recting the Secretary of the Senate to pay the Sen- ators from North Carolina, South Carolina, Florid Alabama, Arkansas and Louisiana the legal compen- sation of Senators, Mr. FERRY objected. MONUMENT TO GENERAL KEARNY. Mr. WiLLiaMs, from the Committee on Military Affair, reported the joint resolution donating con- demned cannon to erect a monument to Major Gen- eral Kearny. Adopted. RELIEF FROM POLITICAL DISABILITIES. Mr. OSBORNE, (rep.) Of Fla., introduced a bill to relieve sundry citizens of Florida from political dts- abilities, which, on his motion, was laid on the table. NAVAL RENDEZVOUS IN THE PACIFIC. Mr. Conness, (rep.) of Cal., introduced a resolution directing the Committee on Naval Affairs to inquire into the practicability of making the Medway Island, in the Pacific, @ rendezvous for tho United States vessels, Adopted. GOVERNMENT FOR ALASKA. Mr. Cons, (rep.) of Cal., introduced a bill to pro- vide a temporary government for Alaska. Referred to the Committee on Territories and ordered to be rinted, bs The bill Rrorcee @ government ig nearly all re- Specta like the other Territortal governments. THE POOR O¥ THE DISTRICT OF COLUMBIA. Mr, Vickers, (dem.) of Md., from the Committee on the District ‘of Columbia, reported a joint resolu. tion ppropriati $sqono ier tne fewporary relief of the poor of iho ict, Adopted. “or sm. dee OF GOVERNMENT EMPLOYERS. og" F » COnNESs moved to tARé Tp Tis bill to fix the col gation for labor performed for the govern- Ment, providing that there shail be no reduction of ny on account of the reduction of the hours of labor. Mr. SHERMAN said if the Senator supposed such a bill could pass without debate he was mistaken. Mr. CONNEss replied that he would be pleased to ena eae debate it and give a good reason w should not pass, ir. SHERMAN Was not willing to’begin the discus. sion so near the hour of one o'clock, when Mr. Mor- ton was to address the Senate. Mr. Conngss sald the bill, though of little tmpor- tance to the United States, of great importance to those whose pay had been, under an unjust con- struction of the laws,,reduced, and he called for the yeas and nays bo his motion to take it up, which Was !ost—yens 22, nays 34, CONDITION OF THE PACIFIC RAILROAD. The PRESIDENT presented a communication from the Secretary of the Interior traneoultting 2s report of the government director of the Pacific Railroad in ene to the condition of the road, dated August 16, 1868. "COST OF THR FRACTIONAL CURRENCY. Mr. Convert, (rep.) of Oregon, offered a resolution requestii the Secretary of the Treasury to inform the Senate of the total cost of the issue of the United States fractiona: currency up to this time. Adopted. FERRY the resolution offered by to the pay of Southern Sena- tors was referred to the Judiciary Committee, On motion of Mr. SumxMan the consideration of his Raiiroad bill was postponed until the recess, RESUMPTION OF SPRCIE PAYMENT—SPRECH OF MR. Me mighty changes wrought by the war is the revolu- tion th the character of our currency. The war found us with gold aud silver as a part of the circu- jaung medmm and with a convertible cur- reucy, the issues of the local banks, created by the authority of the several States. When it ended gold and silver and this bank paper had been banished from the circulation, and in their places substituted the notes ‘of the government and of the national banks, The great problem now to be solved is how to reintroduce into the currency gold and silver, which can be done only by making the notes of the overnment and of the national banks convertible ito coin at par. These notes are now greatly depre- ciated, and since the ist of July gold has fuctuated between thirty-two and @ half and forty-nine cents premium, These fuctuations in the value of the currency affect every kind of business disastrously. The prices of provisions, goods and labor change from month to month. Every branch of legitimate business which depends upon small but regular pro- fits is greatly impaired with such fluctuations in the value of the currency, in the cost of living, in the protits of business and the value of everything that enters into trade, together with the painful uncer- tainty that hangs over the whole financial policy of the country. Men hesitate to engage in new enterprises or to make new investments 1n business. The prudent capitalist is standing still, awaiting the course of events and the establishment of some definite financial policy by which he can judge of the future, it is impossible to calculate the aggregate loas to the country even in one year by this state of things, or to estimate the suffering and destitution produced by this stagnation of business and the want of employment for labor; and it 1s not only the business bat the imperative duty of Congress to ad- dresa itself to the great work of reform by adopting such legislation, if possible. whereby the currency shall be made and business be made to flow on rosperously through its regular channels, The usiness transactions of the country, amounting to many thousand millions of dollars in the course of the year, are conducted through the medium of the currency; and if the currency is depreciated, fluctuatmg and deceptive, the emaed of the country must inevitably be seri- ously injured, and its general progress and develop- ment delayed. The question to which I invite the atvention of the Senate to-day is whether such legis- lation may be had and a plan adopted whereby the currency can be made good and