Los Angeles daily herald., 1888-04-17
CONGRESSIONAL.
Farwell's Four Per Cent.
Refunding Bill.
THE RIVER AND HARBOR BILL
Regan's Record on National
Banks-The Sioux Re-
ServatiOn.
I Associated Press Dispatches to the HERALD

lulIOuuCcu d Jill LII ohC DChohtC lO-udy
granting a pension of S., 900 year tt
the widow of Chief Justice Waite
Referred to the committee.
Hoar offered a resolution (Which
was adoptedD instructing the Select
Committee on the operations of the
civil service to inquire and report
whether there has been within two
years any fraud or maladministration
in the New York Custom House in
regard to the Importation of sugar.
Riddleberger offered a resolution oi
suspension of the Senate rules to the
Executive sessions during the CON
sideration OF the Fisheries Treaty.
The resolution went over under the
rules.
The Conference reports on the bill
to divide the great Sioux reservation
into separate smaller reservations and
to ratify and confirm the agreement
with the Gros Ventres and other
bands of the Blackfoot Indians in
Montana were presented and agreed
to.
On motion of Farwell the bill pro-
viding for the investment of certain
funds in the Treasury was taken up
and Farwell proceeded to address the
Senate on
THE FINANCIAL QUESTION.
He gave notice OF his intention to offei
two amendments to the bill. One of
them directs the Secretary of the
Treasury to issue and sell to the Ma
tional banks at par for United States
notes, United States 21a per cent
bonds, redeemable after fifty years, to
be used by the banks as security foi
their circulating notes, notes to be is
sued to full par values of the bonds. II
also directs the Secretary OF the Treas
ury to invest
THE SURPLUS FUNDS
Held in the treasury, including the
amount to be received for these bonds
in the purchase of any United States
bonds in open market and repeals all
sinking funds. The other amendment
authorizes the Secretary of the treas
ury, in order to enable National banks
to maintain and increase their clrcu-
lation and to prevent the ultimate
destruction of banks by the pur-
chase on payment Of the National
debt to receive from the
bank to secure their circulating
notes, State, county or municipal
bonds upon which the interest has
been heretofore promptly paid, and
whose market value of bearing interest
is not less than four per cent. Such
bonds, however, are not to be received
by the treasurer at more than rs per
cent of their par value nor until the
approval of the Secretary of the Treas
ury, the Treasurer OF the United States
and the Comptroller Of Currency shall
be endorsed upon them. Farwell went
on to say the bill was good enough
so far as it went, but it
did not include the whole financial
question, which he regarded as OF per-
manent interest, and only proposed to
tt mp prize with it. 1t simply reduced
the interest on 4 per cent. bonds to
21s per cent. These bonds amounted
to over 500, 900, 900, and matured in
1907, and it authorized the National
banks to receive circulation at par on
them and upon all other United States
bonds. The bill did not
REMEDY THE EVILS
OF the present financial condition.
The two amendments which he pro-
posed to offer would, he thought, cure
tn ose evils. He would, if he could
do so, amend the financial legislation
of the country SO that the national
banking systematic best ever de.
vised - should be continued. His
amendment, if adopted, would enable
the national banks to use the present
debt of the United States, if that debt
could be continued at its presen
value. The legislation proposed
by him would be adequate to
the maintenance of a National bank
ing system; but he recognized that
the American people were anxious
and determined to pay the debt.
There could be but one standard
in his judgment. The thing that
would make no difference to anybody
in this country was to accept the in
evitable and make adjustment at
once. If it were desired to make a
silver dollar equal to gold, the
requisite quantity of silver should be
put into it, then nobody would be
cheated.
In conclusion he said: Under these
amendments or by some other similar
legislation I would refund the present
public debt at 21e per cent. at fifty
years and authorize the National
banks to receive circulation at par for
such amounts as they might use for
that purpose. L should require the
Secretary of the Treasury to invest
this surplus in the purchase of any
Indebtedness of the Government
in open market from time to
time. would have spent
the requirements of the sinking fund
because, if the Secretary is authorized
to buy the public debt with the surplus
from time to time, the requirements
OF the law creating that fund would
be no longer necessary. For the pur-
pose OF enabling the people to
MANAGE THEIR AFFAIRS
Without interference on the part OF
the Government i would allow them to
maintain the volupe of national bank
circulation up to the amount of the
national debt by State, county and
municipal bonds as provided for by
the last amendment which proposed.
If such legislation can be passed, we
will hear no more of money strin-
gency or panics.
Reagan said his wish was to see the
country relieved Of the bonded debt
as early as possible. He did not deny
that the national bank had subserved
very valuable purpose both during
and since the war, but he had nc
regret that the time was approaching
when they should become extinct
They had shown themselves to be
guided by a policyspeculiarly thei,
own, and it was for the best
interaata of the cnuntrx ha yuo,1ld