Mr. PIKE. No. I would have them paid in the best money in the world, the “ green backs.” I have no idea of paying them in bank currency when we can give them Government notes. I make no attempt to follow the distinguished gentleman in his argument. I have no quarrel with him on the score of the evils of a depreciated currency. congress entered upon the sea of irredecmable paper knowing the danger of the voyage it was about to take. It was fully warned by gentlemen on the other side of the House, as well as on ours. Vallandigham and his associates exhibited the most intense zeal. We heard then, as yesterday, a full description of John Law and the French assignats and mandate, and the Russian roubles, and all other paper that never went under par and predictions were freel made that the paper would become as wort less as the old continental, when 100 dollars were freely given for a breakfast and still Congress triedt e experiment. I recollect that the 1st speech I ever had the honor of making in Congress was in advocacy of the legal ten er clause of the loan bill of 1862. Great evils have undoubtedly come of that action. Some of them were described yesterday by the Gentfrom Illinois. But greater.evils were avoided. When the historian shall lcalmly strike the balance he will say the action of Congress was wise. For one, although no financier, I am satisfied with it. My constit uency is satisfied with it. The country at large has given no evidence that it does not deem our action praiseworthy. Whatever may be done hereafter, it is quite sure that the paperissued by the Government and made a 10 al tender will always be considered one of the efficient agencies in on the war. It is entitled to the gratitcuadreryineg the republic for the good it has accomplished. Nor have I anything to say in repl to the at tack on gold brokers and gamblers. he Gentfrom Illinois represents alarge and thriving city. such people abound in cities. I presume he knows much more about them than I do. There are none in my district, and I know nothing of their interests in this bill, whether for itoragainst it. But this I do know. Ifwe attempt to legislate either for or against the interests of that class of people, except to tax them, congress will be engaged in a very thriftless pursuit. There are as many of them interested in a fall of old as in a rise. One set of men bets on a far?! of gold, and of course the other set bets on an advance and so it goes on from day today, and hour to hour. Instead of watching the fluctuations of the market and attempting to adapt legislation to the interests of one class or the other, I choose rather to follow the teachings of the gentleman and legislate for my constituents. Sir, the problem to be solved by the bill before the House is the proper method of returning most expeditiouslyto specie payments. Trnc filmy such policy as was approved by the case by its resolution of the 18th of December would lead the country back to gold and silver by the shortest practicable road. The ComWays&Means present this bill as their method of comassing tedesired end. It provides that the SecyTreasury shall have full control of the currency of the country, and by direct inference of the market values of every description of propert. Invested with the powers conferredby this bill be may lessen the volume of currency when he pleases and how. He may sell between 7 or 800 millions ofbonds at such price and time and on such terms as he will. The money he receives for them he may hold in such quantities as he chooses, or he may issue it again. If he does not get back to specie payment speedily, it will not be for lac of authority., The SecyState said of the Freedmens Bureau in his address to the people of NewYork that its powers were tendere to the President “too hastily by atoo confiding conggess.” Those were powers over the Army for the pacification of a large section of the Union and the protection of the right of labor. The power conferred by this bil is still greater in its wa over the monetary affairs of the country. he London Times said of the able report of the SecyTreasury at the commencement of the session, that it was remarkable for the confidence it invited Congress to place in the Executive. This bill is drawn in accordance with that idea. During the war the Secretary was necessarily invested with large powers, and now it is proposed in the 1st bi presented since the return of 1peace to continue the same authority. do not know that I should object to the bill simply on that account. I have great confidence in the integrity of the Secrets and his ability in the management of financiiiiv matters. Whether in the whirl of political affairs he will remainiii his iresent position, or whether he will be succeeed by some One. whose fitness for the place is less apparent, who can say? He is an ject to all the accidents of political life, and they are not few. I confess should rest easier under the passage of this bill if I had. some guarantee oi2 the Secretarys tenure of office. till, if the object to be obtained is worth the risk, I shall not be found objeenng. How is it? The bill proceeds upon the assumption that it is absolutely necessary to force the