Ashtabula weekly telegraph. [volume] (Ashtabula, Ohio) 1853-1873, 1866-04-07

665, 900. During the six months ending
June 80, 1857, we must pay $S,47l ,000.-
During the six months ending December
81, 1857, We must pay $3.50 900, 900 -
During the six months ending June 80
1868, we must pay $36g.4l5,25O Daring
the six months ending December 81, 1868,
we must pay $2s7 ,564, 482. So that be.
tween this and the assembling Of the next
Congress there must be paid over the
counter of the Treasury, besides the ordi.
nary expenses of the Goveroment, 81 POL.
S90,6O7 81.
/ am sure that every member Of this
House Acknowledges that this is sacred
obligation, every dollar of which must be
promptly met the day it is doe. take it
| fer granted that no mao here will consent
that single dollar of it shall go to pr otest,
or that any act of this House shall bear the
least tnint or color Of repudia;iou. We
m st therefore, meet these obligations
How can it be done
Mr.. SpALDlHa. Will my colleague allow
me question
Mr. GARFIELD. Certainly.
Mr.. SPALD1Ns Does not this amount OF
Indebtedness thus maturing include the
seven,tbirty bonds for which the Govern.
ment may issue fvetwenty bonds
Mr.. GARFIELD My colleague is correct.
Most OF the seven thirty bonds are included
in this amount, but they must be redeemed
in money or five twenty bonds, OF the hold
ers option. The Secretary has no power
to compel such an exchange.
As have already stated, there will be
presented for payment in some form before
the assembling of the Fortieth Congress
81, pol 900, 900. in addition to the ordinary
expenditures Of the Government. How are
these demands to be met ? With what
power is the Secretary Of the Treasury
clothed to enable him TO meet this eno-.
nous obligation
There are two clauses In the existing
laws which give him some power.
The fret and chief is 10 bs found IN the
last clause OF the frst section, OF the act of
the Sd Of March, 1865, which has been SO
ably discussed by my colleague on the com.
mittee, [Mr. Alli,on He has shown US
and no man. believe, will venture to
deny be correctness Of the position-tbat
the clause gives the Secretary of the Treas.
ury power merely to exchange one kind Of
paper for another, but only with the con.
sent of the holder. If the holder says, Il
will not take your long bonds, 1 demand
my money" his money be must have. If,
when the seven-tbirty bond is due, the state
of the market makes money more valuable
than six per cent. bond for twenty years,
the tolder will Of course demand money
He will Of course take the option most
profitable to himself and least advantageous
to the Government.
The other clause that gives the Secretary
power is 10 the act Of June 80, 1864 The
second section of that act allows the Secre-
tary of the Treasury to take up the various
kinds OF paper representing Indebtedness
and issue therefor c mpound-interest notes
or seven-thirty bonds. These two descrip-
tions Of paper are of all others the most
expensive for the Government to issue.
| say, then, concerning this power. it is
one that the Secretary ought not to USE
1t would be a calamity should he be com
PEELED to use it. 1t would be a calamity,
ia the 6rst place, were he compelled to
issue in exchange for maturing Indebtedness
these compound-interest es for they are
the most costly paper the Governmen: can
issue TO its creditors-notes that are paya.
BILE in three years with interest compounded
every six mouths. 1t is enough 10 break
The financial strength of any nation.
Again, by the provisions of this act the
Secretary may issue seven-thrty bonds in
exchange for matured indebtedness They
are short bonds They now fill the marker
more than any Others. aud will be malur.
ing after about twelve months. If we
pay these out it will be only for the pur-
pose of taking up others OF the same XII d.
Even this can be done only at the option
of the holder.
l say, therefore, that the Secretary is
substantially limitded in his power to
these two clauses of the law; ione that be
ought not 10 use aud cannCt use without
great disadvantage to the pablo credit, and
the other that be can use only for the pur
pose of an even exchange, and that, too, by
the consent OF the holders. Therefore be
has but little valuable power or discretion
in finding the national debt. If Congress
gives him no more power the Treasury will
be at the mercy of the public creditors, who
may combine to control the stock market
and compel the Secretary to sacrifice the
public credit to the gamblers of Wall street,
l hold it demonstrable that if you leave
the Secretary Of the Treasury where he is
you abandon HIN to the mercy of the hol-
ders Of the public securities, who. if they
please, eau utterly break him down aud
send the paper of the Government to pro
test.
Under these circumstances it was the
duty OF the Committee of Ways and Means
to inquire what further power was neces
sary to enable the Secretary to meet these
obligation as they matare, and put the
debt into the form of long bonds at q
lower rate Of interest than we now pay -
The committee believe that the bill now
before the House gives the Secretary no
more power than is ueedfa for the accom-.
plishment OF the work before him. With
that power. the Secretary believes ho can
do the work. Without it he cannot.
If the plan now proposed be not adopted
i. is incumbent upon this House to offer
one that will accomplish the work. 1t
is not enough that gentlemen are able TO
point out defects in this bill and raise OBJ
faction To IL. but il ia iucumbent uDon