the government return to specie payment without produ crash or great commercigl distress. ‘irst, | will considét some of the diMculties which, it is be. ned will prevent a return to specie payments, Itissatd by many that the currency is recundant and that we cannot return to specie payments until contraction lias taken place. We are referred to the Sage that before the war in 1860 the entire bank cir- ulation was but $202,000,000, and the specie in the vaults of the banks about $88,000,000 making less than 000,000; but at that time gold and silver were rculation as a part of the currency, and it is probable that there was more than $150,000,000 in the country besides that which was held in the banks. This would bring up the mixed curreacy to nearly $459,000,000. The Director of the Mint in Philadelphia in 1861 estimated the amount of gold and silver in the country at $275,000,000, which is nearly $50,000,000 beyond my estimate; ‘but there was another form of currency then much more in use than now, which must not be ovériooked in considering the aggregate currency of the country. ‘The paper Money consisted of the issues of local vanks and was not current except in the locality of the banks by which it was issued. Then the paper money of the Northwestern, Southern and Southwestern Siates was not current in New York and was not received there in payment of debts, The bank notes of the Northern States were not current in the Southern States, and vice versa. ence the payment of debts and com- mercial transactions between different parts of the country were conducted by bills of exchange and promissory notes, which amounted to many hundred millions of dollars during the year, This form of currency is still used, but not nearly to the same ex- tent as before the war. Now the greenbacks and national bank notes are of equal value in every part of the United States, and are transinitted in payment of debts and transactions of business from one part of the country to another by means of express com- panies and otherwise to the amount of many hun- dred millions every year. The books of the express companies show an immense transportation of paper money, the amount of which cannot be accurately ascertained, but 1t would be a moderate computation to say that $100,000,000 of our currency are now used in that way which were supplied by bils of exchange and promissory notes; and when we consider the pro; of the country since 1860, the rapid development and opening up of the Western States and Territories, the vast Pay of business, the magnitude of the national debt, the necessary collectiou of se reve- nues and the greatly increased expense of the gov- ernment in its general administration, we rea- sonably conclude that there is an actual demand for an increase of the currency over the wants of 1860 to the ainount of at least one hundred and fifty mil- lion dollars, Therefore, when you add to the actual currency of 1860 about four hundred and fifty mil- lion doliars, the amount of the currency now used in the place of former bills of exchange and promis- sory notes, and the increased demand for currenc; oteerwise growing out of the causes referred to, it doubtfal whether the currency 1s more redundant now than it was in 1860, when the banks were pay- ing specie; and if not redundant then contraction is not @ necessary preliminary measure to a return of specie pene) Again, it is said that the government cannot re- turn to payments until after we have checked the flow of our gold to Europe by largely, reducing our im) tion of foreign goods. case of putting the disease ior the remedy. Gold, like every other commodity, is governed by the great commercial law of demand and supply. It goes where it is needed and leaves the country where it is not in demand. In this country there is now but one demand for gold, which is to pay duties on im- ports. The great use to which it is ordinarily ap- plied—to constitute a currency and medium of ex- change—has been cut off for five years ana our gold has steadily flowed into other countries, where it is demanded for @ currency. In whatever country paper money has been made a legal tender it has in- variably driven gold and silver from the circulation and in great part from the country. Thus it is that Canada is now flooded with Ameri- can silver, ‘Thus it is that American gold has gone to Europe in a steady stream for five years, Thus it was during the French revolu- tion, when the assignats, a legal tender currency like our own, drove French gold into ali of the neighboring countries, so that when the assignats finally cola) , a8 they did in a single day, France found herself almost destitute of coin. And thus it was during the long suspension of the Bank of Eng- land, when Engiish gold went steadily out and was only recailed by the preparations made to revurn to specie payments. During the first tive years of the decade a June 30, 1863, our gold exports were $261,268,297; during the last five years of the decade, while specie payments were suspended, our exports were $413,690,000—showing an increase of $152,422,- 000, During the first five years our imports ot ‘gold exceeded those of the last five years $19,339,000, which, added to the $152,- 422,000, would ,make $171,811,000 of increased goid = loss during the last five years. We cannot retain our gold at home except by making a demand for it. The holders of it are not patriotic enough to keep it here for nothing. If we would re- duce the importations