, 1881-01-09

bflIty to float as per cent bond at par, and
believed that It would be better to Give the
Secretary of the Treasury discretion ,. :
Mr.. Butterwortf1, Of Ohio, doubted the pos
sibility of floating s per cent at par, and
claimed that the argument made by Speaker
Randall and others, that the prosperity OF the
country would help to sell the bonds, was
specious, and that it would have; contrary
effect. III the present prosperous condition
money. tie said, was worth more than s per
cent and It is not to be forgetten that tho f.
PERCENT bonds were negotiated
WHEN TIE COUNTRY WAS NOT PROSPEROUS
Newberry, OF Detroit, known as business
Congressman, took very radical ground
against the 3per-cent bond. He said that
he spoke authozitatively as q bank
Director. . He made a slip Of the
tongue, or was indiscreet enough to also say
that he went to the Directors OF his bank and
asked them how he should vote,-a slip Of
which Gillette, the Greenbacker, took ad
vantage in a fiery, fanboyant, eommunistic
way. Mr.. NeWberry said that the Bank
Directors advised him to vote for the per
cent rate. but that they had since decided
that if such bond should be. adopted they
would retire all their circulation. The Green
hackers, Of course, opposed the per cent or
any other rate They wish no refundlnR.
Gillette said that there was no reason why
the bonds should not be paid in printed
notes, and that the only reason why any in
terest should attach to the proposed Treas
ury notes was because there was prejudice
against the greenback. The advocates OF
interest, he said, were the sharks OF Wall
street, who had ventured even to invade the
halls OF Congress, and one member even ire
ferring to Newberry), to his eternal shame,
had stated that he went to National bank
to receive his instructions The very name
OF National bank in the House is red rag
to large class, fiery and frothy people. who
have glib tongues, but are not deep thinkers
uAwLEY, or coSSEcT1cUr,
in opposing the 8 per cent rate, presented
series Of new tables which are the result OF
the latest official compila ilations Of Prof Elliott,
the Treasury statistical expert Gen+ Haw-
ley was inclined to draw the line pretty close,
however, as he thought 1t possible to nego-
tiate a 81 bond. The table which he pre-
sented Shows that the per cents Of 1900, net
selling price LIZ 40, excluding accrued in
terestr yielded to-day 8 $40 per cent annually.
PRESENT YIELD OF VARIOUS BONDS.
The ~ per cents Of 1891 yield a2l. This Is
the lowest rate of interest at which 1t has
been shown the Government can borrow
money. The District Ass, with Govern
ment guarantee, yield 3.63 per cent Cur
rency IS range from $50 to 3.44 The present
value Of thirty year per cent bond would
range from 944.334 to 9612. There were also
strong advocates of the per cent rate. Fer
nando Wood insisted. that there was no
uoubt that s per cent bond could be-
negotiated. He said that he had received
numerous letters from bankers, declaring
that it was certain that such bonds could be
sold. He produced one from
FIsK HATCH
who heretofore have claimed that, to nego-
tiate per cent bond, It would have to run
fifty yea1s,-who now express the opinion
that 3-per-cent short bond can be hoated.
Townshend, Of Illinois, showed that 3per-
cent non-ta1able United States bond Is
equivalent to e-percent security In the
States, where local taxation is so great. and
that it was better investment than there is
in Illinois. Speaker Randall declared that
there was no doubt that a 8 per cent bond
could be sold. he reminded those who were
quoting bankers that the same bankers,
when it was proposed to reduce the rate to 4
per cent, said that was impossible, and Jndge
Kelley supported him by the additional state
ment that the bankers, before the Ways and
Means COMMITTEES, =
SAID n WOULD BE IMPOSSIBLE
to negotiate per cent loan, when they
were at the same time arranging syndicates
10 take all Of the loan, If it should be ap-
thorized. RandalI's position is that 1t is pos
s.bie for the Government to negotiate 8
percent fiftcen-year bond and 8 per cent ten
year notes, and he would compel the banks
to keep popular subscriptions open for fifteen
days to the bonds, and give it to the people
at the same rate that 1t is given to syndicates.
The bonds Of the United States to-day, he
said, ara as low as 81 per cent.
THERE ARE 4 FEW
who do not believe that the loan can be ne
gotiated for less than per cent. A vote
WAS taken upon an amendment which pro-
posed to give the Secretary OF the Treasury
discretion to the limit of per cent, but it
received only twelve affirmative votes In
Committee OF the Whole to 149 against it.
The rapid debtpayers maintained their
usual position.-that it is folly to attempt to
refund, and that the Government would save
interest by not refunding, and by paying off
the debt from the surplus revenue.
JUDGE KELLEY THOUGHT so.
Mills, Of Texas, maintained that the surplus
would be S1oo, 900 ,0oo annually. Chalmers,
OF Mississippi, characterized all refunding
bills as sink-holes for the absorption OF the
peoples money. Incidentally, some strong
points were made for silver. The opponents
ofsilver are always claiming that the silver
dollars are not in circulation. and that the
people will not take them. Fort was able to
show that 8,0oo,0 900 silver dollars are In cir
cu1atton, and that there are nov. in the
Treasury subject to call only 12,000,
900 silver dollars Belford, Of Colorado,
speaking of the Eastern position on the
silver question. and of the persistent attempts
to shape everything according to the single
gold standard, gave the Eastern managers In
the Republican party
WARNING.
He said that. il it was right to protect pig.
iron In Pennsylvania, copper In Michigan,
and sugar In Texas, 1t was right to protect
silver in Colorado, and to recognize the Sill
yer dollar. which was the money OF the Con
stitution, and that the party which sought to
dishonor 1t would not receive further support
in the Great West. The attempt was made
to limit debate upon the subject Of the
rate, but no conclusion was reached. It is
~ fAAA u = =. l.