Daily national Republican. (Washington City [D.C.]) 1870-1872, 1870-03-01
CONGRESSIONAL PROCEEDINGS.
HohyEIHt EOnsrn..Sstand Regular S,nIt1
MoNDAr, FEnRuLRr %, 1870.
SENATE.

kub lOuIktGnLn. unu uAhLNhsh AhANAahANhhAi
which were referred TO tho Judiciary Com
mlttee.
Mt. Johnston presented resolutions Of the
Virginia Legislature asking modification Of
the lntafnAl revenue laws relative 70 tobacco
so as toreducc the tax; whlchwero read and
referred TO the Committee on Finance.
Largo numbers OF memorials asking the
abolition OF the franklng privilege were pre-
scented aud laid on the table
Various memorials asking the removal OF
political disabilities were presented and re.
ferred 70 The Commlttee on Disabilities. !
Nj. HaInlio, from the Committoo on the
District Of Columbia, reported a substitute
for the bill toincorporate tue National Union
Savings Bank ofthe District Of Columbla.
Also, from the same committee, the bill
relative TO notarics public In the District OF
Columbia.
Mr.. Wilson, from the Committee on Mill
pointing managers OF the National Asylum
for Disabled Soldiers. g. Ht 3d.. 2
Mr.. Sumner introduced q bill 10 enforce
the amendment 10 the Constitution Declaring
that the right 10 vote shall not be denied on
account Of race, color or previous condition
Of seryitude. Referred TO the Judiciary
Committee.
Mr. Edmunds introduced bill TO amend
the act providing for the taking OF the cen
bubs 70 tue JuulCluTy
Mr.. Kellogg Introduced a bill to provide
for the disposition OF fines, penalties aud
forfelturos. Referred to the Committee on
Mr. Lewis introduced a blu 70 authorize
the corporation Of Washington TO endorse
tho bonds OF tho Southern Maryland Rail-
road Company. Referred TO tho Committee
on the District Of Columbia. f.. ~
On motion OF Mr.. Stewart, the Secretary
Of State was directed to inform the Senate II
any legislation Is necessary for the protoc-
ton Of American interests and TO farther
the ends Of justice Ia China aud Japan, and
whether there 10 any fund received from
these counties from which suitable legation
buildings, &C., can be erected, aud the Bee
cretary DO requested also to mako such re-
communication as he may deemtproper.
Mr.. Howell offered resolution Instruct.
ing the Committee on Public Lands In all
bills which may hereafter be reported grant
ing 1andb for railroads to insert such provl-
slons as will secure tho rights OF actual
homestead sottlers, and asked for its present
consideration but, n f-.a ayFT.
Mr.. Pomeroy objected, and II went over.
Mr.. Howell said he shonld make some re-
marks on the subject tomorrow. Do.
Mr.. Howard called up the Joint resolution
authorizing the Northern Pacl1e Railroad
Company 10 iSsue1ts bouds for ths coustruc-
ton Of It's road, and to secure the same BY
mortgage, which was discussed until the OK.
plratlon OF the morning hour. ..
The Vice President gave notice OF the APP
polntment Of Mr.. Revels, Senator from Mis-
sissippl, as n member OF the Committee on
Education aud Labor. y r.
Tho funding bill was then taken up and
read. Its provisions were published on the
4th instant. "
Mr.. Sherman saId the question now ia
whether the condition Of the public debt IL
such as to Justify us In reducing the interest.
The frat six sections provide for the fund
Ing oftho debit the seventh section provides
for the reduction and ultimate payment oil
the whole debt, old and new. The remain.
