The New York Herald Newspaper, April 11, 1874, Page 4

LEGAL TENDERS, Their History in the United States. First Emission of Paper Money | in the Colonies. Pees ENGLAND FORBIDS THE ISSUANCE. Wampum, Tobacco and Fish as Currency. THE REVOLULIONARY PERIOD. Efforts to Stop Depreciation in Paper Money. A THOUSAND DOLLARS FOR ONE. The Ruinous Policy of Inflation Illustrated. ‘The issuance of paper money made compulsory on the people to receive constitutes a most in- teresting chapter in tbe history of the Unitea States. Through the colonial period the legal tender was a continual, though not au insepara- Die incident to a bill of credit. It was se much so Unat the English Parliament interfered to separate the two, and while sanctioning the bill of credit forbade ithe paper legal tender. During the war of the Revolution, when $200,000,000 had been emitted, the phper of the government became act- ually valueless, and the country was to a consi ble extent saved irom ruin by the Lard mouey brought by the French army, that went into circs lauon. In every instance it was found that infla- tion or over-issues led to steady depreciation, and also to commercial disasters and the undermining of pubiic morality. A contraction of the currency and a resumption of specie payments were con- sidered on all sides to be the safeguards and props of the country. TWO KINDS OF PAPER MONRY. It may be well to point out the difference which exists between paper money issued by gove ment, and which is rendered obligatory on the people to receive, and that species of paper money which consists in the notes of bankers, payable to the bearer on demand, and which pass current for the sums specified in them. Of the former Kind were the assiguats and mandats issued by the government of France during the first years of the revolution, the paper money issued the United states in their struggle !or independence and during the late rebellion; that which was issued by the Dutch during their long wars for in- Gependence, and, generally speaking, the paper Money which most of the governments on the Continent of Europe found themselves compelled toissue during tne French revolutionary wars. Thege two species of paper money differ com- pletely and essentially. ™ general the ‘paper issued by the governments of the Continent of Europe contained no promise to pay either on demand, or at the termination of a limited or specified period; it was in reality nothing more than paper stamped with the amount of the sum for which it was to pass current, and with such marks or signatures as might serve to distinguish what was gengine from what was forged. The essential difference between government and bank paper is that the former is in fact paper money, or in other words paper issued as money instead of the precious metals; the latter, though denominated in popular language paper money, is but @ written obligation to pay 4 certain sum of money on demand. Ii is plain, thereiore, that tf the written obligation to pay 4 certain sum oi money on demand is given by persons who are of undisputed and established credit, few will be disposed to re- fuse such wriiten obligation, and therefore this species of paper currency’ wiil be received without compuision, aud where the credit of the issuer or issuers is undoubted, equally as metallic money. ‘The legal tenders now in circulation in the United States lave no specified time jor payment. They are irredeemabie. EARLY HISTORY OF PAPER MONEY. From the earliest days the American colonies ex- ‘perienced that insufficiency of capital to meet their growing wants which has ever atrended new settiements, and in nothing was this want of cap- ital More manifested than in the scarcity of cur- Tency. This scarcity affordea occasion, as stated, for the English Pariiament to exercise a control of ‘the Colonial Legisiatures, and in consequence such interference became @ source of collision, The scarcity of gold and silver might be increased by the restraints on the commerce and industry of the colonists; but it would have existed under any circumstances. Hence it was that the first set- tlers used the [Indian Wampum and beaver skins as currency; that fish was used in Newfoundland nd tobacco in Virginia for the purposes of cur- rency. With this deficiency in currency, when the colonies were involved in the expense of raising and paying troops, they were induced to issue bills of credit, or promissory notes, which, being pay- abie to bearer and divided into sums of small amount, answered the purposes of currency; and they were subsequently led to further issues asa cheap and ready way of remedying the gen- eral scarcity of mone; In 1713, to defray the cost of an expedition to Canada, New York issued bills to the amount of £20,000, Connecticut of £80,000 aud New Jersey of £3,000, THE FIRST LEGAL TENDERS. ‘These bills of credit, being redeemable at a dis- tant day, and being commonly issued in excess, gradually depreciated, although to sustain their credit the colonial legislatures made them a legal tender. As this provision proved mjurious to the British merchanis, to whom the colonies were generally inucoted, the governors of the colonies Were at length instructed to prevent the passuge Of any law autuorizing ‘urther issue of paper. This restriction caused great alarm in Massacausetts, ‘wiiere the paper currency, being redeemed im an- Nual quotas, must be constantly decreasing, un- less they could make new issues. They therefore devised the expedient o! a currency to be issued by @ land bank, for which a company was iormed: but before it obtained a charter trom the Colonial ‘Legisiature ihe company Was dissvived vy an act | Parliament, Anothér act of Parliament was finally passes providing that no paper money should be @ legal tender in the colonies. This di position Was so plainly and trequentiy manit ‘Ou the part of the mother country to draw tue cord of colomial depenuence tighter tuat even then mien discussed the problem whether this confict jeeling and interests wouid not lead to a sevara- ion as s00n a8 the colonies bad suMicient strength to effect it. DURING THE REVOLUTION. Several years previous to the Kevolution most of ‘the States were in the habit, notwithstanding the {mperial prohibition, Whenever they had ovcasion for more money than couid be raised immediately by taxes, to issue paper, notes or bilis, in tne name Oi the State, Wherein they promised to pay to the ‘bearer the sum named in the mote or bill. ‘in some ol the States no time of payment was Sxed nor tax Jaid to enable payment. In these the bills depre- ctated. But others of the Statea named in the bill the day when it should