Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1870-03-03
unding.


During the consideration of the funding
bill, Mr.. Sumner argued that the mass OF
the financial obligations should be prompt
ly adjusted in some new form at lower
rate of interest, the taxes must be reduced
and the payment of the national debt be
left in part to posterity; and that specie
payments must be provided for. As this
bill was a substitute for one he had pre-
viously introduced, he compared them at
considerable length and thought the Com
mittee had not improved on the original
bill
Mr.. Buckingham suggested the require
ment of an investment of all trust funds
hereafter created under national authority
in United States bonds, believing this would
create home market for our securities
He also proposed to allow the banks to de-
post as securities for the redemption of
their notes any description of United States
bonds.
Mr.. Sumner moved to amend the first
section by increasing the amount of bonds
therein provided for, from four to five hun
dred millions, providing for 1910 instead
of a 10 20 bond, and also that the pro-
ceeds shall be applied to the payment of
bonds of 1862, the first series of bonds,
and which if he could so express him
self, had become fy-blown. He wished to
wipe that obligation away.
Mr.. Sherman said that the bonds of 1862
we're held entirely abroad, and he could
not see the advantage to the Government
by redeeming those bonds alone. Some
body had abused the old 5-20s and threat
ened to pay them off in greenbacks, and it
L 81 Ia liz
credit, he supposed, that the Senator from
Massachusetts, proposed to give the holders
OF them a monopoly.
He thought United States bonds should
all stand upon the same footing, and that
no good reason could be shown why five
per cent should be given TO holders on
the first, and only four and half per cent.
upon others He then proceeded to an
swer the argument of MIR. Sumner relative
to the time within which the debt should be
reduced, remarking that in negotia-
ting these bonds the correct idea to be held
out to the world was that we did not in
tend to abandon the American system of a
definite payment.
He said we had agreed in the act of 1862
TO apply one centum per annum to the
payment of the public debt. That this
provision had been observed heretofore,
but that this bill furnished the means of
organizing sinking fund. He recognized
the force of obligation in the employment
of foreign agents, but believed this was
oyershadowed by the greater advantage OF
placing our debt at a lower rate OF interest.
Mr.. Morton said we did not wish to issue
bond that would be rejected or prove
failure He thereupon inquired if the
Senators from Ohio and Massachusetts,
had any evidence that per cent bond
issued by any Government, had ever been
sold for more than 81 cents on the dollar.
Mr.. Sumner said he did not know of any
per cent ever being put on market at
par.
Mr.. Sherman said he believed that four
per cent. bonds had been put out at par by
Switzerland. In regard to the complaint
of injustice to banks in forcing them TO
exchange their securities, he maintained
that their franchise was enjoyed at the
pleasure of Congress, that it could be with
drawn at any time, and that in view of the
value of that franchise they should cheer
fully submit TO the conditions.
Mr.. Chandler said the proposition of
Mr.. Sumner to take from bonds actually IN
the Treasury IS per cent. ana put IL 10
the credit of the sinking fund without the
consent of the owners was simply repu-
diation. As safe wayOf arriving at point
arrived at by the Finance Committee, ne
favored a compromise making 1t compul-
sorry upon all National Banks to deposit
per cent bonds for their circulating
notes, thus requiring them to pay down 2
per cent. for their valuable franchise OF
banking.
Mr.. Sumner remarked that his friend,
Mr.. Chandler, and himself differed only as
to the method Of attaining the same OBJ
ject In reply to Mr.. Sherman, he said ne
would make an exception in favor of the
debt of 1862, because that was debt
which had been attacked by enemies OF
our credit
Without action on the subject. the Sen
ate, at o'clock, went into executive ses-
&C,