Lexington weekly intelligencer., 1881-02-12
FUNDING.

The democrats in congress, and at
| this moment the democrats in the senate,
especially, are face to face with grave
responsibility. How much the inability OF
democrats in congress to harmonize and
concentrate upon Legislation has injured
the democratic. party, will never be def
lnitely. known That it has much to do
with weakening public confidence in an
organization whose principles are in
dorsed by majority of the people none
can doubt. 1t is shame and a disgrace
that with good working majorlties in
both houses, absenteelsm should put the
majority, in the popular house. at the
mercy of an alert and ever wakefulJ MI
nority. The men who are to, blame tor
this. are. practicaily.if not'intentionally,
traitors to their party Aleading oppo-
sition newspaper recently said :-'.It is
now pretty well established that, owing
to irreconclible differences, the result
mainly Of party Jealousy. the funding
bill will die still-born when it goes back
from the senate to the house, and is re-
ferred, il it should ever reach the stage
OF reference, to the usual committee Of
conference. Most of the democrats In
both houses are inhexibly opposed to q
higher rate OF interest than 8 per cent,
and they will not listen to compromise
of any sort, because they have already
made up their minds that the bill must
TAIL, If the senate refuses to acquiesce in
their former action. Senator Wallace,
himself a democrat OF high standing and
msmber,0f the finance committee oi
the senates has lost hope OF successful
compromises" II this sentiment was,
only held by the enemies OF democracy
it would not SO much matter; but, un-
fortunately, there are very many demo-,
Gratis who .hegln to feel as il their repre-.
sentatives in congress lacked coheslon,.
and ability to command success whenit,
is placed in their very hands. The time
is short wherein they may accomplish
something. Two weeks only are left for
legislation. Ia two weeks much may
be done. Less time has sufficed to ess-
tablish empires. and to overtdrn dyhas-
ties. It remains to be seen whether or
not the democrats in congress have the
good sense to utilize the time. They
have many things to do. First in i'm
portance is the refunding bill; next the
reapportionment, Mr.. Beck's tree ship
bill, and RECOMMENDATION of the Mon
roe doctrine. The appropriation bill
bills will pass. of course, but it would
be wise tor the democrats. to charter an
lsthmus canal route, and not leave it
to be done by republicans. A s
to reapportlonment, the democrats have
been ably served by their committee in
the house, and they should pass the bill
reported by Mr.. Cox promptly. 1t is
non-partisan and fair. " -'-
The most serious question, however,
is that of refunding. In very short
time $672, ,224, ,SOOoi United States 5 and
6 per cent. bonds will be payable at the
option of the government. No one DIS
putes that these bonds can be refunded u
at much lower rate of interest, there
by saving many millions OF dollars an
nually. The national bank influence is
opposed to reiunding because they and
their clients prefer high to a low rate
of interest. The greenbackers oppose
refunding because they hope to make
capital out of any mistakes Of the regu-
lar political parties. The democrats
favor a reduction OF the interest charge
to the lowest possible figure. with the
bonds redeemable at the option OF the
government, in order that they may be
paid off as rapidly as the money accu-
mulates in the treasury. -ru -. ..sg
Now, what is the situationP The
house of representatives, the popular
body, with able men asserting the feasi-
bility OF the plan, has passed bill
which provides that not to exceed $780,
000, 900 in $40 bonds may be issued,
bearing 8 per cent. interest; and not to
exceed $500, 900, 900 in $40, 800 and $50
lilo treasury notes may be issued, also
bearing 8 per cent. interest. This bill
is before the senate for consideration,
and the eyes OF intelligent democrats
are anxiously turned to that body to see
il the precious minutes will be wasted
and frlttered away before it is consider
ed, and uneasily fearing dogmatic con-
tention which will make OF the newspa-
per above quoted true prophet. a
Even Secretary Sherman admits that
the treasury notes can be doated at par
at 8 per cent. Mr.. Knox is SO wholly
given up to national bank interests that
his specious pleas for reduction OF bank
taxation need not now be considered.
There is more important work to be
done Tor the entire country-that may
come in due time, but let it walt and be
considered by itself. Ii Lie or 2-lO
treasury note is issued we see no objec-
ton, if the senate desires it, extending
the maximum limit Oi the bonds from
10 to 20 years. retaining the redemption
period. as at present, at 5 years. This
would in no way impair the rights of
the government, aud in case OF decreas-
ed revenues, by reason OF bad crops, or
any other cause. might be valuable
privilege. That we can sell even a
treasury note at par at 3 per cent. is
wonderful. No other country has ever
accomplished it; therefore, even though
the bonds should bear IL per cent,
and be S 20s instead OF 5-lOs, congress
would have done its work well. As the
house has diligently studied the matter,
and feels convinced, despite the arsu-
ments of national bank attorneys on the
floor, that 3 per cent. bond can be
sold at par, democratic senators should
be very careful how they imperil the
chances OF retundlng by insisting on in-
creasing the rate to 3 1-2 per cent. But,
ii they feel convinced that it would be
dangerous to attempt to sell bonds as
low as 8 per cent, they might compro-
mise with the house, and meet the views
OF investors by making 3 Is per cent.
bond. The figure would be OF easy CAL
culation and wonId bo h;rh o,e,,1.,. . .