of foreign goods we must withhold the gold with which they are purchased; and this we cannot do except by making it more rotitable to eo at home than to send it abroad, Tntil we create this home demand the annual pro- duct of our mines in chief part will go to Engiand, France and Germany to swell the rich volume of their currency. Again, it is said that specie payments cannot be brought about by special legisiation, or materially aided thereby, but can be produced only by the bogie of general causes, such as the increase of the tariff, the increase of population and the de- velopment of the resources of the country, where- by the general credit of the government will be improved, To understand the merits of this pro- ‘ition we must consider what are the causes of he depreciation of the currency, and this I will do in Toop as proposition, which is said to present the best and readiest method of returning to specie payments, It is alelged that we can only raise the Valne of our currency by raising the value of our bonds in the market; that as we bring up the price of our bonds we shall thereby bring up the value of greenbacks; that we can only improve the value of the currency by ba pats | the general credit of the government. as shown by the value of our stocks; and to this end the surplus gold in the Treasury and that which is to accrue should be ap- lied to ia percnaes of our bonds in the market to be cancelled, thus diminishing the number of them and improving the Value of the balance. This view of the question I hold to be a total misconception. x ~ ne believe that the Capen! Re L oe jebt has tha or scarcély anything, to do with the aeprocintaou et? Gat tarreney: I belleve our cur- fener Would be deprecigied aa it jajf the govert- ent did ot owe t sige bond or if aii our bonds were at Pir. Why ts our currency depreciated? and why would it be depreciated if the government did not owe a single bon? Because the greenback note 18 a promise by the government to pay so many dol Jars on demand which it does not pay. The promise is daily broken and has long. been dishonored. The note draws no interest and the government has fixed no time when it will pay it. Under such circum- stances the note must be depreciated. The solvency or ultimate apility of the promisor to pay never kept overdue paper at par and never will, To do that something more is required than the ultt mate wealth or ability, of the promisor. There must be certainty in the payment and time of payment, and if the time of payment be deferred compensation must be made by the pay- ment of interest, Let me suppose, by way of argu- ment, that A. 'T, Stewart, the great merchant in New York, should pay off his numerous employes in due bills or notes payabie on demand, which drew no pore and which he refuses to pay on demand, and Will Ox no time when he will, notwithstanding his immense wealth and his entire ability to y his notes would inevitably depreciate, and could on! be sold at al discount h wouki be me! of dollars to be divided among his heirs, his notes for them, refuse to pay rity, suffer himself to be sued, then hire a lawyer to fight the cases. The result was that his paper was aura about: td streets OF ead | cents on the dollar, whit rhaps bor, who kept small store and was only worth ORTON. jousand dollars, but who was prompt fn the pay- nt bill for the teas it oo ae er Jes ' ed ay ph w r the resumption ment e ir. MORTON paid: ir: President, among the J rency we have to overcome value between the before the war ” greenback currency and the like amount of gold, and not the difference between two billion of bored debt and two billion in gold. Even if the credit of the government was so greatly depreciated as that her bonds were not worth twenty-five cents on the dollar, still 1t Would not be impossible to make the currency good and keep itat par. If the govern- ment did not owe @ single bond the value of our currency would not be improved, except by making arrangements to redeem it. The existence of tho bonded debt will not prevent the improvement in its value. If we should take the surplus gold in the Treasury and that which is to accrue, and use it in the purchase of bonds in, the market, to be can- celled as purchased, we should inevitably further depreciate the value of the greenbacks. The expla- nation of this effect is simple:—By taking the gold which is the only means by which the gree can be redeemed, and applying it to the purchase of bonds, it puts the redemption of the greenbacks out of the power of the government and proclatis to the world that it does not intend to specie payments, our currency by faking our sampine gold and inv ing it in bonds would be regarded by capitalist absurd, The gold thus paid out would not enter into the circulation, but would smk back into an article of merchandise to be gambled for as 1t now 1s in Wall street. What wontd the world think of the morality of such an operation ? We have $356,000,000 of the public debt overdue and drawing no interest and we take the only means of paying this debt and apply it to the purchase (at a discount) of our bonds, which will not be due under foureten years. What would be said of the integrity of a man who should refuse to pay his debts, which are due, leaving his creditors to suffer great loss, and should employ his money to buy up at a heavy shave his debts that will not be due under ten or fifteen years? Plain peopie would call such & ian a rascal and a swindler, and they would speak