The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-07-14
THE FoRTIETH CONGRESS.
SENATE.
WASHINGTON, July Is, 1858.

SENATE.
! WASHINGTON, July Is, $685.
SALE OF FORT LEAvENwORTH.
| Mr.. WILSON, (rep) Of Mass, from the Committee
on Military Affairs reported bill to authorize the
sale Of portion Of Fort Leavenworth Kansas,
which was taken up and passed.
BILLS REPORTED AND INTRODUCED.
Mr. TRUMBULL, (rep) OF ILL.,, from the judiciary
Committee reported bill in relation to corpora
tons and bill relative to finding indictments in
the United States courts in the late rebel States and
bill authorizing the temporary supplying OF
vacancies in the Executive Department. with amend
ments He also reported favorably bill regulating
the times and places of holding district and circuit
courts in the northern district Of Florida.
Mr. OSBORN. (rep.) OF Fla, introduced bill all-
thorizng the Commissioner OF Refugees and Freed
men and Abandoned Lands to sell certain abandoned
lands in Pensacola Fla which was referred 10 the
Committee on Public Lands.
Mr. MCDONALD (rep.) Of Ark, introduced bin for
the relief of the loyal citizens Of Arkansas for taking
the census.
COMMITTEE OF CONFERENCE ON THE TAX BILL.
The House amendments to the tax bill came over,
and a committee OF conference ordered consist
ing Of Messrs sherman Morrill, OF Maine, and Buck
BRIDGE ACROSS THE MISSISSIPPI
Mr.. HENDERSON, (rep.) Of Mo-, called up an act
passed in 1856, to authorize the construction OF
bridges across the Mississippi river, which was
passed. II authorizes the construction OF bridge
OF 500 feet span at St. Louis, No.
The Senate then resumed the consideration Of
,1-s.-s. THE FUNDING BILL 49,
Mr.. HENDERSON moved to amend by making the
interest on twenty year bvnds four and half per
cent; on thirty year bonds four per cent; on forty
year bonds three and a half per cent.
Mr.. FEssENDEN, (rep) OF Me-, would not favor the
amendment unless he could have the bill amended
10y making the authorized bonds redeemable in ten
years He thought we had better pay the six per
cent interest for few years longer rather than put
the bonds entirely Out Oh our Gontfo! lor twenty
win prevail ere ten years elapse.
Mr.. HENDERSON reminded the senate of the
opinion largely prevalent at the West and elsewhere
that these bonds are payable in greenbacks
This bill was new bargain with govern
terest in coin In few years probably the country
would be prosperous that the government
could borrow money AZ much lower rate than i've
per cent He reminded those who had cited the
superior credit OF Great Britain that on more than
one occasion that country had compelled their Gre
ditore to accept lower rate of interest.
Mr.. CATTELL, (rep) of n. j., contended that the
honor OF the country demands that both the letter
and spirit OF the contract shall DO carried out
The amendment Of Mr.. Henderson was reected-s
to- "a y
Mr.. FEssBSDEN offered his amendment, indicated
above. r.
Mr.. sHgSMAG rep Of Ohio spoke in opposition.
Tsv committee had carefully considered this bill.
and he hoped no changes Would be made without
mature consideration. me amendment would I'D, make
would have been. In his opinion enough money
would be received from the sales OF these bonds TO
pay OF the six per cent bonds. The principal OF q
long 1--we per cent bond, payable IN coin, would
secure all the takers that were wanted He thought
the government could not borrow money at less than
| Ave per cent az the Senator seemed TO think now
shat could be done2n less than thirty forty years.
The bill conferred additional privileges on the takers.
Mr.. FEssESDgN said II was true that additional
privileges were conferred The bonds were taken
out OF the domain OF legislation and exempted from
all taxation BE was averse TO the proposed substi-
tuition adherng to the opinion that before the
piraton Of the period named we can get all the
money we want at less than i've per cent interest.
He pointed out that under tue bill the government
will have power 10 take these bonds out OF the
market until the end OF forty years. or to stop the
interest while the nve.twentes are within the con
troln f ha a
short time. Interest Is what the creditor wants.
The power to pay within reasonable time Is what
| Mr.. MORGAN could not see any probability that
| bondholders would give up six per cent bond,
| payable in fifteen years, for i've per cent bond,
payable In ten years.
| Mr.. FEssEsDEs said the six per cent bonds were
redeemable now at any time.
Mr.. MORTON, (rep) OF Ind. replied that II they
| were redeemable in gold the government has not
| got II.
government like this 10 quidate its obligations. He
| had had something to do with persuading the poo-
pie OF his section 10 take the hvetwenties In the be-
lief that they we're payable In coin. He produced
letter received from the secretary OF the Treasury
ut that time nclosing cancelled bond issued under
the act OF February 25 lS2 referring him 10 that act
and saying that they were issued subject TO the pro-
| visions OF that act.
| MI. SHERNAN replied that not a single bond was
issued under the act OF February IS 1882 until the
| law was changed In material and important pro-
| visions
| Mr. MORTON, rep OF Ind took the floor with q
prepared speech in advocacy OF the payment Of the
| bonds In lawful money Of the United States-green-
| backs. The nve-twenties were part Of the public
| debt " which the government declares that such
notes will I've lawful money and legal tender. In
ply to the argument IN regard TO the declarations
OF the Secretary Of the Treasury and other govern
| ment officers that the bonus were PAYABLE In coin,
he said these opinions were based upon the prac.
tice OF the government heretofore and not upon the
| statutes authorizing their issue. They were In
| direct conflict with four public statutes. In his
opinion the first duty OF Congress Is take steps for
return to specie payment He pronounced himself
In favor OF the BILL saying that the long term formed
the only nducemen TO people to exchange a six per
| cent for five per cent bond. The delusion held out
before the country that these bonds to he paid In
coin could only work disaster by causing people TO
base their hopes on false impressions. This question,
In his opinion, should be frankly met
| Mr.. FEssENpEN again said there wasno further In
| ducement TO be offered to takers than the long
| period IL was TO he allowed TO lie. lie thought II
| would be better not TO make the change. He had
| examined the question carefully and had come to
an exactly opposite conclusion from that expressed
| by the senator from Indiana. He had not the
slightest doubt that we are bound by every principle
| OF honor TO pay the bonds as expressed on their
face taken In connection with the contemporaneouf
exposition OF the subect-that H. in coin Even II
he had slight doubt on the subject as he had not
he would think himself dishonored II he took step
| in any direction that would look like reputation
He thought they ought 10 adhere 10 their platform,
which sets forth the most noble manly aud states
| manlike principles and not express such doubts.
Mr.. HOWARD, (rep.l OF Mich, as one who had been
here a. the successive laws passed authorizing
! the issue OF bonds held that every sentiment u
honor and Justice requires that payment Of the bonds
| Mr. CAMERoS, (rep.) OF Pa, said no man entitled
TO confidence or respect was IN favor OF repudialnp
the terms OF the contract-payment In coin-but ne
was opposed 10 admitting this question now on the
eve OF election. The great question of reconstruc
| ton should hrst be settled In his opinion this bill
is scheme OF the Treasury Department 10 ruit It's
\ own views. Mr.. Cameron made some further re-
marks repeating that the Finance Committee had
I been controlled bv the treasury Department, but