Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1881-01-09
Mr.. Wood thought he would op-


Mr.. Wood suggested that for the
sake of convenience, his amendment,
coming from the committee on ways
and means, should be by unanimous
consent be considered as agreed to.
If it was seriously intended to act
on this bill hours should not be
wasted in fruitless and unnecessary
discussion.
Mr.. Clafin objected.
MIR. Frye thought that the ques-
ton might as well be met now as be-
tween 3 and 81 per cent. bond. A
3 per cent. bond must necessarily
run for twenty or thirty years. Vot-
ing for 3 per cent, would be voting
for long bond.
Mr.. F. Wood thought the gentle
man was in error in that assump-
ton. He wished to call the gentle
mans attention to the report of the
secretary of the treasury in which
he said that he believed that short
time certificates, having less than
ten years to run, could be negotiated
at 3 per cent. He (Mr. Wood
thonght that short time 8 per cent.
bond could be negotiated, particu-
larly if accompanied by some attri-
butes which would make them &C
ceptable and desirable. He hoped
that the gentleman from Maine (Mr.
Frye would not endeavor to have
the house commit itself to a position
which was untenable.
Mr.. Fry said that he had voted in
favor of the per cent. bond before
the recess. During the recess he
had seen large number of business
men in New York, Boston and New
England, and he had come to the
deliberate conclusion that it would
be utterly impossible to float 3 per
cent. bond running less that 80 years.
He believed it, and he believed that
an attempt to float 3 per cent.
bond would be disaster. The gov
ernment had never sold 3 per cent.
bond. No country on earth had ever
placed 8 per cent. bonds on the mar
ket at par, and he was fully CON
vinced that per cent. bond could
not be placed, and if congress under
took to do it and failed, it would be
disaster. He believed in giving the
secretary of the treasury discretion
up to 81 per cent.
Mr.. Keifer, of Ohio, offered an
amendment to Mr.. Woods amend
ment so as to fix the interest at a
rate no. exceeding 4 per cent. He
believed that four per cent. was as
low rate of interest as the bonds
could be foated at. In the west it
would be impossible to sell bonds at
lower rate and have them MAIN
tanned at par. A vote was taken on
the amendment and it was defeated,
II to 149.
Mr.. Mills, of Texas, argued that it
would be $10O,00O,OO0 cheaper to
let the debt stand at 5 and 6 per
cent, and pay it in five years, than
to let it run for twenty years at 6
per cent.
MIR. Wood denied his proposition.
MIR. FELTON,, of Georgia, said the
bill was an illustration of the benefit
of delay and cautious legislation in
such matters, because last session
there was proposition to refund the
maturing debt in long 4 per cent.
bonds, while now it is admitted it
could be refunded in short 3 per
cent. bonds. In his opinion, it
would be criminal to perpetuate 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.
| Mr.. Blount, of Georgia, argued
that the secretary of the treasury
should be allowed some discretion
and opposed the rate of interest
being arbitrarily fixed at 3 per cent
After further debate the committee
arose for the purpose as stated by
Mr.. Wood, of limiting the debate
but motion to adjourn was inter
iected.
i Mr.. Wells reported from the COM
1nittee on Indian affairs the Indian
appropriation bill. Printed and
recommended.
i At 4:30 the house adjourned.