The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1882-02-14

SPEE EGCa
Hon. Geo. H. PendIeton,
OF oHfo,
DELIVERED IN THE
SENATE OF THE UNITED STATES,
JANUARY II, 1882,
On the Three Per Cent Funding Bill
The Senate having under consideration. th,
bill Is. No, 46l to provide for the issue of
per cent. bonds
Mr.. PENDLETON said:
Mr.. PRESIDENT I shall not prolons
this debate. NV colleague, the honor.
able Senator who has charge Of this
hill, very naturally desired to limit the
discussion 10 the single question whcth-
er II would BE- more advantageous to re-
tain the option to pay all the 81 pei
cent. bonds which are now outstanding
at any time or to surrender that option
as to 5000, 100000 of bonds upon the
consideration of the reduction Of hall
per cent. Of interest. That was the
question which he stated was the single
one embraced properly in the discussion
of this bill But it was obviously i'm.
possible to limit the discussion TO thai
single question. The circumstances, il
not the subject, made it absolutely Ger
tain that there would be drawn within
the scope of the debate not only that
question, but the national bank qrestion,
the silver question, and the greenback
question; and these all have been dis
cussed to some extent They are large
questions and have not been exhausted.
They will be brought very soon before
the Senate, and will be for gentleman at
that time, myself among the number, to
take part in the discussion of them.
The hill provides for the issuance of
5000, 100000 of bonds at 8 per cent in
terest redeemahle 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
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 desire
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 natlonal banks
furnish large market for all our bonds,
and that whenever they pay lawful mon
ey for the bonds they desire to have, in
to what other citizens obtain a
basis for the issuance of currency, seek
ing also, no doubt. TO aid the Senator
from Ohio in Fl finating this loan at this
low rate Of interest, offered his amend
ment. That amendment contains two
First, that whenever the national banks
already existing shall desire in the fu-
ture to enlarge their circulation, or when.
ever citizens shall desire to organ'z,
new bauas, they shall make these 3 per
cent bonds the basis of their organiza.
lion; and
Second, that whenever banks, whether
those organ;z I'd in the past or those to
be organized in the future, shall desire
to withdraw from the Treasury OF the
United States the honds which they have
deposited as the basis of their circula-
ton, they shah deposit in the Treasury,
not lawful money, but the notes which
these bonds are pledged to redeem.
Now, Mr. President, whv should not
that amendment be adopted? Take the
first division Of the amendment of the
Senator from Missouri. II is that banks
hereafter intending to increase their cir
culation. or citiz ms desiring hereafter 10
organize new banks, shall use these 8
per cent. bonds Why should not that
be adoptedS The banks ore
the creatures of, the Government, as has
been said tlozen times. They are the
by which the Govern
ment 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 au
thoriziDg their existence would be ut.
terly unconstitutional if it were not that
they are iastrumentalities for the rur
pose OF carving out powers granted to
the Federal Government They are the
creatures of our law They are the ser.
wants of the GoverhmsIt. Thew. are
the instrumentalities of public policy
In their origin they were organized for
the very purpose of aHording 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 its full extent; when we are issuing
new bonds; when wesare issaing them
at lower rate of interest; when monev
in the market does not command the
interest which it did at the time these
banks were organized; when it is believ-
ed that these bonds at 3 per cent. fur
nish not cnly safe but remunerative
investment to the people OF the country,
| should like to know why these hanks,
which are the creatures OF the legisla-
ton of Congress, organized in pursu-
ance Of public policy, should not BE-
compelled to take them il in the future
they wish 10 derive from them advanta-
ges which no citizen could derive.
dislike to use the word compel" do
not think it is proper one in this con-
nection; but it has been used 50 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 citiz,n of the country
or the owners Of other banks to es'ah.
lish new ones. We impose no forfeit
ure if these banks do not take these
binds. We do them no injustice by ta-
king away from them any of the fran
chises which they now have. We mere
ly say 10 them, II, in al iition to the
benefits which the individual citizans 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 is.
suing the circulating medium. YOU shal
take these bonds which we offer to oul