The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-07-02

all obligations bearing 40 crest, exec IA sss
where me law authorizing issue mai specM l,
provided That tho same MI ht be paid IN WI
money. lie declared mat The worst the nleane5t
me louies. y. all Joss b reputation woat be now
Tor INC Forty II ~ Congress to ignore AMI srampe
upon III own ver, nrss act OF leg.sIa lOl.
Mr.. WOODWARD, tdem.I OF IA, ask Mr.. Schenck
y, aes me gns o. ha e COW s" S,o 70
were ayable In greonbacks, he wONll MT almit
that the act to st. en1then the pubic c,edit dd not
Nj. SCHENcK aad he admitted no such hing. n
"a, admiue a. ne did NOT, that inerc ever hah beeh
ANY doubt IN the subject he su contendet that The
United STATE were es,opped y the act II March IL,
1869. by wncti an claim Or right 10 raise question
on that point WAS waved.
Mr.. WooDwARD commended that any judicial au-
ihorily wo III deci tn not only We're the iive-
twenty DO ds pa able In greenblcks under 'he aw
Congress tnat Mr.. Thaddeus stevens had declared
That II would he puDIc cllme to lake the peoples
10 pay IA greenbacEs. Applying TO Inc law he r.les
OF Ehghsh grammar tie Was not schoolnl0ster
Ia the - ~ Who could doubt ~ true const, ucton.
hr. SCnENCN argued nat II tieie mad b en- any
amb guity IN the lazy Of 1862, that ombguity ha,
been removed b. ths law OF the l8 OF Ma.ca, 1869.
Mr.. JUDD repl Of M mo, ea to- amend the ,our.n
opnol ami "a ere In, can b, conveniently apped
t. that purpose AMI Inserting the y ords. Derived
und + IN, provisions of this actn He eipllned his
Obe by 81 Jung that II thl3 bill became aS The
secretary Of the treasury mlgnt wilhouv selling :,
sngl -FOUR per cent bond, 20 10 work and redeem
nve-tweny Donds IN coin, anu ne wished such rehO
10 redeem limited to the proceeds derived Under tns
MI. Mr. Woopw ARD in support Of his position, read
rom we Leta IeaIet act mat clause which de-
aud legal ienier IA payment OF oil debts public and
private WITHIN the Onitel Sta,e1, except duties ON
imports and intcrest on the bonds OF the United
sac.
Mr. VOORHEES,, tdem.) OF Ind, sustained the posi-
ton OF ar. Woodward, and Quoiel IN its support
the declaration OF lhaddeus stevens, chairman OF
the Committee on Ways and Mean H. the house
ana John Sherman, CHAIRMAN OF the Finance Com
mittee the Senate. lie held th,t no subso quent
leg laton could anecJ the contract, and de nanded
that shall be carried out according 10 law, and not
according To any peryers,0n o. the law. There was
no naliy on thar subject, except obedience W tue
con racC
After further discussion Mr.. Holman's amendment
was rec ;tei BY yeas ~ 20 nays 1913.
:, Inc repuoicans VINO voted aye Were:-Messrs.
Beatty, toourn, Ortiz and Tyne. The democrats
WnO voted n Ycre:-Messrs. Barnun, Brooks, Of
NV York. Randall, Socum stone and SWAN.
Mr. JUDO modified his amendment BY ins ring the
WORDS, "wnicn may be derived nom the sale OF any
OF tne bonds the issue OF which Is provided for IN
this lct.n
Mr. Sc8EScK moved to amend Mr.. Judd's amend
may lawfully o. ply to such purpose ORR
Both amendments we're ayr cd TO- so as 10 make
the fourth section read:"lhat the Secretary Of the
urea ury Is hereby authorized and entrusted with
any coin IN the Treasury OF The Uned states, which
ne may iaW,ully appl. to such purpose, or winch
may bs derived from the sale Of any OF the bonds
the Issue OF when - provided for in this a9t.N
Mr.. BUTLER, OF Mass, moved TO amend s,,a fourth
section by adding TO 1t these word..-
Bo, noas Of SAID .eresbearug obs atoms not already
time United States notes shall be convere into coin at The
p e the or sss se so9s Of &
to be sdosasd can be- sold at par In COIN and the United
States notes In coin.
