Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1880-04-06
THE FINANCES.
MIR. FRyE's SPEECH ON THE FUNDING Bill
IN REPLY To FERNANDO WOOD
on NEW YORK.
From the Congressional Record


i do not join issue with the gentlemans
argument so far as IL is strictly confined 10
the pepding bill In the proposition 10
issue l-2 per cent bond, payaoie IN
twenty wears. concur with the majority
OF the committee.
| was originally in favor of the nrst
nroposition OF the gentleman from New
York Mr.. Fernando Wood 10 issue a
sic per cent bond, payable IN nity years
I believe that bond like that would DE
eagerly sought as a means of making per
msnent investment of idle capital, and that
II could be hoated easily at par. Inc
whole amount to be invested would not DE
over $50. 600. 600. and the payment OF that
amount II seems 10 me, might well ana
reasonably be postponed even 10 the extent
of nf>y wears. But we were oVerruleu oy
the committee, aud for reasons which the
gentleman from Georgia has, 10 certain
extent. given 10 this House today.
MANY gentlemen on the committee are
onnosed To perpetuating, a. they can H.
tbe debt OF the United States; opposed 10
binding upon the people burden when
will last for nfty wears They drew vivid,
beautiful and refreshing pictures OF the
MAGNIFICENT prosperity of our country, OF
the humminS wheels OF industry, OF the
n.sv men and women, OF the great iron
.ud steel works, OF expanding railroads.
and so ON. assuring u that with this super
abundant prosperity, within less than thir-
" years the whole debt would ineVitaoly
be paid.
I believe that the picture OF prosperity
which they drew i undoubtedly true one
And IL Is refreshing 20 see certain gentle
men drawing these beautiful pictures %,
the country under resumption, who palntea
such horrible daubs OF dismay, destrucuon'
desnair. aud death but a month or SIX
weeks before resumption took place, pro-
phe;ic OF what was 20 happen II there ever
should be such thing in fact as resump-
tion. | recognize with JOY this renewed
prosperity OF the country; l am siau 70
see II back again; hope II viii stay bu'
does history justify any such sansu'n'
predictions! What 90 these gentlemen
think! Do they suppose that the balance
OF trade will DC in our favor Tor thirty sue
ressiye years. Does the gentleman ron
Georgia Mr.. Felton, suppose that there )
10 be an Irish famine every year for thirty
vssrsy Does he suppose that God viii
smile upon this country, and give u abound
inc crons every wear for thirty Yeas: Does
he suppose that there are 20 be no panic>'
no business depressious. no hard times
within the next thirty years? Does he sup
pose that even if prosperity lasts there Wih
be no extraordinary expenditures in this
yres, Republjc induced by this good for
tunes Are there 10 be no wars aud no ru-
mors OF wars.
IL seems TO me that history warrants no
sueh conclusion. and believe that IN nfty
wears from today, whether we continue
prosperous or not, we shall mud that II
would have been a safe thing 10 have fGnd-
ed fye hundred millions ofour present debt
at3l-2 per cent interest. Yet, yielding
10 the gentleman on the committee, gave
M that proposition, and submitted Ia ano
and voted for the one contained IN the
pending bill.
But. Mr.. Chairman. il seems 10 me there
Is another proposition in this bill which
ought To be amended. believe an origi-
nal proposition OF mine was that there
should be provided short bond with
which to bridge over ten years between
now and the time when the l-2 per
cent bonds are redeemable. That propos-
ition commended Itself 20 the committee
and this bill provides for a short bond 10
70 take care OF about $3.50, 100000. This
il a short bond redeemable amer two years.
The rate of interest which IL seems TO me
this bond should bear was per cent. Why
per cent when the other bonds are 10
bear 3 l-2 per cent? Because II Is well
known To all fnanciers, belieye-it is ar
gued by them all, at any rate-that long
bond az l-2 per cent i better than short
one AZ the same rate of interest. think
the gentleman from New York recognizes
this principle OF Finance in his speech which
have before me. Now, sir, IL we could
sell a 3 IL per cent twenty-year bond at
par and no more, can we sell for refunding
purposes u l-2 per cent two-year bond:
I believe not 4; l am afraid not; and there
fore would desire to see that short bond
amended and made a 3.65 or per cent
Another thing, Mr. Chairman Our bill,
as believe il was reported 10 the House.
restricts the Secretary OF the Treasury 10
exchanging these bonds. l believe that
ought not TO be- | believe il will absolute
ly prevent his success in refunding with
these short bonds AZ any rate, and be ought
BY an amendment TO the bill 70 have the
right 10 sell and buy others with the pro-
ceeds OF the sale
In other particulars do not know that
have any disagreement with the Commit
tee on WAYS and Means in relation To this
bill which has been reported. i shall vote
that IL will prove a success, and that the
bonds within the coming two years will be
st this low rate of interest.
And, sir, believe this country in the
next one hundred years will not see time
when the rate ofinterest will be lower than
3l-2 per cent. There is, sir, a "hard-pan
In interest as well as in everything else,
and / believe when we struck l-2 per cent,
strncE that hard nan " aware
sir, that England puts its consols upon the
market bearing per cent interest, but
am not aware they ever sold one OF them
1T par except one single issue Of very
small amount, and believe the interest to-
day costs England at least l-2 per cent.
am aware that France put upon the mar
ket 8 per cent bonds, but am equally aware
they sold down to sixty cents on dollar,
and that the average rate of interest today
Is at least 5 per cent on French bonds,
counting the discount. We can improve
on France, but shall be entirely content
III in this matter of interest VIC stand side
by side with England.
desire now, especially 10 call attention
to portions OF the speech-and II Is an eN-
ceedingly able one-of the gentleman from
New York Mr.. Fernando Wood where l
do Join issue with him. ON page OF his
printed speech, which have before me, he
says:
at will be seen that there has been no
reduction or the debt in the past five years,
but both the debt and the interest charge
having been increased: this has not been
caused by any extraordinary demand upon
the Treasury"
Again, further down:
ssBut, from erroneous policy or some 9TH
er cause, the national obligations have been