The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1881-03-31
"Three Per Cent. -

The Rockingham Register. of last week, |
under the above caption, has dema
gogical editorial article, the first paragraph |
of which reads - he Democratic Congress |
passed law to refund near seven hundred |
millions Of public debt In three per cent. |
bonds. The whole Democratic party voted |
Tor it. The whole Republican party voted |
against 1t. The Republican President We
toed it because he said it was too hard on
the banks, and, therefore, we say, in favor OF
the people," 1t is very plain to those ac
auainted with methods and motives to un-
derstand who wrote the article from which
we have quoted. as well as other editorials
in the same issue of the Register. Know
ing this, we could expect nothing fair and
impartial from that source. It is true the Dem
ocratic party voted for three per cent.
refunding bill, just as they voted for
Viewers greenback resolution at the close
OF the session of Congress previous to the
last, in order to make cheap capital out OF
1t. They were Indifferent to the healthy
condition of the financial policy of the
government, and only wanted to place
themselves on record in favor of measure
which could be used just as this writer is
trying to use it, to excite the people against
the banks, against the financial system
the Republicans had adopted and steadily
pursued, to restore the credit of the gov
eminent, place business upon firm and
enduring basis, and advance all the great
interests of the country. The banks were
organized under law, with certain rights
stipulated for in the act organizing them,
and it was because this measure violated
this contract that the veto of the President
was interposed. The President stated in
his message, that while he did not believe
three per cent. bond could be placed at
par-an opinion emanating from Secretary
Sherman, and sustained by Comptroller
Knox, Treasurer Gillian, and the wisest
financiers of the nation-yet he would not
have felt justified in returning the bill to
Congress because of this feature of it
alone. He should have respected the will
of the majority of Congress, and been will
ing to try the hazardous experiment, had
not the act violated a contract with the
banks, destroyed their usefulness and dis
turbed all the business relations Of. the coun-
try. The national banking system is an es-
sential part of the financial policy of the
government, which has worked such mar
velous benefits to the nation, and to have
crippled it, and in doing so violated the
plighted faith of the government incorpo-
rated in the law under which they were Or
ganized, would have forced into existence
the old State bank system, and all the I'M
certainties and disasters to business, it
would entail upon the people. The three per
cent. bill passed by this last Democratic
Congress was as pure a piece of dema
goguery as was ever enacted into law. The
Democrats knew it would be vetoed, with
the fifth section retained, and in this way
they expected to save the commercial inter-
ests from fearful shock, but at the same
time make a record of desire to lessen the
interest charge, so they could go upon the
stump and proclaim their concern for the
dear, overtaxed people, and point to this piece
of duplicity as evidence of their efforts to
relieve them.
The Secretary Of the Treasury had recon-
mended 81 per cent bond, which his large
study of the question and familiarity with
the experience of this and other countries,
justified him in believing could be placed at
par. His splendid abilities had enabled
him, sustained by the Republican party
and the repeated vetoes of the President,
to bring about resumption of specie pay
ments in the face of the opposition of the
entire Democratic party. He had so raised
and established the credit of the govern
ment as to fund six and seven percent. secu-
rites into four per cents and to advance
these four per cents to twelve cents pre-
MUM. He had reduced the public debt in
the four past years s20S, 1924, 1929, and the
annual interest charge s17,557,7Os. This
was effected against the reckless assaults and
concerted opposition of the Democratic
, party. His successful experience and la
bors justified him in assuming that Con-
gress would respect his opinion about the
character of the bonds which should be is
sued to enable the treasury to call in the
fves and skies, amounting to over six hum
dred millions of dollars, due about the 1st
Of July. But the Democratic majority in
Congress, which had invariably voted for
every measure to defeat the policy of the
Secretary, and had committed itself, time
and again, to the widest schemes of infa-
Misunderstanding either the absence of
ability or honesty in dealing with the sub
iect-all at once sprung to the front at the
heel OF the session, to antagonize the re-
commentators of Mr.. Sherman, and force
by a partizan vote, the mischievous and
dangerous bill which the President vetoed.
In view of their record, it was the baldest
piece of impudence for them to attempt to
frame finance bill, and in view of the mo-
tive which actuated, the country will not be
slow in understanding the character and
purpose and motive of the bill in question.
Secretary Sherman informed Congress in
. detailed statement before the finance
committee of the House, that he did not
think three per cent. bond could be placed
at par, and that the result of the attempt
to do 80 proving failure, would have a
harmful effect upon the business of the
country. His arguments and facts neces-
sarily had weight and effect, and doubtless
convinced even Democratic Congressman
that the experiment would prove extremely
hazardous. The Democrats, however, did
not want to surrender their cheap dema-
goguism, and in order to make their own
act unavailing, they tackled on the fifth Sec
ton, which compelled the banks to take
three per cent. bonds, instead of the tours
and fives which they had on deposit to Sc
cure their circulation, although the law I'M
der which they were organized and under
\ which their charters were granted, secured
to them the right to purchase any class of
bonds on the market. This was compul-
sorry re-adjustment, the kind of re-adjust-
ment the factotum of the Register voted for
when he supported the Riddleberger Bill,
and which is reflected in his entire legisla-
tive "a raar They knew this fifth section