Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1881-02-03
Congressman Updegraff's Remarks in
the House of Representatives on the
Funding Bill.

the House of Representatives on the
Funding Bill.
The House being in committee of the
whole for the consideration of the fund
ing bill, the Hon J. T. Updegraff offered
an amendment to the title of the bill,
which was read by the Clerk. as fol-
lows:
A bill to defeat refuuding, increase
| the amount of interest on the public
debt, contract the currency, injure the
public credit, and to depresS the buSi-
ness and industries of the country.
MI. UPDEGRAFF said-Mr. Chairman,
| have offered this amendment to the
title of this bill believing that it will
furnish one in exact accordance with the
facts. Every day it becomes more and
more impossible to believe that this bill
is, in good faith, intended to be a prac-
tical measure of financial legislation.
This question is simply business prob
| lem. The Government has falling due
On the lst of May next S469,651 $50 in
bonds bearing per cent interest, and
! and S204,2s5,55O bearing 6 per cent in
| terest. What are the best terms on
| which the Government can refund it :?
This bill as now amended authorizes
$40O, 100000 of five-year bonds and $780,
100000 of one-year certificates, fixing the
rate of interest absolutely at 3 per cent.
| for both.
Have we any reasonable grounds for
belief that it can be done? 1t is true
that the wise financial legislation of re-
cent years has placed the credit of the
Government higher than it even stood.
| 1t is true that we are now obtaining
money at one-half what it has mostly
cost our Government. But is it wise
now to injure or cripple tnis growth of
our public credit? No government on
earth is to-day able to fund its debt at
the rate fixed by this bill. The British
cOnsols, which have been so often allu-
ded to, are in reality a perpetual loan,
and yet with accrued interest deducted
have only touched par once in twenty
seven years. Besides, the law of En-
gland cQmpels the investment of vast
amounts of trust funds in these securi-
ties. In 1858 British cOnsols were forced
to their highest point when the chancel-
ler of the exchequar proposed to float
21z per cent consol. The holders of our
3 and 6 per cent bonds know well that
the same effect will follow the passage
of this bill. and hence comes much of
the Sn-aall6ln tQCtimnnu fhat n 2 cont
loan is now practical.
The gentleman from Pennsylvania
Mr.. Randall to-day alluded to the rap
id sale of the French loan. That loan
for $i,4O0,O0O,O0O at 5 per cent sotd be-
low par, costing really 8 per cent, and
the French 8 per cent loan averaged 614,
equaling 5 per cent interest.
The rapid sale of our four percents
has been frequently alluded to in this
debate. At that time business was stag
nant both in this country and Europe.
Now OH every hand capital is finding
more profitable investment in new en-
terprises. Within the last year $780,
100000 have gone into new railroads and
larger sums into manufacturing and bu-
Siness enterprises, yielding remunerative
profits.
Now, if this bill passes fixing the rate
at per cent, and giving no discretion
to the Secretary of the Treasury, and re-
funding shall fail, rs l believe it will,
the blunder will be costly one to the
country. L believe the whole loan could
be made at 81 per cent, which would
save S13,OO0,OO0 interest alone, besides
fOrtifying the public credit.
1t is certainly unwise to hazard the
failnre of this great measure by fixing a
rate at which no public loan was ever
made. Some gentlemen have affected
great dread Of "syndicates" and money
power" Do they forget that in endan-
gering the success of refunding they are
doing just what the money power"
which now holds $673.936.6OO of our 5
and per cent bonds, desires them to
do? With the assistance of Congress,
that money power" may be able to de-
feat refunding at 3 per cent, and it will
thereby gain $15,00O,000 interest in a
single year. For one l will not vote to
give it the opportunity.
1t seems to be supposed that the ma
tional banks can be forced to take the
new 3 per cent bonds. Like individuals
they will invest capital in whatever
is remunerative. Now, while the low
est rate of interest of bonds held for
security of their circulation is 4 per
cent. the national banks have out $7O,-
OOO, 900 less than they might have under
the law. Already three hundred and
fourteen of them have gone into volun-
tary liquidation, and eighty-siX have
been placed in the hands of receivers.
The national banks now hold $211,O00,-
900 of five and six percents on deposit
for circulation, and if suddenly forced
to choose between taxed circulation
based on per cent bonds and no circu-
lation, it would doubtless result in
contraction of the currency Of millions
of dollars within the next year, injuri-
Gus alike to the business, the industries,
and the public credit of the country.
trust the bill in its present form will
not pass, but such measure as may in
sure rsfunding at low rate of interest
in bonds and certificates of small
amounts which may come into the
hands of the people, and to the payment
of which the Government, by a wise
economy, may be able to apply each year
| in the future, as it has so successfully
done in the past. large amount of its
surplus revenue.
posed amendment by viva vOce vote,
and the Chairman announced that the
amendment appeared to be rejected.
MARK TWAIN says the only intrOduc-
ton to literary audience that he ever
| 4; Ia ,rl,k S&,.l