National Republican., 1888-03-15

,oI the issue Of securities all Of Ynl II wore
rcGcemahlc within twupty years ana tw1.
thirds OF which were rCdeemable within iii.
ycers;so thatifthe bill as reported by the con-
mittoc on finance had become tn law no such
difficulty rs we are now labnriug under would
exist, but four hundred millions oftnese bund-
would be within reach Of the government
at this moment, AMI the fonc hundred millions
would be due within two years.
The bill passed the senate in Substantially
the form reported from the committee on
finance by the large vote Of SO to 10, aud was
perhaps the most carefully prepared Of any of
tho financial measures OF the government. In
opening the debate | called the attention Of
the Senate to the great advantage the gOyern-
meut had derived from making Us bonds re-.
dctmable at brief periods like the $40 b lnds
he 1910 bonds, ana the treasury notes.
also called attention TO the fact that the same
principle of maintaining the right 10 redeem
had been cografted in the bill then before the
Senate, that the duration OF the bonds was di-
yided into three periods OF ten, fifteen, aud
twenty years, during which time, by the gcia-
ual application OF the surplus revenue, the
whole debt might be paid.
This bill was sent to the II )use on the 1 tth
Of March, 1870. On the lst of July the
House adopted a substitute, which con.
tained the following:
That the Secretary of the Treasury is hereby
authorized to ISSUE In sum or sums not OK
Ccodng in the aggregate 81 900 000,00 coupon
! or registered bonds of the United States, In
such form as he may prescribe and OF de.
| nomination of $50 or some multiple of tina
| sum, redeemeble in coin OF the present stan 1.
ard value ut the pleasure OF the United sti:es
after thirty years from the date OF their issue,
and bearog interest payable Semraunually in
such coin at the rate OF per cent. per aunum.
| AS Senator Sherman says:
twill be perceived that instead Of the three
series OF bonds provided bi the Seuat', the
House proposed TO authorize the issue of Sl,01O-
| 0OO,00o, redcemable In coin after thirty years
from the date OF their Issue, with per ccnt,
and this difference in the descrlptol of the
bonds was the chiei difference between the
prjposition of the House and the Senate.
Continuing bis remarks. Seoator Sherman
said.
Those two rival propositions, differing mainly
upon the question of the character OF the
| bonds TO be issued, were sent TO q committee
Of conference composed on the part of the
Senate Of Messrs. Sherman, Sumner, aud
Davis. 1t appears that the chief controversy
in the conference was as to the description of
funding bonds to be provided for. After many
meetings 1t was finally agreed that the bonds
authorized should be SlOOGO0,0l0 per cent.
bonds, 100000 COZ ia per cent. bouls of he
character described in the Senate bill, and
Sl,CO0,00O, 600 of per cent. bonds, as described
in the House bill In other words, 4, was n
compromise which, like miny other compro.
mises, was in its results an injury of great
magnitude, but it was an honest difference of
opinion between the Senate and the House,
in which, tested by the march of time, the
senate was right and the House was wrong.
And thus thirty.year securities now ut f pre-
MUM gilmore than % per cent were forced
into the law by the determined action of the
House. No doubt the members were honest
in their convictions that long per cent bonds
were best for the government. better than the
issue Of short bonds bearing 4 or per cent
interest, but certain II is that the then House
of Representatives is responsible for the terms
ofthese bonds, and that |, at least, am free
flom this blame, If there be any, and am
rather entitled to the credit, whatever 1t may
be, OF forming a better estimate as to what
WIS best for the Interests of the people of the
United States.
Every man who cnn sec backwards can S >
what terrible mistake that was Iimakes
difference of one or two huijrci millions OF
dollars. But does any man reprolch those in
| public life who honestly believed that the time
would never come when the government of the
United States could borrow money at less
than per cent? They thought so, and |
never would reproach them. l do not men.
ton name; will not quote their langus age,
because they were as honest as l was In in .
sisting on other terms aud conditions.
This luminous resume of the manner OF
the passage of the refunding act conclu.
sively establishes the fact that Senator
Sherman is entitled to rank as one OF the
ablest fnanslers OF this or any other coun :
try. Had his poiicy--that Of making the
bonds payable 10 ten, fifteen, and twenty
years-been adopted there would he no
difficulty about expending the surplus In
the treasury. 1t could be paid out for
bonds, because they would all be drS-but
100000, 900, and these last Would fall due
within the nest two or three years, and
could be paid of without giving some hum
dreds Of millions Of dollars in premiums.
Senator Sherman ought TO feel under
many obligations to the senior senator from
Kentucky for giving him the opportunity
to so clearly vIndi,ate himself, and at the
same time to show how wisely the Repub.
lican party proposed to legislate for the
country. The record speaks for itself,