National Republican. (Washington City (D.C.)) 1872-1888, 1880-01-16
CURRENT CAPITAL TOPICS.
An interesting Day In Either House
of Congress.
An Adverse Report on senator Bayard's
Northumberland OF the Com
mittee Observation-Disclosures New
Senator Sworn in--Nr. Davis
Stata Debt Blll--The Now
House Rules, &c.
Tho Finances In Congress.

huiest NCs
Tho Finances In Congress.
The Senate was In session less than three
bOurs yesterday, and then adjourned over
until Monday. The pr0coodings however,
were Of more interest and importance than
those of any day since tho session began, for
they started the financial debate which has
been hanging fire so long and which promises
to be tho leading issue Of the session. Almost
Immediately after tho opening, Mr.. Allison,
from tho Committee on Finance, made q ver-
bal adverse report upon Mr.. Bayards resolu.
tisn destroying the legal-tendor quality Of
the greCnback. lie gave notice that he
should ask It's indefinite poStponoment In ac-
cordnnce with the wishes of the majority of
tho Committee, were it not that a minority
report was to be presented. He therefore
asked that 1t be placed on tho calendar, aud II
was so ordered. DIR Bayard then presented
tho minority report as fUllowsi
The undersigned. believing the industrial.
commercial and financial prosperity Of tho country,
In order TO be enduring and secure, must be based
upon money OF actual aud Intrinsic value. aud
TINT our Government has no power and Is mCom-
petent TO endOw It's paper obligations with such
value, and the United States Treasury notes iu eN-
istence and IN circulation being now redeemRble
IN gold and SILVER coin at the option of the holder.
do recommend tho withdrawal of tho compulsory
lesulender power Of such notes and the passage Of
the subjOinod resolution. FRANCIS HERMAN.
THOMAS +. BNYARD.
(That Treasury notes shall bo received for
all dues 20 the United States except duties on
imports, and shall not be otherwise legal
tender)
Mr.. Wallace signed the report With the fol-
lowing qualification: admitting the priu-
ciplc of tho resolution as TO tho power of the
Government to make paper legal tender, | re-
serve my action upon tho resolution as to tho
time of the withdrawal of the power given
heretofore" Mr.. Morrill,. of Vermont signed
the minority report after adding to what Mr..
Bayard and Mr.. Herman and Mr. Wallace said,
" reserve the right of amendment" This re-
port was also placed on tho calendar. No ex-
tended remarks wero made upon either report.
Mr.. Morgan presented the credentials of Mr..
Luke Pryor, appointed Senator in place of tn g
late Senator Houston, of Alabama and no WAS
sworn in, taking the modified oath.
The bill Of Senator Davis, Of West Virginia,
to relieve tho United States Treasurer from
the amount now charged against him and de-
posted with the several Statcs was taken IN
This bill proposes TO give the States nearly
S40000,000 which was loaned them in 1898
Mr.. Thurman opposed the bill, claiming that
the money belonged to tho United States and
should DO returned according to the original
understanding. He claimed that at the time
the money was given the question of giving 1t
outright to the States was discussed and held
10 be unconstitutional. aud, therefore, tho de-
posit was made to avoid this objection, which
he claimed was as orcible now as then. Pond
ing discussion upon this bill the morning hour
expired, and Mr.. Morrill, of Vermont took tho
floor upon his resolution instructing the
Finance Committee to inquire into tho prac.
t!cabilty Of rcfunding the public debt ut a
less rate of interest than four per cent. Mr.
Morrill, spoke at some length upon the resOlu-
tion opposing tho attempt to refund at lower
rate of interest than four por cent, and said :
The value of n United States loan bearing less
than per cent Interest is sufficiently tested by that
of the 365 per cent loan OF tho District of Column
bia, when the United States has guaranteed the i'm
forest and Pledged Its faith 10 see the principal
paid, yet il Is selling at s64G cents net. loan at
$50 would necessarily bring less than one az SGj.
The question IL, whether it would not be wiser to
refund with bonds that Will bring premium BY
that much reducing the debt and Obtaining ilnan.
interest. lie reviewed the late refundug opera
tons. and stated that, though the now per cents
are now at to 3T per cent. premium. the rise is
recent and for some time 1t was doubtful whether
they would rise or fall There are fOw other sccurl-
ties that have not ADVANCED more For the risk
run the actual gain would not be considered as too
much. The methods by which Great Britain OBJ
tained loans at per cent. were extremely Inn
provident; one loan of slSOOOO.0O0 in 1917 was
obtained by giving $3.50 of per cent stock and
so OF per cent. stock to evey subscriber of $500
,hus adding S92O TO the perpetual debt for every
S)OO advanced Mr.. McCullOCn states that without
doubt this loan might have been procured by all
addition OF or per cent. TO the Interest without
any increase of the principal Great Britain raised
from 1893 to 1916 81 6O05 5jO0GO, but the stock
actually Issued and bearing per cent Interest
was S3SSl 100000. At per cent. and an annual
payment OF S9OQO0,OOO as sinking fund, semi.an.
nually reinvested, our debt of u 1855 Csc $50 would
be eXlingulshed IN less than thrty.one years ON
would pay sl,i0O0ooOOO interest while at / per per
cent for thirty years we would pay but $3.50 900 0O0
II may bG argued that the National banks. al least
would be compelled 70 exchange the $4,000 900
dspos5fd BY them IN the Treasury on whatever
deposit would be u hosvy reduction In security for
circuatoni besides, considering the heavy rostic.
tions and taxes on banks, II is likely thatif based
on bonds al ga per cent large surrender Of
banking privileges would be inevitable.
Mr. Morrill, thought that with tho renewed bust
ness activity Idle capital Is being 50 rapidly alb
sorbed that other investments with larger returns
are likely TO he more successful than even tho
most popular United States securities. Against
such powerful and varied competition the govern
meut may not he able 70 dictate terms on which IL
viii borrow, We should act promptly lest delay
bring less favorable circumstances Most foreign
national loans boar over four per cent interest
We regard our securities a. bett0r than those but
foreigners do not concede this diStuSting the CON
tinued good aih OF popular government. Even
per cont less than at home rs 1t cannot be unless
we take in payment something beside gold the
policy Ofncceptng such terms Is doubtful. The
drain upon our resources for large sums to be
annually sent abroad Is greater than II would be
on the same amount dSbursed Rt home II Is the
grievance Of Ireland, Large expenditures of land
rent abroad will hnpOyerish any people. submit
the question to tho people and doubtless they will
agree that we should better consult their interests
TO place our debt at home ut four per cent rather
than at three and half or even three abroad. In
conclusion, he said something must be done now
and II may be that by waiting less can he done
Possibly loan AZ between three and a half and
four per cent. might find favor, but il would In
vOlyc risk and delay, and only absolute success
could Ylndicate It's merits His desire was 10 pro.
mote such measures only us would surely best
serve the country's interests.
In the House rs we'll as tho Senate tho
financial question was the main topis. Soon
after the meeting tho consideration of the bill
requiring Oue.half of the reserves of National
banks to be kept in gold and silver coin of the
United States was taken up, and Mr.. Price,
of Iowa, opened the debate in advocacy of the
bill. lie claimed that its passage would dis.
tribute the gold and silver of the country. He
WAS not, he said, in favor of any change either
Us to the quantity or quality OF the paper
which was circulating, for he had at the
opening of tho session offered resolution TO
that effect, He did so because he believed
that any agitation OF the financial question at
tho present time could result in no good, and
might result in great harm, and because he
thought the country should be assured that
there would be no moro thkerng with tho
The country is assured, he said