, 1881-01-07

4iitl5l! HuftIutHEIlk>
coNTEMrLATEs NEDEC1NH THE RATE or
INTEREST
to e19 per cent The National banks now
Hold large amounts of the retleenlablc Der
cent md per cent bonds, deposited rs, Co.
curly Tor circulation, and Il the Funding law
Should conlpal tho bnnks to exchange tho,
bonds they how hold for the 4 per cents, tho
Horcrnmcnt wollftl Immediately ind pur~
chnscr for S350, ,S223. .bN of the now loan,--that
being thu amount Of bonds held as security
Tor clrculntton .JaN. !, 1sst.
THE ARGUMENTS or THOSE WHO orrosK
tho 8 ner cent rate w1re, in'substance, that y
per cent bond cu,lld not be {lonted; that the
attempt to t'oat It would result in material
contraction Of the National bank currency,
aud that fatluro to sell such bond, when
authorized. would greatly injure the Nation
nj credit. More In detail. they nrguc that tilt
present market IL not Stable. It las not bcen
dci'nitly settled TINT n long bond Of per
cent Is npt nn abnorntnlly low rate Of Inter-
est In tl,as country; much lcss Is It settIed .
that tho United Stntcs ran sell pcr cent
short bonsl Mt par. Safety Is OF moro consc-
9tlencc than tho rate Ut interest Tile ball
ance Of tradc lnny not alwaya be In Our
favor. Crops may full. PanIcs may come.
Politics may tnjllro the National credit.
THE ARGUMENT OF JUDGE KELLEY,
Il, opposition to this bill, was yery Ingenious.
lie did not oppose refWlidtDG per 50, but llo
did oppose tic Committees bill, in tint It
proposed to surrender tic Governmental
option to redeem Mt my time when It 1lad tho
available fluids. liz asserted, and Ito pro-
diced n long series of calculations to sustain
Ills assertion. that 1t would cost tic Goyern-
,ncnt less not to refund, amt to use the sur
p!us revenue to pay Oft the indebtedness Mt
the minimum rate Of 0,000 d year,
than It would to refund on thd
plan proposed By tho Committee Judge
Kelley had wrought out his calculations to a.
nfcety, md submitted figures to show that
the exccss Of the cost Of tho ) per cont Re-
funding bill, without option, over the actual
cost Of paying tic elitire debt without re-
funding, by the lise OF this surllns ruyunue,
md the maintenance Of taxation, wns
ExAcrI.y Sfz3 LESS THAN S5000,000.
The figures which lie produced on both sides
lie clailned, tint would be rcquircd
for the total interest for ten
years. under the Committees bill,
Is S101 ,a05, leo. The amount required; with
out ary reflintltng, by the use OF the surplus
revenue, Is slsd..7s, ,0G2, n difference Of 3d.
00000 I'll favor, lie clnin,ed, OF not refnndln9..
Judge Kelley, however, does not make any
provision for tic possibility TINT there may
ba years when ther0 Is no surplus reyennc. ::
To such suggestions lie had only to say that.
Immigrants nre coming, TINT the warehouses
are oEer1nndcl with crops, md that the man
WHO donbtcd the ability OF the great Amer
lean Republic to pay its debts WIS craven.
However, te did not show what would be
done In caso there should be no surplus
revenue.
THE 1tusTLIN0, NERVOUS CHrTrESpEN
made What l1o himself said might bo his last
speech In Congress. 1t was from tho stand :
nrd Of the most radical of the Ro1lttes. IIa
lar. His speech had MI amusing conc1us1on,'.
owing to m interruption BY BE- In Matyr,
who inquired how It wns that thu Roy.
11yatt Smith, t;rcenbackcr, Ind been elected
to succeed him. ChIttenden, In nttenpt-
Ing MI explanation, showed moro wit
than tho House Inns bcet accustomed to
hear FROM him. 1Ie gave his successor ),
novel Introduction to Congress. by quoting:
from one OF. his recent clerical speeches, In
which lle sail that he should hereafter make
Congress part Of his pulpit. L. =,
WHAT THE RESULT WILL DE r.,
no ono will venture to predict. a bill In
soma form will undoubtedly pass the House.
Its fate In tho Sc1.nto is less certain. A Reu-
tle1aan who ltas made CANVASS ot tho Sem
ate to-day expressed the opinion that ito
practicable funding measure will pass that
body. =: -.
FROM ''TllE RECORD"
Tb The lFxsfrr1l AssoefattI Irtss. =.
WASHINGTON, u. e., Jan. 1.-THE morning.
hour was dispensed will, and the House
went Into Committee Of tho Whole, Afr.
C0vurt, of New York. in the ctnir, upon the
Funding bill. Tho only arrangement iii re-
gard to Limitation of debnte WIS TINT which
wns matlo before the holiday recess which
limited tile general discussion to ona day. .'."'
A1r.Keley took the ilonr III opposition tn tho
bill. 1t hau been stated, he said. tint the
only question presented was whether Con-
gress wUNd have tbs sngacity nlnl honesty to
bnrrow ut i per cent the money required to
pny the bonds which were carryin: Rnd s
per cent interest. There Ind never boen q
,noro misleading statement nIalu to Congress
a1,d tho country. Tic question which
would CONF lip was whether the Government
could pay tllls debt without borrowing
money. lie saI1 stD, 1900 Il year tor TIN
ycnrs woull pay it. For fifteen years the
Government lad pntl Ill average Of Within
$1,000 ,000 Of tliat $40 Co., 600, alt within tho
year Just closed 1t had paid nvar1y S3. .0oo, 200.
Was the Government i'll n position In Whlcia
| 1t was necessary to borrow nl0aasy,-ln, a 20.
| sitlon In which tho la'ld ard tho labor Of thu
United States must ba nt0rtgaEctl, utther f0I
fifteen, twenty, or forty yours, in ordor to get
money to pay 3G'7. 900 COO ln the next ton or
eleven years? That WIS the question. aud not
| tho one stated by the guntlelnan from New
York {Chittenfen), as to whether tho Goy-
| crnmcnt had the sagaeity or honesty to bor-
/ row money ct lower rate 1le WAS not op-
posed to refunllng II tho Government would
retain It's option. Hence, ha ;woaid. In due
tine, -.
ASK Fom 4 VOTE ON 1ns uI1I,' ..
which authorized temporary loans, l0ans 70.
sleeulablo III ono or two years. to supply any
deficiency, Should any ba found In current
revenues, u thing OF whicl, he lad no appte-
hcns!on. Tl,a gentleman frthn New York
| tChittcnden) would say: "1Ylll you pay u
| per cent when you cat, borrow at per
cent?" Three per cont for forty years, Us
tho Committees blu proposed, WAS 40 per
cent. OF the sG37, ,0o0, 900 to be provided for,