Evening star. [volume] (Washington, D.C.) 1854-1972, 1880-01-15
FORFY-sIXTH CONGRESS,
THURSDAY, January Is.

mittee to report back the joint resolution for
the Withdrawal OF the compulsory legal tender
power of U. s. Treasury notes. The committee
had made verbal amendment to the resolution
unanimously agreeing to it, and with that that
amendment directed him to report the resolu-
ton adversely. He understood there was
minority report TO be presented otherwise, he
should ask indefinite pOstponement of the reSo-
luton. He asked that it be placed on the calen-
~ Mr. r. Bayard, from the - same same committee, pre-
sented the views of the minority, as follows:
'The undersigned, believing the industrial,
commercial and financial prosperity of the
country. in order to be enduring and Securue,
must be based upon money of actual and in
trinsic value, and that our government has no
power, and is incompetent TO endow its paper
obligations with such value, and the United
States Treasury notes in existence and in circu-
lation being now redeemable in gold and Silver
coin at the option of the holder, do recommend
the withdrawal OF the compulsory legal tender
power of such notes and the passage OF the sub
joined resolution.
(Sigped) FRANCIS HERMAN,
THoS. F. BAYARD,"
(That Treasury notes shall be received for all
dues to the United States except duties on i'm
ports, and shall not be otherwise legal tender.)
Admitting the principle OF the resolution as
to the power of the government TO make paper
legal tender, l reserve my action upon the reso-
luton as to the time OF the withdrawal Of the
power given heretofore.
{Signed) JUSTIN S. MORRILL,
The minority report was also placed on the
calendar.
The amendment made by the majority in the
phraseology OF the Bayard joint resolution is
merely veroal.changing the words "U. S.
Bills were introduced and referred as follows
By Mr.. Observation-Disclosures the President
to detail an officer OF the navy or marine corps
to perform the duties of solicitor and judge ad-
vocate general, and fixing the rank and pay Of
said officer.
BY MI. vance-By request-To regulate the
By Mr.. Iiarrts-A joint resolution extending
the provisions of the act relating to interest on
arrears OF taxes, general and special improve
ments, due the District OF Columbia, and for a
revision OF such assessments.
Mr.. Morgan presented the credentials of Luke
Pryor, appointed as Senator from Alabama un-
till the legislature elects successor to the late
Mir. Houston, and Mr.. Pryor was sworn in,
taking the modified oath.
The Senate took up the bill to relieve the Z.
S. Treasurer from the amount now charged
against him and deposited with the several
states.
Mr.. Thurman opposed it. The money belonged
to the United States. and should be paid accord
ing to the original understanding.
The morning hour having expired, the bill
went over, and Mr.. Morrill, called for considera-
tion of his resolution instructing the finance
committee to inquire into the practicability OF
REFUNDING THE PUBLIC DEBT
at a less rate of interest than per cent. Speak
ing on the resolution MIR. Morrill, said that in
refumding that portion of the public debt which
rate at which the loan will float at par should
be chosen. The value Of United States loan
GENTLY tested by that of the 365 per cent. loan
OF the District of Columbia, when the United
States has guaranteed the interest and pledged
its faith to see the principal paid yet 1t is sell
at S524 cents net. loan at $50 would neceS-
sarily bring less than one at 3.65. The question
is whether it would not be wiser to refund with
bonds that Will bring a premium by that much
reducing the debt and obtaining financially all
the advantages possible in lower rate of in
teTest. He reviewed the late refunding opera
tions, and stated that though the new per
the rise is recent and for some time it was
doubtful whether they would rise Or fall. There
are few other securities that have not ad-
vanced more. For the risk run the actual
gain would not be considered as too much.
The methods by which Great Britain OBJ
taired loans at per cent. were extremely i'm
provident. One loan Of sls0,OoO,Oo in 1915 was
obtained by giving $50 OF per cent. stock and
$50 OF per cent. stock to every subscriber OF
$500 thus adding 1920 to the perpetual debt for
every $500 advanced. Mr.. McCulloch states
that without doubt this loan might have been
procured by an addition of i or y per cent. to
the interest without any increase of the princi-
pal. Great Britain raised from 1898 to 1916
81 SOC, 900, but the stock actually issued and
bearing per cent. interest was S3,So1 900, 000
At per cent. and an annual payment OF, $50, ,O00
600 as sinking fund semt-annually re1nvested
our debt OFFS ,IS66S6, $50 would be eXtinSuiShedn
less than 81 years. On 900 for 50 years,
at 35 per cent. we would pay 81 400, 600 900 in
teTest while at per cent, Tor 80 years, we
would pay but $500 900, 900. 1t may be argued
that the national banks, at least would be com
PEELED to exchange the $200, 100000 deposited by
them in the Treasury on whatever terms Con-
gress dictates. But 81 per cent. bond deposit
would be a heavy reduction in security for Cir
culation, besides considering the heavy restric-
tions and taxes on banks. 1t is likely that If
based on bonds at 80 per cent. a large sur
render OF banking privileges would be newt
able.
Mr.M0rrill thought that with the renewed busi-
ness activity Idle capital is being so rapidly
absorbed that other investments with larger re-
the most popular United States securities.
Against such powerful and varied competition
the government may, not be able to dictate
terms on which It viii borrow. We should act
promptly, lest delay bring less favorable Cir
cumstances Most foreign national loans bear
over four per cent. interest. We regard our
securities as better than those, but foreigners do
not concede this, distrusting the continued good
faith of popular government. Even were it
certain that we could refund abroad at \ per
cent less than at home, as it cannot be unless
we take in payment something beside gold, the
policy of accepting such terms is doubtful. The
drain upon our resources for large sums to be
annually sent abroad IS greater than it would
pc ?p ING same amount dlsuuiEed at home. 1t
Is tie grievance OF Ireland. Large expenditures
OF land rent abroad will impoverlsh any people.
Submit the question to the people and doubtless
they VIII agree that we should better consult
their interests to place our debt at home at per
cent. rather than at 81 or even 3 abroad. In
conclusion, he said something must be done
now, and it may be that by waiting, less can be
done. Possibly loan at between 3b and per
cent might find favor, but it would involve risk
and delay, and only absolute success could vim
dicate its merits. His desire was to promote
such measures only as would surely best serve
the country interest
On conclusion of Mr. Morrill's speech the bill
for the removal of distractions In Delaware
breakwater harbor was passed.
On motion of Mr.. Davis, of West Virginia, 1t
was resolved that when the Senate adjourn to-
day, it be until Monday next.
The bill to establish a new land district in Da-
kota was passed.
AT 2:15 p. m. the Senate adjourned until Mon
day.
HOUSE.-The following bills were introduced
and referred:-By Mr. Washburn-Authorizlng
the Worthington and Sioux Falls r. R. CO. to
extend its line to the Missouri river. By Mr..
Dunnell-To protect the navtgable rivers of the
United States and to punish the depositing of
SawduSt or other material in such rivers; By
MI. Deuster = Joint resolution appropriating
GOO to enable the United States fish commits
sioners to exhibit a fair and full collection of
American food fishes at the international exhi-
bitiOn to be held in Berlin in 1880.
Mr. WhitthOrne, chairman OF committee on
naval affairs, reported bill, which was printed
and recommitted, authorizing the equipment of
an expedition to the Artic sea.
The Speaker laid before the House the follow
ing communications, which were appropriately
referred: Letter from tina president Of the public
land commission asking for an appropriation of
$40, 600. Letter from Secretary OF the Treasury
in regard to an increase in the efficiency OF the