The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1881-02-03

The House being IN COfnn1ll66 tHt WHO16
tate Of the Union, and having under consideration
he bill III R. No. 1922 to facilitate the refundtng of
he national debt
Mr.. HARRIS, of Virginia said
NJ CHAIRMAN: Go not rise to a point of
read it fairly, thought be against me. Laugh
teri
During the present year about six hundred |
and seventy millions of bonds of the Govern
ment become payable at the option of the Gov |
This amount is more than one-thlrd !
of the whole interest bearing indebtedness of
the United States. The question presents it |
self, What is best to be done under all circum- |
stances-best for the Government and best for
the people? The bill under consideration pro-
poses to refund this sum at low rate of inter
est, the principal not payable until the expira-
ton of twenty years. If the Government were
wholly unable to meet its obligations and pay
that large sum within reasonable time, it
would certainly be wise stroke of govern
mental policy to adopt the bill Of the commit
tee and thus save to the Government 3 per
cent. interest, equal to about twenty million
dollars per annum. But if the Government is
able to pay the debt it must be admitted that
it would be equally as unwise to create new
bond at long date at any rate of interest, how
ever low.
Then let us look to the facts as they exist
and stare us in the face. The Secretary oftht
Treasury reports that the surplus in the Treas
ury for the next fiscal year will be $90,000,00t
During the last six months from the LIST of July
to the LIST of JAN there was a surplus OF $42
100000 which was wisely applied to the pay
ment of the public debt. Then we have surplus
of one hundred and forty millions for redemp-
ton of the legal-tenders. Fifty millions ofthi'
might well be spared towards the extnguish
ment ofour national obligations. These figure,
show, and they are not imaginary figures, thai
the whole debt falling due this year can be paid
in LESS period than seven years.Assuming thes'
factsto be true and they cannot be controverted
the question then arisies, as l said before
What is best for the Government and what il
best for the people? My answer is pay off til,
debt as rapidly as possible Why? Ii we au
not payable for twenty years, even at three
per cent, that would amount to a much larger
sum than the present rate of interest to bt
extinguished within the period have named.
1t requires no great amount of financial
ability to ascertain that per cent for twenty
years on 670,000,000 gets larger sum thar
the present rate of interest would on the same
sum for seven years, especially as that sum, il
not funded will be reduced at the rate ofeighty
or ninety millions year, thus pro tantO re
ducing the interest each year. Hence it is
manifestly to the interest of the Government
to pay. But it is suggested our revenues may
not be SO large hereafter. Sufficient unto the
day is the evil thereof" However, if thai
should occur, there is no danger that any cred
itor would want his money, and if he did the
Government would still have the option OF
paying or not. Then, as now proposed, pass
a funding bill and give the creditor the option
Of his money or long bond at low interest.
Again, I may add, an additional reason why ii
isto the interest of the Government to pay,
and not refund is the fact that the Government
will have 10 other debts to which to apply this
large surplus of ninety millions year. Gov
ernments, like individuals, when they have a
larger income than can be applied to legitimate
objects, fall into extravaganza, profigacy, and
corruption, and thus this excess tends to de-
moralization in the very fountain of our polit-
ical liberty. I think haye sufficiently shown
it is to the interest of the Government to pay
and not fund at long dates Let us see for a
moment how the other proposition works.
If the holders of these bonds cannot find 9TH
er similar securities in which to invest their
money as they are paid, they must make some
other disposition of it, Except the bonds fall
ing due this year, there are no Government
bonds other than the four and four-and- "a hall
per cents which are now in the hands of pri-
vate owners. These bear interest at such rates
that capitalists cannot afford to pay the price
which they command. Therefore they must
seek other channels Of investment. The mon
ey will then go TO the country to be used i'll
mines, furnaces. factories, in farms, and in fact
in all the great rural interests. 1t will thu
operate directly on the people and for the peo-
pie; will open mines that are now slumbering
for the want of capital; will give employment
and high wages to thousands of hands now
idle. Yes, Mr.. Chairman, diffuse $670, ,00(
in seven years among the people, and we vii,
witness state of prosperity never befor'
known or felt by our country. This can b,
done without the expansion of our currency
or doing any man injustice. But issue new
bonds at long dates, and you will find none.
seeking them as an investment and thus be-
coming dead capital, of nc service to any hu
man being save the bondholder as he clips hi.
coupons and collects his gold interest. l have
no prejudice against the capitalist, if by his
superior skill, perhaps economy, he has amass
ed fortune. l appreciate his ability and re-
spect his rights; but at the same time l shall
never consent to legislate for him, in his inter
est and for his interest, against the people
1t is said by some, give the long-date bond
force a larger surplus in the Treasury, and
this will lead to reduction in the tariff and in
ternal-revenue tax. As to the tariff it has not
been materially changed for sixteen years, and
/ have no idea it will be for years to come. As
to the internal revenue, | think it likely il
would lead TO reduction, but not On the arti-
cles of tobacco and other subjects in which my
State is interested. When l came here in 1871,
we found the tax on tobacco thirty-two cents
per pound; ardent spirits 81 per gallon After
repeated and severe struggles we reduced the
tax on the former to sixteen cents per pound
and on the latter to ninety cents per gallon.
know these two articles are the last from
which the internal revenue will be taken, OF
on which it will be lessened, unless it becomes
manifest that lower rate of tax will produce
a greater revenue, as experience has shown to
be the case.
For these reasons shall vote against any
long,date bonds.
The Alumni of Washington and Lee Uniyer- |
sity, who are now residents of New York, pro-
pose forming an association, both for the gen. |
eral social purposes usually sought in such Or