Raftsman's journal. [volume] (Clearfield, Pa.) 1854-1948, 1870-04-20
HON. JOHN SCOTT.


Scott. Mr. s. took The ground that the
new loans proposed to DC raised shall be ne
gotiated by the officers OF the Government,
and not by outside bar Sers at a given per
centage and further that the results of the
negotiations, the amount of the debt which
is negotiated ard the rates for which it is
issued, shall be open to the public.
In the course of his argument sustaining
these positions, Senator Scott said:
1T is said that at this junclure, in this
state of ati;Nirs it is necessary to employ out
| side agents Tor the purpose OF negotiating
| the loan OF the Government. The employ
ment of outside agents is what object to
! Ii Is not the employment Of agents alIogeth-
cr that | object to. do not propose 70 cut
| off the powers of the Secretary Of the Treas
ury, nor to diminish the confidence Of the
! country in him. | propose and will go with
I the Chairman Of the Finance Committee III
| voting IN this bill an appropriation equal to
| one halt of one per cent, which the Secre-
/ tary says Is necessary to negotiate the loan;
! but do wish il Incorporated in the bill as
| principle that that negotiation is to be car
red on by the officers Of the Government
who are accountable TO the Government. and
! of whom we can have control
! | do not again wish to see the spectacle OF
private agent called in whose free use OF
printer ink is said TO have made him the
great financial regulator of the country and
| dwarfing the Secretary along. side of him.
/ If the Secretary of the Treasury has not now
under his control officers capable of force
/ sufficient to- take charge OF and negotiate
( ttI loan. If he must call into his Depart
/, ment a mO:e expert tinaRcier, one better ac
| quainted with the monetary circles of the
/ world than any he has there now, call him
in, and out Of the one half per cent. Which
we propose to give him, let him be paid for
exciting his influence and for putting this
lean on the market wherever it is necessary :;
but let him lee an officer OF the Government,
Eupon whom we can cali at any time for in
formation a to the ltate Of the loan, not a
private banker. wh) may have the control
of this negotiation and sell $500, 900 0O0 OF
bonds to day and not account to the Govern
mcnt for them for two weeks or a month
hence not private banker who is inter
ested,. perhaps. in putting up and down the
price Of the Government securities in the
market Let him be an officer OF the Gov
ernmcnt, and for every 81 900 OF bonds sold
let that 9l.OoO go into the Treasury on the
day the sale is made. "
Another poin, made by Senator Scott, was,
! thai he desired 70 see the FIVE per cent.
bends "a. eIi- IN the ztaised States This is
a matter of very great importance, and init
mately connected with the general prosperi
ty Of the country. because nation hat pays
| interest in gold to a foreign nation, Is to that
extent nece- sariiy impoverished. Interest
paid hy the government to its own citizens
does not decrease the national wealth. On
this head Mr.. Scott says
There is one other feature Of the bill to
: which | wish 10 refer. | wish this ioau-
aad in that believe | an joiued 10y the
Chairman of the Com mmittee-to be taken i'll
the United States If possible. This bill now
proposing three different series of bonds at
three different rates Of Interest, / suppose nu
one duu,ts ihit II Is that series which bears
tie highest rats oi interest that Will be TAX
en- frSt, especially IS the till nov staui> un.
q T the Amendment ot the honorable feiaa-
tor from Massachusetts, Mr.. Sumner, tiiar
bond being Il fcn-iorJy bond, RAINING as long
rs aay of the hover rates oi interest bond,
are uuw proposed to be If we can have the
iirst 500 0.jj 900 taken at five per cent, /
want il taken IN this country ii possible
and vii 20 further and j3in th' Chairman
and >sy | would rather see every dollar OF II
taken in our own country than to see one
dollar III It go abroad and If the whole OF il
cat he takca will 20 further anu say wouiG
rather pay $50. 0J0. .Ob0 at home to our peo-
pie than to send S4O,U50,OJU abroad tt
Europe It would be better for US II
would be soundsr policy TO do it.
| Then, sir. we need no agent for the pres
ent. because cur own people understand II
They do not need to have 1t populanzed
and If they Gid we have already under obi
CATION to act for us the sixteen hundred ma
tinnal banks who by the terms 0t their IN
corporation are bound to become the tinan
ciai agents 81 the Government, and discharge
all reasonable duties free of cost. Thus sir
We can make the experiment with our owi
people first; and if We can dispose OF tn
, firs; 5499 900. 900 III Gne year, then we ar
lust as we!l of as We should be II we nPgoti
atcd il abroad and paid one per cent. for tn
negotiation. IL it we're negotiated TO NOR
row at Eve per cent aud one per cent. wa
maid for the negotiation, We should be bette
of at the end of the year than if we were t
20 on paying six rer cent; because IN tha
2 point Of view, We 10 really pay six per cent
i Tor this %tD3. G0J.0GJ. Let rs then try tn
experiment y, Il Our own people whether "
can fund this SiuD 90 900 without outsId
agencies at FIVE per cent. ; and il we can d
. that. the strong probability is that we ca
:. fund $500, 900. 900 more in another scar, ar
, picycnt the necessity of going abroad an
hawking our creiit through tue money ma
kets Of the world. "
II We regret that our limits rrecludc us froi
/ giving more Of these extracts, or the speec
: in fall. which would be better still. tt
conclusion OF the Senator's address refe
very briefly, but pointedly, to grievanc
that has operated against the business into
ests of the country. growing out of the hie
:, rate of interest heretofore paid by the Go
- ernment. Mr. S, closes his remarks as ft
lows:
!. Il think that what the country want
IF what we need. is to bring down the rate
Y interest. We need it badly The paymel
of high rates by the Government Is cripnli'
the industries of the country. The mome
you go to a man to effect loan tor the pu
pose of starting factory or improving
ne farm the answer you have got for many yea
e. isl viii not loan you money at six or Sc
!. en- per cent 'Why?' Because | get MI
from the Government; six in gold and thr
i' as premium on the gold, or, when it was q
ir seven and three ienths loan, i get seven Al
By three tenths. While this rate of intcrt