be paid, laid taxes to bring jn money enough for the purpose and paid the bilis unctually on or before the day named. In these tates paper money Was in as higi estimation as gola and silver. On the commencement ot the Rev- olution had no money. The external commerce of the States being suppressed, the farmer could mot is produce, and, 0! course, could not pay & GVongress hac no recourse then but in mney. Not being able to lay a tax for iption, they ld only promise that taxes would be aid for thay purpose #0 as to redeem the bills by a certain day. They did not joresee the long continuance of the war, the almust suppression of their exporis and other events which rendered the periormance of their eugagements impossivie. THB PAPER MONBY CONTINUED EQUAL TC GOLD an ver jor atweivemonth, But the quancities Waicn they were obliged to emit tor tue purposes of the war exceeded what had been the usnal quantity of the circulating medium, It began, u 10 to become cheaper, or it depreciated as | @0ld @@@ silver would have done Lad they been ‘agers inte cieenie tes in equat quantities. Bus | re, re) N G R E Ss + not having, uke n intrinsic Vaiue, its depre- ciation was more ever have happened with them. " had fallen to two aoilars of paper Money in three years to four Lo one; it nine montis nd greater than could vith iat two years it for one in silve! more it fell to ten to one, and in the six MOnLLS [Ol lowing, that 1s to say, by ptember, 1779, tt bad fallen to TWENTY DOLLARS IN PAPER FOK ONK LN SILVER. | Congress, alarmed at the consequences which were to be apprehended should they lose this | resource altogether. thought 1s wecessary to make | a vigorous effort to stop tts turther depreciation, | They therefore determined in the first piace that | thetr emissions should not exceed $200,000,000, to ‘which term they were then pearly arrived; and though They knew that $20 Of what they were then | issuing would buy no more tor their army then | one stiver doar would buy, yet they thought that | it would be worth while to surat to the sacrifice | of $19 out of $20 if Lhey Could thereby stop further | depreciation. They therefore published an address | ve cher constituents in which they renewed their | original declarations, that this paper money should | be REDBEMED AT DOLLAR FOR DOLLAR. | -vhey proved the ability of the States to do this, | and thas their bel would be cheaply bought at that price, The declaration was inetiectual. No man received the money at a better rate. They |,even went iurther, On the Mth January, 1777, | they passed resolutions that the Continental money | ongot to be maintained at its nommal value; that | those who should exchange their goods for more | tt buls than im specie should be deemed enemies | to the liberties of the United States ‘and shoulda , Jorteit the vaines so exchanged, The Legislatures oi the various States were, moreover, recom- mended to enmiorce these penaities, to make the buls a legal teader, to provide for calling im and , Sinking their respective quotas of the emissions, aud, lastly, to raise by taxation such sums as they should think required in the then situation of tne country. This was also ineifeciual, In six months more tt had fallen to lorty for one, Congress then tried an experumeut Of a different kind. Consider- ing their iormer ofers to redeem this money at par as relinquished by the general re‘usal to take it but | in progressive ‘depreciation, they required the Whole to be brought in, declared that it should be | redeemed at its present value of forty tor one and that they would give to the oolders new buis, re- dneed in their denomination to the sum of gold | Or silver which was actually to be paid ior them, | This reduced the nominal sum of | THE MASS IN CIRCULATION | to the present worth of that mass, which was | $5,000,0C0—a sum not too great Jor the circulation Of the States, and which they, thereiore, prayed would not depreciate further, a3 they continued firm in their purpose of emitting no more. This effort was a8 unavailing as the former. Very litte of the money was brougnt in, It continued to circulate and to depreciate till the end of 1780, when it had tailen to seventy- five jor one; and the money circulated trom the French army, being by that time sensibly current mali the siates uorth of the Potomac, the paper ceased i Iu Virgin ud North Carolina tt contiaued a year longer, within which time it fell to ONE THOUSAND FOR ONE and then expired, as it had done in the other States, without a single groan. Not a murmur Was iieard on this occasion among the pecple. On the contrary, universal congratulations took place | on their seéing this gigantic mass, whose dissolu- tion bad threatened couvuisions which siould shake the infant comiederacy to its centre, quietly »uiterred in its grave. Foreigners, indeed, wno did not, uke the natives, feel indulgence for its memory as of a being which had vindicated their liberties and fallen in the moment of victory, long con- tinued loud in their complaints. Many of them , were persons who had become bankrupt by an- skillul attempts at commerce wii America, Justice was at last done to all by paying what the paper actually cost them, with interest at six per | cent from the time they received it. in deter- muning the tatter point Congress acted liberally by admitting easy proors. STANDARD OF VALUES. it was found, however, that in all countries where @ compulsory government paper is issued | the metals, even wnen coined, soon are regarded solely as commodities and are affected equaily with ail other commodities by the increased issue of the paper currency. check to the issue of government paper and ex- lravagant or careless expenditures call jor in- creased issues, 4 depreciation of sucn paper neces- sarily ensues and each stage in the depreciation occasions a iurther issue, which, in its turn, de- preciates, increases tne depreciatfon; for when the government perceives that $1,000 in paper money will no longer.command the same quantity | of commodities it needs tnat it would formerly do, but that $1,100 is requisite tor this pur- 18 compeiled to iucrease its issue ol paper money in this proportion, and this in. creased issue again raising the price of com- modities requires a stil larger issue, the next lume @ purchase has to be made. Money, of what- ever itis composed, whether of metal or paper, lke every other commodity, depends for its value on the proportion between it and the commodities for which it is exchanged, aliered or deranged tie value of the money will be aliered; tf while the quantity of the money re- Mains the same the quantities of commodities be diuinished, the