The Somerset press. [volume] (Somerset, Ohio) 1873-1977, 1882-04-06

zzs0PPOSEDzT TO REFUNDING. zz.zs
Extracts from a Recent Speech in the
United States Senate by Mr.. PIumb-He
Wants the Surplus Fund in the Treasury
Applied to the Payment of the Public
Debt, and Claims that the People Are
Anxious 1t Should b Done as Speedily
as PossibIe-A Frank Acknowledgement
that the People Want Greenbacks, and
Not Gold or Silver. -
The Senate having under considera-
ton the Sherman -Refunding bill, Mr..
Plumb Rep.), of Kansas, offered the
following amendment:
provided, That the Secretary of the Treasr-
~ shall use all of the fund now held in the
Treasury for the redemption of United States
notes, in excess of sIOO,6OO,OOO, in the redemp-
S1s per cent. interest; such redemption TO be
made in not less than three 1nstallments. and
the said sum of $l00, 600 SO left in the Treas
ury shall not be increased or diminished ex-
cept in the redemption of United States notes."
In the course of his remarks Mr..
Plumb said:
Mr.. President, / have proposed an amend
ment to.the effect that we shall take ont of the
op Tsn fpndf Gt the pero S
paying that much of the principal of the debt.
That is a conservative estimate of what ought
iwoid % have made it eoooo bHt dd not
want TO invite controversy. s.ii ri {, ..t-r
We have the authority of the Secretary e
year ago and the author of fhis bill that $50
10000 ought to be taken out of the resumption
fund OF the Treasury for the purpose of re-
deeming outstanding bonds Now, then, we
shall have 500, 900 surplus revenuesa least,
upon conservative estimate during the next
calendar year-I speak not now of fiscal years
millions from the funds now on hand. and |,
long stride is made in the direction of the ex-
tinguishment of the remaining three and a half
per cent bonds As the debt can be paid liter
ally from day to day, we can constantly save
interest and also prevent the accumulation of
funds in the Treasury which are needed for
the business uses of the country. have made
a computation of the amount of money that 1e
Government would save in interest by the dis
churge of what: are known as the Window or
three and a half per cent. bonds utstanding
provided we fund S200,oO0, 600 under this bin,
and similar computation provided we donpt
Mr. Plumb then showed by compute
ton that the actual saving to the Gov
ernment by paying off the !" Windomsp
at the rate Of 800. 900, 900 per year, in
stead of refunding them under the Sher-
man bill, would be sc, 0O0, 600. s-<
The saving is clearly and indisputabiy shown
to be on the side opposed to the funding
The calculation already referred and COM
mented on shows saving of SO, 600, 900 by prlr-
suing policy of paying without funding, and
that, too, upon the payment of $50, ,OO0.000 out
of surplus funds now In the Treasury, shows a
saving by not funding of S9,5oo.0O0. e---s...-
= when everything betokens peace and pros
perity, full and free to our people, shall we
debts? We ought to pay it Just as fast as we
can get at it. believe the pe0rle Ddnt to pay 1t.
They want to pay for all the reasons that urge
the payment of debts anywhere. ,.,i ,--t
1t should be paid in order that this country
may present to all the world the striking con-
trast which exists between a debtpaying and
an out-of-debt Republic, a Government resting
wholly upon the free consent of the governed
world, where a National debt is considered a
National blessing, and where it is one of the
means whereby class rule is maintained. The
advertisement of this country all over the
world, perpetual and persuasive argument
addressed to every man with small means and
bondholder upon his back, to come to this
country wi b his labor and capital. - a.
The debt should be paid because wewant the
capital of the country used for the benefit of
the country. We want the men whose capital
is now locked up in this idle investment to be
compelled to use it in building new railroads,
new ships, new furnaces, and in promoting
new enterprises everywhere, whereby labor
may have employment, and the country move
forward in the march of development Asthe
country is spending about 500, ,000, 600 each
year in building new railroads and as much
more in other new enterprises, we want the
Government to take as much as possible out
its surplus revenue, and give it back to the
industries OF the country. And we want this
great sum OF money represented by the Ma
bear its proper proportion of the burden of So
ciety by becoming subject to taxation, ls
debt-more than one-third of the total-repre-
sented by what are known as the Window
bonds, is in the best possible condition to meet
this desire and determination for payment. 1t
can be paid literally day by day, and thus not
only save interest, but prevent an undue ac-
eumnlation Of the the money n Of the country in
of business. Under this happy condition Of
things the debt is disappearing like snow in
the shining sun. WprRnFs
The present Secretary of the Treasury there
fore recognizes the gravity of the situation
precipitated by the action of the banks year
ago on the passage of the Three percent bill
and he says that Congress ought to provide
against the recurrence of that contingency.
do not care to discuss the particular meas
desire to call attention to the action on the
part of the National Banks last year, not con-
matter of selfinterest. When they saw that
bill which prevented them from retiring
their notes in gross and provided that they
could only redeem their bonds as they should
pick up their own notes was likely to become
q law, they said: 1--WE will have the premium
on our bonds now and make the profit and be
tofore has been that it was elastic, or claimed
to be so,i but that procedure by the banks
shows that it is not elastic in the sense in
which that claim has heretofore been made
In other words, it does not respond to the
wants of the country for currency; it does not
take out more only when the country wants
more; it does not retire the currency when the
country wants less. In this instance it was re
tired because they could make q profit fol
themselves at that particular time irrespective
of the wants of the country for currency.
That was very proper thing so far as
preached forit; they are in business for the pur
pose Of making money; but the country wants
q currency that responds to the demands OF
the merchants, Of the stock-growers, of the
men who use money, and responds to it inev.
ttably and always, not only by the enlarge
ment of the currency but by the contraction OF
1t If contraction has become necessary.
This illustrates one of the conspicuou:
weaknesses of the system. The only thing
tenn is that it depends now upon the Nationa
debt. 1t was intended in its inception as al
experiment.; it was intended merely for war
Government in which charter for twenty
years only has been granted for the peform
experimental. 1t was a war measure, and tha
alone. There are men who attack and meI
| who defend the National Banks, but, all tht
of tariff and the question Of internal revenue
| taxation, and hundred other questions, il
embarrassed by the question of the existence
| Let us take the National debt out of the way
| and If the National Banking system is goo(
enough 10 SIauQ Dy 1ISeu IL Is good enough u
| be adoptedfde nopo. If it is good enough tt
| commend itself to the Judgment of the Amer
| lean people irrespective of the existence O
the National debt, then think that the Ameri
can people, as represented on this floor and il
the other branch Of Congress, will be able t.
find IT out.
All the way through, whenever we come tt
| discuss economic questions, when we come II
discuss financial questions, we are embar
rassed by the consideration that we have got
National debt pressing upon us, and that ",
must do certain things because it touches tn,
| National debt, or we must do it because of tn,
| National debt. say that every interest il
this land is embarrassed by this question o
| the National debt-the tariff, internal revenu,
taxation. questions of ,finance-and until W,
| get rid of that we shall neverib be able to dis
| cuss these questions upon platform which il
solely and only for the best interests of tn,
| country and its people. nf r-Ts-r. .str
One other thing in regard to the propositioj
| to take $780, 1000 out of the Treasury. 1t vii
be observed that my amendment as now Pre-
| posed keeps the redemption fundin the Treas
9ry at 500 900, 900. I think, whatever else i
done, limit to that fund ought to be fixed, be
| yond which the Secretary of the Treasur