Clearfield Republican. [volume] (Clearfield, Pa.) 1851-1937, 1878-03-20


only in small sums, but TO have regis
tration made with facility for the orig,
inal investment as well as for every
assignment of it, that under the rule
which applies as well to the savings Of
the poor as TO the capital of the rich
the long and steady bond would be
preferred security; and therefore the
bond at 3,65 per cent. interest paya'
BILE in fifty years was deemed equiva
lent in market value to o bond paying
per cent. payable in thirty years
Then with the additional advantage
OF the subdivision of the bonds enable
ing them TO be sold easily, and easily
registered and easily transferred, great
facility and great protection at the
same time were given to the very
class OF people in whose interest the
bill is proposed.
IL will also be observed that these
I bonds are intended TO be issued 10 lieu
and stead OF part Of the lean authoriz
cd by the law of 1870. II is therefore
for the purpose of preventing any new
confusion, any new discrimination in
the construction OF the language Of this
law and the other, that we have kept
them in oil respects as to what they
are TO be paid in and how they are Ia
be paid, subject to the language which
authorized the refunding OF the debt
in 1870. therefore submit with all
respect to my friend IRON Connecticut
that it would be not in the line Of ia
vor to those whom he desires to help
if he were to make this loan so much
more prfcrable to the thirty-year
loan as il would be il we raised the in
terest to the same rate, per cent.
Mr.. Blame. May ! ask the honora-
bic Senator from Delaware at what
point his proposition has its limit
He says that il you enlarge the period
that the bond is to run through, You
may decrease the rate of interest
Where and when does this principle
stop? The Senator, understand
says that a per cent. for thirty years
is no more desirable that q 365 bond
for fifty years. Where does that prin
ciple stop!
Mr.. Bayard. / do not think it can
be called principle at all.
Mr.. Blaine. Where does that i'm
preston in the financial market which
governs the sale of bonds stop2 What
is its limit?
Mr.. Bayard. ! believe it will be
found in the practical result Of expert
ence and that persons engaged in The
investment OF money would prefer th'
stability which a long loan would give
them at low rate rather than q high
er rate of iterest and short loan
Where the line of time runs, what
number Of years is the limit, | do moi
suppose can be accurately stated bu
the honorable Senator think woulC
} either apply his own experience o.
take the general opinion of men con
, nected with loans and the investmen
Of money, and he would find that they
would give more for long bond thar
they would for short one; and tina
has constantly been before us as
question of economy in the arrange
ment of the funding OF our nationa
debt. ln Great Britain ! believe ther
is no date OF redemption and il is un
derstood they are able to negotat
their bonds better because OF their sta
bility, which is large element o
value.
Mr.. Blaine. They tested II to II
extreme, when they found that tn
lowest point which can be reached
about 3 per cent. think, if the Sen
I ator will allow me to answer my owl
question, that the limit is that of abou
! a generation. think the expericnc
of the financial market has been tina,
: unless you make consolidated bon,
} which is intcrminable, when you reacl
t a generation you have reached the ful
period of time which the elongatiol
+ will produce IN tho reduction of inter
, est; and, therefore, must differ wit
/. the honorable Senator in his belle
: that increasing the time from tilirt,
D to fifty years would enable the gov
. ernment TO reduce the rate of interest
. ! do not think the two bonds place
side by side in the London marke
: would have an appreclaole diilerenc'
You will have to make them an lntel
: minable consol to get anything Of &C &C
r vantage when you go beyond the III
0 of one generation.
0 Mr.. Bayard. | VIII only sapml
D this to the Senator from Maine
: that ! have heard this matter dlscusse
I by mon whom 1 call practical lnves'
Q ors, dealers in money and IN securities
4 and } never heard doubt that bon
r that had nifty years TO run was wort
j: moro per SC than a bond that had ou
. thirty years TO run, and that, there
, fore, IT would bear lower rate OF IN
terest and yet sell Tor as much
0 Mr.. Blaine. Or course that argu
0 ment very rapidly becomes reducf'o a
4 dbsurdum, because II 800 bono a
: thirty years brings par three pc
, cent. ought to be Tor one hundre
, years, and very soon II you give
) thousand year bond, you may get th
! money for nothing in the way oil intei
. est
Mr.. Bayard, There are very fe,
J things that cannot be reduced to a
absurdity II pushed to great extreme
| have heard il applied to the irredeem
; able currency Of the United States
, that if you shall issue irredeemabl
, paper and give ii full value by decai
! alton OF value, you will find that ther
is not much Of difference in value be
tween a counterfeitand the true money
because neither having any value pc