The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-01-16

cate. When 1t was returned to him he presented it
the two houses in joint convention and the seven
votes Of the State were counted for Tilden and
Hendricks
THE PEOPLES SAVINGS.
| ON THE BILL AUTHORIZING THE ISSUE OF
| CERTIFICATES OF DEPOSIT IN AID OF re-
| FUNDING THE NATIONAL DEBT
WASHINGTON, Jan. Is, 1870
| In the House to-day the SPEAKER announced the
regular order to be the reception of reports the
Committee Ways and Means.
! Mr.. woop, (dem.) of n. Y, chairman of that COM
ittec reported back the bill authorizing the issue
OF certificates Of deposits in aid refunding the pub
! lie debt
The bill authorizes the Secretary Of the Treasury to
issue, in exchange for lawful money of the United
States certificates of deposits of the denomination Of
$1O bearing interest at the rate of three per cent
convertible at any time. with accrued interest
the four per bonds authorized to be issued and
directs that the money received shall be applied
only to the payment of the $40 bonds.
Mr.. KELLEY, (rep.) Of Pa, submitted amendments
| to make the certificates convertible with ac-
crued interest after six months into lawful money
| and ut any time into the four per cent bonds.
ExpLANArIoN The BILL.
Mr.. woop. Of New York. called attention to the bill
introducing novel feature into the affairs of the
| government far the producing classes were
concerned. 1t would afford the poorer classes an
opportunity of investing their small earnings where
| they would be safe and secure and not subject
to the instability of private corporations 1t
was proposed by this bill to make a
aud absolute security for every dollar deposited by
the poorer classes and the result of which would
to make these classes Of the people copartners i'm the
| fpgtO of hr IN
cement fraternal concord throughout the land.
France had long ago this proposed system France
States. and yet France had foreign public debt.
The whole funded debt of France belonged to the
French people and sevcn-eghths Of it the poorer
classes OF the people. As result of that he pointed
to the fact Of the successful prompt payment of the
| war indemnity OF $1,000, 100000 imposed France
by Germany. IL such a system found SO advaIi-
tagcous under an unstable government like that of
found under q stable government like that Of the
| United States.
| SPEECH OF IN. KELLEY.
| Mr.. KELLEY, of Pennsylvania said that the bill was
IN important one to the people, especially to the
poor and economical and thrifty people. 1t had been
heraldcd to them establishing national savings
bank. The only provision in the bill which
characteristic of savings bank that the govern
mcnt would receive deposits an low as $40 There
was no other. The United states government pro.
posed to engage the laboring people in a game of
chance OF which the law was, Heads win tails you
| lose" No laboripg man could have any benefit
| from the bill. II would turn that class
into game for the shylocks that conccn,
| v.
| suppose poor man hal deposited $40 and found
himself unable to deposit more no would have
wsit III years and four months before he would be
entitled TO interest. That the redemption pro.
| posed by the United States when il established "a
be sold. What would $40 certificate bearing three
per cent interest bring when $50 bond at four per
cent could be had at par The laws of trade would
put them far below par whenever they had to be
sold in the market. That was the savings bank
offered the poor Of America by magnanimous gov
| crnmcnt The rich who yesterday had subscribed
SlsCOO0OO to the four per cent loan were not % wait
13 years and four months for their interest:
posed that certificates should be convertible at
the end of six months, with accrued interest, into
u and trap for the poor and q disgrace to
the government: with it the bill wonld be safe for
tho people and bcnefccnt in its elects the funding
| operations Ut the government.
| BUTLER
Mr.. BUTLER, dnd) OF Mass. opposed the bill rs a
delusioD snare. The effect OF IL would be that
| poor man might spend day every month in pro-
| curing ten dollar bond that when he got 1--WE of
| them together he might change them into a
four per cent bond. and that tor that privilege
he would have spent hyc days and would have saved
just thirty five and hall cents in interest. That
| was all there was OF IL, There element OF a
savings bank In 1t; IL had safety; aud when tho
poor man wanted money for his bond he would have
10 go to broker and submit t. shave greater than
the interest. Ii there an, thing else in it he
failed to find It.. They told that it doing
good thing tor the poor people and that it ike
the governmental savings bank system OF England.
In England, however. the government savings bank
| oneq quarter per cent OF the bank oil England dis
Here the ordinary rate OF discount was from
six to ten twelve per cent, according to locality,
aud IL was no boon to the poor man to take his money
and pay him three per cent interest. Ii tho interest
were put mp to six or then he would talk with
| them. Let them give to the poor the samo
chance that they give to the banks.
OBJECT OF THE
The object VI the bill was. he intimated. to with
draw the grcchbacks from circulation, for there
| no way Of paying them out when received this
| purpose. 1t would be further contraction of the
currency. which had already depressed labor stopped
business and brought the country to its present con-
diton. And the result OF that condition (which was
| resumption at New York, and nowhere else. Ho
could not vote for the bill, anu he did not believe
ornment savings bank paying interest las in Engand
within one-qnartrr per cent Of the bank discounts
Why should the government pay six per cent to the
banks and only per cent to the poor aborery IL
was mere deinsgogc undertaking 10 say that the
people should have the privilege of three per
certificates which can be exchanged into q four per
cent bond that may not be worth its face value
| They never could he worth more and might be worth
| less. Was the House prepared to pass such q meas
ure? 1f IL going to do anything In that direction
IL should adopt the amendment offered by the gentle
man from Pcnnsyi yania (NIr. kciiey) so that man
could get back his money IL he did not like the
security. Just he could in the savings banks An
| other objection the want Of safety under this
bill. man might lose his certificate; he might he
! robbed OF 10; II might be burned up. and then his
| savings were gone.
| Mr. BurIER-Oh, by no manner Of means. God
| bless you, mol q Lord, mol p.aughtcr) Not in our
| country. do not know how IL may be elsewhere.
With government savings bank there will be regis
| tration. voucher may be sold in proper form and
| the assignee get the money. II the book or the
bond lost the owner can get IL back just well
| the Manhattan Savings Bank got back its bonds. l
am heart and SOUL body and mind. opposed to this
bill.
Mr.. KrLrEr- Even with my amendment,
| Mr.. Bur1En--1 will vote for your amendment be-
causs under this Certificate can be con verted into