Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1881-01-25
Speech OF Hon. John I. Harris, January
18th. 1881.

leI 1zCn, 1901. tf
n The House being in Columittee of tt
G. Whole on the state of the Union, an
l having under consideration the bill +
I r. No. 4592) to facilitate the refundin
g. of the national debt
a. Mr.. Harris, of Virginia. said:
,. Mr.. Chairman: do not rise to poiI
/, of order or to read rule; but If I shoul
will read it fairly, though it be again'
me. Laughter
,r Turing the present year about 81
hun dred and seventy million OF tn
q bond of the Government become paya
+ BILE at the option of the Government
! This al mount is more than one third {
the who Vie interest bearing indebtedness
> of the u. 1ited States. The question pre-
sen ts itse. u, What is best to be done ur
{ der all the circumstances-bes for tn
3 Government and best for the people ?
3 The, bill unde. Y consideration proposes
, refu nd this SUI at a low rate of interes
the principal no payable until the ex
4 piration of twent Y years. II the Gov
ernm.ent were who lly unable to meet Il
obligations and pay That large sum with
in rea sonable time, 1t W, ,uld certain
be wise stroke of gov ernm. sntaI ponc
to adopt the bill of the comm. ttee an
thus save to the Government 8 D, cen
interest, equal to about twenty m. 'u1o
dollars per annum. But if the Cove.
ment is at>le to pay the debt, it must be
admitted tt vat 1t would be equally as un.
wise to crea.te new bond at long date
at any rate OF interest, however low.
Then let us look to the facts as they
exist and stare us in the face. The
Secretary of the Treasury reports that
the surplus in the Treasury for the next
fiscal year will l5e 500, 5000 During
the last six mont hs from the 1st of July
to the 1st of January, there was q sur
plus of $43, ,000,OO9, which was wisely
applied to the payment of the public
debt. Then we have surplus of one
hundred and forty millions for redemp-
tion of the legal tenders. Fifty millions
of this might well i0e spared toward the
extinguishment of our national obliga-
tiOns. These figures show, and they are
not imaginary figures, that the whole
debt falling due this year can be paid in
less period than seven years. Assum-
ing these facts to be true, and they can
not be controverted, the question then
arises, as I said before, What is best for
the Government, and what is best for
the people? My answer is: Pay off the
debt as rapidly as possible. Why? If
we authorize the funding of this large
sum in bonds not payable for twenty
years, even at 8 per cent, that would
amount to much larger sum than the
present rate of interest to be extingulsh-
ed within the period have named.
| 1t requires no great amount of f1nan-
cial ability to ascertain that 3 per cent.
for twenty years on $3.50, 600, 900 gets a
larger sum than the present rate of in
| faraof UOnI6 nj the for
years, especially as that sum, if not
funded, will be reduced at the rate of
eighty or ninety millions year, thus
pro t0sat0 reducing the interest each
year. Hence it is manifestly to the in
terest 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
that should occurr, there is no danger
that any creditor would want his money,
and if he did the Government would
still have the option of paying or not
Then, as now proposed, pass funding
bill and give the creditor the option of
his money or long bond at low inter-
est. Again. may add, an additional
reason why it is to the interest of the
Government to pay, and not refund, is
the fact that the Government will have
|
large surplus of ninety millions a year.
Governments, like individuals, when
they have larger income than can be
applied to legitimate objects, fall into
extravaganza, profigacy, and corrup-
ton, and thus this excess tends to de
liberalization in the very fountain and
source of our political liberty. I think
| / have sufficiently shown it is to the in
1 terest of the Government to pay, and
not fund at long dates. Let us see for q
moment how the other proposition
works.
If the holders of these bonds cannot
| find other similar securities in which to
invest their money as they are paid,
they must make some other disposition
of it. Except the bonds falling due this
year, there are no Government bonds
other than the four and four and-a half
percents which are now in the hands OF
private owners. These bear interest at
to pay the price which they command.
Therefore they must seek other channels
of investment. The money will then
go to the country to be used in mines.
furnaces, factories, in farms, and in fact
in all the great rural interests. 1t will
thus operate directly on the people and
for the people; will open mines now
slumbering for the want of capital; will
give employment and high wages to
thousands of hands now idle. Yes, Mr..
Chairman, diffuse $3.50, ,00O, 900 in seven
years among the people, and we will
witness state of prosperity never before
known or felt by our country. This can
be done without the expansion OF our
currency or doing any man injustice
But issue new bonds at long dates, and
you will find money seeking them as an
investment, and thus becoming dead
capital, of no service to any human be-
ing save the bondholder as he clips his
coupons and collects his gold interest,"
1 have no prejudice against the capi
talist, if by his superior skill, perhaps
economy. he has amassed a fortune. l
appreciate his ability and respect his
rights but at the same time shall new
er consent to legislate for him, in his in
terest and for his interest, against the
people.
It is said by some, give the long-date
bond, force larger surplus in the Urea"
sury, and this will lead to a reduction in
the tariff and internal-revenue tax. AS
to the tariff, it has not been materially
changed for sixteen years, and have no
idea it will he for years to come. AS to
the internal revenue, think it likely it
would lead to a reduction, but not on
the articles of tobacco and other subjects
in which my State is interested. When
I came here, in 1871, we found the tax
on tobacco thirty-two cents per pound;
ardent spirits 81 per gallon. After re.
peated 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, or on which it will be 1essened,
unless it becomes manifest that lower
rate of tax will produce greater rev.
enue, as experience has shown to be the
case.
For these reasons shall vote against
any long date bonds.
A bashful young man escorted an
equally bashful young lady. AS they
ap preached the dwelling of the damsel. |.
she said ent reatiugly "Zekil, don't tell
ANYBODY you saw me home" "Sary,"
said he emphatically. "don't you mind;