Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-04-19
CoNGREss-.2d session.
.hond0y, .4pri IL.
IN SENATE

'eo9t, P'aJiE z compensation Tor u machine in'e.lee
10y hiin 10 trs' The strength Ct cables.
Mr. PHELPS, from the Committee on Revolution
airy Claims, made adverse report On the petition
OF the heirs Of Daniel Pratt for seven years half pay
whch was ordered tn lie the table, and be- printed
Mf. fhES TON, on leave, introduced a bill oincor
pHrae, IN the District OF Columbia the National lnst
tuon tor the promotion Of science; and
bill TO invest The proceeds Of the Smithsonian fund
and 10 establish the Smithsonian Institution.
The bills were then read twrc and referred TO the
COMMITTEE on the District of Columbia.
On motion Of Mr.. EVANS, The hes, Senate proceeded to
the consideration Of the bill authorize loan OF FIVE
millions OF dollars in addition 10 The loan Of last year
nut yet negotiated aud 10 extend the time of both to
iwcniy years. TIE question immediately pending was
tie anis ndmcnt Of Mr.. Evans.
Mr.. BENTON moved TO amend il by striking out all
af:rr the words spar value.
Mr.. BENTON moved TO strike out the authority to
ell the Government stock Tor less than It's par value
lie was too well satisfied with the speeches of his
friends In make speech himself on this point They
had shown that il impeachment OF our own ere
dit, and n voluntary degradation Of own stocks,
ana must lead to its great depreciation thus to offer
It, Ill. would repeat nothing that they had sad, bu,
would show that here again. Is in all that this admins.
ranr doing, we were taking the English Minis
ter, SIR Robert Wa pole, for our guide and cxamPe-
Mr. Benton then read some paragraphs from McCul-
ochs Commercial Dictionary, and made reference
10 an article in the Edinburgh Review mo. 93) TO
show The origin md the injurious effects oil this mode
Of borrowing, which was commenced IN the reign OF
George the Second, and had been followed up IN Eng
land until the Government was bound Tor two.iIiths
more Of the debt for money borrowed, than they had
received OF the lenders From these 1t appeared
that SIR Robert Wapoie, 10 bambooze the English
people with the idea OF low interest on loans Instituted
three per cent Stocks TO be sold IN the market Tor what
they would hringtha these stocks sold or sixty or &C
vcnty pounds in the hunlred-and that the lender re-
I dc and MT c
Of three pounds on this cellfca,ed hundred, while in
reality he had but about twothrds of that The
result Of the whole was, that the English people were
now bound for two iths than they had ever re-
ceivcd ard paying interest what they had never
rot Mr. B. said that the same result, in less DE-.
gree must take place with if our stocks were to
be sold for what they would bring. They would pro-
baby sell ror eighty ninety dollars in the hundred,
50 that ,yc will be bound for onelth or onesixih more
than We recevcsll pay interest for twenty years tor
what we never got-and at TIE end of the time have
10 pay ten or twenty dollars in the hundred more
than we ever received. A this cheating and BAN
booznr ourselves. 1t nominally giving si1 per
cent but in reality giving seven or eight Much fa'Ier
would il be 10 give higher rate OF interest nj once ana
know what We got fur il. MIR. b. wanted II hundred
to stand for huntred-he wanted TO get hundred
dollars when he gave his note for il Under the pre-
sen, bill no one knows what hundred is to be-whe.
her it is 10 BE- ninety eighty, or seventy Al Tins
was DEGRADING and injurious, aud invited capitalists 20
combine 10 sink our stocks. The true course was 10
rive HIGHER interest and get hundred for one hun
dred |. the fair course 1T was IN VAN 10 Try 70
bautooz. The people with of Sir Robert Walpoe
old tricks: il would all be understood and despsed.
Mr. EVANS did not propose TO renew discussions
that had already consumed so much time. Every on'
mus: know that the effect of the amendment Of his
amendment, if adopted vii, be TO put II out OF The
power Of the Secretary of the Treasury to exercise any
discretion Cor the advantage of the Government, and
Al ,,Iot,. =, nd her
supplus He tiusisc, the Senate would not sanction
the aG,s. .eEt.
