e went on in Congress and in the press, but no general scheme
of legislation could be agreed upon. Congress took up the tariff and
the internal revenue, and passed the Acts of March 5, May 1, and June
6, 1872. By the first Act, all internal taxes were removed from fish,
fruits, and meats. By the second, all duties on tea and coffee were
absolutely removed after the first day of the ensuing July, reducing
the revenue by this single Act to the extent of $20,000,000 per annum.
The last Act (June 6) made a reduction of ten per cent in the customs
duties on all importations of cotton, wool, iron, steel, paper, rubber,
glass, and leather, with a number of specific changes in the tariff,
and a large addition to the free list. The effect of the three Acts
upon the revenue of the Government was a diminution of $44,000,000 in
custom receipts and $20,650,000 in internal taxes. The machinery for
collecting the internal revenue was greatly simplified and improved.
A proposition introduced by Mr. Clinton L. Merriam of New York proved
to be of great convenience and safety to the National banks. It
permitted the Secretary of the Treasury to issue certificates of
deposit in denominations of $5,000 without interest, in exchange for
notes, and these certificates became available for the reserves of the
banks and for settlements of clearing-house balances.

The Forty-third Congress met in a period of discouragement and
disaster. The financial panic which swept over New York in the
preceding September (1873) was followed by deep depression throughout
the country. Wrecks of business enterprises were everywhere visible,
the financial markets of the world were disturbed and alarmed, doubt
and hesitation filled the minds of senators and representatives. A
black flag seemed to overhand the finances of the Government as well as
of individuals. Plans for funding the public debt were checked, the
movement for resumption was weakened. The situation gave fresh
arguments to the champions of the _fiat_ dollar. It affected commerce
and diminished the revenue by arresting production and by reducing
imports. The division of opinion among senators and representatives
was very pronounced, as was shown in the bills introduced, in the
amendments submitted, and still more significantly in the debates upon
the President's message. The first definite action was upon a currency
bill introduced in the Senate. As reported from the Finance Committee,