, 1881-01-09

l'aE L! CHICAGO i tu9l!N TRIBUNE:
|: tIeman VINO had fought 4 pei: cent bonds
of.New York;, III which he stated
that though at first he had Thought a long
FbnId was necessary, he was now, Of opinion
i that It: was not; and, when to tins
authority was added the high tinan~
| cial authority Of the, Secretary OF the
Treasury, that even short certificate eould
| be Aoated at 8 per cent, he believed, with ING
gentlemen from: Pennsylvania {Kelley ana
Randal), that tho time could be reaaceo 70
|, fifteen years. ~ ri ".
-...:. = MR.. MILLS, .eE::TExAs,::
argued that it would be $10o, ooQ, ,o0o cheaper
to let the debt stand at and @ per cent ana
pay it in five years, than to let 1t run 1or
twenty years t3pef cent. ~ 9'.:t
:: Mr.. Cannon did not want to get the rate OF
interest so low that bond could not be noa1-
ed, Therefore he would give the Secretary
Of tho Treasury discretion up to ao5. or even
| higher. In any event,*it would be , or per
cent lower than at present
Mr.. Bayne Offered an amendment 'proVlo-
| Inc that. the rata shall not exceed 4per cent,
! and making it. the duty, OF the Secretary OF
the Treasury to negotiate the sails or ex-
! change of such bonds at the lowest rate OF
| interest practicable. -.
Mr.. Hawley said he did not believe per
| cent bond could be just now aoated ut. par.
1t was possible, however, that it perpetual
bond were issued, as In England, IT could be
| saoated at 8 per cent He believed that, a.
| though unpopular. 1t. would pc me
best and cheapest way, tor, the Government
could always 60: into the market ana
buy up such bonds at market prices. lie
had had calculations made from which It ap-
peared that the lowest rate Of interest which
the Government bonds prodnced at the pres.
ent market prices Of bonds was 2l-loo' ana
| that at the rates ruling for Is and 45s the
value Of. a per cent thirty-year bond was
| from o. to p6.
brr; Bland argued thattiftIhe bonds were
| paid as they should be under the existing
| law, in lawful money, q large saving could
be effected. =
Mr. Converse argued that as per cent Coy
ernment bond, as proposed, was
EQUIVALENT TO SIX PER CENT INTEREST m
PRIVATE LOANS. =
Mr., Fernando Wood asked Mr.. Converse
whether the effect OF the establishment OF
8 per cent rate by the Government would not
| be to reduce the rates on farm mortgages In
the West 4 &-~ - -, :.
MT. Converse replied that it would have
| that effect, and thai: there was large amount
OF saving involved in that idea. = !.
Mr.. Butterworth argued that per cent
was too low rate of interest. and said no
guardian would be justified in investing the
funds Of his ward III a per cent bond. !!
| Mr.. Townshend, OF Illinois, referred to the
ri,,&S1r +r> T0ootfin
per cent bonds, and asked the question
whetherif an.unconstrncted railroad: could
float at a pren1iual of over 2111@5 per cent
bonds subject to all kinds of State and local
taxation, there could be any doubt. Of the
| ability of the Government to noat q 8 per
cent bond exempt from all taxation. he
believed s per cent Governmentb bond would
be regarded in illinois as a good Investment.
Mr.. Keifer declared his belief that NOT one
per cent bond would be taken by his or any
other district OF Ohio. :'~ ~
Mr.. FELTON, said this bill was an illustration
of the benefit Of delay and cautions legislation
in.snch matters, because, In the last session,
the proposition was to refund the maturing
debt in long per cent bonds, while now 1t
was admitted it could be refunded in short Is
per cents. In his opinion it would be
CRIMINAL 70 PERpErUATE THE DEBT.
He wanted to keep it always within the grasp
! of the Government +, He paid high tribute to
the financial abilities of Secretary Sherman,
| which had contributed so much to the credit
of the Government: The other elements that
had promoted general prosperity were the
| large increase Of agricultural products and
| the demonstration OF silver. He appealed
to the House to:make the declaration that
the debt shall be paid, according to contract.
in lawful money. Z, :. -. =; T. sss',.>
:: Mr.. Baynes' amendment was rejected with
! out division. ..:.... ..,
Mr.. Warner thought the most important
question presented was the question of 1.-The
length Of time for which the bonds were to
! run. If by fixing per cent it was proposed
| to lengthen the time, he would vote against
per cent
Mr. Newberry offered an amendment
| striking out SO much 81 the bill as author
ICES the issue Of bonds and notes, and insert
ing the following: 1T - i.
aThe Secretary Of tie Treasury is hereby
| authorized to issue bonds not to exceed $780,
o0o,oo0, redeemable at: the pleasure Of the
United States, after ten, years, and payable
thirty years after issue. Also, notes
in the amount OF $3.50, ,0o0,0 900, redeem
able at the pleasure of the United states,
after: two years, and payable In ten years
| after the date of issue, which notes it shall
| be lawful, and National banks shall be per-
| mftted, to hold as part Of their legal reserve,
and interest on said bonds shall be 8 per
cent, and the interest on said notes S19 per
cent. /. ~ -:
! Alr. Claflin inquired of Mr. Newberry how
many bonds he supposed would be taken up
| in Michigau at 3 nnr, cent.