contraction of the currency. but is this beyond question? The ordinary course of business transactions tends rapidly iu that direction. Is it clear that they are not sufficiently urgent and effective? There has beennervousness in the country at the slow progress made toward specie, and without thought people urge the contraction of the currency as the only remedy. But such persons should consider, that we now have in the country as much currency authorized by law as we have ever had, and still we have gone a long wa toward resumption of specie payments. Without by legislation contracting the currency a single dollar we 1have run gold down from 287 to 130. In this we follow the example of England, where it is well known that specie payments were resumed, after their long suspension during the Na ole onic wars, without material contraction of the currency. The last returns of the national banks have an increased authorized circulation. This added to the U.S. currency, no part of which has been withdrawn, gives the amount now permitted by law as greater today than ever cfore, and still old 18declinin. How can it be sai, when more than 3 quarters of the johrney toward specie has been made under such circumstances, that it is impossible to do the rest of it? If then it is not absolutely necessary by law to lessen the quantity of aperafloat in order to compass this desirable end, is it wise to make the attempt by loyal coercion? Is there not danger that more arm shall come to the business interests of the country by legislative interference than good to the currency? There would be no difficulty in causing distress and making out disturbance in the business world, but having done that shall we have accomplished a good thing? Without special legislation to that end, and in the ordinary course 1 of Treasury receipts and disbursements, we are iapproachin specie payments, perhaps rapidly enough. ime should be reckoned an element of reform in the currency as well as in the body politic, and it may be that we get on as fast in this moderation of action as if we took more violent measures to attain our end. suppose the Secreta, acting under our authority, should make a vio ent contraction of the currenc, would not the clamor of the mercantile world drive him back from his purpose? and an attempt rnade and failing woul probably dise our acthe next, and thus we should be thrown back to the starting point. We see now there is great caution manifested in entering upon new schemes; very much more than a year ago. The country realizes the fact that sooner or later we she I come to specie payments. When that time does come there will be a large decline in prices. Business men “discount” this knowledge. Thus, in the natural course of trade the end approaches. In it not probable that in this way we shall get what we wish sponpr than by constraint and legislative coercion The Comptroller of the Currency, in his report, sums u the authorized currency of the country an then attempts to reckon the amount in actual use. The 2 footings differ Very greatly. He says: “ This favorable exhibit of the amount of paper in circulation is owing in a great degree to the accumulation of currency in the hands of the banks in the absence of the irrent demands of the Government for currency since the close of the war.” We should do well to recollect this. It states a fact of importance. The banks hold an abundance of currency that is not called for. in other words, trade knows its own needs. It was so before the war. Legislation did not fix the amount of circulation. There was no difficulty in obtaining from State Legislatures authority to issue bills. Charters could be got anywhere for the asking. But men who dealt in money found they needed something more than legislative authority. They were constantly brought to the test of being able to pay the notes they put out, and this kept them in check. So now we still set with reference to the laws of trade, even under suspension of specie payments. Those laws are steadily bringing us back to specie. The question is whether we shall be a little patient pendin their action. Meantime we have one fact of some little moment to reconcile us to the present condition of affairs: corporate debts are bein discharged in the depreciated currency in which they were contracted. This is of consequence to debtors, and I do not know but they are entitled to some little consideration at the hands of the Government. The Government forced our people to contract municipal debts to a large amount in order to comply with the demands made upon them to assist the Republic in the time of its distress, and for one I shall not regret if one of the consequences of postponement of specie payment shall be that y heavy munici taxation they free themselves from those enforced obligations in the depreciated currency they received. By General consentthey seem everywhere to be making the attempt. and, notwithstanding what has been said so positively, it may be tound after some delay that the currency of the country in actual use is not in excess of business wants. It may be that the business of the country knows better thanwe think what are its own needs. I rea the opinions