The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1882-01-10
SHERMAN'S SCHEME
FOR REFUNDlNa THE PUBLIC DEsr
D.Dat'In the ssnnt. on nj. TAr. Per Cent Bill
Amendments Proposed Lessen the Aggregate
Of the SsW Loan to Two Hundred MI.
lions and Perfect the Details.

WASHINGTON, January O.-In the Senate
to-day, on motion Of Mr.. Sherman, his bill
to provide for three per cent bonds wa
taken up without formal vote.
Mr. Vest offered an amendment, which
was ordered printed, adding to the bill a
section identical with the 18th or com.
pulsory section vetoed in the three per
cent bill last session, but modified to cover
the provision for S2OO,OOO,OOO.
Mr. Sherman said that in view Of the
very full discussion OF the general PROPOSE.
ton Of the bill in debate and upon the
vetoed measure at the last session, and as
he believed every Senator had made up
his mind on II, he would confne himself
to q briet statement OF few facts, and
hoped that before the day was ended
decisive vote would be taken and the bill
passed or defeated.
There were now S55l, ,1S6, 800 Of bonds
redeemable and unpaid, and The bill would
otier per cent bond redeemable after
five years at the pleasure Of the Govern.
ment, and at par with coin in order with
the money thereby received to pay off
S20OOOO,OOO Of 81 extended bonds, The
only expense involved would be In the
printing OF the bonds, and this would cost
no more than did the printing OF the 81
per cent sinking fund, and ordinarily
would probably absorb in five years about
s25O,OO0,OOO, leaving about S300,OC0,OOO
unprovlded for at the end OF that
period. It was true the sur
Psus revenues were large, and thai this
year the fund would more than meet the
requirements Of the sinking fund. But in
view oil the pending questions OF the reduc-
ton oil taxation, tariff revision and the ar
rearages Of pension outlay, it would
seem That no more than two hundred mill.
ions OF dollars could be safely counted
upon as being paid Off within the next five
years.
While the bill would e,tablishIa rateof in.
tcrest as low US any ever known in any
country oil the world, and il we sell our
three per cents at par, we do better than
any country has yet done, because Eng
land, when she sold her three per cents 1t
par, always give additional guarantee in
native discount or bounty. He had no
doubt the bonds would be readily taken
up.
An objection given by President HAYES,
who did not object to the three per cent
bond, butvetoed the bill entirely, wasbecause
ot the compulsory feature which seemed
to him to be hostile 10 the movement
against banks and to restrain them in the
operation of organizing further. It had been
manifest from the state ofthe market since
the defeat of the bill last session, that at
no time could the three per cent bonds
have been sold at par, and it seemed 10
him (Sherman) fortunate for the Govern
ment that the three per cent. bill in auy
form was defeated, in view of the admira-
BILE manner in which the interest had been
reduced from five and six 10 three and
a'hali per cent, the Government having
~ the same time saved the difference in
interest while retaining its option as to
time OF payment.
Ills objection TO McPherson's amendment
for 1880 bond was that It would make
the date ot maturity the same as that of the
tour and half per cents.
MIR. McPhersOn said that at no time was
the condition for reiunding at a low rate
more favorable than ut the time OF the veto
OF the three per cent. bill OF the last
session, which veto had followed
The statement by the Senator (Sherman),
then Secretary Of the Treasury, that he
regarded the measure US experimental and
dangerous. The change OF heart to which
the Senator now confessed, had been so
rapid that in comparison with it the con-
version at st. Paul seemed slow and tedi-
Gus. He (McPherson) was glad to see the
Senator's batteries now turned in favor OF
the Democratic measure,
MIR. Bayard spoke Of the exceptionally
favorable condition Of the Government
with reference 10 Its currency at this time
and the unquestioned confidence OF hold
erS in the security Of the bonds. He was
averse to assuming any risk that would
tend TO disturb this sense Of security, even
for the sake OF the apparent reduction Of
one-halt of one per cent in the inter
est. He would say lot well enough
alone. Let the business OF the country
ilow as it safely can flow under our pres.
ent system Of currency notes. The amend
ments to the bill reported by the commit
tee were agreed to. Mr.. Beck briefly op-
posed Mr.. McPherson's amendment, OBJ
serving that it would put It out Of the pow
er OF Congress to tax the people to pay the
principal Of debt until n later period.
That Is exactly the object have in view.