money must necessarily bear a larger proportion to them than it previously did, and consequently its power to purchase them will be lessened. Buti!, while the quantities of com- modities continue stationary, tue amount of the reulating medium is increased the same result will happea—that 1s, the power of the currency to purchase will be dimimisned, and the currency theretore, as far as it 18 considered in relation to commodities, wiil be deprectated. EFFECTS IN THE COLONIES. During the Revolutionary War several of the States issued paper currency to a large amount. Virginia, in 1775, emitted the sum of $1,750,000, but it was well undersiood great depreciation would joliow. Massachusetts in the same year issued botes for #4 and upwards, but the Provip- cial Congress was soon alter ubiiged to reduce the denominations to sums ranging from twenty to six shillings. When tis money was used or ine pay- Ment oi debta, as it commonly was, irom necessity as well as choice, the loss oj the depreciation tell | solely upon the creditor class; andin this way many whose property was soid upon a credit re- ceived not more than @ half, or perhaps a fourth, or yet less of what was justly due them. Such a state of things was also productive of a moral mischiel. It tended to unsettle men’s notions of Tight and wrong; it famularized them to injustice, aud it held out temptations to perpetrate it. An eager and restiess spirit of traMc was evoked throughout the community, andin this way an undue tiirst tor gain was engendered as weil as a | greater disregard ior the means of gratifying it, and carefal observers could perceive these effects loug alter their original cause ceased to operate. THE PRESENT CURRENCY. When it was found in 1862 that the amounts raised by loans, by taxation and trom other sources were insumMicient to meet the expenses of subduing the rebellion, a bill was introduced autoorizing the issue for the first time o1 legal tender notes. The amount specified was $150,000,000, protracted and able, Some of the leading repub- licah members opposed its passage os uncousttu- tional. It was argued that the bil was the pre- cursor Of @ prolific brood of promises, not one of which would be redeemed in the constitutional standard of the country; it was condemned as a measure not blessed by one sound precedent and Gained by all. The constitution, jt was held, pro- pee ee ia SR making anything but gola and silver‘a tender in payment o1 debts. It guve power wo emit bills of credit, but the power to inake them a legal tender was nowhere given, and Mr. Roscoe Conkling, of this State, declared bea f not in the constitution there was an end or all.” THE OTHER SIDE. On the other hand it was admitted that gold and sliver were a legal tender, but it was coutended that there was nothing in the constitution ex- pressly declaring anytuing a legal tender. The States are prohibited trom making auything but gold and silver a legal tender; but as there is si- Jeuce on wni8 point in reference to the United States, it was argued that the matter was left dis- cretionary with Congress. Congress had trom time to time cuanged the alloy o1 gold and silver com. It possessed the power, which was first exercised in 1792, to make such metals @ legal ten- der in payment of debts. If, in the meantime, Congress again changes the alloy, de- basing coin to one-third Of its value, it was asked if that coin so debased could be made @ legai tender. If such were the case it would be a8 much a violation of the constitution as to make paper a legai tender. The making of the proposed issue Of $150,000,000 a legal tender might still be avoided If the wiltingness mantiested by the peopie generally, by ratiroad companies and by Many banking jaSstitulions, to receive and pay them as money in ail transactions were absoiutely or practically universal; bot some persons and some institutions refused to receive and pay them. it was therelore grgued, in vi of the critical condition ot t! ouLtry, that by making the notes a legal tender all citizens would be placed on the sume jevei. The bill passed and was jollowed vy others, under which the present greeniack cur- reney of the country came into circulation. REVOLT AT SING SING. Fifty Convicts Deflantly Refuse to Work—An Alarming State of Affairs. The spirit of open and defiant insubordination seems to have again raised its troublesome head among the inmates of Sing Sing Prison. In one of the cabinet shops, yesterday, filty convicts re- voited in a body and absolutely refused to com- mence their daily task. Alter remonstrances and threats had proved unavailing, the rebellious jall- birds were escorted under @ strong guard to tneir cells, wifere, under the rigid influences of prison punishment, fiteen of the number be- came penitent: and were taken back to the shop. rhe remainder are stilt locked up in dark cells, aud at last accounts little hope was entertained of re- ducing them to cheerful suymission, It seems that the troubie has been occasioned an inveterate dislike on the part of the convicts fo one of their keepers, named Kirby, whose removal they de- mand in the most insolent terms, case their demand is not complied with convicts in the other cabinet | shops | have intimated their intenuon to revolt to-day. At “locking Up” time last evening iutense excite ment prevailed among the inmates of the prison, some of «the More vesperate convicts swearing that they will repeat the alarming revolt of 1869, and = once oe oO; their ceils tiey will resist to the death any attempt vo warch We rk 0 | into the prison, ae OE ee NEW YORK HERALD, SATURKD As, therelore, when there is no | if this proportion is | ‘the debates on this Measure were | | Butler Renews Battle and Is Routed. Pe cel The House Clings to Its Own Currency Bill. -o——_— EXCITING VOTE. nacnicneniesidienbomani An Inflation Measure Shorn of All Redemptory Features. AN Seeieesiael RAILROAD REGULATION. Fresh Discussion of Public Docu- ments and Franking. HOUSE OF REPRESENTATIVES. WASHINGTON, April 10, 1874. Mr. BUTLER, (rep.) of Mass., intreduced a Dill torepeal so much of the laws relating to the army organization as establishes distinctions to | the prejudice of American colored citizens. Re- ferred to the Committee on Military Affairs, Mr. CREAMER, (dem.) of N. Y., offered a resolu- tion reciting that the Commissioners of Emigra- | tion in New York had recently made ruies depriv- | ing the emigrant aid societies of the power to | render protection and aid to emigrants, and in- | structing the Committee on Commerce to investl- gate the matter. Referred to the Committee on Commerce. A MODEL MUNICIPAL