of well established authority in finance with great interest; but the shrewdest have been so much mistaken that the ought not to expect public confidence without some discount. When we entered the war they all predicted financial ruin but it did not come; and when the war closed, they were equally certain that lassitnde and business stag nation must follow, but they blundered again. These blunders of professional men give the rest of us a right to entertain and express our views or at least to hold them with some little confidence. The worst that can happen to as is that we shall be mistaken as others have been. In reckoning the absolute amount of carrency needed we should bear in mind that the Secretary then demonstrated in one of his reports that gold was “ demonetized by congressional action and should be thrown out of account. He maintained that gold and silver should not be considered in the circulation until specie payments are resumed. This neces sitates increased paper. In addition to this is the enlarged volume of trade everywhere. The agricultural productions of the country, as awhole, are greater than ever before. Manufactures have swol len beyond any previous figures. Wholly new sources of natural wealth are developed. population increases. Larger capacity of transportation by water and diy land is demanded. All this requires more money. Nor will it do to ignore the changes made within a few years in the methods of trade. The uncertainty of the currency, while doing much injury, effected the good result of prompter payments. Men carry their money now in their pocket books and pay for what the buy. Formerly the purchase on credit, and their credits in the s ape of notes of themselves furnished a sort of currency of the meanest kind. This change calls for still more paper and how much currency have we now afloat? This would seem to be a simple matter of with metic. But authoritative opinions differ. The President in the annual message “Fiv 802: e k noto circulation of 6 countr; ddibddnliged ttd niitf much more than 200 millions; nowtha oirculahion.bank a ndnational, exceeds 700 millions. The simple statement of the fact recommends, more stronglythan any words of mine could do, the necessity of our restraining this expansion." The SecyTreasury gives the fig ures as follows: “The paper circulation of the U.S. on the Slst of October last wassubstantially as tollows: 1. U.S. notes and fractional currency. "$454, 218, 43280 2. Notes of the nationul banks. 1&5,000,000 3. Notes of Statebanks, including out standing issues of State banks converted into national banks. 65,000,00000 $704, 218, 03280 "The amount of notes furnished to the national banks up to and including the 31stofOctober was it little over $205,000, 00 bou.t it is estimated that 820,000,000of these had not then been put into circula tio“n. In addition to the U.S. notes, there were also outstanding $52, 536.90fi)ve%. Treasury notes and $173, 012, 14coom ound interest notes, of which it would doubtless e safe to estimate that {3"0.00000 who ere in circulation ase urrency. From this statementit amLcars that, Without including 7 and 3/10th notes, many of the small denominationsof which were in circulation as money and all of which tend in some measure to swell the inflation, the papermoneyof the country amounted.on the 31sto October, to the sumof 8734. 218.038K).which hasbeendaily increasedby thenotes since furnish to the national banks, and islikely to bestill further increased by those to which they are entitled, until the amount authorized by law ($300.000.00sh0a) ll have beenreached.subjectto such reduction as may be madeby the Withdrawal of the notesof the State banks." The Comptroller of the Currency hugs they detail of the case a little closer. He gives the actual situation thus: The amount of national bank notesin actual circulation on the 1stday of October last was“. $171, 321, 903 The amount of State bank notesin circulation at the same date, as up cars by returns to the ComrIntRev, was. 78, 867, 576 Making the bank circulation on the 1st day of October last. 200, 180, 478 The umount of legal tendernotesandfractional currency issued and outstanding on the 1st of October.1865.was. 704, 584, 058 National bank notesin the handset banks not yet issued., 19, 525, 152 National currency yet to be issued to banks. 109, 152, 945 Making the aggregate amguntot legal tender and ank notes in circulation as authorized to be issued to and by the banks. 1, 083, 452, 2 3 From whicbsnmshonld bededucted, State bank circulation nowoutstanding that will be retired about as fast as national currency is issued to converted banks. "878, 867, 575 Also the am “compound interest notes" converted into 520 bondssince the 1st of October last. 44, 417. 32!) The amount thenleft astheavailable currency of the country is. In order to ascertain the amount otactnal active circulation on the 1st day of October last, there should be deducted from the lastmentionedsum The amount of national currency deliv ered to banks and not then in circulation. 819.525.152 National circulation not deliv ered to banks. “109, 152, 945 Amount of legal tender notes h d by banks, including 874.261.847compound notes. 