Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-01-13
Horse of Representatives.

WASHINGTON, Jan. 12.-On motion of Mr.
Buckner, the morning hour was dispensed
with, 1913 to "a.
Mr.. F. Wood, of New York, moved that
when the House next went into committee OF
the whole on the fund.- ng BILL debate on the
pending amount should be limited to thirty
millions. Agreed to, 139 to 4-Coffroth, Stev-
enson, Humphrey and Weaver.
The House then went into committee of the
whole, Mr.. Covert in the chair, on the funding
bill.
f. Wood said that for himself he saw moth
ing inconsistent in the establishment of 3 Del
cent. interest for bonds and the shortening of
the option indicated in the bill. He would 90
further He believed that with removal of the
tax Oh bank deposits and the establishment
of rate Of per cent the
question of option was absolute.
ly immaterial, because tho bonds and
certificates would not be likely to rise to any
great premium, and would be at any time
within the reach of the government at par or
at nominal premium. He believed that 8
per cent. rate could be safely established, and
was confident of the speedy negotiation of
every bond and certificate issued.
Mr.. Stevenson opposed the bill on the ground
it did no more or less than fix permanent ma
tional debt upon the country.
Mr.. Weaver protested against the refunding
of the and per cents into any obligation
that would take from the government the
right of redemption for single day or hour
Mr.. Mcmillan argued in favor of an amend
ment, which he proposed, of making the
bonds subject to taxation.
Mr.. Dunnell, member of the committee on
ways and means, said he had no doubt that a
3 per cent. bond would find ready sale, and
advocated that rate of interest. He would
vote, however, for a reduction of the time
from twenty to ten years.
Mr.. o. Turner opposed the rcfunding theory.
He was in favor of placing an income tax on
capitalists and bondholders and letting the
revenue receipts from that tax go to the ex-
tingulshment of the bonds
Mr.. Randall advocated a 5 per cent bond
He would compel the national banks to take
per cents as security for their circulation.
There would be found an immediate market
for more than S400, 900 three per cents,
which left but S27O, ,0OO, 900 to be provided for.
How would he provide for that? According
to the secretary of the treasury, three years
would provide for it if there was not another
purchaser in the United States. The
S270, 100000 would be absolutely liquidated
by payment. What excuse, in the light of
these figures, was there for the House to hesi-
tate about, fixing the rate at 8 per cent. In
reply to question as to how he would com.
pei the banks to take 8 per cents, he stated he
would do it by legislation. He would say TO
the banks that whenever bonds need to be de-
posted for circulation they should be 8 per
cent. bonds. He would also make the banks
agents for placing the bonds.
The time limiting the debate here expired
and Frye asked that he should be allowed to
reply to Randall. The confusion in the hal
was so great that it was with difficulty the
chairman could obtain order, and his gavel was
broken under his vigorous raps before he sue.
ceeded
The committee on motion of Randall arose
and the time for debate was extended one hour
Mr.. Buckner opposed the bill. There was
Trojan horse hidden behind it to make per.
manent national bank sys'em in this country
Mr.. Frye said, the question presented wasn't
whether or not the government had the power
to dragoon national banks into taking three
per cent bonds He admitted Congress had
the power over national banks. He admitted
that the dragooning process could be applied
if Congress desired it. Never in the world had
there been banking system SO prolific Of
good and of safety to the people as the one
now in force in this country. He would say
to gentlemen who attacked that system that
they would never find the people of the United
States consent to q State banking system
Mr.. Einstein was surprised that any gentle.
man should contend that it was possible to
float loan of such magnitude as was now
proposed at 3 per cent. There was but one
| way that the debt could be refunded in pei
cents, and that was to take the tax off nation
al banks, and he didn't believe.the temper OF
House would agree 10 that.
Mr.. Haskell opposed 8 per cent bond. II
had been stated that market for S4OO, 900 ,OOt
of bonds could be found among the national
banks. The only question at issue on \ that
| point was whether or not Congress would
| drive out of existence every national bank ir
| the United States.
| The time for debate having expired
| the question reeurred on Woods amend
mendment fixing the rate of interest upor
bonds and certificates at per cent.
| Mr.. Newberry demanded division of tht
question, and the vote was first taken on fix
ing the rate ou bonds at per cent Agreed
/ to 1872 to 81. The great body of Democrats voted
&, in the affirmative, and.a majority of Republi
cans in the negative. The second branch O
/ MoOd,S amendment arranninr Tho a-rafes q,