Evening star. [volume] (Washington, D.C.) 1854-1972, 1876-01-29
Congress and the $3.50 Bonds.

The debate in the Senate yesterday was
important, as showing the views of leading
Senators upon the relations OF the District
10 the General Government, and, more par
tcularly the opinion held by them upon the
direct responsibility of the government fol
the 3-65 bonds II was generally conceded
that that responsibility was direct and com
plete. Mr.. Sherman said:
''I think we ought TO place these bonds
upon the exact position that the law de
signed, and that the appropriation made for
the payment OF the Interest ought to be
United States, and then whatever part 1t is
Ihought ought TO be levied upon the people
OF this District should be levied upon them
oy taxation, and go into the general Urea.
sury to swell the body OF taxes and thus the
people of the District would pay their por-
LION OF this debt like the people OF the United
states, and would pay their portion OF Ia es.
But so far as the bond-holder or the man
who has purchased is concerned, he holds
the security of the United States, and we
can no more violate, or impair, or impede, or
delay, the full performance of this obliga-
lion Than we can impede, impair, or delay
The litigation 70 pay the $40 bonds of the
United States"
Senator Allison said:
81 agree with the Senator from Ohio
thoroughly as TO the character of these 3-65
bonds. In the act OF June 20, 1874 the gov
eminent did intend to guarantee to the
holder OF these bonds the principal and the
interest by appropriations, or by taxes
Columbia"
Mr.. Thurman held that the government
had pledged itself that il would "by pay
ments out OF the public Treasury OF its pro-
Portional part OF the expenses of the govern
ment in this District, contribute to pay the
interest on these 3-65 bonds, and provide a
sinking fund for the liquidation OF the priu-
cipsl" Mr.. Thurman also asserted his con-
vi no firCf f,r
was "tO declare what shall be the proportion
OF expense Of government within this Dis
tTict which shall be paid out of the Federal
Treasury, and then you know what proper
tion shall be paid by the people of this Dis
tIict."
Mr.. Conkling, in expressing his surprise at
the extraordinary proceeding" by which
1.-THE credit OF the Government has been
bawked about and discounted at a ruinous
rate" said
"HOw comes that; aud what contribution
does the senate ma ke to-day toward the ap-
Irec1ation or depreciation Of that credit? 1t
turned out some time agO-I do not stop tn
anne the exact date-that in this city and in
lhls DlsIrlcI, wILa the government of which,
~ The Constitution OF the United States
Congress Is chargeable and charged, 1t had
come about that's large amount of indebted
ness existed which was TO be iIquidated and
eatished either bY tax and tribute taken OFF
the property in the District after the manner
of such things in the states or in some other
mole, or by some appropriation or provision
made by Congress. A COMMITTEES and the
two houses, wisely doubt not, hit upon the
plan OF Issuing an evidence OF debt, for
winch and behind which the United States
was 10 stand responsible; and do not stop
To maggie about terms or closely TO inspect
words whether they be in one form or
anotneri but say that design. the intention
was TO issue bonds bearing 3-65 per cent. In
terest, which should not be bonds good be-
cause nobody was behind them, anonymous
securities, charging somebody, those to
bonds which were to be made good In sub
stance and effect by the United States.D
Does not everybody know that?''
The remainder Of the debate, though desuI-
tory In character. was OF the same tenor. and
showed the fact that the best lawyers In the
Senate all conceded that the government
was bound by its own acts TO protect these
bonds, whatever measures IL might take to
prevent an increase of their volume