The New York herald., 1870-03-03

the contract although nor 50 expressed Ia the bona
Not less than one hundred and nity million aoArTs
ment OF the interest ana 70 the reduction ot the
principal OF the public debt" rms 70 IarSeSum,
ana we should consider careluly " sucn s ons, nusr
stability. Promising too much is sometimes as Dsu
ss promising too little. Our promise niust Do
order 10 determine tho operation OF this provision
We must look into details nave tue est
prospective nabllties for interest but content my
sell With presenting compendiously the result "a
oruer 70 determine The question OF taxation SumSe
70 say that under the operation OF the present pl
inere WIN be la 1871, after the payment Of al Ia
niues for interest surplus of lorty-three million
debt. With each succeeding year the reduction OF
interest wi rapidly increase this surplus aud when
sna uag rto $ other o. ne o
into IKE amount OF four and a half per cents
enectiag further saving Of interest," equal 70 seven
the surplus revenue as compared with neces-
sary expenditures, Will In b.ief period approach
one hundred million dollars annually Here the
ques ton arises IL not this unnecessarily largeY 10
It not beyond tho bounds OF prudence and wise
economy snail we declare IN this fundamental
measure determination 10 redeem the whole
national deot within period Of twenty-a years
Can the Industries OF the country sustain such
taxatt0nf put the question. You shall answer tt.
The fuvure has It's great claims upon us; has
the present 1 submit that the pending measure
sacrinces the present. conclude, therefore, rs be-
gan, Win anoiner appeal FOR reduced taxation. Az
the proper time shall move an amendment, In order
70 aid this result.
Mr.. SHERMAN, rep) or ONO 'sald the bonas or 1852
werched entirely aoroad. and he could not see tue
advantage TO the government by rcdeeming those
bonds alone Somebody had abused the old nve-
tventies and threatened 70 pay them OH IN green
backs ana II was because OF that insult our pub
nc credit ne supposed the Senator from Massachu-
sets now proposed 10 give the holders OF them
monopoly lie thought the United states bonds
should all stand upon the same footing, and that no
good reason could be shown why i've cent Should
be given TO the holders the first and only and
half per cent on the others. He then proceeued to
answer Lne argument OF Nr. Sumner relative to
the time within which the DEBT should be redeem ed
remarxing that IN negotiating these bonds the cor
rect idca TO be ned out to the world was that we
d'd not intend TO abandon tne American system OF
uennlie payment. He said ne had agreed In The act
OF lst2 TO apply one per cent per annum to the
payment OF tue puoc debt; that this provision had
peen observed heretofore, but that this bill fur
nished the means OF organizing sinking fund. lie
recognized the force OF the oDjection to the empioy
ment OF foreign agents, but believed TINS was over
shadowed by the greater advantage Of placing our
debt a. given rate OF interest.
Mr.. MORTON. trep) Of lnd., said We dd not wish
TO issue bond that would be rejected or prove u
failure. He therefore inquired If the Senators from
four per cent bond issued by any government had
ever been sold for more than elghty-four cents on
the dollar.
Mr.. SUMNER said he did nos know OF any four per
cents ever being put on the market At par.
Mr.. SHERMAN believed that four per cent bonds
had been put out ~ par By Switzerland la regard
TO the complaint of injustice to the banks In forcing
them TO exchange lneir securities ne maintained
that their franchise enjoyed the pleasure Of
Congress; that II could be Withdrawn az any time
and that in view OF the value OF that franchise they
should cheerfuily submit 70 the conditions.
Mr. CHANDLRR, rcp.l OF Mich, said the PROPOSE
tt0n Of AIR. Sumner to take from the bonds actually
In the Treasury one and half per cent ana put It
to the credit OF the sinking fund without the con-
sent OF the owners was simply reputation. AS q
sale way OF arriving at the polnt aimed III by the
Finance Committee ne favored proviso making II
compulsory upon al, the national banks 10 deposit
four per cent bonds for their circulating notes taus
requiring them to pay down TWO per cent Tor their
valuable franchise OF banking.
MMr. SUMNER remarked tnat his friend Mr., Chandler
and himself differed only as TO the method OF attain
ing the same OBJECT. In reply TO AIR. Sherman he
said he would make An exception IN fav0r OF tie
debt OF fsd2, because that was the debt which nad
been attacked by the enemies Of our credit.
EXECUTIVE { ESSlOS.
without action on the SUBJECT the Senate at three
O'Clock wenI into executive session aud soon alter
adjourned.