Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1868-03-04
nearance Of tine said Andrew johnson

notify the House of Representative o
n the passage of this resolution. The res
n olution was adopted without dissent
The order was made accordingly.
The Dill to provide for the sale OF the
Is Harpers Ferry property was called up
An amendments after vigorous opposi
e ton. was agreed to, giving a part OF II
to West Virginia for endowment OF a
College: when the bill was passed.
E HoUsE.-A resolution was adopted
, that the Committee on Public Lands
e inquire into the eXpediency Of 50
=, amending the Homestead Law as to
excuse honora5ly discharged soldiers
l from the payment of fees. Also as 10
s the propriesy of ceeding 10 the State OF
Ohio the forty thousand unsGrveyed
and undlsposed acres Of land Of the
. Virginia Military District.
E The Senate substituted for the Sup
: Elementary Reconstruction Bill was
: concurred in, yeas sc, nays %. The
: bill now goes TO the President fo- sig
nature.
SENATE. Feb. 27-Mr. Sherman from
the Finance Committee, reported an
amended bill for funding the national
F debt.
Mr.. Sherman said the House Of Rep
resentatives was now considering the
best way of tightening the burdens of
taxation, and the Senate Finance Com
mittee had been so anxiously engaged
in considering the best way Of Tighten
ing the public debt, and have there
fore reported this bill after most care
ful consideration. In reporting it, he
appealed to no political basis. The
Committee consider it to above all
things essential to preserve the public
faith. We have 4 right to take from
our people, money sufficient to carry
on the Government of the Country and
redeem its obligations. In every COM
munity the mass of mankind depend
on daily labor. 1t is our duty to pro-
tect them IN the enjoyment of the
fruits of their labor. We have endeav-
ored to reduce the rate of interest and
provide for a speedy. resumption of
specie payments.
There are now S5I4,2S0 500 of the
| first issue of 500 bonds falling due, of
the second issue Sl29. 423, 500, falling
due in 1869, and S4S2, SIC, SOP in 1870;
of the 1905 $3.50, 000, 600. Tie total
of bonds which are now redeemable, or
will be in a few years, is Sl,7l9, 500, 600.
The first question is now are we prepar-
ed 70 redeem these bonds. It has
always been made q political issue as
to when the 5-20's will be redeemed.
From Democratic and Republican sour
ces alike declarations have been made
that these bonds shall be paid in green
backs. Great masses of men have come
to the same conclusion. 1t will be
made the basis of a great political con-
test next fall, and is now the subject of
general discussion. Two years ago this
question should have been settled.
He would refer to his speech made at
a former session, and request his friend,
the Senator from Oregon (Willlamsl to
read it.
Mr.. Sherman proceeded and said il
would would have been wiser, then TO
take the steps which be had suggested.
but the whole country was in favor of
the idea, enunciateG by Mr.. McCullOch
OF contracting the currency TO arrive at
specie payments, and nothing vas said
about funding the debt. He contract
ed the currency Sl60, 000,0 600 IN two
years. He (McCuiloch) belie7edthere
was no other way of getting out of the
difficulty but by contraction. What
has been the result ? Gold has advan-
ced and has never reached the figures
at which it stood at the passage of the
contraction act, and we are no nearer
specie payments. The state of the mon
ey market from that day 10 this war
the assumption that il the fund
ing principles had been adopted the :
financial condition of the country {
be today vastly different and
improved. ]
Mr.. Sherman went on to argue. 1t {
was true that the agents of the govern
ment represented that the principal of
the sos vas payable in coin. 1t was (
said congress acquiesced in this con !
tract, but Congress was not in session :
1t the time and is not responsible for !
the representations of government
agents. The prospect of paying off 5-20s
BY a new issue of greenbacks was plsu-
but a dangerous and unlawful
plain and palpsb,e viola
ton of the guarantees given by the
government. To redeem these 5-20s in
any currency but that in which they i
we're bought, would be fatal to every
financial and commercial interest. 1t
would depreciate public securities by 4,
initiating the currency and press with
ten-fold Inconvenience on the masses !
Of the people. He was satisfied that :
the safest and wisest way was to redeem ,
bonds, after FIVE years, in the !
same money whica was in circulation :
at the time they were issued. Every ,
state in this Union except Mass2chu-
sets has recognized this principle.
Mr. Dixon objected On behalfo Con-
necticut. S
Mr.. Sherman continued: The ques-
ton might be ssked, how will you get {
money enough to pay off these bonds
He would reply, issue other bonds at {
lower rate of interest, and offer to the
holders of the fYe-twenties at their op- {
ton. At some time in the future hol :
ders OF these new bonds could, after Z
to specie payments, receive ,
their interest in coin. This PROPOSE T,
ton made by the Finance Committee :
was in exact accordance with the course :
pursued in England on half a dozen oc- !
:
Mr.. Sherman went on to argue that
five per cent was as low rate of inter {
est as the Government could offer, with Z
a chance Of procuring money. Rapid I
Development Of the country made a
constant demand for a medium of ex- 8
and the only way to sell the .
bonds at a lower rate of interest would :;
be to increase the greenbsck currency,
and depreciate its value by ~postponing
the paymentvof the principle to an in
definite period. He maintained they
could decrease the rate from six to FIVE 6
per cent. without adding a single green
back TO the present volume. The Com 9
agree to fix the amount for the i
payment of the principle debt at Sl30, {
900, 600. He believed the debt would 8
be. entirely l~iquidsted about the year !
1902, or in thirty or forty years from =
now. The proposed funding would
place both the holder and bond-holder {
on the same footingin speculation, and '
still the clanor about the injustice and G
discrimination made against 4he gen. $
erai mass of the people and in favor of :
the bond holders.
While Rev. Mr.. Hartapee. presiding +
elder n the Nashville District of the S
r I. ~ e. 4