of the government in the same terms under tne same circumstances. The pretence that it was done to improve the value of the currency would deceive nobody. Sucha plan of returning to specie payments 18 worthy of the “Cir. cumlocation Office,” and should be labelled “How not to doit.” The greenback currency is a part of the public debt, for the redemption of which the faith of the nation is solemnly pledged. The re- demption of this pledge is not only demanded by every principle of national honor, but is impera- tively demanded by the interests of the people, col- lectively and individually, The currency of a coun- try lies at the foundation of its daily business and vitally affects the interest of every class and condi tion of people; and if the government, overlooking its honor and its duty, should take the only means by which it can be improved and apply it to the pur- chase of bonds which will not be due for many years it would merit and receive the indignation and contempt of honest men everywhere. But it is said that if the government reserves and holds the surplus gold in the Treasury to be applied to the re- demption or the greenback currency at some future time to be fixed by law, it will suffer great loss inthe interest on the gold thus held in reserve, In one point of view this objection is welltaken. But what else can we do? Is it nota difficulty to be encoun- tered by every debtor who collects and holds the money wherewith to finally pay his debts? Ifa man owed one thousand dollars can he pay it any other Deg than by collecting the money for that purpose and holding it untjl he gets enough to meet his debt? The government owes a debt which can only be paid in gold, aud it must, if it intends to pay It, collect the necessary amount in gold. If the debt was of that nature that the goid could be paid out on it as soon as collected, of course it should be done; bat the debt is not of that nature. If the government should BS out the gold as fast as it is received the redemption of the greenback currency it would fail to bring the remainder of the currency up to par, and the gold thus paid out would sink back into an article of merchandise, such as it now ts. The redemption of the greenback currency should not begin until the government is prepared to re- deem all that may be presented, for this would at once bring the whole body of the currency to par, and the gold paid out would go into the circulation and take the place of the paper money redeemed ; but if paid out by piecemeal in advance it would not go into circulation or bring up the balance of the currency to par. Bat what will be the actual loss of interest on the gold held in reserve compared with the loss sustained by the great mass of people in their labor, trade and property to be suffered by the continuance of the present condition of the cur- rency? Scarcely as one dollar isto the hundred. The losses by the failure to employ labor, by the stagna- tion of business, by the paralysis of trade, by the delay in general pi 8s and development brought about bya depreciating and fluctuating currency, when estimated in dollars, would form a vast sun, compared with which the loss of interest on the reserved gold would be a mere bagatelle. But if we do not obtain the gold to redeem the greenback currency in the manner prose. in what other way, or at what time shall it be obtained? Shall the government go into Wall street and buy it, like the hmporter or the gambler? or shall we sell new bonds in Europe at seventy or seventy-two cepts on the dollar and obtain it in that po ‘Wiil it be easier to begin the process at the end of five years, the nation suffering in the mean- time all the evils of depreciation? Shall the nation stand shivering for years on the banks of this Jordan and then make the plunge when the waters are deeper, swifter and colder than now?’ Such is not the part of wisdom or patriotic statesmanship. If an individual fails to pay his debts payment may be enforced by the law against his property; but against the government there is no such remedy. What would be mere neglect or failure, therefore, on the part of an individual would be repudiation by a ar. ernment. ifthe back note 1s to be regarded as an obligation, for the payment of which the govern- ment is pit |, the continued failure of the govern- ment to make any provision for its redemption can- not be regarded any other light than repudia- on. When the first of these notes were iasued it was provided that they might be funded into five- twenty bonds; but that provision was shortly after repealed, and they now stand in the nature of a forced loan, Ge Na interest, and for all that appears are to ve left to perish in the hands of the peopie. If when the five-twenty bonds fall due the government should fail to BY, them or make any satisfactory provision for funding them into new bonds, the cry of repudiation would at once be raised, and yet it cannot be shown that the legal an moral obligation to pay these bonds at maturity greater than that resting on the government to make prompt provision for the redemption of the greenback currency. The legal obligation is no ge oA and the moral obligation hardly so strong; jor the greenback notes are, in fact, the peo- ple’s bonds—the bonds of the millions, in which are invested the laborer’s toil and the meagre profits of the humble occupations in life, which more than any others aemand the fostering and protecting care of the government. But while it is