The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1897-02-12

in a political debate on financial ques
tions which was precipitated by an in
nocent provision in a bill providing TO
funding the debts of the territories. TIL
bill aroused the opposition of Mr.. Nc
MILAN because it provided for gol'
bonds and the payment of interest II
gold or it's equivalent. Knox of Massa
chusetts, Republican, said the stipula
ton regarding gold bonds applied onl!
to Arizona which had outstanding golt
bonds to be refunded.
Payne of New York, Republican, salt
he saw no reason why the other terri
tories should be permitted to issue gol,
bonds This bill bore this relation t.
the question of whether we should pu
| gold in the bonds OF the United States
| He had voted to put gold in the bond.
when the administration put the coun
try in position where not to do 81
would cost the people s12,000,000. Con
gress refused, and now the taxpayer:
| would have to pay those Sl2,OO0O0O.
"And yet you maintain" interrupted
| Terry of Arkansas, Democrat, that we
should pay those bonds in gold, although
we paid S12000.000 for the privilege oil
| paying them in silver?
Every one maintains, almost every
one maintains" replied Mr.. Payne, that
| the bonds are payable in gold. Even the
| late Democratic candidate Tor vice.
president (SewalD who ran on silver
platform, held gold bonds and the silver
mine owners who were rampant for free
silver sentiment wrote gold in their
notes"
Mr.. Hartman Mont. Rep.) indignant
w denied the statement but Mr.. Payne
insisted that he was right. He said the
western debtor. in order to get money at
,af; tot oh ie.
ed to agree to pay the principal and In
terest in gold He said he believed every
United States bond should be paid in
gold.
Mcguire (Cal. Rep) replied to Mr..
PAYNE. He said the honesty of the be-
levers in free silver was not to be ques-
toned because some of Them in loaninS
their money made gold contracts. Sill
yer had by law been deprived Of its legit-
innate function as money. Gold had
been given special privilege. Silver was
n token money. Why should business
man abandon the business advantage
which the law gave him because of his
conviction as matter of policy silver
should be remonetized
Bailey TEX, Dem) made brief ar
gument to demonstrate that gold con
tract. being contrary to public policy,
was illegal.
Walker Mass. Rep). chairman of the
committee on banking and currency, de-
clared it was as notorious as that the
sun shines that there We're certain states
of the union whose monetary system
was beyond the reach of congressional
legislation There We're seven states
where all transactions We're in gold,
and yet it was curious that the repre-
sentatives from those states on this floor
sought to compel the rest of the union
to take 80 cents on the dollar He urged
the house to vote down an amendment
that had been submitted by Mr.. Nc
MILAN. which was as follows:
Provided, That the principal and in
terest Of the bonds funded under this
act shall be payable in any lawful
money of the United States, except the
Arizona bonds above described hereto
fore issued
Bartlett On. Y, Dem.) warned the
house that the adoption of this amend
ment was equivalent to declaration
in favor Of soft money.
Lacey QOwa. Rep) deplored the fact
that a financial debate had been precip-
itated by the bill, and expressed the
hope that this bill would not be run
ashore and wrecked on a silver coast.
Hartman again got the floor to deny
the statements Of Walker. who. he said
had furnished more transformation 20
the world on this question than all the
rest of the house"
He insisted that gold contracts We're
not made in his state, and read one of
fifteen letters from cashiers of banks
in his state denying gold contracts
His correspondent said he had been iii
the banking business twenty years and
had never seen gold note. In justifica-
ton of his statement, Mr.. Walker pro-
duced and read some gold notes made in
Utah and California. He said he re-
GREETED it, if he had made mistake in
enumerating the seven states, but he
insisted there We're seven states where
practically all the time obligations were
payable in gold.
Mcmillan amendment was agreed to
-l49 to Z, after which the bill was
passed
The mouse then went into committee
Of the whole and took up the postoffice
bill. Loud. California,
Republican, in charge, said there was
some question of the justice of the pres
ent method concerning the compensa-
ton to be given to the various railroads
for carrying mails. He said congress
could do nothing but fix the maximum
1t was within the power
of the postmaster general to devise
methods for obtaining the Transportation
of the mails at just and equitable rates.
The cost Of the transportation of the
mails during the last eighteen years has
been sos, 100000 OF this $40, $40 600 had
gone to the land grant roads, which re-
ceiVed 20 per cent less tnan non-aided
roads. Yet the transportation of mail
was so profitable to those land grant
roads at the reduced compensation that
they had put on fast mail trains in order
to get the contracts. He thought all the
roads should be put on the same basis.
The non-aided roads could afford to
carry the mails al the rates paid land