960, 167.3fi interest. 193, 094.385 Cornpoun in or than those held by banks. mostlyheld as investments by insurance and trust coma bios and savings banks, ess say$10,000, 00inoactual circulation. Currene in the Treasury of the U.S. Showing the actual circulation to be. $160.8“.2l2 1 do not cite these differences simply because of the varian eof the results. If that were all, I should take the figures of the Secretary as the head of the Dept and a gentleman in whom I have entire confidence. at that is not all. The mode of gettin at the circulation is what I call attention to. n the one case it is the authorized circulation, and in the other the actual circulation and in this particular it is not unlike the different modes of calculating the expenditures of the Government during the war. The opponents of the war took the total of the gross appropriations. They araded these, and told t 10country to look at t ie enor mous figures. It was aningenious method of stating facts. So now, when we speak of in flation, we must not confound the two. The Secretary is right, and the Comptroller is right. But it is with the “actual circulation” we have to do, because it is that which affects the country. The country offers to the business men of the country nearly 800 millions of currency. Business oes not need so much, and takes but 500 millions. Is it not somewhat arrogant for Congress to say that it knows very much better than business what it needs? and can anybody demonstrate that the actual circulation of the country, as given by the Comptroller, is in excess? Compareit with the former circulation, and take into account the circumstances I have enumerated, and saywhether the proposition that we have too large a volume of currency in actual use is a clear one; or compare with the amount in circulation in Great ritain and France. Mr. Carey gives the amount in circulation in France as $1, 070,000000, or nearly 30 dollars perhead; and in (ireat Britain as $700,000,000, or about 25 dollars perhead. There are many reasons why our circulating medium should be as greatas that of either of these countries. The fullness of price for merchandise is Generally deemed positive roof of excessive currency. But how much is due to that, and how much to the waste of war to accidental short supply or excessive demand or In: e taxation, is not well settled. Corn is at the old gold price; wheat is above it. There is a full stock of one and not of the other. Foreign goods run high and cannot be cheap on go d so long ast e present tariff holds. As we go towar specie some articles recede ra idly in price and some do not. I presume no ody expects under the great influx of gold and taxation to see the whole list of prices average as low as it was before, the war. If they do they will be disap pointed. the present generation will live its ife out on high prices. It seems to me, sir, that the great demand for legislation upon this subject arises out of apprehension of future trouble. It is supposed that the trade of the country will become de ranged. But the country has survived many apprehended crises, even during my da, and while I would not shut my eyes to read evils that were impending and might be avoided, I would tr hard not to be too greatly disturbed by fancie ones. Almost every gentleman on the floor knows that his constituents up to this time have been unusually prosperous. How long this state of things will continue who knows? and although it is said with much ear nestness that this apparent prosperity is unreal and delusive, yetl know that all overthe country people would be very lad to make the delusion perpetual, and serious, is itworth while in the present condition of a airs, when the tendency of things is all right, tointer ose, and for the purpose o avoidinga suppose catastrophe run the risk of hurrying the country into commercial difficulties that may be serious? I know the theories that prevail on the subject. It is theoretic ally impossible that the present state of things should continue. But I know, also, that it was theoretically impossible that it should exist now; and it may be in this doof strange things that financial wonders may to low in close company with the political oddities that abound. am quite disposed to try it. We all know the man who, upon demonstrating his theory, was told the facts were against him. “ So much the worse for the facts, ” said be. It will hardly do to follow his exam la in finance. I am willing to let theories side and stick to facts. But supposing it to be necessary to reduce the volume of currenc, when shall we begin? Take the resolution of December 18 and construe it to mean contraction of the currency irrespective of everything else, and what then? The Gentfrom Illinois esterda paraded that resolution at large as if he had teHouse in a trap and took great satisfaction in springing it. But the most he can make of the resolution is “contraction of the currency.” Properly construed it means that the House approve such speedy contraction as business interests will permit. But if it be absolute and imme diate contraction, how shall we proceed? We have now 3 currencies in the country, and they are, as authorized by law, nearly as follows: U.S. currency, consistingofgreonbacks and postage. $450, 959, 107 National bank circulation.0 7.072.910 State bank circulation, about., Total. “.