, 1886-07-14
Reducing the Debt.

went into committee of the whole on tn
joint resolution directing the payment @
the surplus in the treasury on the publ
debt. Following is the text of the resc
luton:
That whenever the surplus or balanc
in the treasury, including the amount hel,
Tor the redemption of United States notes
shall exceed the sum of 500, 900, 900, j
shall be and is hereby made the duty o
the secretary Of the treasury to apply sucl
excess in sums of not less than so. 100,
600 per month during the existence o
such surplus or excess. to the payment O
the interest bearing Indebtedness Of the
United States, payable at the option Of
the government"
MIR. Morrison said counting the reserve
at 800, DOC, 900, there was still a surplus
in the treasury of 800, 900. 900. OF this
about SIS, O00, 900 was unavailable, being
made up of fractional coin, so that all
this money that would be reached under
this resolution would be about $40, 900,
900. 1t would make productive that
which was now u~nproductive, ana unless
it would do something towards making
money a little cheaper, it would save
the government something in interest,
and more than that. it would a away
some OF that temptation which led men to
vote larger appropriations and make i'm
provident expenditures. He criticised
the report OF the minority, and denied the
statement therein made, that the effort
OF the resolution would be to shake pub
lie confidence.
Mr.. Morrison admitted that he could
conceive that it might be that for a very
short time the 100000 900 might pos
sibfy be trenched upon. Suppose a call
was made to day when there was $40,
900. 600 in the treasury, and to morrow
81. 900, 900 of receipts was not enough to
meet to morrow's obligations. the 500
900, 0OO redemption fund might have to
be trenched upon; but only to a very
He argued that $lU0, QUO, 900 was a suffi-
the TACT that only $40, 900, 900 was held in
the treasury to enable the government
to redeem national bank notes in case of
failure OF banks; and in conclusion he
denied that the purpose or effect of the
resolution was to place the country on
a silver basis.
Mr., Hiscock of New York offered an
amendment providing that nothing in the
resolution shall authorize the reduction of
or payment of any part Of the 500. 000,-
900 reserve set apart for the payment of
United States notes or interest bearing in
debtedness of the United States. He
then proceeded to submit an argument in
opposition to the resolution, declaring
that it had been brought before the house
by the action of the Democratic speaker,
the Democratic chairman of the ways and
means committee and the Democratic
chairman of the appropriation committee,
against the most emphatic protest Of a
Democratic administration. This was no
disagreement on a matter of mere detail.
The difference WAS as wide as that be-
tween the two great political parties, and
this was an attempt on the part of leaders
of the house to force payment OF the bonds
in silver. They could not have been
placed except OF the assurance on the
part of the administration that they would
be paid in gold. What had induced the
Democratic party here to a~ntagonize the
administration which it had placed in
power2
Nj. Morrison suggested in reply that it
was none of his (Hiscock's) business.
Mr.. Hiscock-Is thai your enly an
swer; is that the only answer Democratic
leaders advertise-that why they have de-
parted from their administration is none
of our business?" That is the quoting of
an expression which was used most in
famously once in the city of New York
At best, in adopting the pending resolu-
ton, congress would be trying a very dan
gerous experiment-one that might bring
disorder and ruin to the people.
Mr.. Warner of Ohio offered an amend
ment providing that whenever the circu-
lating notes Of national banks are re-
deemed or collected, the secretary of the
treasury shall cause to be issued in place
of such notes, United States notes as near
as may be in denominations of those can
Nh. Mckinley, of Ohio, offered as an
amendment, the following proviso: That
the sum of 500, 900, 900 herein excepted
and reserved, which amount was pur-
chased by the sale of bonds to the extent
OF sos, 500. 900, and the balance by reser-
walton from the revenue under authority
of the act of January IA, 1875. shall be
maintained as provided by said act and
set apart for the purpose of redeeming
legal tender notes of the United States
when presented for payment, and said
fund shall not be used for any other pur-
pose.
Mr.. Weaver, of Iowa, offered an amend
mcnt, reducing the greenback reserve to
$50. 900, 900.
Pending further discussion, the com-
mlttee rose and the house adjourned.