Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1870-01-21
senator sumner. Financial Bill.

senator sumner record as nnancler ls
not g conspicuous one. BE is not member
of the Finance Committee and has never
taken prominent part il the debates upon
hscal and economical topics. But he has an
excellent genera. reputation, and certainly
brings 70 the consideration of financial meas
ures long experience IN legislation, and the
mos, comprehensive reading. A financial
bill. therefore. introduced by him deserves and
If receiving considerable attention.
Mr.. sumner combines three different prop
ositions IN one. He proposes IN MS bill the
funding Of the debt, The resumption of specie
payments. and an extension OF the national
banking system The first four sections
Of the bill provide fJ- three series OF new
bonds Of $500 GOO 900 each. The hrst series
run forty wears and may be redeemed at the op-
tiOn Of the Government after zen years and
bear five Der cent interest the second series
are ffueen-fftv bonds bearing four ana one
half per cent interest the third are twenty
sixties and draw four per cent Interest.
All Of these bonds are % ne paid, Intere,-
and principal. IN CON, are To be exempt IRON
taxation of any kind. and there Is 70 be no
abatement from OF taz upon the interest OF
income thereof The bill furthe- provide
that these bonds may be exchanged at par Tor
fve-twenties, or sold at their par value for
coin, and the coin derived from their sale
shall be applied TO the redemption Of The
fve-twenties. Il Is also provided that the
Secretary of the treasury may ~ his dis
erection make additional issues .f the .1ur
per cent bonds.
The fifth section provides for extending the
present limit Of $500, 200 600. as the asSre
gate amount Of the issues OF circulating
notes by national banks, TO Sjoo.oooooo
with the condition that the greenback GUY
rency shall be reduced a. fast as the
national bank notes are increased by
the sixth section all new banks. char
tered under the provisions of the fifth.
are obliged TO depos in the [. $. Treasury
binds of the third class or four per cents.
in the ratio Of 500 for every eighty dollars
OF their circulation The old banks are Z.
exchange the SIX per cents. which they nov
have on deposit a. security. for the new tour
Der cents. and IN case any hank refuses 10
make such exchanca the Treasury i- 90 nay
ii but four per cent on The old bonds.
The next section provides that whenever the
premium on gold falls To within I've per cent
the Treasury shall giyepu1lic notice that the
lezsl tenders or greenbacks will thereafter ha
received at par for customs duuez as fast as
received they shall be cancelled and inter
est on the three per cent certificates shall
thereupou cease.
This Is an accurate synopsis Of AIr. sum
ner's comprehensive scheme. It viii be seen
that the Senator proposes that the govern
ment shall move N direction exactly con
rrary 70 that recommended by Nj Bout
well. The Secretary passes over and ignore
the resumption of specie payments, as if that
was very subordinate matter Mr. sum
ner brings resumption into the foreground,
and regards It as the first great necessity
and the chief object o. soliciJude Mr..
Boutwell, wishes TO keep up all the present
taxes and make large immediate reductions 4
Of the public debt hut il i- a leading aim OF
Sumner 70 take off taxes and diminish pres
snt burdens, leaving the principal of the
debt 70 be paid by future generations. Bout
well recommends small increase Of hank
notes Sumner would make a sweeping sub
stitution Of bank notes for greenhacks Both
projects look 70 the retunding of the i've
twenty bonds at q lower tate Of interest. but
the proposed methods and Inducements are
luite different
Mr.. Sumner supported his bin IN long
peecb IN which be enforced his financial :
news with considerable ability. The most
renchant part of il was that in which he /
the policy OF Secretary Boutwell,
Inc most popular part viii probably prove TO v
V that wherein. IN opposition 20 the Secre-
ary. he advocates a decrease Of revenue and
postponenent of the payment OF the debt. ?
Inc subject Of reducu0n Of taxation is now ID
'eing earnestly discussed in the papers, and L
nder the lead of the New York TIncs q
many Of the ablest Journals Of the country e.
re attacking the system Of high taxes and I
40 -. - Ga
umner therefore comes before the public it
nth one prominer- feature Of MS measure "
atorsei in advance. He regards Mr.. Bout N
ellis proposed four or four and one half per e.
snt consolidated loan IS impracticable and
bsurd, and asserts that It would not fn8
lany voluntary takers Let us examine NJ.
substitute ana see wherein it ls o.,
etter. g,
The Secretary proposes 70 issue three 5,
IAsses of bonds. Of $500 zoe 600 each. ri;
caring not more than four and one half per a.
snt interest, but maturing At different IT
sriodf. The first class is payable in fifteen ar
nd TO be paid in twenty years, the second a,
Ayable in twenty and to be paId IN twenty y
We, the third payable in twenty-five and 70 NJ
E paid II thirty year. Mr.. Summers bill D
rovides for issuing five per cent ten-forties ar
the amount Of 500, 900 600. and equal T..
mounts Of two other species of bonds. ma =.
airing later and paving less interest. Hehas. W
Re suppose, 50 adjusted the interest and the It
me Of these three series Of bonds that thev in
,su be equally desirable. The Secretary II
Vidently contemplates the sale Of the third
lass Of his bonds first, and thinks that as OF
Don as they are all disposed Of the second :
nd trst Glasses would be in demand. and be C,
sadily taken BY Capitalists or exchanged for D
ne outstanding fve-twenties. The thru CT
lass proposed by Mr.. Boutwell, corresponds n,
most nearly as to time with the first series in "a
Or. Summers plan. But the ADVANTAGE IS 20
.ogether with the latter. 1t gives the bol- ~
or ten years longer before his bond rns,,r.s ~
nd at least one half per cent more in,sros.
low if the people AMI the capitalists uonId
OF take Mr.. Boutwells bond would tbsr
Ike Mr.. Summers? In reality. however g
noe Mr.. Sumner holds his three bonds to n,
suslly desirable, the question is can the pub =.
c debt, or fifteen hundred millions OF IT. be :,
funded at I've per cent, We wish that we III,