In  the  Senate  it  was  reported  by  me  from  the  committee
on  finance,  with  a  substitute  which  provided  for  free  bank
ing  and  that  on  and  after  the  1st  of  January,  1877,  any
holder  of  United  States  notes  might  present  them  for  pay
ment  either  in  coin  or  five  per  cent,  bonds  of  the  United  States,
at  the  suggestion  of  the  Secretary  of  the  Treasury.  This
substitute  was  amended  in  the  Senate  by  striking  out  all  pro
visions  for  the  redemption  of  United  States  notes,  leaving  the
measure  one  for  free  banking  alone.  The  House  disagreed  to
the  amendments  and  a  committee  of  conference  was  appointed
which  resulted  in  a  measure  fixing  the  amount  of  United
States  notes  outstanding  at  $382,000,000,  and  making  no  provi
sion  for  their  redemption.  It  was  a  crude  and  imperfect  meas
ure.  I  voted  for  it  because  it  provided  for  a  redistribution  of
national  banks  among  the  states.  I  said:  "Because  I  cannot
get  a  majority  of  both  Houses  of  Congress  to  agree  to  specie
resumption  I  ought  not  therefore  to  refuse  to  vote  for  a  bill  on
the  subject  of  banking  and  currency."  The  bill  was  approved
by  the  President  on  the  20th  of  June,  1874.  This  long  struggle
prepared  the  way  for  the  result  accomplished  at  the  next
session.
