New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-02-18
TIE SENATE ON REFUNDING.
TIE THREE ASD ONE-HALF PER CENT AMENDNEN
nEnELIEn DECISINE NOIE.

TIE THREE ASD ONF-IIALF PER CENT AMENDMENT
DEFEATED by A DECISIVE VOTE.
IBY TELEGRAPH TIE TRIBUNE.l
WASHINGTON, Feb. 1.-The debate in the Senate
upon the Refurdng bill was carried on in n dcsul
tory manner up to about $50 this afternoon, at
which time Senator Teller proposed a recess.
Senator Davis, of Illinois, who has heretofore dis
tuguish.d himself by his opposition to long
sessions, appealed to the Senate TO 60 on until the
bill should be finished He declared that the bill must
be got out of the way of other necessary legislation.
An amendment proposed by Senator Ferry. prOvid.
ing that the rate of interest on the bonds should
not exceed 3l2 per cent, In lieu Of a fixed rate
of 31o per cent, gave rise to fresh Outhurst
of debate. Senator Allison, who has greatly distin-
guished himself b. the clearness and force dis
PLAYED in this discussion, favored the Senate with
an exposition of the objections to authorizing the
bonds at sliding scale. aud the amendment was re-
iected.
On yea and nay vote, the amendment fixing the
rate at 312 per cent was then voted down by "a to
%. This decided majority was something of sur
prise all around although it had been evident for
three or four hours that majority OF Senators IA
vored per cent rate for both bonds and notes
Other amendments were accepted by the Senate
including which increased the commission to
oDeha of per cent, but the proposal of the COM
mttee to amend the provision allowing the use of
$4,000, 900 Of the fund for purchasing re-
deemabe bonds, so that such employment should
be only temporary, provoked another flood of debate.
The amendment was finally adopted On the amend
ment striking ont the fifth section. Senator Beck
argued In favor Of retaining the section and spent
some amen detailing the defects of the present law
winch allows the banks to deposit legal-tender
notes In the Treasury for the redemution of their
circulating notes.
The fifth section, which, as it came from the House
OF Representatives, made it compulsory for the
National banks to replace their redeemable bonds on
deposit with the new securities has been stricken
ont By the Finance Committee. 1t was reached in
Committee of the Whole about 10 o'clock. and the
committees action was summarily reversed. This
section also repeals that section of the statute which
permitted the banks to retire circulation by depos-
fting greenbacks. Its restoration leaves the
banks the power t. retire their circulation only
by gathering up their own notes and
presenting them at the Treasury. Under the old
Law this was found to be difficult and In many
cases an impossible procedure, the banks having
sometimes been compelled to pay premium upon
tneir own notes to secure possession of them VIXEN
oesirng to reduce their circulation. Before tlis
measure can become law there still remains few
Gays within which the banks may retire their cir
CMas'of, and IL remains to be seen whether they
Wil. Is predicted by some fnancicrs, take advan-
tage Of the opportunity.
ne committee's amendment prescribing the mode
~ u.iseecsng the bonds to be redeemed from time to
sains was agreed to, as was also the new section