Weekly national intelligencer., 1864-03-10
CONGRESSIONAL. /.
PROCEEDINGS THE SENATE.
Extracts ~ ON Our Daily Reports
PUBLIC LOANS.

Mr. FESSENDEN, from the Committee on Finance, to
whom referred the bill from the House) supplement
tary to an act entitled An act to provide ways and means
for the support Of the Government approved March g.
1868, reported il back without amendment
The Senate proceeded to consider the bill Its pro-
visions stated in the House proceedings inserted yes
terday ta n n. hate I.
+ Mr. POWELL moved to strike out the second section
of the BILL authorizing the issue OF $u 100000 hve-I
tUentes-o fulfil prior subscriptions. by the quotations
is the newspapers the sad these fvetwenty bonds are
selling at premium OF about seven per cent that Is,
they worth per cent more than the paper money
commonly called .greenbacks." II you authorize the
Secretary Of the Treasury issue TO these persons
900 900 of these bonds which they subscribed TOR a.
900 authorized to bs issued had been sub
scrbed for you give those about hundred
thousand dollars the bonds worth more by
that amount money than the they have given Tor
them do not think that any such law ought pass Ii
will be virtually giving to those persons about nun
dred thousand dollars, that amount 1t Is mani
testify unjust to the Government that spuld be DONE
Mr. FESSENDEN. The fact is simply that in the sub
scrpon for these bonds they run over the amount OF
$500 600 600 The persons who made the SUBSCRIPTIONS
have paid their money extsntI do not know ex
acy what the arrangement was with reference TO thai
and this bill simply authorizes the performances OF that
contract the part Of Government with those persons
To be those bonds have risen in value but
the Senate whether justice does not require that
the persons who thus subscribed the amount being so
comparatively small should receive their bonds Insy
make nothing out of the Government by tat all The
Government have to sell, and therefore the Gov
ernment loses nothing by 1T. '2
Mr. POWELL The law authorized the issue OF
$500 600 900 Of FIVE twenty bonds but seems the sub
scrptious went eleven millions over that amount,
and this bill proposes issue bonds to those persons who
subscribed the eleven millions over the amount authorized
When those persons subscribed they knew the limitation
in the law on the issue Of those 6vetwenty bonds The
Government not bound IN any way whatever IN faith
otherwise, to issue more Indeed, u could not issue
more under the law then and now exists than the
$500 900 600 Now it is proposed to pass law anthorz
ing the issue of ve-twenty bonds for those 100000
The Government had better pay them back their money
these bonds to-day worth $500 more than
the money they paid If they have subscribed for bonds
that be ssued the Government can but give them
back Their money; and in that there Is no breach OF faith
look upon this section giving absolutely away OF the
(iovernment funds 800 600 TO those persons.
Mr. FESSENDEN l am informed the mode adopted
was that those who subscribed paid in their money absO
lntey. The Government have had the use Of t. NOW,
what does the Senator propose to dot Pay back the
money with interest psy it back without INTEREST
Who to perform the contractf do not see that any
harm s done and think justice requires that these bonds
Mr. SHERMAN When the loan about to be ex-
haused there eager demand for it, and believe
the last day that the subscription books were open
from six to millions subscribed and The money
was paid 1t impossible to tell precisely when the
$500 900 exhausted account OF the extent OF
the country and the magnitude OF the operations LII
seems that the loan really exhausted day or two
before it was known at the Treasury Department, be
these subscriptions did not coms in in the ordinary
of operations for day or two and sometimes three
or four days In this way some where between
nine and eleven millions subscribed over the amount
authorized by law The money sent from all parts
the country and went into the Treasury OF the United
States and has been expended But when they came 70
issue these bonds it found that the amount subscribed
for was in Of the amount authorized by law The
only question occurs whether the money with interest
shall be paid back to those persons who subscribed Tor
the stock or whether the additional sba be
thorzed by law From this statement OF the proposlnon
think is manifest Government is bound to issue
to these parties these bonds They subscribed for them
in good faith ignorant of the fact that the $500
were exhausted The Senator from Kentucky says is
loss to the Government of $7r00oO He s mistaken IN
that The loss about $400 000 that's the bonds could
be thrown on the market to-day and sold for shout four
hundred thousand dollars than the Government real
zed from them because from the lst of November n-
erest has been going and that must be deducted from
i the per cent premium.
| Mr. HENDRICKS We received 81 900 900 Of an
excess Of subscriptions which the chairman OF the com
mittee says was paid in wish to know whether it was
paid to the Banks and the vaults of the Banks
i or whether il ia in the Treasury
| Mr.. SHERMAN 1t is in the Treasury, every dollar
Mr.. HENDRICKS. j have not seen any thing from
/ the Department on the subject.
| Mr.. SHERMAN Before the subscription Is perfect
the money be paid into the Treasury OF the United
States The Government had that money and disburs-
Mr.. JOHNSON If the faith Of the Government is in
any pledged to the parties who subscrbed that
900 OO0 il very clear that the United States Gov
ernnent ought redeem it, understand the Sena-
tor from Ohio and the chairman OF the Committee on
Finance to say that the whole smoun paid in on the sub
scription OF tn fvetweny bonds has actually been
| sppropr ated by the Treasury
| Mr. SHERMAN. Yes, sir; it has been appropriated
| by the Treasury
| Mr. JOHNSON As it is very desirable that these DE
partments should be kept strictly within the limits ct their
authority wanted to know whether fhe Secretary OF the
Treasury appropriated these 000 knowing at the
time that that sum was Of the amount for which
h was authorized 10 issue the fvetwenty bonds The
Secretary Of the Treasury authorized TO receive sub
scrptions amounting to the sum OF $5OOO0OQO0 aud no
more because he had only bonds to that amount to issue
10 the parties that subscribe but instead OF recev
ing 500000 600 in money he has received $5l 900 600
in the Treasury 5i 900 900 subscribed in that way that
SI 600 600 were IN Whist suggest issI do not
make the suggestion with view d voting sganst this
b-ihat In all these it is the interest OF the Gov
eminent and IL the duty Of these Departments that they
should keep Themselves stediousy within the law They
are uvyig us-this is not the first casein responsible
ties that we did not o incur. That was done in the
case of the excess Of bouutes which have been obliged
to provide for; and are asked " authorize the
se of bonds extent Of l 600 OOO on the ground
that the tay Treasury has S1 900 600
when he our ht 10 have known and wouu have known il
his attention had been called TO it that il impossible
| for him IT, issue bonds to that amount
The honorable member frop Ohio end the chairman Of
the Committee Finance say that II the money TO be
returned II Ia 10 be returned with interest That al
nit What is the difference between what will be the
interest the $1 900 900 and the amount OF premium
which these bonds now command 10 the MARKET The
member from Kentucky says that they
eight per cent above par Whatever premium these
bonds command in the market which s more Than the in,
~rest should have TO pay that amount the uovern-
ment loses That very clear III we are obliged to pay
eleven million two or three hundred thousand dol
L..l - aa,1 dnt. IL ~.