The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1881-09-08
gnltttcal.
HON, JOHN G. CARLISLE.
His History Of Republican Re.
funding.
Interview with the Distinguished KentuckISR-
John Sherman, the Steadinst Friend Of
Higher Rates and LOr ger Time
Willie WindOm's Unlawful
Proceeding.

John Sherman, the SIeadiAst Friend Of
Higher Rates and LOr ger Time
Willie WindOm's UnlaWEul
Proceeding.
A representative Of the Enquirer Calle,
upon Hon, John q. Carlisle, the distin
guished Ieprese ntative Of the Sixth Ken
lucky District, yesterday, for the purpos
of talking with that gentleman upon tn
recent financial history Of the countr,
generally, and the recent OF erations o
Secretary Window particularly. Gov
Carlisle, it will be remembered, took al
active part in the debate preceding tn,
passage Of the three per cent. bill in thI
last Congress, and, in the absence of tht
sick Chairman Of the Ways and Mea II
Committee, Fernando Wood, of New
York, Mr.. Carlisle was, during the lattel
part Of the fight. by common consent
given charge of the bill on the floor o
the House, Under his management the
bill passed the House, went to the Sen
ate, passed that body, and, as every ont
knowe, would be the law of the land to
day had it not been vetoed by the man
in the White House.
Mr.. Carlisle was found in his Office in
Covington, and the conversation opened
by an allusion to an article entitled "Re.
publican Refunding," published in the
Enquirer on Monday. Mr.. Carlisle ex
pressed his approval Of the article as fal
as it went, and at the same time thought
it might have been elaborated with
benefit to the readers of the Enquirer
and the public generally. The Enquire,
man in reply remarked, THAT is exactly
the object of my call, and will begin
by asking you for a brief sketch of re.
funding and attempted refunding opera
tions since 1870. To begin, was Johr
Sherman the author of the Refundine
Bill of 1902"
He was not" replied Mr.. Carlisle
The history of that law is, brio fly, this
In the Forty-frst Congress Mr.. Sumne,
introduced bill into the Senate to re.
fund the National debt, which was re.
ferred to the Committee on Finance, o.
which Mr.. Sherman was Chairman, and
after it had remained in tie Committee
some time, Mr.. Sherman reported to the
Senate substitute for the Sumper Bill
This substitute provided for the issue o.
$400 900. 900 Of five per cent. bonds
$4l0,, 10000 of four and half per cent
bonds, and S4OQ, 100000 of four per cent
bonds. This substitute passed the Senate
and was sent to the House. The House
refused to agree to it, and, in lieu of it
passed the bill now known as the Re.
funding Act of 1870, which provided fol
the iesue of only 5000 100000 of five pei
cents, $500, 100000 of four aud a half and
$1,000 100000 of four per cents. This
substitute was reported by Mr.. SChenCk
of Ohio, from the Committee of Ways
and Meaue. By an act approved Janu'
arg Goth, 1871, the amount of FIVE pei
cents was increased to $500,000,0 900, but
without at all affecting the total amount
of bonds to be issued
"ln 1876 a new attempt was made by
Mr.. Sherman and others to 80 alter thu
law Of 1870 as to substitute bonds bear
ing higher rate of interest for part o
the 81 900 100000 of four per cents au
thor:zed to be issued. 1t was also pre-
posed to make tho four and half pc.
ce t. bonds run thirty years, instead o
fifteen years, as provided by the origina
act.
"a bill embracing these two PROPOSE,
tions was reported by Mr.. Sherman in
the Senate, advocated by him, and was
passed by that body in February, 1870
IG went to the Democratic House, wat
referred to it's Committee on Ways and
Means, and was rejected by the Commit
ee, which ended the proposition"
when and how did the last effort tc
refund at reduced rates Of interest be
ginP"
"When Congress assembled in DeCem
Der, 1879, there were outstanding more
than $700000,000 Of five and six per
cent. bonds, all of which would become
payable by the lst of July, 1881. Oh
course it was understood that the Gov.
ernment could not actually discharge SO
large II indebtedness in 80 short time,
and consequently it became the duty q
Congress to attempt to refund it at q
lower rate of interest, The Democrats
in the House, almost without an eXcep-
ton. believed that Government bond
having reasonable time to run and
bearing interest at 81 per cent. could be
sold at par. Mr.. Sherman, however, as
Secretary of the Treasury, opposed the
issuing of bonds bearing 80 low a rate OF
interest, and advocated four per cent.
bond. Accordingly on the day Congress
met, December Sd, 1879, General Gar
field, who in this matter represented the
Treasury Department, introduced a bill
authorizing the refunding at four per
cent. of the whole of the National debt
then outstanding and bearing greater
rate of interest than four per cent. This
bill, together with another introduced
by Mr.. Wood, of New York, proposing
to efund at 81 per cent, was referred to
the Committee on Ways and Means.
which had the measure under considera
ton for several months.
"Nr. Sherman appeared before the
Committee, opposed the 81 per cent.
bond, and advocated four per cent, con.
tending that bond bearing lower rate
of interest could not be sold by the
Government at par, even if it had fifty
years to run.
FINALLY the Committee reported to
the House bill providing for the issue
of 81 per cent. bonds, but it was then so
late in the session that it was not reached
en- the calendar before the adjournment.
"When Congress re.assembled in 1880
kho Hnonnio1 oor,ditiOn and tho nrndit of