Wilmington daily commercial., 1874-12-09
FIRST EDITION.
The Financial Debate.

the time came for the use of the money. He |
claimed that the Government would thus get |
about s500,000,000 at that low rate Of interest |
with which to redeem the gold-bearing bonds |
now held abroad that it would relieve the |
Government Of its foreign debt that it would |
give increased value to the greenbacks, diminish |
the demand for gold, and thereby remove the
disparity between them and gold. 1t would |
quicken every industry, and restore confidence to
the people.
aEERAL BUTLER
advocated the bill, and claimed that il was in
accord with the position which he had held on
the subject for many years. 1t was simply a
proposition to allow citizens to come to the gov
ernment and say; "We haye taken your money
and now we desire that you will at least pay US
interest on it as long as you have it." What
wad the country suffering from to-day2 What
shut up or reduced the working hours Of every
mill in Massachusetts2 Why was it that there
were 60, 900 men in Massachusetts out of en-
ployment, $1,000 in New York, and hundreds OF
thousands in Pennsylvania? Why had all busi-
ness stopped? Not for want of money. Any
one could borrow in New York at 8 ptr cent. on
call many millions az he choose to deposit
colaterals for, but il he wanted money as bus
iness loan he could not borrow it on commercial
paper at less than 7, g. o. or 10 per cent. And
why2 Because it was understood that Congress
aud the Executive were determined to contract
the currency until specie payment was reached
but specie payments there had not been and
never would be it was always delusion but
specie values they would come to all the sooner
ii the bill were passed. The country was COM
ing to specie values, every interest in it except
that of invested capital. Real estate had been
brought down in New York 33 per cent, in Mas
sachusetts, twenty-five per cent, and in Chica-
go thirty-three per cent, but invested capital
never came down, not dollar Was there any
body that doubted that The country, was eaten
by rust. No sane man believed that any honest
industry could be carried on by any man who
paid more than six per cent for the use OF his
l.. ~ 70. fl.afH HA,
gress should pass laws against usury. When
the Lord a from Mount Sinai threatened
His chosen people against usury, he succeeded
so lily, that jew and usury had come to be
synonym. Men would make the most OF their
money. But he [Bntlerl was here endeavoring
to impress on the House the idea that there
should not be that condition of law and of gov
ernment finance which made this usury possible.
Why was it that seven eight, nine, and ten, and
fifteen per cent was now paid for the use OF
money. 1t was because Of the high rate of in
terest paid by the Government. 1t was axiom
attic finance that government securities were al
ways at the lowest rate of interest when the
government was at peace, and when everybody
had confidence in its ability to pay it's obliga-
tons. The Government of the United States
was a bond-owner to the amount of twenty-three
hundred millions, at rates of five and six per
cent. The next best security was town aud
county bonds, and they had to pay six and
seven per cent. The next best security-rai-
road bonds-had to pay seven and eight per
cent. and, when business and the risk OF busl-
ness come to be considered. the borrower had to
pay eight and nine per cent. in Masaaehu-
sets, and ten, twelve fifteen, twenty in
the business centres West Therefore
wanted the Government to come into the mar
ket aa a borrower at low rate OF interest.
Then the next range would be nearer to it, and
30 on until all the rates OF interest came down.
He proceeded to analyze the causes OF the vari-
ous financial panics in this country, and to show
that they arose from tho feature in each instance
| of trust company. AS to the last panic, he said
| that the failure of Jay Cook IL 10. was not tile
cause of it, because every business man had dis
| counted their failure six months before. Every
body had known that the Northern Pacific Rail-
road Company would go through except the few
| cuniiding readers of religious newspapers who
read the advertisements OF Jay Cooke x Co, and
thought that they were al true as the other parts
| Of the papers. [Laughter.l And why had the
| trust companies failed? Because they were
borrowers on call. They borrowed money at
four per cent OH calls, and had to lend it out at
higher rates. and when the call was made upon
them they could not call in their own loans fast
enough and they failed, and all confidence was
lost. Every business man knew that he was
working over q volcano. II the servant girls OF
Massachusetts, were to call in their wages thai
they have deposited in the banks every business
man in Massachusetts, would be brok en- at
could not stand the pressure one day-whenevei
| the servant girls make that call that moment the
| whole business OF the country is entirely dis
honored. Would not any man rather have 3-6
bond from the government than give his none,
to trust companies at per cent
MIR. GARFIELD
Believed this bill fraught with measureess evil
to every great and good interest OF the people
of those United States not to the Government
alone but to the Government, the capitalists
aud most of all. to the laboring interest. Fo
the last ten years have given as much time witt
what ability 1 could to the study of this question
as to any other before the American people, an
believe have clearly demonstrated that wer
we now to enter ON the path pointed out in thi
bill advocated by the two gentlemen who hay
addressed the House, that path would lead u
by quick and rapid grade downward to tn
most measureess disaster which has ever be
fallen the business aud the prosperity Of th
American people.
t Now il understand the nature and effect o
this bill, it is to put the entire finances of tn
United States in just such position AZ that l
which the gentleman from Massachusetts But
r lerl pictures the affairs of his own State. I
say that all the great obligations of this govern
= ment owes shall be obligations on call to sa
that there may be rush, not of servant girl
o alone, but of all the spectators in the land {
!. demand either more greenbacks for bonds deli,
cred, or more bonds for greenbacks delivered
or course, of the great volumes of money wbic
New York capitalists hold to-day, and are willin
3 to lend at per cent. on call, as the gentema
o says, would be lent to the Government at 36
during the times when it was not required fo
@ more profitable use.
= With the prospect of being called on the nes
/. week to use more than what they got for it j
y redeeming 1t when it was presented to them
: get currency again, this is a proposition to I'll
n effect that il there be lull in the business {
: the United States, that few millions or
Q hundred millions may be lying idle at any tim
the Treasury of the United States shall take thi
and give the capitalist interest on it, but I'll
moment that the capitalist finds more proht
. BILE use for his money in speculation, he comt
81 to the Treasury and says "Give me my mone
II now l have not needed it while you have he
: y it, and you have paid no interest upon it, bl
Il now that can speculate with it at a high rat
% give it back to me-
10 The gentleman from Massachusetts [Butle
l. says there has been twenty-five per cent.
III shrinkage in Massachusetts,, and thirty-thre
per cent. in New York. There has been gre'
shrinkage everywhere, and now, when we are a
most down to solid ground and honest value
10 the prososition of these gentlemen is that "
IN cut loose forever. / say forever, i'll the sense
L. which the gentleman [Butlerl used it, from Il
in old traditional value OF our money, and go o
N floating, ballooning, flying, with no hope OF T
of turn forever. should feel myself base If d
O. not protest to the extent of all in my pow
against any scheme that proposes to send
this country back again into the clouds al
darkness through which we have come i'll our
nancial affairs II there was ever time wht
American statesmanship needed courage, sel
=, denial--that self-denal that shall reduce I
- duce, reduce expenditures and expansion, al
IL. resist all schemes that would help to keep
ne from solid values honest industries, aud hone
M results, that time is now, in my Judgment. I'll