The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1881-02-24
SENATE.
TARIFF FOR REVENUE.


SENATE.
TARIFF FOR REVENUE.
WASHINGTON, Feb. I6.-Mr. Pendle-
ton reported bill to regulate and i'm
prove the civil service of the United
Placed on the calendar.
Mr.. Mcdonald addressed the Senate
upon the subject of equality of taxation.
His remarks were devoted to an elabor-
ate discussion on the tariff, illustrative of
the inequalities oftaxation, on the ground
of its unfair determinations in favor of
particular industries to the detriment OF
others, and in creating a favored class.
That which was designed by the Con-
stitution was tariff for revenue, and this
was the construction placed upon tariff
bills by Congress. 1t had been asserted
the Democratic tariff for revenue plank
had caused the defeat of the Democratic
party the last election This he denied
He believed if that defeat could be at
tributed to any such cause the real cause
was the false charge that the Democrats
contemplated the repeal of all tariff laws
and the unconstitutional establishment
of free trade, when it was well known
the necessities Of the country could not
permit such policy. Even if any par
ty had advocated it, one fact in this con-
nection was that the manufacturers and
Capitalists of New England, who enjoyed
the benefits of protection, fearing their
business would be affected by Demo-
cratic success administered to their EN-
ployes what they called persuasive ad-
vice" This was one fact which might
have had some influence in securing
the Republican success, and the danger
to run institutions which it revealed in
destroying the freedom of the ballot was
an alarming one, The Democratic
party had not been defeated because it
opposed protection and advocated con-
stitutional tariff and he hoped it would
not in the future take any backward step
in that direction.
THE FUNDING BILL.
After briefly considering the calendar,
the Senate took up the Funding bill.
Mr.. Morrill, advocated the measure as
reported.
Mr.. Mcdonald thought the leading
idea in the refunding Of 5 and 6 per
cents. like that ia like Legislation in the
past, should be the payment Of the prin
cipal as bonds fell due, and as it was
the expectation that $3.50, ,ooo,o 900 of AIS
falling due in 1891 and substituting As,
coming in in 1907, would be paid, he
hoped the present Funding bill would
be final, and that Congress would not
be called upon to pass another with ref
erenCe to the existing bonded debt. He
favored the 3 per cent. rate of the House,
but concurred with the Senate as to the
length of the bond, but had no hope the
bonds now proposed would be redeem
ed in less than twelve years, as the pres
ent favorable conditions were exception
al and were based upon calculations
which in a year or two might not hold
good. He was certainly in favor of diss
elimination in behalf of new bond by
which the banks would be required
hereafter to deposit these in preference
to others as security for circulation, and
in this matter he differed with the Sens
ate Committee, Whether this provision
as it passed the House, would work any
wrong, he had not examined it sufficient
ly to say, but he did not see any injus-
tice to the banks in requiring them to
discriminate in favor of the bond which
the Government was proposing to put
upon the market at par. They ought to
aid the Government to that extent.
Mr.. Kirkwood suggested the same
elasticity as to the rate which was given
Treasury notes, should be extended to
bonds, and that, therefore, the phrase
mot exceeding 81 per cent" should be
made applicable to both. He desired to
hear from the Finance Committee
whether any good reason existed why
this should not be done.
Mr.. Bayard replied to leave the rate
upon The funded loan discretionary with
the official, would be SOlesiSm in our
financial policy,
After further debate participated in by
Messrs. Allison, Booth, Blaine, Pendle-
ton and Voorhees, upon the possible ad-
vantage to the Government in allowing
the Secretary of the Treasury discretion
as to fixing the rate on short loan.
Mr.. Mcpherson referring to the OBJ
servation by Mr.. Allison that the pro-
posed loan should be a popular loan,
and that all other loans with one excep-
tion-that of '76-had been sold to SYN
dicates below their par value, and that
these syndicates had reaped the profits
that should have gone into the pockets
of the people. The loan would be
"bulled" on two days after the syndicate
got it to a point at which the investor
would have to pay five or six per cent.
premium on the bond.
Mr.. Allison replied by calling atten-
ton to the amendment which he had
prepared proposing a p pular loan open
to the people at par and not to any
syndicate.
Mr.. Butler favored the three and one
half rate long bond Is 80 or 54o), but
he had been assured OF the impossibility
of the latter feature being adopted by
the present Congress, and he therefore
accepted the next best proposition, 5 &c
or $40.
After a statement by Bayard that he
would press the bill to conclusion to-
morrow, the Senate went into Executive
session, and when the doors reopened
adjourned.
HOUSE.