The Hillsdale standard. [volume] (Hillsdale, Mich.) 1851-1909, 1858-02-02

order, aud proceeded (Mr. Morrison in the
chair) to consider Senate bill No. /, being
bill authorizing loan to pay those parts
of the State indebtedness falling due be-
fore aud on the first day of January 1859.
The bill was considered section by sec
tiou, and amended in several particulars.
The bill, as amended, provides for loan
or loans not exceeding in all $4,000, re-
deemable at the pleasure Of the State, at
any time after the expiration of twenty
years, at an interest not exceeding six per
cent.
There was considerable debate on the
limitation Of tho rate of interest. The
bill originally provided for limiting it to
seven per cent.
Mr.. Conger moved to strike out 81" and
insert &c." making it read 'at an interest
not exceeding six per centum per annum
payable half yearly"
Mr.. Fairfield was in favor Of leaving it
with the Governor, who would have the
power to negotiate the loan at any-cheaper
rate.
Mr.. Abel was in favor Of having il sew
en- per cent, because if it were fixed at q
lower rate the Governor might be unable
to obtain the loan, and consequently the
credit of tho State would suffer. He had
but little doubt but that it could be oh.
tanned at cheaper rate, as 1t was 10 be
hoped that before this loan was effected
there would be better times in the money
market, and seven per cent. was inserted,
but with no expectation that it would be
necessary to give that amount but to pro-
vido against possible contingency.
Mr. Boise vas Of opinion that placing
the interest at seven per cent. would DO
lessening the prospect Of getting the loan
at any cheaper rate, as those who would
lend the money would be apt to claim the
full amount. He would vote to insert six
per cent.
Mr.. Congcr showed by reference to the
quotations and reports Of the money mar
kct that the stocks of other States Of no
better security than Michigan could offer,
were selling skies at par, and that even
five per cent stocks were selling at par and
little over par. United States stocks
at six per cent wero selling at 1863 and
New York fives at 1904, Ohio skies at par,
Missouri SKIES, it was true were below par,
but States with securities similar to that
Of Michigan. New York. Chio, and U.
s. stocks, meme of which were any better
security than Michigan stocks were selling
at or above par, both fives and skies. He
| knew no reason Why this act should not
limit the rate Of interest to six per cent, rs
the guarantee Of this State is rs good as the
guarantee of any other State in the Union
There might not be any banks in the State
by the time this loan is required. and
therefore the demand for these stocks will
be considered and the probability is, that
| the six per cent stocks Of this State, will
| be ten or twelve per cent above par.
1t was cleared that if the law should
give tho contracting party power TO issue
stocks at seven per cent, the money hold
crs will endcavor to compel that rate. He
went on TO contend that although money
seemed scarce, there was rs much money
in tho country Us ever, and reports show
cd that there was large amount of cap.
ital for which safe investment WAS eagerly
| sought.
Mr.. Jerome was in favor of the amend
ment. He believed that money on good
security could be obtained at lower rates
than any other timo during the past six
| years.
Mr.. Arms had no fear that there would
be any Juggling with the State officers.
Hc had sufficient confidence in those off,
cers TO place the simpc power in their
hands TO obtain the money nj seven per
cent, provided they could not get it for
less. We believed thero was not Sen
ator on this floor but would give eight per
cent rather than have the credit Of the
State jcopardized.
Mr.. Abel had no feeling about this
subjeet. His desire was to get this mon
cy as low as we can. Ho believed that
competition would be 80 great rs to bring
the very lowest sum, but he was in favor
Of giving the discretion, as it was imposi-
bic to tell how long the money crisis would
continue. Other States and the Uuitcd
States were competing for loans.
Mr.. Becbc cortended that the idea
that therc would be competition was
was reason for putting the rate at six
per cent. Having fixed the period at
twenty years, he believed these stocks
would very soon sell in the market at s,
10 and is per cent premium. Those now
holding the State stocks which are about
failing, we would very gladly exchange
them for the new stock with twenty years
to run. He was in favor of putting IL at
srx per cent. He had thoug ght seriously
of putting it at five per cont which he
believed would be tho wsiest course.
Mr.. Jercmo said allusion had been
made to the National Treasury and the
National administration at Washington
coming into competition for loans. If he
understood Secretary Cobb's shnplastcr
bill, tho national administration with all
the trouble they are in and all their accu-
mulated disasters, "bleeding Kansas" Fill
buster Walker, and Douglas kicking up a
muss--if thes could get money at three
per cent, there is no doubt that VIC, who
had not anything of the kind to trouble
us at present, could obtain loan AZ six
cent. He had rs much confidence in the
Governor as the Senator across the cham
Der, but We would say, il we do not ex.
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