$768, 032, 017 I By general consent the State bank circulation is to be counted out. These worthy institutions are done. They have been destroyed for the benefit of this great brood of national banks and the important question before the House is whether when the currency is lessened it shall be by cutting 00 national bank notes or by with rawing “ greenbacks.” Is there anything in the resolution that settles this point? The evident design of this bill is to strike at the greenback currenc and leave the other in full volume. Why? Ts the bank circulation any better or more convenient than the “green backrl Surel nobody will say that so long as its only legal value consists in its converti bility on emandinto “ cenbacks.” Will the withdrawal of 100million “ greenbacks" hasten specie payments any more rapidly than retiring an equal amount of bank currency? To say this is to say that it will take more specie to redeema givenamount of“greenbacks than it will to recom the same amount of bank currency, for specie payments are notresumed until complete convertibility is established for all kinds of currency. If we could strike out of existence the $317, 072, 9100fbank circulation it would bejnstaseasy a task to make the remaining “greenbacks” convertible as it would to make the banks specie paying if so many U.S. notes had been withdrawn. It would bemsier. The country never had a currency with which it was so well satisfied as with this and when the day comes for the announcement that the Government is ready to pay gold and silver for its notes there will be no rush to make the exchange. There will be no element of distrust as to ultimate payment from which banks suffer in time of panic, and no individual will take the trouble to exchange convenient paperfor in convenient gold unless he be engaged in foreign trade or wishes it for special purpose. Of course there can be but one way to “resume specie payments.” Those whose notes are out must strengthen themselves with specie, so as to pay such as are presented for payment. The national banks now have a large circulation, with very little specie. Out of the large cities, the 1st thing a State bank does when it becomes national is to sell its specie. The Government has about one dollar of specie for every ten of circulation. Of course if the government sets itself steadily at work accumulating specie, and at the same time represses bank cireuation, it would not be a root while before it would be in a state to make the announcement that it was ready to pay specie on demand. The Secretary seems now to be engaged in selling gold largely, for the double purpose of obtaining the premium and depressing the price of gold. I hope he may succeed in his experiment. If he oes not he can take the opposite course and board old, with the avowed purpose of continuing to do so until he has enough on hand to warrant a resumption. This course, if persisted in, will accom lisli the iirpose, and ) meantime the banks wi i take notice of his movements and withdraw their own circulation for the purpose of ireparing themselves for the demands that will )e made upon them. Thus all parties would work together to hasten the advent of specie ayinents. But before that time the course of business and good management of public affairs must have established full confidence in the public mind that the ermanent revenue of the country will meet the permanent expenditure and leave a small margin for lessening the principal year by year. When there is no doubt of the continuance of this state of things specie will have lost its peculiar value. Of course confidence will come. Sooner or later we are to pay specic to every man who wants it in exchange fgr the Government note he holds. But the conditions must 1stbefulfilled. We shall have no such result as this without having gone through the properaration. This fruit will not be athered pwrietp outthe precedentcultivation. why, then, make discrimination ainst the Government note and in favor of the bank note? Ought we to do it out of special favor to the banks? I have sometimes feared that these national banks were pet creations, to be favored at the expense of the public interest. They frequently pay large dividendsfrom public deposits. They areingenious enou 7h to iold interest bearing legal tenders and t us make the Government pay interest for the money it places in their custody. It is a business more profitable to the banks than to the Government and although national bank stock rules high, and large divi dends are made in all quarters of the country, still the stockholders in these patriotic institutions are resisting taxation, and combine in the endeavor to extort from the Supreme Court a decision that their stock shall be exempt from the burdens of taxation which oppress the property of every man in the country and having obtained that, if they could also compass a mo nopoly of the banking business of the country, their greed would be in a fair way of satisfaction. An avaricious man, even, mightbe well 7satisfied with banking property exempt