Mr. KING said he was very DESTROYS Of being able to
vote for the bin but unless 1t modified in accord
auce with the proposition OF the Senator from aiis'
sour he did moi conceive that he could without vio-
,nn Of the duty which lie owed 10 the country, well
as the Government, give it lis support-iie did not
think tha, the objections urged by tie Senator from
Maine against the amendment, placed the matter on
ntorer footing 1.-The (Mr. K rightly understood the m
sni and bearing the ndmen 1t was TO shorten the
period Of TIE continuance OF the loan Let the Secretary
or The Treasury 90 into the market and procure the
loon bv rayrG rate OF interest sufficiently high, and
Im, the duration of the onn 1t seemed to hIm that
il ynud be far better 10 fix higher rate OF Interest,
and TO borrow Tie money for shorter period AZ
though he mir King) had never had much TO do with
The tsposa Of State stocks, he had had sufficient, how
ever, Ia show him concusrely that more ready sale
coud be effected by having high rate OF interest,
and short time to And why, he would ask,
should they continue 10 pay high rate OF inter.
as, os they inevitably must, FOR such number Of
,e,rs If the Chairman of the Committee on FL
nance would take this view of the subject, he ONT
kim, believed lie might venture to say that VI
was the desire of every gentleman here to render thf
fullest assistance to the Government IN the way o. pro-
v;dinr means for his support lie had been asked, MS
ho ,lroody stated negotiate stocks bearn. rate OF
,.res. Of SIX per cent lie went into the New York
moncy market aud received proposals beginning {;
cirh,y.fye per ccntum and rising to nnety.seven,
borr which no proposal could be obtained; but when
be declared that he must have four per cenun ptcm.
~, those very individuals who would not go beyond
nineyscvcn per centum in their proposals, very rea'
div consented 10 pay the premium o! Tour per cenum
yben they found that tile stock could not be OBJ
,ainrd at lower rate; and so eager were they that
her actually Guarrelled in his presence as to the pro
nort;ons that each should receive. And just so II
ro,ld be with this loan They would get no proposal
hovo EIGHTY per centnm and deduct twenty dollars
from every hundred and pay the interest upon this
twenty nj six per centnm for twenty years, was a
lh;ng which should not be seriously contemplated
for moment Gentlemen talk about the degradation
RI orr credit, bu, the DEGRADATION Of selling our stocks
Al depreca,cd valnc h thought, ought equally 10 he
Guarded aca;ns'; and did imply degradation to MAKE
sn cifc arrungemen for dschargng their obligations
Certainly It. unless il he degradation to pay tiieii
deb,s at all Lork III those States which omitted tc
make provision for the discharge OF their obligations
What vas Their condition now in consequence ci INA
om;ssion, Ooe after another they were falling. They
we're told That, whou, specific pledge, they should
not get the loan upon reasonable terms; no man woult
ro farther than he would 10 furnish The Government
with sufficient funds for carrying lis operations, bu
lie was at Tie same time, DESTROYS of procuring the
money rpon reasonable terms. Re did not intend tc
make speech upon the subject a, present, but had
risen chiefly 10 say that if they would not permit the
stocks to be hawked in the market for such price as
might be offered for it, he had not the slightest doub
thai the loan could be procured upon reasonable terms
Mr. EVANS replied, characlerizng the proposition
to obtain the loan at rate OF interest limited by any
ma num, such as 10 per cent as the WORT possible
mode Of procuring money in The stock market because
it would be obvious temptation to the nry'iendeT'
TO conspre together and refuse the loan, unless at The
maximum rate o! interest. This he expatla,ed upon a
considerable length.
Mr. YOUNG wished TO add a word 10 what had iallor
from The Senator from Alabama lie would ask the
Chairman Of The Finance Committee was 1t pruden. tt
send this stock TO England without any Limitation
and thus place il at the mercy of agencies who m'gh
make what profits they pleased upon it. lie adverted
to visit he had paid 10 England, where he learned
coed den of The sentiments of bankers and brokers
al. rnf