The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-12-25
He Has n Plan for Adjusting the
Union Pacific Debt and Retiring
Outstanding LegnI Tenders.
A MISSISSIPPI DEMAGOGUE
SENATOR GEORGES EFFORTS TO
POSE AS A GREAT ECONOMIST.
Decision Against Edison's Phono-
graph I'm Favor of the Grsphophone
-GeneraI Swnfm Retired.


Speclal 10 the luuldndpOIS JouTual
WASHINGTON, Dec 24.-As soon as Con-
gress reconvenes after the Christmas holi-
days it is proposed to submit plan 10
the Democratic leaders whereby II Is hoped
to provide for the settlement OF both the
currency problem and the equally difficult
question of the settlement OF the debt OF
the Pacific railroads TO the government.
The plan proposes the issue of a 3 per cent.
bond and with it retire the prior lien on
the Uunion Pacific the government thereby
controlling the properties and protecting
its second lien. This new per cent bond,
il is said, would be received as a basis or
circulation at par by national banks. there
by causing demand for the bonds and fur
nishng asafe basis for our currency for
many years to come. This, ii is claimed.
would do away with the complicated cur
rency scheme now before Congress and
which appears to have no prospect of ulu-
mate enactment into law. II would also
tend 10 simplify the situation, both as re-
CARDS the Union Pacific's debt to the gov
ernment and as to the national bank cir
culation. The contention OF the Union
Pacific reorganizated syndicate is that
a settlement OF the government
debt of the Pacific railroads would
mean a radical change for the better in the
entire railroad situation. and that In de-
fault of such settlement the disruption or
the Union Pacific system is i2eyitable and
would entail an immense loss to the gov
ernment. The assurance OF the preserva-
ton OF the integrity of the system would
induce the holders of Union Pacific secur-
titles to offer the government the most de-
srable terms possible. 1t will also be urged
that a settlement Of the entire amount OF
| the Union Pacific debt the basis OF q
| per cent. bond is as favorable as the gov
ernment ever hope to obtain. particu-
| larly II the first mortgage. which now ranks
ahead of the government lien. should be
removed.
Representative Culberson, OF Texas. will
| submit TO the caucus of the Democrats.
which is to be called shortly after the re-
cos1vening OF Congress. to map out, IL
possible, some concerted plan of action for
the rest of the session, a proposal which
| is in the nature of the above proposition.
Mr.. Culberson will propose the Issue OF a
| low-interest bond. to call in all the out
| standing legal tenders and at the same time
| adjust the Union Pacific debt. Ii will re-
| oure some five hundred millions TO call
| i'm the legal tenders and possibly seventy
millions more To retire the Union Pacific
| liens Mr.. Culberson believes that the
| treasury could float these bonds at per
| cent He would permit tie national banks
| to have them at par and then so amend
existing legislation as TO permit netionai
banks to issue currency TO the full par value
| of the deposited bonds. BY these means,
he believes they would prove acceptable
! TO the banks. even at the low rate OF in-
terest ne proposes. The retirement OF the
| legal tenders would put an end to the see
saw game which the New York bankers
have been playing on the treasury, COM
| pelling the Secretary TO issue bonds when
| ever they desire them and then robbing
| him of his gold almost as fast as he re-
| ceives II. Such a proposition coming from
| Mr.. Culberson would have great weight
| with the Southern members who form the
| bulk OF all the opposition to every bill
which seems to favor national banks and
] who are rampant at the veriest suggestion
of issuing bonds. Mr.. Culberson enjoys the
absolute confidence Of all the Southern men.
| a confidence which is shared by every man
in the House, irrespective of party. He ID
one OF the Oldest men In the House and
| conceded to be the best jrrist.