Savannah morning news. [volume] (Savannah) 1868-1887, 1884-02-19

sorted to in certain cases-but that the idea
had not found favor with Mr.. Calhoun's
political associates. Great men sometimes
entertained peculiar ideas. Mr.. Calhoun
/ had also advocated certain views of pro-
lection which differed very widely from
the views of the Senator from Texas Mr..
Coke.
Mr.. Call believed that the remedial
measures proposed to meet the antici-
pated contraction of the currency were
entirely wrong. We were not discussing
the relations between the national bank
ing institutions and the national debt.
We were confronted by the fact that there
was debt of 81, 1873, 000, 900, bearing in
terest, and a large surplus in the Treas
ury. The bill before the Senate proposed
remedy for the contraction incident to
the extinction of the national debt to the
amount stated in bonds convertible into
currency upon certain conditions. What
was the remedy? 1t was proposition to
induce the deposit Of bonds and the taking
out of circulation. 1t was therefore a
proposition to add new quality to the
value Of bond. This contraction re-
suited from the high premium value of the
bond, the difference between a certain
proht OF selling bond to the government
at nigh rate of premium and retiring
circulation and uncertain profit of retain
ing the bond and circulation until the high
value OF the bond changes and induces the
sale OF the bond and surrender of the cur
rency. High premium on the bond,
therefore, is the cause of the contraction
and the remedy proposed i'm the bill is to
add a new value to the bond, which would
increase the present high premium. If
contraction was produced by capacity to
realize the present and certain high pre-
MUM, could you remedy the difficulty of
contraction proceeding from this cause by
letting the cause remain; that is, by max
ing the present profit more certain? The
present high premium is a certainty. The
disappearance of that premium in the
future involves an uncertainty. 1t was the
safety OF the bond that gave it the pre-
MUM. Not so with the premium itself
1t formed no part of the bond. The pre-
MUM value of the bond must depend upon
the natural demand for the bond. The
government was using a sum amounting
to about $350000,000 a year, leaving sur
plus OF about S100,0O0,000 after all its
needs were provided for. 1t was one way
OF giving money back to the people to buy
bonds, and they were bought at such a
rate OF premium as might be demanded
Tor them. The government informed the
owner OF the bonds that it would put a
tax on the people and buy bonds at what
ever rate of premium they might bear.
The government was therefore a pur-
chaser III the market-a bidder with
SlOO,OO0,O00 at its command. Was it pos
sble for this fact to exist without its be-
coming factor in the value of the bond?
ana could the effect sought be realized
by adding 4 new quality to the value
OF the bond. Excessive revenue and high
premiums on bonds cOnduced to the with
draWal OF currency from commerce. The
true remedy Mr.. Call believed to be in the
direction of reduction of taxation and ces-
q .F@EH 1
MUM. Though he might be compelled to
vote for one or the other of the propOsi-
tIons before the Senate, he was of the
opinion that they would not accomplish
the end aimed at unless power was vested
In the Secretary of the Treasury to use.
when necessary, the public credit of the
United States i'll some other form. Con-
traction must result from the present con-
dition-high premium on the bond. eX-
cessive surplus in the Treasury, and the
necessity OF using that surplus in the eX-
tinctiOn of the debt.
Mr.. Plumb modified his amendment by
providing that Treasury notes are to be
issued If, within thirty after the surrender
of national banks circulation. some
other national bank does not take it up.
and by adding at the close the following:
"lhe true intent and meaning of this sec
ton being that the volume of paper money
outstanding, exclusive of gold and silver
certificates, shall remain as now exist
ing" On the suggestion of Mr.. Butler.
who wanted to see the amendment as
modified in print, the Senate went into an
executive session, and when the doors
were reOpened adjourned.
The debate was continued by Messrs.
Plumb, Morrill, and others until the Sen
ate, after briet executive session, ad-
jOurned.
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