The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1882-02-09
THREE PER CENTS.
Hon. Geo. H. PendletOn'S Speech
on the Funding Bill.
Delivered in the U. S. Senate, Jan
18th, 1882.---The National Debt
a National Curse.

The Senate having under cOnsidera.
tiOn the bill Is. No 46) to provide for the
issue OF per cent. bonds. Mr.. Pendle-
ton said:
Mr.. PRESIDENT: shall not prolOng
this debate. My colleague, the honorable
Senator who has charge of the bill, very
naturally desired to limit the discus
sion to the single question whether ii
| wOnld be more advantageous to retain
the option to pay all the 80 per cent
bonds which are now outstanding at any
time or to surrender that option as to
| $2OOOOO,0O0 of bonds upon the cOnsideTa.
tiOn of the reduction of half per cent
| of interest. That was the question
which he stated was the single one en-
| bTaced properly in the discussion IF this
| bill. But it was obviously impossible to
| limit the discussion to that single ques-
| tiOn. The circumstances, if not the sub
| ject, made it absolutely certain that
there would be drawn within the scope
of the debate not only that question, but
the national bank question, the silver
question, and the greenback question;
and these all have been discussed to
some extent. They are large questions
and have not been exhausted. They
will be brought very soon before the
Senate, and it will be for gentlemen at
that time, myself among the number, to
take part in the discussion of them.
This bill provides for the insurance of
$2OO,OOO,O00 of bonds at per cent. in
terest redeemable after five years, 1t
was the opinion of those who framed
the bill, and my colleague has expressed
the opinion, that for persons who had
money and were seeking good invest
ment this bill offered fair If not a
tempting opportunity; and he expressed
with caution his belief that these bonds
would float easily upon the market.
The purpose of this bill is to furnish to
the people of the United States who de-
sire to pay lawful money at par for the
bonds an opportunity to invest in them.
The Senator from Missouri, Mr.. Vest,
knowing we'll that the national banks
furnish large market for all our bonds,
and that whenever they pay lawful
money for the bonds they desire to have,
in addition to what other citizens OBJ
tain basis for the insurance of cur
rency, seeking also, no doubt to aid the
Senator from Ohio in floating this loan
at this low rate of interest, offered his
amendment. That amendmentlcOntain
two propositions:
First, that whenever the national
banks already existing shall desire in
the future to enlarge their circulation,
or whenever citizens shall desire to or
ganize new banks, they shall make these
3 per cent. bonds the basis of their or
ganiZation; and second, that whenever
banks, whether those organized in the
past or those to be organized in the
future, shall desire to withdraw from
the Treasury of the United States the
bonds which they have deposited as the
basis Of their circulation, they shall de-
pOsit in the Treasury, not lawful money,
but the notes which these bonds are
pledged to redeem.
Now, Mr.. President, why should not
that amendment be adOOted? Take the
first division of the amendment of the
Senator from Missouri. 1t is that banks
hereafter intending to increase tn, ir
circulation, or citizens desiring here
after to organize new banks, shall use
these per cent. bonds. Why should not |
that amendment be adOptedP The banks !
are the creatures of the Government, as |
has been said a dozen times. They are |
the inStrumentalities by which the |
Government seeks to carry out its policy. |
1t is only upon this idea, as has been |
shown beyond all contradiction by the |
Senator from Arkansas, Mr.. Garland,
that the banks could exist at all. The |
law authorizing their existence would
be utterly unconstitutional if it were
not that they are instrumentalities for
the purpose of carrying out powers
granted to the Federal Government.
They are the creatures of our law. They
are the servants of the Government.
They are the instrumentalities of a
public policy. In their origin, they
were organized for the very purpose of
affOrding market for the national
bonds. That was the only excuse of
their being. Except for that they
would have had no being at all.
And now, sir, when this object exists
to it's full extent; when we are issuing
new bonds; when we are issuing them
at lower rate of interest; when money
in the market does uOt command the in
terest which it did at the time these
banks were organized; when it is be-
lieVed that these bonds at per cent.
furnish not only a safe but a remuner
ative investment to the people of the
country, should like to know why these
banks, which are the creatures of the
legislation of Congress, organized in
pursuance of public policy, should not
be compelled to take them it in the
future they wish to derive from them
advantages which no citizen could de-
rive. Idislike to use the word compel"
do not think it is proper one in this
connection; but it has been used so often
that it rises upon the lips of all. There
is no cOmpulsiOn. We do not ask the
banks to increase their circulation. We
do not ask the citizens of the country or
the owners of other banks to establish
new ones. We impose no forfeiture if
these banks do not take Ethese bonds.
We do them no injustice by taking away
from them any of the franchises which
they now have. We merely say to them:
If, in addition to the benefits which the
individual citizens are to derive from
the purchase of these bonds, you desire
to make them the basis of the currency
of the country, the basis of that great
privilege of issuing the circulating
medium, you shall take these bonds
which we offer to our citizens.
Why, Mr.. President, instead of COM
pelling the banks. instead of discrimi-
mating against them. instead of doing
anything which shall be in any sense
considered a hardship upon them, we
give them this great advantage over
every other citizen and every other cor
pol alton in the country, that if they will
buy these per cent. bonds they shall
have the valuable privilege of issuing
the circulation.
1 agree with the Senator from Ar
kansas that the amendment of the
Senator from Missouri is the logical, the
legal, and the financial sequence of the
bill introduced by my colleague.