The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1867-12-19
rho National Debs-Fmportant RE.
.,or, of the senate Finance Commit
,.s--Propositiou to Fund the Debt
Lang Time Gold Bonds.

rho national Debs-Tmportant RE
,,ort OF the senate Finance Commit.
proposition to Fund the Debs
~ Long Time Gold Bonds.
N the Senate Tuesday Senator Sher.
.,.n reported an important bill from the
CC"Sn,mi,tee on Finance, providing "Gor
s,nd;nc the national debt and for the con-
I"- of the notes of the United States 81
rhe bill authorizes the Secretary of the
r.aosnrv to issue registered or coupon
ltsSs Of such denominations as he shall
Y We payable, principal and interest,
ro;p. and bearing interest at six per
:" ,,, such bonds to be payable in forty
I'"u from date; redeemable in coin at
ss ,,rasure of the Government after ten
'D rs from date; to be issued to an amount
SS;r;ont TO cover all outstanding or exist
~. ohIications of the United States, and
eh a disposed Of in such manner and on
',,b tertns-not less than par--as the
Sno-o,orv Of the Treasury may deem best {:
"a ,Lr said bonds shall be exclusively
~snd in taking up the existing securities
nS che United States. The expense OF
.ssrinr and disposing Of the bonds is not to
iced one per centum on their amount.
section second provides for the entire
,xSr,otion of these bonds Ito be known as
,hs consolidated debt of the United
StsteS from taxation, whether by State,
municipal, or other authority, and the
somp and the interest thereon, and the in
.on,e rhcreirom, shall be exempt from the
rsyment Of all taxes and duties to the
tinted States; but, in consideration of
srcb exemption, the Treasurer Of the
United States shall reserve one-sixth Of
the interest accSuiug on them, which sum,
il lawful money, shalltor special fund
one half to be distributed among the seve-
-sl States in proportion to their popula-
ton. and the remaining half to be applied
70 the payment of the national debt in the
manner aiterward provided by this bill.
Section third substitutes for the sinking
fund, as provided for by laws now in force,
the plan of appropriating yearly from
moneys not otherwise appropriated in the
Treasury. A sum which, including the
amount necessary for payment of interest
and maturing debt. and one half Of the re-
served tax as aforesaid, shall amount to
- millions Of dollars, which sum,
during each fiscal year after the current
fiscal year, shall be applied to the reduc-
ton OF the public debt in such manner as
nav be determined by the Secretary Of
the Treasury, or as Congress may hereafter
direct.
The bill further provides that the bonds
keown as the fve-twenty bonds "shall, at
the expiration of FIVE years from their
date, at the option OF the holder thereof,
be exchanged for the bonds authorized by
this act, and such as are now redeemable
shall be presented for exchange on or be-
ire the first day of November next, and
not thereafter, and the residue to be pre-
Sentcd on or before the expiration Of five
years from their date, and not thereafter
and such exchange shall be made at such
places and under such rules and regula-
lions as the Secretary Of the Treasury may
prescribe"
Section fifth provides that the holder of
any lawful money Of the United States to
the amount Of one hundred dollars, or
multipleS Of one hundred dollars, may con-
vert the same into bond for an equal
amount; the notes so received to be held
in the Treasury as a part of the reserve
already provided for; and the holder of
any Of the ive-twcnty bonds, or of the
bonds contemplated by this act, may de-
mand their redemption in lawful money OF
the United States, and the Treasurer shall
redeem the same in lawful money unless
the amount of United States notes then
outstanding shall be equal to $500, 000,-
600; but such bonds shall not be
so redecmablc after the resumption of
specie payments, and the Secretary Of the
Treasury, in order to carry out the fore
going provisions, is required TO maintain in
the Treasury reserve of not less than fifty
millions of lawful money, similar in all re-
spects TO the United States notes author
lied by law, provided the amount out
standing shall not at any time exceed $780,
100000. In order to enable the Secretary
OF the Treasury to redeem securities OF
the United States held abroad he is further
to issue bonds payable, princl-
pal and interest, in coin, in Frankfort OF
London, bearing interest at the rate OF
four and one-half per centum per aunum,
payable semi-annually at a rate OF eX-
change equivalent to five francs per dol
lar; such bonds payable in forty years and
after twenty years from date,
ut the pleasure of the United States, in
coin, at like rate of exchange, and to be
issued to an amount not exceeding hVe
hundred millions Of dollars, to be eX-
changed for an equal amount Of five twenty
bonds, CT disposed Of on such terms, not
less than par, in lawful money, as the Sc
cretary may deem best; but the expense
of the sale or exchange of said bonds shall
not exceed the difference between the said
rate of exchange and the market rate OF
exchange on London or Frankfort.
Mr.. Sherman said that hG did not intend
10 call up the bill until after the holidays.
In addition to the bill the committee pre-
sented a report on the subject of the
finances, in which they remark:
1t should be the effort Of Congress not
merely to declare and obey the existing
law, bat to adopt comprehensive policy
that will preserve the public faith, restore
confidence to the people, stability to our
business interests, and yet will appeal to
the sense Of justice Of the people II 1t is
uuhappily drawn into the arena of party
politics. Financial matters ought not to
be in any sense partisan; but they may
become SO. Unless Congress can adopt
a policy meeting all the requisites named,
the contest in these most delicate and
difficult questions may be transferred to
the hustings, where the heat of party STRIFE
may lead to dangerous results.
The committee examine at length the
provisions of the bill, state the condition
Of the public debt, and then, taking up
the question as to whether the five-twenty
bonds are redeemable in any other money
than the coin of the United States, say
duties on imported goods and interest on
the public debt, are by law except from
the legal-tender clause. This implies the
principal Of the debt is not excepted. me
construction drawn from the payment or