true that the dis- count on our bonds has little if anything to do with the depreciation of our currency, it is also true that the depreciation of the currency has much to do with the discount on the bonds. I do not believe that our bonds will ever reach par or — it nearly until the currency is made good. The legal tender currency of a country bears an intimate and perhaps a mysterious relation to every form of credit and security, both public and private, and if it 1s depreciated inevitably drags theta down to its own level. This I state as a general proposition, to which there Ley @ be a few exceptions dependent upon grounds that can be readily explained. Tne legal tender currency is at par in contemplation of law and in the payment of debts, though it May not be worth six cents on the dollar, It is the “par and measure of price and value recognized tn eo the ordinary business of of propert; the country. ie prices and all articles of trade are not given 80 much tn gold, but in backs; and the tender value of the green- Back is so identified the public mind with the paren ere in price of every species of property, merchandise and rf that it assimilates to itself as weil as the price of securities, even though by tueir terms they may be made Ce ot payabie in gold. W' Mna a full ilustration of the operation of tbls prinerpe tm the history of the five-twenty and ten-forty bonds, These bonds were sold at par by the government for greenbacks when the green- backs ranged in vaiue at difereat times from ninety thirty-four cents oa tue dollar. Whatever migut the valve of the n- back dollar the bonds were still sold at ir for that dollar; and such i the measure of value o-day In the markets of the world. The five-twenty bond is sold at $1 10, $1 11, $1 12 and §1 13 in green- backs in New York. The premium grows out of the nual payment of a large interest, and It ts hardly so large as the premium which was paid on United States six per cent stocks before the war in gold; so that in poms of fact the par value of these bonds in New York is measured by the legal “par’’ of the greenback currency. The Value of the ten- forty bonds in the market, although by thei expre: rte Be egal terms payable in gold, is gover “par,? and what trig Of the iaarket value of these bonds in the United States is equally true of tieir market value in wenkid Here their market value 3 is calculated tn greet and there in gold. There ‘he Pulse ranged from sixiy to seventy-two cen dollar in gold, and ts always kept within the gold value of the greenback currency in New York, perhaps with the addition of two or turee — porns ou of tae jem B a = them at. hom ecoun jarge in- terest. Thi Shard Yor been able. to. escape from the thraldom of the greenback currency elther at home or abroad, and never will while it remains in cir culation, As the value of our legal tender currency goes up the price of our bonds will £9, up with it; and what is true ol government securities is equally true of the great mass of American securities, pub- lic and private. State stocks that were at par in gold before the war are now at par in greenbacks, although they are certainly as good now aa they were then, ‘Their gold value fas fallen off from twenty- five to thirty per cent, To this statement there are two exceptions, thestocks of Massachusetts and Calt- fornia, which have faaintained their former price in gold, because the interest has always been paid in gold, and few, if any, of them are on the market. Railroad bonds, which as general thing are Worth more now than before the war, because the floating debts of the companies have been paid off and their business generaily im- proved, were avout par tn gold before the war, now command about the same price iu greenbacks, show- ing that their gold value has been reduced from twenty-tive to thirty per cent. Of course, the rela- tive prices of bonds are not entirely uniform, be- cause various circumstances enter into them; but it will be found on examination that they bear about the same ral price in greenbacks that they did in gold before the war, Another obstacle to the adoption of any plan for returning to specie peymans ia the cry that the Pp Bde to resume at once. I have labored to find that this means anything eine but the indefinite postponement of resumption. one most iprehend that the government cannot re- deem greenback currency without first collecting the to do it with; that it cannot return to specie Dy contraction without time to con- with all ite attending calamities in short, 3 there is no process by which it can be done, however ruinous, that does not involve time, If the govern- ment should pay out the seventy millions surplus gold now in the Treasury in the redemption of am equal amount of greenbacks, the whole country would Know that it was not prepared to redeem any more. The gold paid out would not be pail to cir- culation, but sink back into an article of merchan- dise, the balance of the greenback currency be but little improved, and the net result of the operation would simply be the contraction of the currency to the extent of seventy millions and the indefinite postponement of the lemption of the balance, But the great obstacle to the return of spe- cle payments and the one which we will have (he greatest diMculty in overcoming is the interest againsi it. The premium upon gold and the advan- tage it gives to certain classes over others was una- voidable in the beginuing, but should not be allowed to continue a single