Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-01-10
House of Representatives..


WARRINGTON, D. c., Jan. S.-Mr. Briggs,
| member from the Third district Of New Hamp-
| shire, took his seat.
Mr.. Money, of Mississippi, for the commit
tee on postoffices and post roads, reported
back the bill regulating rates OF postage on
second class matter. To House calendar.
Mr. Poehler, from the committee on Indian
affairs, reported back the bill authorizing the
secretary of the interior to fulfil certain treaty
stipulations with the Chippewa Indians of
Lake Superior and the Mississippi.
On motion of Mr.. Wood, the House went
into committee of the whole, Mr.. Covert in
the chair, on the funding bill, and the bill was
read for amendments.
Mr.. Wood offered, under instruction Of the
commitmittee on ways and means, an amend
ment fixing the rate OF interest on bonds and
notes authorized to be issued tby this act at
per cent, it being 3H per cent. in the printed
bill.
Messrs. ClaAn and Frye opposed the amend
ment, arguing it would be impossible to float
three per cent. bond at par and that failure
of the attempt would be disastrous.
Mr.. Kiefer proposed to fix the interest at
rate not exceeding four per cent.
Mr.. Kelly called Mr.. Frye's attention to the
fact that in 1879 many of the most respectable
brokers of the country assured the committee
of ways and means that q four per cent. bond
couldn't be f1oated, and yet it was found out
and afterwards it was ascertained that these
very brokers were at that same time arranging
a syndicate to take these very four per cent.
bonds. He argued that to continue the pres
paying off the debt would save more OF inter-
est charges than could be saved by longtime
three per cents.
Mr. Anderson offered substitute, that the
interest shall not exceed three and half per
cent, at the discretion Of the Secretary OF the
Treasury.
Mr.. Townshend, of Illinois, said the point
seemed to be lost sight of that by exemption
of these bonds from State, municipal and
school taxes the rate of three per Gene. was
really equivalent to rate of five per cent. He
felt confident that a three per cent. bond
could be tloated.
Mr.. McLane offered an amendment to An
derson's substitute, SO as to make it read "at
a rate not exceeding three per cent"
A vete was taken on Keifer's amendment, land
| it was defeated, IL to 149.
Mr.. Randall thought three per cent. fifteen
year bonds and treasury notes could be nego-
tiated at par.
Mr.. F. Wood quoted Rufus Hatch Of New
York and Secretary Sherman as advising that
short-time certificates or bonds could be float
ed at three per cent.
Mr.. Hawley did not believe three per cent.
bond could be foated just now. 1t was
possible, however, that if a perpetual bond
were issued, as in England it could be foated
at three per cent. He believed that, although
unpopular, would be the best and cheapest way,
for the government could always go into the
market and buy up such bonds at the market
prices. He had calculations from which it
appeared the lowest rate of interest which gov
eminent bonds procured at the present market
price of bonds was 3.21-100, and that the rates
ruling for tours and four and halls, the value
of three per cent. thirty year bond was from
81 to sc.
Mr.. Townshend, of Illinois, referred to the
recent subscriptions to Northern Pacinc five
per cent bonds, and asked the question whether
if an unconstructed railroad could float at q
premium of over two and half five per
cent. bond, subject to all kinds Of State and
Territorial taxation, there could be no doubt
of the ability, of the government to float q
three per cent. bond exempt from all taxation.
Mr.. Belford, after making some remarks on
the silver question said: want to say to my
Republican friends of the East, that the time
has come when if the single standard theory
is to be the policy of the Republican party we
in the West will revolt against their banner.
applause on the Democratic side.) We rec
|
money which was honored and respected in
States before the constitution was adopted.
If it is right to protect pig iron in Pennsyl-
vania, sugar in Louisiana, and copper in
Michigan, it is right to protect the silver pro-
ducts of the West. We will bow neither to
the golden headedimage of New York nor the
iron footed image of Pennsylvania, and if our
rights are not respected we will march under
the banner Of that party which accords to the
great silver interests of the West decent and
honest recognition. applause on the Demo
cratic side.)
The debate was continued at length, until
finally Mr.. Wood moved that the committee
rise, for the purpose of limiting debate. The
committee rose, but the motion to limit the
debate was cut off by motion to adjourn.
Mr.. Wells reported from the committee on
Indian affairs the Indian appropriation bill,
which appropriates S4,526,0OO. Ordered
printed and recommitted.
The Speaker laid before the House, for a
third time the report of the postmaster gen.
eral in regard to the abuse of the ranking
privilege, but it was not received. Adjourned.