Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1832-02-28

vcrnmcut,) were pledged. In the year 1891, a law
was passed which created Sinking fund. II pro-
vidcd, that, eight per cent per annum should be
paid in quarter yearly payments, TO the holders of
the u per cent stock, Ton which interest paya-
ble,) 10y which system six dollars applicable To
the interest in the first year. and two dollars towards
the principal OF the debt every year thereafter. The
payment for interest annually csscned, and that of
principal annually increased. This system was not
materially changed until the year 1902, when Con-
gress passed an act, appropria,ing the sum of
S7,OOO0O 10 bc applied to the payment of the in
cres and principal of the public debt including the
payment for loans previously made am, for any loan
that might thereafter he made. In the year 1903
farther sum of 100000 added to that fund.-
making the whole sinking fund amount to the sum
OF eight millions of dollars. This additional
was intended to meet and cNtinguish the debt Gre
atcd by the purchase of Louisiana. No material al
tcration made respecting the sinking fund, until
the whole of the debt % per cents. exccpled) was
nearly or finally cNtinguislied In 1906, a law was
passed, which authorized the Secretary of the Trca
s,ry purchase tho per cents provided they
could he obtained at 60 per cent. portion of this
stock was IL beGevo) redeemed. In 1907. an cx-
change of old for new stock proposed, on Ger
tain terms, which, however, was of but little consc-
quence farther than that it contributed To facilitate
the payment of the public debt In 1917 an act
passed "to provide for the redemption of the public
debt which had been created by the war. This
act appropriated, annually, the sum of ten millions
|
Sinking Fund, TO the payment of the interest and
the cNtingushmcut of the principal of the public
debt; and IT declared that any surplus which might
remain IN the Treasury, beyond the sum of two mil
lions of dollars after the payment of the cxpendi-
lures of the Government, should be applied TO the
payment of the public debt. Two millions were
thus reserved, to meet any extraordinary exigency
which might arise, and To provide for any unforeseen
demands on the Treasury. II deemed adysa-
BILE 10 make it legal for the Treasury to retain GER
tam sum- rather than To permit the course which had
been previously pursued, without any legal authori-
y Tor II was shewn by two Reports from the Secrc-
ary e the Treasury, that one million of dollars had
been annually reserved, for the purpose of provi,-
ing for any extraordinary demands on the Treasury
winch sum had been retained in the Treasury with
ont any legal authority. The authority to retain the
two millions las have reported to the Senate on n
former occason,) had seldom been exercised In
1877, the Committee Finance reported bill to
reduce the two millions thus retained, million
The bill did not receive the sanction of the S,cnatc
In 1898, the Senator from Missouri Mr.. Benton |
presented bi on leave, tn repeal the 18th section OF
the act oi 1SlI, "to provide for the redemption of
the public debit" which would have deprived the
Treasury of the whole two millions held i'm reserve
Tor cNgency This proposition was rejected The
same Senator, in 1890, submitted resolution for
the purpose of repeating so much Of the act refer
red TO, as authorized the retention of the two mil
lions in the Treasury, which resolution was referred
10 me Committee of Finance, and reported against
ny mat Committee, as incNpcdient to be adoDted nj
thdt session, for reasons expressed in the Report
now DIR. President, have arrived at the principa
point OF my argument. I'm the year 1880, the Com
nttec OF Finance deemed that The time had ,,o,u ar
rircd, ut which the Treasury might safely disDense
with the reserved two millions and that authority
should be given for the purchase of the public debt
WIN tins sum, and they accordingly presented bill
wn,ch passed INTO law on the 9th April, 1S30.-I
Will read the first and second sections of that law
"Scc. l. BE it enacted by the Senate and House of Re-
personalities of the United States of America i'm Congress
assembled That whenevern the opinion of the Secre-
'ay OF me treasury the state of the Treasury will
mn oil the application oil greater than millions of
dollars in any year. to the payment OF interest and
charges and TO the reimbursement or purchase of the
principal OF the public debt, it shall be lawful for him
with the appreciation of the President the u S. TO cause
such surplus TO he placed at the disposal of the Commits
loncs oil the Sinking Fund.- and the shall applied
ny them TO The reimbursement purchase Of the prnc
pal OF the public debt at such times state of the
sury will best admit
'Sec. 2 And be it further enacted That whenever in
any year, there shall be surplus sinking fund be-
y"nd The amount of interest and principal the debt which
may be actually due and payable by the United States in
S"ch year In conformity with their engagements il shall
be lawful for the Commissioners the sinking fund TO an
ply such surplus to the purchase OF any portion of the pub
TIC debit at such rates in their opinion may he avan
tageous To the United States; any thing in any act of Con-
gross 10 the contrary Notwithstanding"
The first section vests in the Commissioners of the
Sinking Fund ample authority to direct that "anv
surplus that may remain i'm the Treasury shall be
applied by them to the reimbursement or purchase
OF the principal of the public debt" No exception
is contained in this section in relation 10 the DUR
chase oil the 3 per ccntS to any other part of the
public debt. This provision of the bill authorizes
tie purchase of every description of debt due by
the government. The second section removes every
doubt which might remain on this point i'm the mind
OF any gentleman. 1t distinctly declares that il
shall be lawful for the Commissioners of the Sink
ing fund to apply such surplus to the purchase of
any portion of the public debt"
The Commissioners have considered the law TO
he imperative, and in consequence, they have re-
deemed tie seven millions of stock deposited i'm the
Bank of the United States The present Secretary
of the Treasury informs us, that it is intended to
purchase or redeem the three per cents To that in
teniion, the Senator from Kentucky Or. Claw OBJ
Jccts. He says: 4" cannot think and shoud SIM
pose Congress can hardly believe with the Sccrcta-
ry oil the Treasury, that it would he wise to pay Off
stock of thirteen millions, emitting its holders TO
put three per cent, with capital of thirteen mil
lions, worth an interest of six per cent. I'm other
words, to take from the pockets of the people two
dollars to pay one in the hands of the Stockholders
This language is intended for effect and has doubtless
operated on the minds of some Senators who may
have been unacquaintcd with the act of 1890 to which
| have referred, and of which even the Senator from
Kentucky (Nlr. Clay seems to have lost sight That
Senator seems TO think that the payment of the 9
per cents is project originating with the Secretary
OF tic Treasury. Such, however, is not the fact
Ii was the project of Congress who passed the act
OF lS3O, at which time the present Secretary of the
Treasury was in England. The Secretary. there
fore acts only in obedience to the law He dare not
act otherwise, and must pay the 3 per cents unless
the act be repealed. If repealed, what would he
our situation? The report of the Secretary of the
Treasury at the present session of Congress con-
veys more information in relation to the financial
concerns of the government than any previous
Treasury Report which j have seen, Ii is CLEARLY
expressed and easily understood by all who have