Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1872-02-07
Debate In Congress on the New -Four
Der cent, Loan,

per cent. Loan.
The syndicate matter, as this
loan transaction is termed, coming up
in the House, the Democrats took
occasion to condemn and disparage
the financial policy of the Secretary of
the Treasury. Mr.. Kelly, of Pa, in
defence of the policy, asked
What sort ofan cutlery the Demo-
Gratis of the House would have raised
If the Secretary of the Treasury had
refused the offer of foreign bankers tc
take n hundred and ihirty-hye
millions of the public debt at four
per cent, and had continued to pay
six per cent? What answer would it
have been for the Secretary to say
that he found a divergence OF opinion
among lawyers on an irumaUerial
point oflaw, and that he thought he
had better not do it until Congress
should construe that immateriaI point
Of law They would have made the
country ring with the story that the
Secretary ofthe Treasury, rather than
reduce interest on bonds in the hands
of his pets, had on an immaterial
point gone on paying six per cent,
while eminent bankers in Europe
were clamoring for five per cent,
bonds. He went on to ridicule Mr..
CoX's pretensions TO public virtue in
the matter. contrasting with it the
ring frauds Of n York, and refer
ring to what Mr.. Cox had spoken at a
meeting in New York in favor Of the
reelection Of Mike Norton, Tweedis
lieutenant, to the Senate of the State
of New York.
Mr.. Cox said that in his speech on
that occasion he had condemned ring
frauds.
He hoped the corruption OF men
who had managed public affairs in
New York city to the humiliation of
the Democratic party, wodld not find
a justification in the House Of Repre-
~sentatives for his.Syndicate transac-
ton. As to Mike Norton. he had
presented the city charter to the Sem
ate, and it was carr ed against him by
Republicans who we're purchased up.
Mr.. Kelly said that he had to re-
sumo the floor.
Mr.. Cox said it was time. laugh
ter.
Mr.. Kelly said he would not stop to
ask who had bought up Republicans,
but they were certainly bought up by
largess, and from millions stolen by
Tweed, Norton & Co.
Mr.. Elkridge-They were cheap
men.
Mr.. Kelly-That was not -necessari.
ly so, as a man who stole twenty mil
lion dollars could afford 10 buy pretty
high. priced men, as politicians go.
[Laughter.l He did not mean to
assail Cox, who was pure in his per-
sonal character, but who was never
theless a partisan.
Mr.. Doves, Chairman of the Com
mittee of Ways and Means, closed the
debate, and apologized for addressing
the House at this late stage of such a
dry debate, his justification for it
being that if the charges made against
the Secretary of the Treasury that he
had made transactions with the Syn
dictate in defiance of law were true,
and if the House pronounced it true,
that fact would deal a blow at the
credit of the nation more severely
than anyit had sustained even from
rebellion and war. He proceeded to
defend the Secretary, and said he had
vigorously shown that he had not
violated but had executed the law.
Surprising the Syndicate had made
profits as the gentleman had
alleged, and had made them at the
expense of the Government, which
was not the case, what profits had the
United States made out of the trans
In negotiating S2C0, 900, 600
of per cent. bonds and Withdrawing
the same amount of 6 per cent bonds.
1t had a saving of 5000, 600 a year, or
twenty millions at the end of ten
years. That put at interest would
make twenty-six millions at the end
of ten years. The present value of
that saving was Sl4, $40, 600. The
benefit of the success of funding that
500, 000, 900 did not end there. It had
so strengthened American credit
abroad as torender it certain that the
balance o. the debt could be funded
at four per cent. In that connection
he read a letter from Assistant Secre-
tary Richardson, dated London, Dec.
80, relatingto a conversation which he
had recently with the Governor of the
Bank of England, who is represented
as saying that until lately he had
thought that the debt could
not be founded, but that now it had
been shown that the resources of the
country were so immense and the de-
to maintain its credit so
fixed and settled that we should soon
be able to borrow money at four per
cent.
The vote was taken, and the resolu-
ton declaring that the Secretary Of
the Treasury in negotiating the loan
had neither increased the bonded debt
nor incurred any expenditure contrary
to law, was adopted. Yeas, 10; nays,
36.