GOVERNMENT. Mr. PLart, (rep.) of Va,, made a personal ex- government of Petersburg was in the hands of de- signing and corrupt leaders, of ignorant men, and Speaking of some of the latter as shiftless negroes. | He declared that everything in the paragraph was faise. There was not a shadow of truth in it. | The city of Petersburg, under its present republi- | can administration, was the mode! municipal gov- ernment of the Southern States. Since the repub- | lican party had got control of the city, in 1508, it had largely reduced the city debt and had reducea the rate of taxation from $1 80 to $1 40 per $100. | BUTLER RENEWS THZ BATTLE. | Mr. BUTLER, of Massachusetts, then called up bis motion to reconsider the vote of yesterday post- poning the Currency bill, and proceeded to give the reasons which actuated his course in the matter. His object was, he said, first to have the Senate bill when that relie! was secured, to go on and perfect tae Currency bill reported by the Banking Com- maittee. (rep.) of Kansas, asked Mr. Butler Mr. Coss, whether he was in favor of the iree banking ciause of the House biil and would support it. | planation in regard to an editorial article in a | circalation altogether in these States. | New York paper, asserting that the municipal | | therein prescribed shall be applied solely to the Starkweather, ‘Bt John, Stone, Btrawbridge, Rwann, Thomas. Towusend, i Wheeler, Whitehouse, Whiteley, wore Iver, Willard of Vt, Wittard of Mich. pred Pie Fier Willlains of Ma: Pike,” Williams of Mic! att of N.Y, : Fovand, Woolford, and the Potter, Speaker. orn, Hawiey of Conn., The question was then taken on reconsidering the postponement vote, afid it was reconsidered— yeas 128, nays 120, The vote then came back on the motion to post- Leccth Bnd it was rejected on a vote by tellers—79 THM PREVIOUS QUESTION AGAIN. The bill was taen brought: again before the House for action, Mr, MaYNakD, (rep.) of Tenn., Bre) a to re- open the debate, in order to let jawes speak on the bill; but objection was made. The previous question was moved and seconded on ali the pending amendments, and the House prooeansd: to vote upon them in tueir order, The Tst vote was On the amendment offered by Mr. | Mitchell, (dem.) of Wisconsin, @ member of the Banking Committee, to add to section 2 the follow in “Provided, That in case bg Bat tn of the na- tional bank bote circulation beyond the present authorized Mumit of $354,000,000 snail take piace the decretary of the Treasury is hereby authorized and directed to retire and cancel legal tender notes to the extent of such increase until the out- standing and unpaid legal veuder notes shall be reduced to $300,000,000, and itor this purpose he is authorized to use any existing surplus revenue, or im de/auit of any such surplus to sell five per cent bonds of the government.” The amendment was rejected—veas 79, nays 160. The next vote was on an amendment offered by Mr. Biery, of Pennsylvania, to strike out sections 7 and 8 of the bill, Kejected without the yeas and nays. Y THE RETIREMENT OF GREENBACKS REJECTED, ‘The next vote was On an amendment offered by Mr. Farwell, (rep.) of Il. (a member of the Bank- ing Committee), to insert the following as an additional section to Mr, Merriam’s substitute :— “That so much of the flith section of the act en- titled ‘An act to authorize the issue oi United States notes and for the redemption or funding thereot and for tunding the floating debt of the United States,’ approved February 24, 1862, as relates to the purchase or payment of one per cent oi the entire debt of the United States annually and the setting the same apart as a sinking fund, be so amenued that said purchase of one per cent as non-interest bearing debt of the United States known as United states notes, which said notes, | | Mr. Merriam, (rep.) oi N. Y., of the Banking Com- passed without an amendment, and then. | Mr. BUTLER replied that he was favorable to a | | provision for tree banking, but not in the precise Jorm provided in the House bill, He was in favor of jree banking i! that was the best thing that | Out the seventh section of the bili, which could be done ior relieving the dearth of currency. | He intimated his belief that the President wouid not veto a bili Which would legalize his own ac. tion, He wanted the Senate bill passed to-day for the relief of the public mind and for the relief of the business of the country, and then he would go In for perfecting the House ‘bul. In the language of the New England dshermen he thought they nad better ‘‘pawi’—that is, pat down the catch and , hold what they had got, and then spit on their bands aad take another heave, (Laugiter.) THE PRESIDENT’S VETO. Mr. KELLOGG, (rep.) Of Conn., asked Mr. Butler whether he had understood him to say that the President would not veto the Senate bill. ‘The SPEAK@R (interrupripg)—That is wn im- proper question, never to be discussed Mr. KeELLowG—That is precisely why! ask the question. z ‘The SPEAKER—The Chair did not observe the gen- tieman from Massachusetts use the phrase or be | woulu have stopped him. it 1s an inyasion ot th dignity and rights of the House of Kepresentatives a re to the possibility of the President vetoing a bill, | Mr. BuTLeR—1 was dealing with what I saw in | the newspapers, and I beg pardon of the House ior | doing so—(laughter)—and not with any other view. I want the matter brought forward so that | newspaper slander, as I believe it, on the Execu- tive, charging him to be an obstructionist to the prosperity of the country, may be removed. That is all. Lonly mentioned it in @ negative sense—not in a positive sense. Mr. DAWES, (rep.) of Mass.—I would like to know | whether it is more parliamentary to allude to it in @ negative sense shan in a positive sense? ‘The SPEAKKR—The Chair thinks not, Mr. BUTLER—I stand under correction. It 1s not parliamentary, then, tosay that! do not think a Wan will do a ioolish thing ? SHARP SHOOTING. | Mr. Cox, (dem.) of N. Y.—The gentleman from Massachusetts has already thrown to the House the opinion of the Executive. Mr. BUTLER—I have not. Mr. Cox—1 think he owes it to the House tostate his authority. The SPEAKER—The Chair cannot allow that to be discussed. Mr. Cox—It has already been Jiscussed. Mr. BUTLER—I have said to the contrary, and if the gentleman’s ears had been as te as they are long he would have understood me, (Laugh- ter). Mr. Cox—The gentleman ought to have long ears, for he is the organ of this administration. Mr. Haug, (rep.) oi N. Y.