from both taxation and competition. I can buthope that the able committee having the matter in charge will disappoint expectations founded upon such a state of things. If anything can render the banking system of the country completely odious it Will be to make it a monopoly. It is obvious that besides the reasons ITiave Even for not withdrawing the greenback circution, the loss of interest which would attend such acourse would be a matter of serious moment. The $27,000,000 interest money saved annually by the circulation of government notes must, in case of their withdrawal, be added to our taxation, and the labor of the country be made to ay so much more for the benefit of the stockholders of the banks whose notes would take the place of those withdrawn. I say labor. for shift the burden as we will, the larger end of national taxation will always be borne b labor. This isa very considerable sum, and i it can be saved year by year it is our duty to do it. When we shall have resumed specie payments, the burden of raising even $300,000,000 a year will be found quite sufficient for the comfort of tax payers. For these reasons I prefer to save the government paperat the expense of the circulation of the banks. I have heretofore urged that government should take to itself the papercirculation of the country. Let it do so now. Tax the bank circulation. That belongs to but few. Preserve the notes of the Government, because they belong to all. But further. This bill proposes to take money now subject to taxation and place it without the reach of State or municipal assessment. Now it is subject of taxation everywhere. I do not suppose it is generally taxed, but it probably does not altogether ese ape the assessor, while a very consideable fraction of it is found in the deposits of the banks which are subject to national taxation. We have already issued over 1100 millions of gold bolids, which, by the law authorizing them, are specially exenipttiom Stateandmunicipaltaxation. In other words, the present funded debtpf the country is entirely exempt from State assessment. We cannot now haveit ot ciwise if we would. It is part of the contract, and the faith of the nation must be observed. But what shall be done in the future? Shall we extend the same favor to the holders of the remainder of our debt? It is agrave question. At present nearly $2,000,000,000 of the public debt are exempt from taxation. The items consist of Gold bearing bonds. Treasury notese alled 7thirties. Total. The remainder of the public debt, over $700,000,000, is either now subject to municipal taxation or may be made so by Congress Without breach of public faith. This bill proposes to permit the Secretary to fund these $700,000,000 on the same condition as the present funded debt, and that is, entire exemption from municipal taxation. The country tolerated the non-taxation of bonds issued during the war on the plea of necessity. We were engaged in a struggle of which the issue was felt by many to be doubtful. Capital is proverbially timid. It feared loss, and in order to obtain its assistance the provision was inserted that all the extraordinary taxation which would be necessitated byt e war should seek other objects, and in no case should its burdens fall upon the bpnds of the U.S. Itwas a hard bargain. I thought it unnecessarily hard, and voted accordingly. But it was made and must be kept. But what excuse have we now for renewing it? It may be said that our bonds cannot be placed on as good terms Without this exemption. Very true. But let us suffer the discount. Better do that than place the Government in the position of domg an injustice. it is matter of no small moment. The people of the country are much more oppressed y local than by national taxation. In many parts of the country taxation on land amounts tp large rent. In my State the State taxation last year for State purposes was one and a.li half perpent. of a fair valuation. ln addition to this was the county and town taxation, and the 3 put together could hardly have amounted to less than 4%. on the average; and this on a full valuation. Mr. Hayes, one of the revenue commissioners appomted by the Secretary under authority of Congress, says of this taxation, after full examination of the subject: “ the additional local taxeswhich are levied every where are for State county or township. road and school purposes. These.with special war taxes.to pay for moneysexpendedin recruitingnnd bounties to soldiers, are ushigh as 5%. in a number of counties: leaving the special taxes out of view, they will probably averagenearly 1%. We haveseenthat in NewYork theyarc9nine and u.halfof1%. If they were only 66 and 2/3rds of 1%., the average of all taxes under State authority, including municipal. woull boiust 1%., and that figure may be taken as a fair equation of all the taxes by or under State authority. At that estimate the local provenucs would be8150.000000. "The only tax paid for any purpose by those whose property is all in the Government securities, oxcopt the tax aid on articles of consumption, which is nearly as or e.nnda 1,000 liines innre one rouson the laborer than on the millionaire, is the tax on in comes. This tax is more