The amendment was debated at some length by
Messrs. Butler, Bingham, hosr Allison, sohcnck,
DAVIS aud Law reuce.
Mr. BrTygR gave az a reason for the amendment
tnat u Ter the nfn sectiOn OF this bill all the gold
in the country m.ghC be borrowed by the Treasury
and seventy five per cent OF the amount used in re-
deen.inS hve-twenlies az par although 81 the same
time greenbacks might he ten, twenty or thirty per
cent below par. The people woud not ALLOW that.
The amendment was re ected--yeas ~, nays los.
Mr. GRiswoLp, tdeui.) OF n. Y. moved 10 strike
out the section. Rejected.
Mr.. Cox (dem.) OF n. Y, moved to add proviso
that nothing in the act should be construed as con
dieting with the Legal Tender act Of 1852. Re-
jected No further amendment was offered 10 the
Mr. EUrLER, OF Mass. moved TO strike out the fifth
section, which authorizes the Treasurer To receive
gold deposit and issue certificates therefor bear
Ing three per cent interest and to use seventy per
Of tue amount In the redemption OF outstanding
bonds. He declared That "a more dangerous aud de-
structlve propos,O ION mad never been put into bill.
II would SUBJECT the United States to the RISK Of call
loans, FOR which only TWENTY-FIVE per cent kept
on hand. In other words, 1t would convert the
Treasury into an Immense banding concern, with
twenty-five per cent reserve. The Rothschilds and
their dependencies owned two hundred and forty
nil,oos VI the hye-tweaty bonds; II they had them
mcdonnell and deposited the gold in the Treasury
they fnsht. nnder the pressure OF European war,
abusines calamity in Europe or short crops, desire
10 Withdraw II, and the United States government
would thus be az the mercy or foreign ba1E "a.
Mr. SCHsNcK saio that CORES p0hheDce from all
parts OF the country conveyed 10 the committee the
Impression THAI the hfih section was the most vital
section in tho bail; at all events, section that was
essential 10 IT'S operations. The argument OF the
gentleman from Massachusetts mad been directed 10
the apprehension that too much gold might he
poured into the Treasury. II was 81 argument not
20 strike ot the section, out limit The amount to
be received. la drafting the bill the Committee OF
Ways and Means mad had Ia MIND TO put limitation
on the amount 10 be redeemed: but they had after
lalv IN tuf
Of the Secretary or the Treasury It not az all
necessary that the Secretary should limit himself to
a reserve OF twenty-five per cent He might retain
nity per cent or any other proportion. II, under
these circumstances the Secretary should purchase
one hundred millions N bonds IL was not
the gold was PAID wond like to retain 1t
without intcrest They would LOOK around for
other snveslmeut, and there were two modes which
would ut occur 10 them. one was TO carry the
gold back a9alD TO the Treasury take certificate
and receive the three per cent on It. The other
would pe--as there woul6 be no more sovernmcn,
bonds ~ be procured except the four per cents 10
invest IN ,hem-and there was every reason to he
eve that the effect would be general rise to par
and IN ultimate return ~ specie payments.
Mr. Cox expressed the idea that there were sew
era good qualities in the bill. II established fixed
rate OF interest, and that low rate Another good
feature OF t was That the banks were not In favor OF
II. he Was sorry, however That the amendment Of
! his COIleage bfr Wood had not been adopted to
| prevent tue peddng of the bonds In Europe and
| America bv agents, who would advertise them ike
guack medicines. S;ill II he had any assurance that
| the bonds would ne taken he would Oe inclined "
! vote for the bill.
! Mr. scHrNCx III reply 10 dr. Cox, announced his
| confident expectation tnat woha reasonable time.
within this year and the coming year these lour per
cent bonds would be taken. His reasons for think
ing were 10 be iound In various articles In Euro
pean Journals, speaking fayoraOly Of the credit OF
The United states and of It's chances Of obtaining
loan AZ this low rate az Interest In addition to
| some members OF the Committee Ways and Means,
himself Included mad had, within the last week, a.
surances from banks and bankers la France OF their
readiness 30 take the bonds at four per il they
could be OF the KIND described In the first section Of