—1 ask the gentleman from Massachusetts if 1 correctly understood him | ag proposing to take from the Sp2aker’s table and pass the Senate bill and that he does not propose to take that ag a finality, but only as an entering wedge for that further increase of currency which he deems desirable, THE MOTIVE OF THE DEED. Mr, BuTLER—I did not use the words “entering | wedge.” Mr. HaLe—I did not understand — Mr. BUTLER (interrupting)—i wili make my re- marks Clear to the most moderate capacity. (Loud laughter). The Seuate has passed a bili to which | the country is looking with anxiety. 1 want that bill to become a law, a8 establishing the principle | on which Congress ineans to act in regard to this great question. That is all. | “Mr. FRYE, (rep.) of Me.—Did not the gentieman say that he proposed to spit on nis hands and start auew? Mr. BUTLER—Yes, Mr. Cox—Then I would not i (Loud laughter). = ke to have his hands, WS DEFEAT. After further discussion im tie same vein the House commenced to vote. The first vote was on Mr. Butler's mouon to lay on the table the motion to reconsider the postponement vote, and it was defeated vy the casting vote of tue speaker, amid great excitement. The vote was announced as yeas 126, nays » Whereupon the Speaker voted nay. ‘The tollowing ts the detailed vote on the motion to lay on the table the motion to reconsiaer:— YEAS—126, Adams, Harmer. Albright, Harris ¢ Arthur, Harris 0 Atkins Harrison averill, Hatcher, Barber, Havens, eck, Hawiey of [., Beyoie, Hays, Beil, Hazelton of Wis., Biery, ton of N.J., Biauid, Blount, Bowen, Bradley, Read, Bright, Richmond, Brown. Robinson of Ohio, Buckner, Kendall, Ross, Bundy, Rusk, Burrows, | Butler ‘of Mass., 5 n, Camison, puldwell, Lamport, Cason, Lodand. | Cessna, Loughridge. Clark of Mo., Lowe, Southard, Clemens, Lynch, Sprague, Cobb ot Kansas, Marshatt, Stanard, Comingo, Standerord, « Stowell, Wallace, Dantord, Darrall, Davis, Dobvins, Dunnetl, not Lowa, Wilson of tud., Woodwor Young of K¥., Young of Ga. | Albert, | Arehor, Arthur, annin Baynur | Barrere, as, i Bromberg, ve | Buthnton, Burchard, Burieigh, Bynes, | B Kel iogity Lansing, Lawson, Ni Leach, Savith, of laws. Speen, , providing fo when purchased, shall be cancelled and forever retired trom circuation, The first application of said one per cent to the purpose aloresuid siall be made aiter the Ist day oi July, 1874, and within that liscal year.” ‘The amendment was rejected—yeas 72, nays 104. CANCELLING OF NATIONAL BANK NOTKS, The uext vote was on the substitute offered by mittee, the first five sections being identical with those of the original bill, and the last section being as follows :— “SECTION 6.—That any national bank desiring to withdraw & portion ol its circulatton”may, upon | deposit o1 United States notes, in sums of not less | than $9,000, with the ‘Treasurer of the United States, withdraw bonds pledged to secure a like amount of its circulation, and the Treasurer shall redeem, cancel and destroy an amount of the cir- culating notes of such association equal to the amount issued upon such bonds; provided that the bonds on deposit with the Treasurer shall not be reduced below $50,000,” The substitute was rejected without the yeas and nays, the vote by tellers being 67 to 89. NO BANKS WITHOUT CIRCULATION. Mr. MAYNARD, Of Tennessee, then moved to strike lows banks to be organized withont circulation. ‘The section was struck out without the yeas and nays. PROVISION FOR SUBSTITUTING GOLD NOTES STRUCK | our. | Mr. BIERY, (rep.) Of Penn., then moved to strike out the eighth section of the biil, which provides | for the monthly tssue of $2,000,000 in gold notes as a substitute for that amount of legal tender notes, to be cancelled and destroyed and not reissued. The eignth section was struck out—yeas 149, nays 95. THE DETAILED VOTE. The following is the detailed vote on the striking | out of the cighth section :— YEAS—149, Adama, Field, unn, Albright, Fort, O'Neil, Arthur, Freeman, T, wunekel, Orth, Hagans, Packard, Harmer, Parker of Mo. Banning, Fetham, Barber, Pouhps, Pratt, eck, H Randatl, Begoie, Havens, ‘apier, Bet Hawley ot Ill, Ray, Berry, Hayes, Rictimona, Bierey, Hazleton of Wis., Robbins, Bland, Hazleton of N. J., Robinson of Ohio, Blount, Bowen, Bradley, Bright, path uckner, Bundy, Sheldoa, | jurrows, herwi Butier of Mass., Smith of Fa., Butler of Tenn., Smith of Va, Caldweil, Snyder, Cannon, Southard, Jason, Stanar.., Cessna, Standetord, Clark ot Mo., St. John, Clements, Strawbridge, Cobb of Kansas, ner, Spbarn, Wadden, Jomingo, e Wadde! Conger, Ward of TL, Cook, Wells, Corwin, White, Crittenden, Whitehead, Croasiand, Whiteley, Crounse, Whitthorne, Crutentield, Williams of’ Wis, Curtis, Williams of Ind., Danforth, Merriam, Williams of Mici.., Davis, Milliken, Wilshire, Donnan, Monroe, Wilson of fa. Dunnetl, * Morey, Wilson of Ind. Durham, Myers, Wooaworth, Kaen, Neal. Young of K Eldridge, Negley, Young of Gi Farwell, Niblack, NAYs—W, Albert, Hendce, Rainey, Arcner, Herndon, Ransier, Barnum, Hoar, k.'R., Rice, Bass, : Hoar, G. F.; Roberts, E. H., Bromberg, Hooper, Sawyer, Buflinton, Haskins, soudder of N. J. Burchard, Howe, Bessio Burleigh, Kellogg, Shoemaker, 2 Kendall, Smart, Lansing, Smuth'of N.¥,, | Lawson, Smith of Ohio, Lewes, Speer, Lowndes, Sprague, Luttrell, Starkweather, McDougall, stone, Mitchell, | Moore, Nesmith, Niles, | Eames, O'Brien, Foster, Facker, Frye, Page, ° Garfield, Parker of N, H., | Giadings, Pendleton, heeler, | Gooch, Perry, Whitehouse, | Hale ot Me. Phelps. Wilbar, | HaleotN.¥., Pierce, Willard of Vt. | Hamiiton, Pike, Willard of M Hancock, Plawof Va. Williams of Mass, Harris ot Mass, Plattof N. ¥., Willie, and { Hathorne, Potter, Woodiord. Hawley of Conn., Purman, ‘THK CONVERTIBILITY SECTION REJECTED. Mr. NEGLEY, (rep.) Of Pa., then offered an addi- tional section, limiting the amount of United States notes in circulation to $400,000,0000 and their convertibility into 4.65 per cent bonds, Mr. KELLEY, (rep.) of Pa., moved his 3.65 per cent proposition as a substitute for Mr. Negiey’s, Mr. BUTLER, Of Massachusetts, Wanted to move an amendment providing for legal tender notes | instead o1 national bank notes; but Mr. Maynard | declined to allow either o! them to be oifere and | Moved the previons question on Messrs. Negley’s and Keilgy’s amendmenis. Penditfe the previous question Mr. Ke..oaa, of Connecticut, moved to liy the billand amendments on the table. ‘he House retused to lay the bill on the table— | | yeas 82, nays 165. The previous question was then seconded on Mr. Negley’s and Mr. Kelley’s amendments. Mr. Kelley's amend went was substituted for Mr. | Negley’s and theu the vote was taken on inserting Mr. Kelley’s amendment in the bill. Jected—veas 118, nays 122. ‘There waa a great deal of excitement atvending this vote, as it was very Close, and several mem- bers, wl the extreme moment, voves. It was re- changed their A motion to adjourn over til Monday was de- feated—yeus 102, nays 123. ADJOURNMEN: After a good deal o: time spent over a pariia- mecttary snarl, the House, at ive minutes past six o'clock, adjourned, . ‘The Currency bill comes up at haif-past one P. M. | to-morrow, with the seventh and eighth sections struck 01 SENATE. WaAsuINGTON, April 10, 1874 PRINTING OF PUBLIC DOCUMENTS. Mr. ANTHONY, (rep.) Of K. L, from the Committee | on Printing, reported a resolution to authorize the printing of 500 copies of the val Register” for 1874 tor the use of the Senate Mr. SARGENT, (rep.) of Cal., said It was no nse to be printing documents when Senators could not distribute thenf without incurring an enormous expense jor postage.’ Mr. SAULSBURY, (dem.) of Del., favored the pas- gage Ol the resolution, Public documents were | amendments made in Committee of | Territory or Terriiories where the railroad pro- | the cause anu the effect will be but natural. father his creditors had | when needed. AY, APRIL ll, 1874.-TRIPLE SHEET, necessary for the people ana tney snowid have them, Mr. CARPENTER, (rep.) of Wis,, said the resolution should be passed, A great government like ours should not suppress information. The Senate by refusing to print ana distribute documents would put ilself in the hands of the press and news- papers could not give all the facts, as it would be impossible for them to print in full all matters, and the information coula not be conveyed ina condensation no matter how honestly it might be made, He had a ltttle back pay lett, or it, and it stood to his credit, He could afford to spend that much any hour in distributing documents, and he would then go to practising law and earn more money to Pay postage on these documents. Let Senators pay their postage like gentlemen. They did not come here to pay their expenses, but they came for the glory of it, PRANKING, Mr. Moron, (rep.) of Ind., said he had voted for the abolition of the tranking privilege and would do 80 again, as it had become a public scandal, and its abolisnment was necessary. He thought there should ve an amendment to the present law by which postage upon public documents sent out by Congress should be relieved of the prepayment requirement, Let those persons who receive the documents pay the postage. Th willing to Moan Atcaadl Ayo eRe DERTOORY Mr. CONKLING, (rep.) of N. Y., said this distribu- tion of documents by Congress was one ol the evils of pubic lite, and one which should be cor- rected by some civil service reiorm, Such correc- tion would be of more value than ali other civil service resorms put together. Every mau in Con- grees Was oppressed, his opportunicies weighed lown und Mterrupted by 10,000 private errands. He objected, in the interest o1 the people, in the interest of civil service reform and in the interest Ol public business, to any contrivance which would load upon Senators any more duties than ‘ey now have. He would stop printing books, stop sending out seeds, and thus have a practical demonstration o1 the abolition of the iranking privilege. Mr. MORRILL, (rep.) of Me., opposed the passage of the resolution, and said tue people were not educated by the public documents sent out by Con- gress. The great publishing houses of the country could get up books at much tess cost and in better style tuan the government could, Mr. BAYARD, (dem.) of Del., said he thought the small number ot copies of the ‘Navul Register” mentioned in tue resolution should be printed, and he would, therelore, vote ior it; but at some tu- ture time he hoped this subject of printing and distriouting public documents would be taken up by the Senate and receive that consideration to which it was entitled. He said, in his opinion, it had aiways been treated in the most unworthy and unstatesmanlike manner, a ‘the mornivg hour having expired the resolution went over. Mr. MORTON introduced a Dill providing that postage upou documents printed by authority of Congress, or by either House thereof, snail not be required to be prepaid, but may be leit to be paid by persons receiviug them. Reierred to the Com- mittee on Post Offices and Post Roads. REGULATION OF RAILROADS, The Senate then resumed tue consideration of the bili to provide jor the incorporation of railroad companies tn the Territories of the United States, the pending question being on the substitute of Mr. bargent, ol California, forbidding ratiroads to cross Indian reservations until the writtea permission of tbe Secretary of the Interior be first obtained. Mr. SARGENT Modificd his substilute su as to pro- vide further that where such reservation ias beca set apart by treaty the consent of Congress for the road to cross it shall be first obtained, BREAKING OF INDIAN TREATIRS, Some debate ensued as to the power ef Congress to violate treaties made with the Indians, Messrs. STEWART, SARGENT and Others arguing that the Senate had a periect right to change the provisions oi any treaty; and where an Indian reservation happened to be located between wilte settlements it snould not de a barrier to railroad mupication between them. lessrs. PRaT?, (rep.) of Ind., OGLESBY, (rep.) of fi, and MorTon contended that any perinission for the construction of a railroad across an Indian reservation would be a violation of faith, and would be followed by indian wars. Mr. FRELINGHUYSEN, (rep.) of N. J., moved that When the Senate adjourn to-day it be to meec on Monday next. Agreed to. Mr. SARGENT withdrew his substitute, and the amendment of Mr. Buckingnam offered yesterday, forbidding any road vo Cross an Indian reservation, Was agreed to. ‘The bill was then reported to the Senate and the the Whole were concurred in. STATE RIGHTS, Mr. WADLEIGH, (rep.) of N. H,, moved to amend as follows:—‘That Congress may at any Vile, when, in its opinion, the puvlic good requires it, ada to, alter, amend or repeal this act, aud when- ever any Territory Or any part thereof in which the railroad 1s located shall be admitted into the Union as a State the Legislature of any such State may, at any time, add to, alter, amend or repeal this act so far as 1t relates to such’ railroad, or any part thereo!, which shall be within the territory of said State.” Agreed to. Mr. Bayar, of Delaware, moved an amendment to provide that in organizing a corporation for the construction of a road, a majority of the persons applying for the charter shall be residents im the | posed is to be built. Agreed CAPITAL STO Mr. Bayarp, of Delaware, offered an amendment providing that the amount of capital stock o1 any Toad shall not be less