Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1880-03-22
CONGRESSIONAL CHAT.
THE HOUSE HAS ITS WEEKLY TALK
ING SESSION.
The House.

Covert in the chair.
Mr.. FELTON, spoke in favor of the substitute
which he proposed to offer for the bill, ane
which requires the secretary of the treasury t.
redeem any United States bonds which may
become redeemable during 1850 and 1881 to thu
amount of gold and silver coin now in the
| treasury, which may be in excess of % pei
| centum of the outstanding United States notes
using said excess of gold and silver coin fol
the redemption of said bonds. Section two
| requires the secretary, six months after the
above mentioned amount of bonds are re-
deemed, and semi-annually thereafter, to re-
deem the remaining bonds to the amount OF
gold and silver coin which may be in the treas
ury at the time in excess of rs per centum OF
outstanding United States notes. Section three
requires the secretary to purchase silver bullion
| to the amount of four million dollars per month
| with lawful money of the United States. pro-
| vided said bullion can be purchased at par, and
| requires him to have the bullion SO purchased
coined into standard dollars as now provided
| by law Section four forbids and prohibits the
secretary from issuing hereafter any interest
! bearing bonds for the purpose of funding or
refunding the national debt or any part thereof.
Mr.. FELTON, expressed himself opposed to every
form of interest bearing debt.
Mr.. Ortiz believed the public credit was
never on so sure foundation; that the gov
eminent was able to refund it ia lower rate of
interest, and that three and half per cent
bonds could be negotiated at par. That the
financial world had confidence in the stability
of the government and the determination of
the people to maintain its stability and perma-
nence. That this desirable condition of public
affairs has been brought about by the wisdom,
energy and integrity of the Republican party,
and exhibited a most striking contrast with the
recklessness of the Democrats. When twenty
years ago they had control of the government
the public faith and credit of the nation were
at SO low an ebp our public securities could
be only negotiated at the ruinous rate of
twelve per cent. interest, while now four per
cent. bonds readily command a premium. The
rapid reduction of our debt and the consequent
reduction in the rate of interest would enable
the government to prosecute such works OF in
ternal improvement as would furnish the peo-
pie cheap transportation for their surplus pro-
ducts. Prominent among these works would
be a canal connecting Lake Erie with the
Wabash river at Lafayette and the further i'm
provement of that river to its mouth.
MIR. Frye replied to the speech made some
two weeks ago by Mr.. F. Wood. He denied
that the public debt could be paid in twenty
years except by setting up printing press and
paying it in irredeemable paper currency:
Mr.. Keily-Are we not now paying 1t at a
rate that would exhaust it all in a good deal
less than twenty years, without setting up
presses?
Mr. Frye-The gentleman from New York
(F. Wood says we have increased the debt from
1875 to 1879. If that Is true how long will 1t
take to pay the national debt.
Mr. Kelly-That ia not an answer to my ques-
ton. l aver that at the rate we have paid the
debt in this fiscal year, when the people are not
especially complaining of heavy taxes, it will
disappear in fifteen years.
Mr.. Frye-I have no doubt that Is true If the
rate at which we are now paying it should con-
tinue for fifteen years. But is there man so
crazy on this earth as to believe what lasts for
six months will last for fifteen years?
MIR. Kelly-Will not the payment for the fis-
cal year diminish the permanent interest fund
more than $3.000,O0O?
Mr. Frye-Does the gentleman know that al
ready the balance of trade is changing? The
gentleman has received new light within the
last year and half and it lights up his face
like that of an angel, while year agc it was
black as debris.
Mr.. Kelly-All of my prophecies have been
confirmed. With the stoppage of the cancella-
ton of greenbacks and the reconciliation of
silver the period Of depression ended and pros
perity made a boom throughout the world.
Silver men and Greenbackers red eemed the
country. Applause on the Democratic side and
among the Green hackers
Mr.. Frye, continuing, expressed belief that
there being only five hundred million to he re-
funded in three and One-half per cent bonds,
idle capital seeking permanent investment
would take it up. He would vote for the bill
in faith that it would prove successful and that
the bonds coming due would be refunded at
low rate He believed the country in the next
hundred years, at least would not see the rate
of interest less than three and one-halt per
cent. The history of financial management of
this country since the war was the most mag
nifcent ever written in any nation in the wide
,nfn ion To hnT
ent time. That was due to the sagacity, per-
severance, fidelity and courage of the Repubh
can party that had stood like rock against
the wars of folly and initiation and reputation,
and had SAVE the integrity of the country
from overthrow. He dared declare no party or
nation in the whole wide world, from the day
of creation until now, could show parallel to
the glorious financial record of the Republican
party, and yet the gentleman from New York
Fernando Wood had said there had not been
stable policy founded on principles OF en-
lighted craftsmanship. applause on the Re-
publican side.)
MIR. Mills strongly opposed the funding sys-
tenn and criticised the whole financial system
of the government since the war. The coun-
try he said, wanted government that would
receive the confidence of the people and enjoy
their affection. That government whose states
man sought diligently the public good, would
never have to appeal to the military arm to
stay its destruction. 1t was not strong
government that was wanted but just one.
Applause on the Democratic side.)
Mr.. Dunnell said the questions presented by
the bill were few and simple. The bonds bear
ing and per cent. interest were maturing.
Should they remain to be reduced by the sur
plus revenue, which the secretary judged
would be fifty millions every year, or should
they be refunded into 81 per cent. bonds,
and the government use the forty mil
lion dollars in the purchase of out
outstanding ~ per cent bonds. He thought
the latter course to be the preferable one. If
this bill became law the bonded debt of the
government would be as follows: $3.50, 0OO, 600
AZ per cent. bonds. redeemable in 1901; S74O,-
O0O. 900 per cent. bonds, redeemable in 1907;
$500, 900 900 81 per cent. bonds, redeemable in
1900; $3.50, 100000 81 per cent. bonds, redeem
able in two years. The interest of these bonds
would be $6SOO0,00 while the interest on the
bond, d debt at the close of the war had been
$3.50, GOO, 900. The finances of the government
of the United States had always been managed
by great men, and the name of John Sherman
would 60 down to posterity alongside those of
past secretaries of the treasury.
Mr.. Sanford closed the debate the committee
rose, and the House adjourned.
Merrill Captures the Dakota Southern.