Savannah morning news. [volume] (Savannah) 1868-1887, 1881-03-18
Hon John G. Carlisle on the Fund
ing HflI

lures and pets of the General Govern
ment, the national banks, to assist the
government in funding its debt, and the
people IN reducing their taxation, by de-
posting the per cent. bonds provided
for By the last Congress, at the par value
Of the same, as security for their circu-
lation. He has recently been interview
ed as 10 the probable effect upon the
country of Hayes veto of that measure,
and has given utterance to certain very
sensible opinions.
Mr. Carlisle, very justly, fears that the
country has lost the golden opportunity
to refund the bonds bearing high rate
Of interest in per cents. He says the
WAYS and Means Committee of the last
House, while discussing the funding
bill, gathered the testimony Of many of
the most eminent financiers and practi
cal business men of the country, of both
political parties, to show that, in the
present prosperous condition of the
country. a 3 per cent loan could
readily have been negotiated at
par. The subject Of higher
interest bond had been carefully
considered at previous sessions of Con
gress. The Republicans of the commit
tee had, when the Democrats favored a
81 per cent. bond, advocated 4 per
cent. When Congress met this winter,
however, and since it was apparent that
the financial condition of the country
would warrant 1.-THE Democratic mem
bers were in favor of 3 per cent. bond,
Immediately the Republican advo-
Gates of higher interest, despairing of
taxing the people any more heavily, de-
manded 81 per cent. And when they
found that the Democratic members
were determined to reduce taxa
ton, and would listen neither
to the bulldOzing threats Of the banks,
nor to sophistical arguments of the
friends of the money power, to induce
them to force the people into paying a
heavier tribute than was absolutely
necessary to the untaxed bondholders,
they, in their extremity, relied upon the
veto of a fraudulent President, and they
we're not disappointed.
Now what is the cost of this, the last
legacy which Mr.. Hayes left the people
of the United Statesl ANY one can
verify the figures for himself The PEG
pie are paying five and six per cent in
terest on $3.50, 600, 900 of bonds when
they ought to be paying only three. In
other words, the people are pay
ing as interest on the public debt
at present at the rate of about
SIG. 25G, 900 more per annum than
there is any necessity for, and they will
continue to pay this until the high rate
bonds are redeemed in full as they fall
due unless the country is put to the ad-
ditional expense of an extra session of
Congress, of which at present there is no
indication. Otherwise no refunding bill
can be passed in time to fund this $3.50.
600, 900 of high interest bearing bonds
because they fall due in May and June
next, and Congress does not meet Iegu-
larlY until December.
Nor is this the only cost which Mr..
Hayes, by his veto, has entailed upon
the people for the benefit of the national
banks and the bondholders. When the
next Congress does meet the majority in
that body will not be likely to pass bill
to refund the debt at less than 81 per
cent. and perhaps they may not be able
to do that, since the present favorable
condition for securing low interest may,
by that time, be lost. But suppose 81
per cent. bond can at that time be floated
at par Even then the masses will be
taxed over 100000 every year more
than would have been the case had Mr.
Hayes, in utter disregard of the welfare
of the people, not interposed his veto to
the late funding bill.
1t IS true that Mr.. Hayes ought not
strictly to have been expected to regard
the welfare of the people, for they repu
dated him as President, and he occupied
the Executive chair in defiance of their
will. He may, therefore, have regarded
this as his last opportunity to revenge
himself upon them for his defeat; but the
people of the different States have only
to blame themselves for persisting IN
keeping in power the party which flung
Mr. Hayes in their teeth, and of which
he is prominent member. That they
will pay dearly for allowing their hate of
the South so completely to absorb all
other considerations Is clearly shown by
the incontrovertible remarks of Mr.. Car
Isle, in concluding his interview on
this subject, when he says:
Gin the agricultural States especially,
the people are tired of paying these
enormous rates of interest on bonds
exempt from taxation. Even the in
terest on the $469, 800, 900 of five per
cent bonds now outstanding is exempt
from taxation, Federal, State, and
municipal. A three per cent. non-tax-
able bond is equal to a five or six per
cent. taxable investment in nearly all
parts of the country. The farmers,
even in the most prosperous parts of
the country, do not realize on an aver
age during any ten years, a net
gain of per cent. per annum on the
capital invested in their lands, farming
implements and domestic animals, and
they ought not to be required to pay
more than that to the public creditor
who takes no risks, but is absolutely
sure to receive, without labor or expense,
his interest and principal on the very
day it is due. This question cannot be
kept out of the politics of the country;
it will be discussed, and the RESPONSE
bility will certainly be fixed where it
properly belongs"
A great sensation has been produced
by the new Spanish Government having
determined to check the gambling now
carried on in every town in the king
dom. The authorities have been in
str,,cfad tn elOSa any cluh Or casino