Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1881-01-13
THE FUNDING BILL.
The Democrats forciDg Thr0ogh .
duO0d Rate Of Interest.

The Democrats Forcing Throogh . Re-
ducod Rate Of Interest.
In the House yesterday, discussing the
proposed three per cent. loan, Mr.. WOOD
said that for himself he saw nothing incon-
sistent in the establishment Of three per
cent. rate of interest ON the bonds, and the
shortening of the option indicated in the
bill. He would go further. He believed
that with the removal of the tax ON bank
deposits, and the establishment of rate
of three per cent, the question of option
was absolutely immatcriai. because the
bonds and certificates would not be likely
to rise to any greater premium, and would
he at any time within the reach OF the
government at par or at a nominal preml-
um. He believed that . three per cent
rate would be safely established. and was
confident of the speedy negotiation OF
every bond that was issued.
Mr.. Randall advocated with confirmed
judgment three per cent. bond. II the
House accepted that rate he would like to
amend the bill so as to give the option to
the government at any time after ono or
two years. He had received cOmmunica-
ton from Mr.. Elliott, of the treasury de-
partment, which established the fact that
even with an open market three per cent.
bond could be negotiated. The amount OF
Indebtedness falling due in 1881 was about
$3.50. .OOO, 900, He would compel the ma
tional banks to take the three per cent. as
security for their circulation. He believed
that golden opportunity was presented
to place the loan of the United States
alongside of, and with equal rates OF inter.
est, with the loans of tho most favored
financial countries Of Europe. He believed
that this opportunity thrown away would
never return during this season, and he, as
a representative of the people, felt that he
would be criminally wrong if he failed to
take advantage of SO placing the public
bonds of the United States alongside Oi
those of England, Holland, France and
Germany. It would be an event which
would mark tho history of American
finance.
The time limited for deiate here expired
and Mr.. Frye asked that he should be al
lowed to reply to Mr.. Randall.
The confusion in the hall was so great
that it was with difficulty that the chair
man could obtain order, and the gavel was
broken under his vigorous raps before he
succeeded.
The committee, ON motion of Mr.. Ran
dali, rose, and the time for debate having
been extended one hour, imWediately re-
convened.
Mr.. Frye said that the question pre-
sented was not whether or not the govern.
ment had power to dragoon the national
hanks into taking three per cent. bonds.
He admitted Congress had power oveI
national banks. He admitted that the
dragooning process could be applied if Con
gress desired it. Never in the world had
there been banking system so prolific ol
good and safety to the people rs the one
now in force in the country. He would
saH to the gentleman who attacked that
system that they would never find peo.
pie in the United States who would ever
consent to a state banking system, where
their deposits should not be secured be-
yond peradventure. When the gentleman
from Pennsylvania (Mr. RandalD pro,
posed to find a customer for the three per
cents only, in this that the United States
had not the power to break down the ma
tional banking system, he was making an
appeal, not to the good sense and justice
of the House, but to its prejudice and pat
sion.
The time for debate having expired, the
question recurred on Mr.. Woods amend.
bonds and certificates at three per cent.
Mr.. Newberry (Mich.) demanded di'
vision of the question, and the vote was
first taken on fixing the rate ON the bonds
at 8 per cent.
1t was agreed to-132 to 90. The great
body of the Democrats voted in the affirm
ativc, and the majority of the Republicans
in the negative.
The second branch of Mr.. Woods
amendment, fixing the rate of interest on
the notes at three per cent, was also
agreed to without division.
Mr.. Sanford offered an amendment pro
viding that before any of the bonds OF
notes authorized by this act are issued it
shall be tho duty Of tho secretary Of the
treasury to pay on bonds accruing during
1881 all the silver dollars of 4124 grains,
and all the gold over and above $50, 600, ,OOC
now held in the treasury for redemption
purposes Adopted-S3 to 25, Republi
cans refusing to vote. desiring to so load
down the bill that substitute offered by
them would be adopted.
Mr.. Randall offered an amendment,
making the substantial part Of the section
read as follows: "The secretary of the
treasury is hereby authorized to issue
bonds in amount not exceeding $3.50,
GOO, coo, which shall bear interest at a rate
of three per cent. per aDnum, redeemabie
at the pleasure Of tho United States
within - years. The bonds shall be, "
etc.
The House then adjourned in order to
give members an opportunity to carefully
examine this amendment.
lHUNNER