The Wichita city eagle. [volume] (Wichita, Kan.) 1872-1883, 1882-01-19
PLUMB ON FINANCE.
Synopsis ef Senator Plumb's 0atspoksn Views.
He Speaks Out in Msetin'.

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A special telegram TO the Chicago Tribune
gives an interesting synopsis Of Senator
Plumb's speech on finance 1t says: 'sThe
Ihost interesting argument made to-day was
by Senator Plumb, Of Kansas. 1t will be re-
membered that he was one of the Republican
Senators who voted for the funding bill OF
last session. He to-day used plain speech in
defense of that measure, and he appeared at
loss for language strong enough to con-
denim President Hayes for vetoing it. He
| surprised scme Of his Republican colleagues
by talking right out in meetin'. He related
that recently national banker living in an
interior State had said to him in substance:
After the funding bill Of last session was
passed, some OF us bankers were misled into
the belief that the bill compelled banks then
holding and Al rer cents as basis of cir
culation to replace them with per cents.
Some ofus got together and joined in tels-
gram to President Hayes, urging him to veto
the measure. We afterwards found out that
We were wrong, ana have never regretted
anything more than TIE sending Of that tele-
gram. The defeat OF that bill was the worst
thing that has ever happened to the banks.
1t was the first step to wards their DOWNFALL
In connection with this statement, Senator
Plumb made another revelation which ex-
cited surprise and comment. He said that
Gen. Grant WI ote a letter to President HAYES
urging that the bill should be vetoed Much
efPlumb's speech was devoted to an expos
ure of Senator Shermsn's financial inconsist-
eDcies, and 20 pointing to what he called the
singular faulty attending the predictions
of the Senator from Ohio. He quot freely
fro m Sherman's statements before the finance
com;nittee year ago. At that time Sher.
man had said that per cent was us low Il
bond as could be floateu ut par. lie re-
ferred to the saying that the men who came
in at the eleventh hour got their pay, and
perhaps the Senator from Ohio now expected
to get credit for his conversion, ana for his
advocacy OF a 3 per cent bond. Mr.. Plumb |
presented an interesting and important cal |
culation TO show that, if the Sherman bill |
should pass, the government would lose in
stead of saving money The tables he has |
prepared had been examined by Treas ury |
official, and his calculations were pro.
nounced accurate. 1t WAS assumed, in the |
first place, that Sl0o, 200, 900 of bonds would |
be redeemed annually. On this basis the ill., |
terest on the $3.50 cO0,O0o Of SIS from now
until they were redeemed would be not
quite $53.OO0,0o0, but the interest on the |
$3.50, 100000 of SIS and 500, 900 of 3s
would be over $4,000, 900. The chief reason
for this was the fact that interest on all of
Sl01. 900, 900 Of the IS would not cease till the
close OF the sixth year, or one year after they
become redeemable, and the interest on the
other 800, 600, 900 would not cease till the
end of the seventh year. This calculation of
Piumbs was at once recognized as an exceed
ingly strong argument against the pending
bill, and the only reply that Sherman could
make to it was that it was hot safe to count
on SlO0,0e0,0O0 of surplus annually to be
used for the redemption of bonds. He
thought that Si0.000,O00 per annum was a
liberal estimate Plumb contended that,
taking the five years as a whole, it is safe to
count on Sl00,000.00) surplus, despite the
large demands in payment oil pensions His
estimate was at least plausible. He called
attention to the constantly decreasing inter-
est charge, aud to the probability OF securing
rom the Pacific railroads between $40. co.,
40 and So, 000, 900 during the next five years.
md to the further fact IL At after two years.
he p nsion charge would be onl, SIC, O00, oo0
lie also took it for granted that the people
would insist on cor tinuiny the policy Of pay |
ng OF the bonded debt, and would not con- |
ent TO the abolition Of the tax on whisky t
I'D tobacco. This part OF lie argument I'M
made a strong impression on the |
minds of the Senators. Plumb declared him
elf in favor of such legislation AS would rx |
maximum and minimum limit to the fund Il
cid in the Treasury for the greenbacks. b
lie believed Si00,000,0 900 Nas ample for such S
exemption fund, and he lad offered an q
mendment directing the secretary of the
'reasury TO use $50, 900, 600 II W in the Treas
~ for the redemption of bonds at an early
ay. The Senator from Kansas off red
Mother and a significant amendment to-day,
Ihich provides that whenever a national
ank retires any of its circulation the Sec
,tary of the Treasury shall substitute there
'r an equal amount Of Treasury notes re-
eivabl for dues to the government, and that
lere shall at no time be any increase of =
ational bank notes. This amendment would, "
course, result in the gradual retirement of 7
he bank circulation, and the substitution
lerefor Of a non-lesal tender Treasury note,
hch is substantially the proposition con- ~ =,
ined in a bill recently introduced in the !.
ouse by Judge Buckner.'' :,