day longer than is necessar. ‘The present condition of things produces great in’ qualities among the people, which, if longer con- tinued, will give rise to heart burnings and tend to demoralize the public sentiment in relation to our national operations, To illustrate—I will suppose that A income of $5,000 in gold, derived trom interest on Unitea States stocks. Upon this he would pay an income tax in currency, but no tax on the stocks from which it is derived. When this income 1s converted into currency it will net him about $7,000. On the other hand, B has an income of $5,000 in currency, derived from agricul- ture, merchandise or manufactures, and pays a tax of at least two per cent on the appraised value of the different kinds of property from which this in- come is derived. This will reduce his income proba- bly to $3,500, upon which he pays an income tax, leaving @ balance in favor of A, as between them, of $3,500, To iliustrate again:—A is the owner of $10,000 in five-twenty bonds, from which he derives an income of of $600 in gold. This gold, when con- vert will realize $800 in currency, and upon his bonds he pays no tax whatever. B is the owner of $10,000 in six per cent ratiroad bonds, from which he derives an income of $600 in currency. Upon these bonds he pays at least two per cent for State and county purposes, which will reduce his income to four hundred dollars, just one- half the amount of A. B may, perhaps, not feel very comfortable over this state of things, aud will be led to inquire into the causes of the gross inequality. He will be told that ‘so far as {f arises from taxation itis unavoidable, as the States cannot tax govern- ment securities; but, so far ag it arises from ihe con- dition of the currency, apres relief may be afforded by the government if it will. Equal ts are the gift of God to all men and equal conditions in s0- clety, equal facilities for acquiring wealth, equal re- wards lor labor and the equal support of public burdens should be given by every government to its people so far as it may be possible. To the man who lent his mianay: to the government to. carry on the war for the suppression of the rebellion Iam grateful, whatever may have been his motives. He was a public benefactor and entitled to the thanks of the nation. To him the government must keep iaith, whatever that faith may be; for good faith covers a nation like a clear and refreshing atmosphere, which imparts health and vigor to men, and through which all nature seems beautiful and bright; but when faith is broken it is asif the air were filled with noxious vapors which obscure the sight, impair the health and end in darkness, disease and death, But while our creditors should receive all that the: are entitled to in law and equity, it is not bad fait to improve the condition of the balance of the peo- ple and bring them up as nearly as possible to the same prosperous level. The exemption from taxa- tion is a legitimate advantage as it results from the nature of their securities; but the additional profit of a premium on their gold was accidental in the beginning, and if continued for their benefit and beyond the necessity which created it would become irandulent to the rest of the nation. The credit of the United States government was never so good as itis now. There is more con- fidence to-day in the perpetuity of the government than ever before. {It lias been tried as no existing government ever has, and in the midst of the strug- gle, when its life seemed to hang upon a thread, revealed the existence of a credit and of vast re- sources that astonished the world, At the beginning of the war and before it could not borrow a dollar in Europe and can scarcely be said to have had any credit; and this was one of the things relied upon by the conspirators in their calculations as to the amount of resistance it could make to the rebellion. Its resources never de- veloped so rapidly a8 now, were never 80 well understood as now, and the faith of the peo- fie in the destiny of our country 1s greater than ever fore. While there are very few men in the coun- try who doubt the ability of the government to pay off the whole debt, I have never met with ono who doubted its ability to redeem or pay off the legal tender notes. In regard to the redemption ot these notes, it has never been @ question of ability, but of purpose; and to say that these notes cannot be paid until the general credit of the government is improved by the expenditure of some hundreds of muilions in the pure! of bonds that will not be due for years to fly into the face of common sense and insult the intelligence of the peo- le. If, a8 I have before said, there is an intimate and inexorable relation existing between the legal tender currency of a country and its public securities, by which the value of its secu- rities can never get beyond that the currenc; which the business of the count be said to live, move and ‘have its being, then the te aa tion of the gold to come into the Treasury for the next five or ten years to the purchase of bonds could add but litle, if anything, to the value of the rest of the bonds or the currency. But one thing id certain, that, while nobody doubts the ability of the governmeht to pay the uotes by making rea- sonable preparations, if the government neg- lects or abandons the currency, under whatever pretence or disguise, and applies its surplus reve- venues to the purchase of bonds, with a view to improve the value of the rest of them, and thus legislate for the benefit of a class, the only class in this country doing well enough and better than any other, the currency will sink from that hour and the very foundations of good faith will be shaken.’ Such legislation would be notoriously and@ wickedly partial and unjust. What would be thought of agreat railroad corporation that should refuse to pay its overdue floating debt and apply its current revenues to liquidation of its long bonds, under the pretence that it would thereby improve its ability to its floating debt? But such legislation would ‘as stupid as it would be wicked; for the depressed currency would inevitably carry down the bonds in its close embrace. While our overdue paper, drawing no interest and for which no time of payment is fixed and no _ preparation made, must necessarily be depreciated, as it now 1s, still that depreciation would be far greater but for the general faith existing among the people that the government will speedily make arrange- ments for its redemption. When this faith is broken the currency will sink lower and sink rapidly. ‘The Secretary of the Treasury, in his last report, after making an able argument to show the evils of a de- preciated currency, begins his discussion as to the means of returning to specie payments with the fol- lowing statement: a 5 ‘The Secretary still adheres to the opinion #o fréquently ex. pressed by him that a reduction of the paper circulation of the country, until it appreciated to the paper standard, was the true sulution of our Hnancial problem, But, as this policy was emphatically condemned by Congress, and it {s now too late to return to it, he recomtnends the following measures as the next best calculated to effect the desired result:— Hero the Secretary reiterates his former opinion that, by largely contracting the paper currency, the rest of it would be appreciated to par. How such contraction could have this eifect he has never shown, and the opinion results from a misapprehension of the causes which depreciate the paper currency. Suppose the greenback currency ‘Was contracted down to Can way ng could the re- maining $100,000,000 be brought to par in any other way than by making arrangements to redeem It? You cannot pay a debt without preparing to pay it; and every trick or device to bring the currency up to par without making preparations to redeem it cording to the promise on tte face would be abortive and disastrous. The currency t# depreciated because it is overdue and dtshonored—draws no interest— and there is no time fixed or preparation made for its redemption; and these causes would depre- ciate it If there were but $1,000,000 of it afloat. The effort to force depreciated and irredeemabie paper up to | by making it scarce and pinchin; the people, is like an attempt to enhance the price ot unwholesome provisions by producing! a famine. The means fe suggests for returning to specie pay- ments are two-fold—the first is to legalize specific contracts to be executed in com. I voted for a bill for that purpose last session without much consid- eration, and have since become satisfied it was an TOP. ¢ unwary would be enticed into such con- racts by the crafty, and those in straightened cir- cumstances or under heavy pressure would be forced intothem. No man can safely make a con- tract to be executed in coin while the currency is depreciated and the financial condition of the country, 1a Quctuating. Such contracts were not brought about by coercion, or fraud would be in the nature of gold gambilng, the one party trusting that gold would be at a larger premium when the contract was due and the other that it would command litue or none. It could hardly be distinguished from a contract for the delivery of gold at a future time. Shouid coin contracts be legalized, however, as pro- posed, it should only be in connection with some general plan to return to specie payments at a fixed period. But, aside from the evils, and hardships to result from such contrac jow could they ap~ preciate the value of the currency any more than common contracts for the future delivery of gold? They would not constitute any preparation.on the pari of the goverument for the redemption of the currency, and therefore could not to any perceptivie extent appreciate ite value. ‘The second means for returning to specie pay- ments is contained in the following passage trom the Secretary's report:— And he therefore recommends, in addition to the enactment by which contracts for the payment of be that it be declared that ater, the Ist ‘or all private sndaequently con . the Wht day of Jaouarys 1871, they shall cease to bos legal tender on any contract or for any purpose whatever, except government dues, for which they are now receivable: ‘The laws should ai at the pleasure of uihorize the conversion of these votes into bonds bearing such rate of 4 by Congress on the debt into outstanding bonds may be funded. It is not enough, it seems, that the currency is already depreciated thirty per cent, that the govern- ment has violated itt contract with the holders and dishonored its pledge, but it Is now proposed to pA e = cocaine, of its” “ ‘ta teed stripping it of its legal tender characjer. tender character by Awhich D tL nade lawful mone, and may be used tn the payment of debts has addled at least one-third to its current value. Aud this heavy loss the Secretary proposes to Inflict upon the holders of the currency at the times mentioned, The CONTINUED ON TENTH PAGE