Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1881-02-21
FUNDING BILL.
Remarks OF Senator Hereford
Thereon.

Thereon.
When the Funding Bill was before
the Senate, last Thursday, Mr.. Hereford
Of West Virginia, participated in the
discussion, presenting the following
views: -.
Mr.. Hereford. Mr.. President, / am
| In favor of three propositions: First. L
arm in favor ofyrsiunding the debt, II 1t is
necessary, and doubt that very much /;
Int il il is necessary, / am in favor OF
refunding il at the lowest rate OF In
terest: second, the shortest time; and,
third. 10 paw of the whole debt as last
A il can be done without imposing too
heavy o tax upon the people.
What argument has been adduced pc
fore this body to satisfy our minds that
the debt cannot be refunded at 8 per
cent? The Committee on Finance tell
US that certain bankers went before the
committee and the Secretary OF the
| Treasury went before that committee,
and we have this examination before 1t
here in print, and he informed them
that il could not be done. But what
does history teach us? A few years ago
this same Secretary went before that
same committee, and these same bank
ers went before that same committee,
and told them that il We passed the
| silver bill resumption Was a matter oil
impossibility; but We did no. heed that
Secretary OF the Treasury nor those
bankers and bankers clerks who went
before them, and we did pass the silver
bill, and the Secretary OF the Treasury
himself afterward admitted that he was
wrong and that Congress was right, that
the passage Of the silver bill, 80 far from
impeding or injuring the resumption oil
specie payments, aided and abetted II,
as / with other gentlemen had the
honor on this floor TO state that 1t would
do.
We saw what bis opinion was worth
then, and what the opinion OF these
bankers and these bankers clerks was
worth. Furthermore, this same Secre-
tary OF the Treasury, the same bankers
and bankers clerks, went before that
committee and told them that We could
not refund our Indebtedness at 4 per
cent. We did not heed their advice
then, and We did fund at 4 per cent,
and our bonds were sold with greater
rapidity than any that ever had pre-
coded them; so muchso that II astonlsh-
ed the Secretary himself and astonlshed
the monetary world. Those four per-
cents that he and those bankers said
could not be foated at par are to-day
worth IL per cent. premium.
That is all the evidence that We have
had adduced before US. No argument
has been made to satisfy the minds oil
the members of this bo.y that 1t cannot
be- done. Why can it not be done?
How much is there TO fund? Only a
little over four hundred million dollars,
il YOU deduct the amount that is IN the
vaults Of the Treasury to-day.
The last statement OF the Secretary OF
the Trearury shows US that there IS IN
the vaults OF the Treasury to-day in cash
S22l, 574, 5S5.0S Deduct that from the
amount of the six percents and hye per-
cents, which aggregate SOL ,0l1 600, and
YOU only have a little over S4,OOO,OOO oil
Indebtedness 10 fund. But it is said we
must keep that two hundred and odd
million dollars there for resumption
purposes. That is very costly resump-
ton, at the rate OF ten and twelve million
~
for resumption. As long as the silver
act stands no man whom this Govern
ment owes 500, 900 or a smaller amount
is going to the Treasury and demand
specie for it. The people OF this country
do not want il, and the Secretary OF the
Treasury saws in his interview before
the committee that the people OF this
country do not want either gold or
silver coin; that they all prefer the
national bank and the Treasury notes.
He need not have told US that. Every
business man knows the same fact. NO
man wants TO carry specie about with
him, The great part OF the business oil
this country and OF all countries is not
done by handling the money; 1t IL done
by clearing-houses and checks. No
business man desires TO handle the
money.
We were told by the Secretary OF the
Treasury and We were told by Senator'S
on this floor that il we passed the silver
bill. as silver was worth less than gold,
IL was a political axiom which no man
would deny that two currencies OF dlf-
ferent values could not remain in the
same country, and that silver being
worth less than gold, it would drive the
gold ost OF the country. We asked
upon this floor even when that argu-
ment was adduced, why does not silver
drive the gold out OF France7
Mr.. Herman. NY information is that
they have lost nearly all their gold IN
France, and that it is one OF their trou-
bles there.
Mr.. Hereford. Their reports do not
show that fact, and il it has gone from
France il has come to our own country,
where we have silver in great abund-
.nce, 1t did not seek Germany, where
thew have nothing but gold standard:
II did not seek England, where they
have nothing but gold standard; but
il came 10 the United States, where We
have silver, gold and paper. Therefore,
the argument Of the Senator from New
York will not do. II was said that this
deprecated SILVER was going to drive
cold out Of the country. What did the
Secretary, or rather Mr.. Knox, the
Comptroller Of the Currency, tell US In
his interview the other day with the
Senate committee? lie told US that
there has been brought into this coun-
try since the first day Of January, 1879,
an increase in coin OF S247, 100000 In
two wears. Your gold and silver has in
creased in two years alone in the sggre.
CRATE Of s947 ,O00, 900; yet We were told
by these same financiers that the silver
bin Was going to drive it out. This is
the authority given upon this door to-
dsy Why we cannot pass and float this
per cent. bond. -
Mr., Teller. II the Senator will allow
me, should like to remind him that
the then chairman OF the Finance
Committee announced that II We passed
that bill We should net sell any more
bonds at par.
Mr.. Hereford. Yes, sir.
Mr.. Teller. Thought that that might
have escaped the Senator's recol'ec'
ton.
Mr.. Hereford. l am very much
obliged TO my friend the Senator from
Colorado. The then chairman OF the
Finance Committee Senator Morrill,, OF
Maine, made the statement that ii We
passed that bill we could not sell any
more bonds, but We have sold them