than $10,000 per mile. Agreed to. Pending the action on the bill, Mr. CamERon, (rep.) O/ Pa., Moved the Senate proceed to the consideration of executive business, The motion of Mr. Cameron was then adopted, and, at quarter to four o'clock P, M., the Senate went Into executive session, and after a short time the doors were reopened and the Senate ad- | journed till Monday. THE LADIES’ WAR. A Card from Mme. Hyacinthe-Loyson. To Tue Epitor OF THE HERALD:— GENEVA, Switzerland, March 23, 1874, Will you permit me to use the columns of your journal to give a word of appreciation, counsel and encouragement to the women o1 America who have enlisted in the temperance war? There is no doubt that intemperance ts the greatest evil in our beloved republic, and destroys what 18 dearer than government, wealth, education or liberty—the | happiness, prosperity, the lives and souls of her | People. It is enough to fill the mind of every think- | ing person, surely of all who love their fellow men or their country, with alarm at the thought that an entire army of American youth go troop- ing into perdition every year by the use of intoxi- cating liquors. More hearts and hearths are made . desolate to-day throughout the land by drink than | by our late war, lor every wife wno 18st her hus- | band and every mother who lost her son in that struggle for national life is consoled in her ioss | and proud in her grief; but the wife or mother who follows her dear ones to the drunkard’s grave, | or sits with tne ghoul by the dreside, suffers and weeps in shame which no mourning veil or vest- ment can hide, Dear sisters, It 13 a hard but @ holy war you have inaugurated; may it end tn victory! If you, | cannot do all you would, remember you will be blessed 1f some are saved. ‘The evil 18 80 deep that it will take a generation, at least, to cure it, But you must succeed, for your cause is God’s justice and your arms divine; only let your prayers be inteiligent—executive; for prayer alone will not sufMice—t: must be followed by good works. Search out the cause of your sorrow, which is not alone with the selier of intoxicating drinks, but with the appetite that demands tt. The great American malady is the malady of the stomach. Conscientious people become dyspep- tics; non-conscientious people become drinkers. Bear in mind this fact, that the appetite for drink is not necessarily made by drinking, but in nine casas outof ten it is created and cultivated at your tables—in your childreg—by the use of coffee, tea, pepper, pickles, mustard, spices, too much Salt, hot bread and pastry, raw meat and grease, and, above all, by the use of tobacco, The cry ofa depraved appetite, an inflamed stomach ta al- | Ways for something stronger. The use of soup, muk and salad, prepared with good oil, should be cult- vated. In short, reform your tables if you would reform your drunkards and save your gons, Cure | Stop the demand by correcting appetite and stop the | supply by preventing mannfacture. Any legislator Who does not see and acknowledge tnat the use ot poisonous drinks, asin England and America, 1s hot a public evil, a corruption of society and a civil danger, that should be dealt with by law, is unworthy of the place that the intelligent people of America give nim, Instead of rye for whiskey raise grapes, that pure native wine may be used Disillleries are slaughter houses of | Meo and should be dealt with as such, and money gained from selling liquors is blood money, and should never touch the palm of an honest man! Be not dismayed by insult nor discouraged by defeat; but, with charity for the culprit and pity for the victim, go on, pray on, work on, God will biess you. Yours, most sincerely, GMiuIE J. LOYSON, | the possession of the state. THE CRIME OF INFLATION. The Press of the Country Over- whelmingly Against It. We continue quotations from the press of thé country upon the policy of expanding the currency. Acareful examination of the exchanges during the past few d: show that 107 journals have most unequivocally protested against the policy of im- flation, while twenty-five favor it. Of those op- posing sixty are republican journals, and the balance democratic and neutral in politics. Be- tween twenty and thirty Western dailies have spoken in Opposition, while only six or eight have pronounced tn its favor, The press of the South, too, is divided, at least one-third having expressed an opinion antagontstfe to the measure, ‘The Hartford Courant (republican) declares that “the moral and political aspects of this act of infla- tion are as bad as the financial. It is aviolation of the constitution. To maXe a dollar of forced loam in time of peace is to violate the constitution. If Congress does tt in this instance it may do it in any. If the Secretary of the Tréasury, unpunished, violates the constitution, any officer may do it, We are entering upon a period of lawlessness and anarchy of which no man can see theend, The only hope of the country is now in the firmness of President Grant. Let the intelligence, the brains, the business probity of the country speak and gus- tain him in the exercise of his veto power. The hydra he has to slay is a8 dangerous as the rebel- lion.” The Trenton (N. J.) Gazette (republican) says:— The bill now goes to the House for concurrence, of which, since it has already passed a measure similar in principle, there ts no doubt of its receiv- ing. But it also has to pags the ordeal of the Pres- ldential veto, which we, in common with the honest and reputable businesy thought and aspira- tions of the country, most fervently trust that it will be unable to surmount. If the President wilt veto this bill he will be more popular, wiil. be the object of more genuine and heartfelt applause, than ever before. The Utica Herald (administration) wants a veto, and speaking of the President says :— Itis not because he willbe carrying out what we believe vo be the real conviction of the republi- can party that elected him that we call upon the President to hesitate long and consider carefully before signing a bill whica shall add $90,000,000 to the irredeemable paper currency of the country. It 18 because his failure to sanction such a meas- ure, however wildly it is clamored tor by mistakem and illogical sectionalists, will be in accordance with the teachings of sound political economy, and the warnings of all financial history. It 18 because such a fatiure to sign will redeem the good faitn of tne nation, ‘The Boston Advertiser (administration), discus- sing the probability of a veto, says:— It is @ great opportunity for the conqueror of rebellion to crush out the disloyalty involved tn » movement toward tepudiation. Upon him rests the responsibility. With him is presently to be left the absolute decision whether this proud, free country is to stain icself with dishonor—wnether, to relieve an imaginary want, it is to cheat its creditors out of a percentage of the debts it owes. Every consideration of statesmansuip calls upon him keyed to lace the clamorous petitioners for @ breach of the national faith, and to teacn them that their preposterous policy will flud no /avor at the Executive Mansion. The Milwaukee Wisconsin says: As an evidence of the absurdity of the demand of the inflattonists for more currency, it is reported from Washtogton that of the $354,000,000 author- ized by law to be issued in national bank currency, $5,146,326 remains untaken. Here is enough cur- rency to establish twenty banks or more, and alt that is necessary to get it into circulation 19 for capitalists to comply with the banking law, and estabiish banks. If tne West and South are im such terrible ‘straits tor more currency. why do not men of means organize banking associations and bring the currengy out here’? Five millions 1s a good round sum and would go a great way in relieving ascarcity of currency; but there 18 no such scarcity as inflationists represent, For all legitimate business enterprises there is abundant currency, a8 will be fully demonstrated. The Worcester (Mass.) Press (democratic) Bay! If the House of Representatives shall pass the bill it 1s dificult to see how the President can fail to veto it, He would be bound to do so by the platform on which he was elected not less than by @ regard for constitutional principies and the wel- jare of the country. it may be that the voice of Connecticut will help mim to realize the force of the popular discontent, and give him the requisite firmness to do nis duty, If so, it will bear early fruit. In any event, it gives promise that we are near the end of the reckless and dishonest legisla- tion of the last tew years. The Columbus State Journal (administration) does not like the ideatogo abroad that indation ts & Western heresy. It remarks:— We do not know why inflation should be dupbed specialty a “Western” heresy. For example, Ben Butler is almost the leader in favor of inflation. Our two Obio Senators and a respectable share of our Representatives are opposed to tt. If there were need for it we might add Kelley, of Pennsyl- ‘ania, and a number of other prominent Rastern en, a8 favoring infation, while a number of other Western men are opposed to tt. Speaking tor our own State, the newspapers of the State are largely in opposition to inflation. The Cincinnati Bn quirer 18 avout the only paper of any pretension that favors inflation. The Litchfleld (Conn.) Enquirer says:: Here is an emergency in which Prestdent Grant might, by a judicious use of his constitutional veto, regain the public confidence he has unquestionably been losing by an injudicious use of his Cp power. 'e hope he will now develop some of that Steady persistence which characterized his military career, but which he has not often manifested im the unfamiliar fleld of civil administration. The Syracuse Journal (republican) thinks that “president Grant will soon have an opportunity to exercise the prerogative of the veto in & manner which will avert flnanctal disaster to the country, give stability to the credit of the government, and be in accordance with those principles of finance which are recognized as the only sate basis for civilized nations to adopt.’ The Hartford Times (democratic) thinks “it ts greatly to the credit of the New York opponents of inflation that they show a suMcient regard for principle to lead them to oppose a measure which might be for their own pecuniary advantage at the expense of the welfare of the country.” The New London Telegram urges the President “to interpose his veto, and thus maintain the honor of the nation and gain for himself the grati- tude and admiration of the people.” ‘The Lowell Courier (democratic) remark: The Presicent is committed against it; the Sec- retary ol the Treasury 1s opposed toit. But the House would like to go even further, and the only hope oi preventing the consummation of the act lies in a Presidential veto. If that don’t come this generation's knowledge of sliver and gold dol- lara will all be purcuased at a heavy premium, The Philadelphia Herald (democratic) says that upon the ruins of the republicans and democrats “a new party must be constructed, pledged to the resumption of specie payment and the liquidation of the national debt. Our fature is dark indeed if we calmly accept the decision of five unpriacipled Senators and make no effort to remove the dis- grace which a recreant Senate wouid amx tous and our posterity.” The Boston Transeript (democratic) asserts that “the only remaining point is whether the flood of irredeemable paper shall prove as potent at the White House as in the halls of Congress, If Presi- dent Grant stays‘its ‘proud waves’ the act will be one that he will hereafter contemplate with as much satisfaction as any in his civic career.” The Detroit Post (Senator Chandler’s organ) sees in the defeat of the party in Connecticut an evi- dence that the people are not satisfied with the broken pledges of the party on the currency ques- tion. It says:— As to the effect of such legislation upon the party, the result of the elections in New Hamp- (administration) | shire and Connecticut are significant indications, In Connecticut the republicans had amexcellent ticket, and one of the best platforms ever framed, ‘They started the canipaign With fair prospects and With an appearance Of earnest resolve to recover But, in the face of their platiorm, Which demanded economy and a return to specie payments, or legislation looking: towards specie payments, Congress voted to in- Nate the currency and iegislated turtoer away from specie payments, Tuey renewed their pledge of flueiity to the republican platiorm. Congress de- liberately voted to Violate that platiorm, Under ve CITCUINSLANCes Lue republicans of Connecti- cat could not be expected to keep up courage and effort; certainly not to Win Votes from the opposi-~ tion and increase their strongth so as te secure & victory against odds, The Seima (Ala.) Times opposes the measure, | and asks:— What will the condition of the poor people— those who live by wages—be when the bubble barsts ’ It belooves all to keep out-of dept, for those who buy property on @ credit, when the Speculative cra dawns, which tt will no doubt do before many months, are sure, should the Linu | wave catch them, to po down tare tue vortex disasicr aud Vaakruptoy,