Ing sections contemplate Important changes
In our national banking system. The act Of
1859 conferred most extraordlnary power 10
borrow money In almost any form or way,
at home and abroad. Every form Of secu.
rity which the ingenuity Of man could devise
was provided for by this act. All the bonds
were short bonds, all redeemable at the end
Of five years, and the gold Interest not Ia
exceed slK per cent, the currency interest
not 10 exceed seven and three teuths. II
was q wise measure TO put the debt within
the control Of the Government In 90 short q
period, because Il was Justly considered that
when peace returned we could obtain loans
at Q less rate Of interest. That act also pro
vIded that United States notes should be q
legal tender and convertible Into bonds al
the pleasure Of the holder. II was clearly
the Intention Of this act TO make these note;
q legal tender for all existing debts. We
stood then In the face Of 4 denclt OF seventy
millions, aud being then obliged 10 raise two
or throo mnlioua day, Wo stood with dc
feat ataFlnH Us In the face. Tho debates II
this ana the other House he vol remem
bered. Mr.. Collamer made motion TO STRIKE
out the legal tender clause, and he was giat
To say there was no party vote on II, and
that clause was kept In BY Democratic votes
MessrS. Davis, Rice, aud MeDougall. Mr.
Chase, one OF the most able financial minis
ters Of any times, also saw the necessity o.
this clauBo. Mr.. 8. read from letters Y
provo that the object of the legal tendel
clause was as he had stated.
At that time certain corporations and Gill
gems were refusing 10 take our demand notes
A motion was made by the Senator from
Wisconsin 10 strike out the provision max
Ing the United States notes a legal tender
for pre-exlstlng debts, which was vote:
down BY a large majority. That measur'
largementS Of tho legal.tenderS, and thu
provisions for lnterest-bearing notes wer,
all revolutionary eIpedlentsi but for then
we would have been swamped, would havl
been lnsolvent and he did not like 10 Sol
the Supreme Court acting as Il had done
His expedlents were Of course only for war
and should have bce1 abandoned the momen
the war wns Ever. Three important error
were committed the frst BY Secretary Fee
sender, In 1884, in allowing tho holders 0
seven.thlrty boodS to convert them at op9iol
into fye-tWenty bonds, which was not au
thoriEed by existing Law, but which MI
Fessenden Justified on the ground OF its ne
cessity TO secure their sale. The secon
error was by Mr.. McCulloeh, az the war wa
closing, In continuing this option, aud lonl
AFTER tho war was closed 10 Issuing seyei
hundred millions OF these notes, eonyertibl
into bonds. The third error was In the fall
ure OF Congress 10 promptly retrace Its step
and restore TO tho legal'tender notes III
right Of conversion into bonds. The act Z
April u, 1865, under which the great mas
Of our floating Indebtedness was conyeTte
into gold bonds, was great miSfoTtune. Tn
public debt might then easily have bee
funded into ten-forty bonds. .-.......
Mr.. B. then at some length commente
upon the different funding BILLS which hA
been brought Into Congress from Apr
1855, to the present timer but the struggl
between President johnson and Cougrei
had retarded any successful financial meal
uTe. The situation is now different th
executive aud legislative departments are |
harmony, and no doubt exists OF the pay
ment Of the bonds In gold. The premium
on them has been largely reduced, aud II
hye-twenty bonds are almost at par, hs oil
the ten-twentles, 1t ls In our power to pa
on moro than 81 200, 900, 900 OF the del
within the present year, and under sue
favorable circumstances the Finance Con
mittee had considered three plans-firSt, u
bill formerly reported, and which wa
mainly based upon the adoption OF the tel
forty 1--WE per cent boRdBi second, tho bi
Introduced b. Mr.. Sumner, which was a
amplincatlon Of the funding bill OF last yea
but in many respects more rapid In promo
ing specie paymentsi third, the bill pr
pared by the Secretary Of the Treasury, III
bill now presented had been most CAREFUL
framed after close examination OF all u
previous bills, and Is approved by ever
member OF the committee with but one O.
eeptlon, aud has also the sanction OF Il
Secretary Of the Treasury. Mr.. 3. then o.
pressed his belief that Ave per cent. bon
was the lowest rate at which the mass I
our debt can DO funded, but the Secretary
more hopeful. 10 .ILl Ir...0
Tho rate Of interest paid By Europea
Powers Is about an average OF > Per cent
and some OF the best Governments In Il
world are selling their peI cent. bonds