Morning journal and courier., 1881-01-13

partment, in which he draws line of com
 l3arisons between the market value of tn l bonds at present rates of interest and pc l cent bonds From the statement thus pre- I scented he believes that even in an open mar | ket per cent. bond can be negotiated Tn
 amount of indebtedness about falling due was about $650 GOO, GOO. MT I Sherman says he will make a cash paymen l of $5O, ,OOO, 900 this year. The banks nov l hold $50, ,000, GOO of per cent. bonds ant
 many millions of 6 per cents. There wal | held by the government as security for de posits in public Repositories $15, 900, 900 | There are held by savings banks in only four : teen States S1s7 .OoO. Oo0 of national bonds
 The trust companies hold $19, ,000, 900 and the State banks $7 ,0O0, 900. He believed that $400, O00 GOO could be easily hoated at per cent and would leave $250,o00, 900 of money to be provided for. Sherman's own figures will provide for this in three years, and if there is not purchaser in the United States the amount can be paid in three months with surplus revenues, according to the statement of the Treasury department itself. What ex- cuse then in the light of facts is there for the House to hesitate about fixing the r6te of in- terest at per cent
 would take the bonds for those they now hold with the payment of the difference in interest.
 Mr. Randall said after the rate of interest was fixed he would follow it up with other legislation. He would make the banks agents for the placing of the $400, 900, 900 at 3 per cent. He believed the golden epportu- nifty is now presented to Congress to place the loan of the United States alongside of and with equal rates of interest with the most favored financial countries of Europe. He believed if the opportunity was thrown away it would not return during this century, and as representatives of the people the xvOu1d 10 oriOaina1Iu if if foi1a1 to take advantage of so placing the bonds of the United States as to place them along side of the bonds of England, Holland, Bel gium, Germany and other foreign nations.
 The time for discussion was here ex- tended one hour MT. Buckner said he did not think per cent. could be foated unless other legislation would be in the inter est of the national banks. Doubling whether the per cent. could be foated he advocated 34 per cent. bond.
 MT. Frye, of Maine, said this was not question whether the United States has the power to dragoon the national banks into taking 3 per cent. bonds. He admitted that Congress has complete control of the national banks and can apply the dragooning process. He believed the present banking system was one of the most perfect which had been de- vised and the people would not again accept the old State banks. It seemed to him that this bill was an attack on the national banks
 
 banks to take these bonds he made an appeal not to the justice, but to the passions and prejudices of the House. Referring to Mr. Randall's remark that he wanted the country to stand side by side with England and other European countries, he said that since the birth of the Saviour until now none of these countries ever foated on per cent bond at par.
 Mir. F. Wood inquired if the gentleman did not know that the 3 per cent. English consols sold at 102.
 Mr. Frye said that about once in century English consols got to about 10 per cent above par, and that was on account of ac- crued interest. He called attention to the fact also that English quotations and Ameri- can quotations were made on entirely differ ent principles. In England the pound ster- ling was $5 par, while in this country it was only $4. s3. The attempt to place a 3 per cent bond here would be failure, and that was disaster which we should seek to avoid. He would vote for 3 per cent. bond, how ever
 The debate having closed the question was taken on MT. Woods motion to make the rate of interest per cent. and it was adopted by a vote of 132 to 92. The Greenbackers all voted for the low rate of interest, although they intend to vote against the whole propo- sition finally.
 MT. Sanford, of Alabama, offered the fol lowing proviso to the section, which was adopted
 Provided, that before any of the bonds notes thorzed by this act issued it shall be the duty of the Secretary of the Treasury to the bonds cruing in 1881 all the silver dollars of 412 grains and all the gold over and above fifty million dollars now held in the Treasury for redemption purposes.
 No quorum voted on the above proposi- tion, but the point was not madesunti it was too late.
 MT. Randall moved an amendment to strike out so much of the section as makes the bonds redeemable in forty years, also to strike out the clause authorizing the issue of Treasury notes and to make the amount of bonds to be issued $65O, 1000, GOO. His propo- sition was to make the debt per cent. bond alone and not to issue any Treasury notes. He also offered provie giving notice of the cessation of interest O. ea4e per cent bonds to be refunded.
 MT. Wood said it was important that Mr. RandalPs amendment should be understood, and in order that the members might see 1t in print he moved that the committee rise which motion was carried, and the House at 4 o'clock adjourned.