caail evaded by the bond holder than by anyone else. When the local assessor calls hecan showhis bonds, and the businessof the assessor is at an end with him. When the assessor of the General Government calls, his bondsmay be held on foreign account at all events, he alone knows the amount. Whcthor honest or dishonest. he hasno tax to perpay ifhe bold but $10.000 ingold 6 cents. His neighborsare taxed to pay bounties for the substitutes for his sons when the country claimed theii; servicesin the field. They are taxed to pave and light the streets and adorn the nrks in which he takes the air. to nffordse hools for is dren, chil to provnle courts and jurics and policemenfor the protection ofliis person and to preservefrom the robber or the burglar the very bonds in question. From all these reasonable taxes he isoxempt. “The fact of this exemption with no equivalent taxation is known and is causing irritation all over the land. It is felt as ahard and unjust discrimination against thosewho have tied themselves to the country by becoming owners of the soil, and who are usin their meansin addiuizto the wealth of the nation yfair and honest industry." Mr. Hayes proposes a general taxation of bonds by the Government as a substitute for local taxation. He suggests one%. to be deducted when coupons are pai. He gives the statements of some of the wealthiest men in NewYork who acquiese e in the propriety of his views. But I confess the plan does not strike me favorably. It is simply scling down the interest. When the English Government. cut down the interest of its debt. they accompanied it with an offer to pay the principal. We could fairly do no less. I irefer to see the experiment tried of issuing lionds which shall take the same chance as other property of like value. Let them be sold at the ir market value, and taxed fairly. I do not believe the serious results apprehended would follow. State bonds are taxable, and still they rule on the average as high as national bonds, and in many cases higher. Why is this? If it be because there is after all a feeling of distrust in the public mind and apprehension that the nation may grow wear and throw off its burdens; if this feeling of distrust permeates the financial mind and makes itfalter when it puts up its money for the national securities, may it not be removed, partially at least, by removing one of the great causes of public unea siness 7 It has been easy to exhibit the strength of the security of the public debt by statistics; abundance of property, great income and increasing, as the daily returns attest; resources available and sufficient to pay principal and interest within the lifetime of many of this generation and still U.S. sixes are selling in London at 70, while British consols bearing 3%. interest bring 87. Our nations. debt has been attacked North and South. In the North the only salient point of attack has been its non-taxable qualy ities. The South, of course, objects to it because it was the great engine for their subjection. The northern objection we can obviate. The southern we must continue to conquer. Thus, it may be that, after a little, the taxation which stocks will undergo if my amend ment is adopted, may enhance their market value. In furtherance of this view it must be recollected that the price of our stocks here is much influenced if not absolutel controlled by the price they bring abroad. early 1/3rd of our funded debt is owned in Europe. Ofcourse it makes no difference in the London market whether the bond sold there would or would not be taxed in NewYork if held there at the time of the annual assessment. The price there is governed by the views they take of the General posture of affairs here, and they follow considerations entirely outside of questions of taxation and for one I see no reason why the Secretar should not be allowed to sell bonds abroad i he can get a better price for them than at home. Bonds will ofcourse go abroad if the market price calls them there and if holders can without expense of brokerage receive their dividends in some convenient place in Europe our bonds would undoubtedly appreciate, an as they enhance in value the price of gold on this side declines, and we approach specie ay meuts. anyone who has interested himse f in such matters for the last 6 months cannot but have noticed that gold declines in NewYork with the advance of bonds in London, and advances when they decline there. Thus, the sale of bonds abroad, at enhanced prices, will hel us on the road toward specie. with these views I cannot vote for the bill before the House. I doubt the necessity of enforced contraction of the currency. Bntif it is to be contracted by law let the bank circulation go 1st. Tax that out of existence, if necessary. I will go as far as the man who will go farthest in this direction. When that has been done retire so many “ greenbacks” as may be necessary. Once on a specie basis let the business of the country regulate itself. Doubt less many of us will live to see the day when, in the abundance of gold, we shall have a currency more nearly metallic than ever before. But so long as we use pn er let it be the best possible, and that is certain y the “ greenback