Mr. GARFIELD. That is a part of my 2nd oint, and I will cheerfully discuss it. Before saving the 1st oint, however, let me say that the committee have not been willing to leave the Secretary merely the barren power of exchangin one form of paper for another, bond for bon, dollar for dollar, and that only at the option of the holder. It is proposed in this bill that he be permitted to put a loan on the market, to sell bonds for money, and with that money redeem the old bonds as they may ture. Even if we had no desire to limit the volume of paper currency it would be necessary to give him this power for the purpose of fundin the debt. But hasten to the consideration of the currency. I call attention to the fact that congress has establisheda policy, which is now nearly 4 years old, in reference to the circu lating medium of the country. 5 years ago there were in the U.S. over 1600 banks, based on any and every kind of security, and issuing currency in whatever amounts were authorized by the laws of the various States. The notes of one bank were based on real estate; of another, on State stock; of another, on U.S. stock. Each had its peculiar basis, its peculiar kind of currency, and regulated the amount of its circulation according to its own rules and opinions. 1600 independent corporations were tinkering at the currency. The result was that a paper dollar in Ohio, though worth 100 cents in gold at home, would pass for only 90 or 95 cents in assachusetts or California. A Massachusetts dollar would fare equall hard in California. A paper dollar was wort its face in gold in only the immediate locality of its issue. During the progress of the war against the rebellion, there was adopted a system of national banks based on a uniform security the bonds of the U.S. so that a aper dollar issued in Ohio is worth no less whon it reaches Massachusetts. It was not, however thought prudent by the 37th and 30 Erghth Congresses to make the U.S. Government a banker for the people, with arbitrary power to regulate the currency as it pleased. It was thoughtto be dangerous to repeat the history of e U.S. Bank of 30 years ago; and therefore it was resolved that the national bank system based on the bonds of the U.S and regulated by the necessities of trade should be the establilshed policy of the Government. The green back currency was issued only as a war measure, to last during the necessities of the war, then to be withdrawn, and give place to the national bank system. The War is now ended; and unless we mean to abolish the national bank system and make the Government itselfa ermanent banker, we must retire from the banking business and ive place to the system already adopted. uness gentlemen here are now ready to abandon eu tircly the national bank system, they must consent that ultimately the greenback circulation shall be withdrawn, and that the notes of the national banks shall furnish a aper currency which, together with old, shal constitute the circulating medium of the country. The committee have roceeded on the belief that the national bank)system is to be the permanent system of this country, and that the greenback circulation was only incidental to the necessities of war, and that with the removal of these necessities it was to be withdrawn. Shall we return to s lOCltZpayments; and if so, iron and how? Topresident, in his late annual message, has expressed clearly and determinedl the purpose of the executive dept 0ft to Government to return at the earli est practicable moment to the solid basis of gol and silver. The SecyTreasury in his report sets forth, with very great clearness and ability, the importance of an early return to specie payments. And this House, on the 18th of December last, with but 6 dissenting votes, not only declared itself in favor of returning as speedily as practicable to a specie basis, but also dec ared that the currency must be contracted as a means of resumption. Now fhow shall this be accomplished? By what lever can the financial machinery be so moved as to effect the object so much desired by every dept of the Government? I answer that the only lever in our hands strong enough to reach every difficult and overcome every obstacle is the greenbac and fractional currency. In the 1st place they add $450,000,000 to the volume of the currency. In the 2nd place, they underlie the national bank pystem and constitute the reserves required by aw. It has been said during this debate that the circulation is not redundant; that we have now no more paper money than the business of the country requires; that the rate of interest is high, the money market stringent, and rices greatly advanced. I hold it demonstrable that our redundant currency is the chief cause of the high prices and the stringent money market. know that figures are not always the best indexof the financial situation. I they were, I might show that less than 300 million dollars furnished the circulation of this country before the war, and that now we have more than1,000 million. I need only refer to the horn books of financial science to show that the only sure test of the redundancy of Japer money 18 its convertibility into coin at the will of the holder, and that its redun dancy will inevitably increase prices. On the latter proposition I will read a sentence from the highest living authority in political economy, (John Stuart Mill, political Economy, volume two, page 18:) “That an increaseof the quantity of money raises prices and a diminution lowersthem is the mostele mentary proposition in the theory of currenc, and without itwe shouldhnvanokeyto any of the others."