The news & observer., 1897-02-12
The Bill Passes Approprlatlng
About SO, 100000.
FAST MAIL BILL UP AGAIN
-swAHsoN AS USUAL Is ON DECK
FOR 1T.
CAMPAIGN TALK PRECIPITATE0
,., IA, the BiiI TO Allow Arizona
IN Issue Refunding Gold Bonds
Senator Morgan Digs
Grover Again.

Washington, ID. c., Feb. 1.-THE
Honse to-day passed the fortfhcauon
appropriation bill without single amend
mont and made some headway with the
postoffice appropriation bill. But 'ne
major. nort;on Of the day was consumed
in a political debate on the financial ques-
tion. which was prccipitated by an lnno-
cent provision in bill which was passed
authorizing the Territories to fund their
sehfs at lower rate of interest than
they are now paying. It was provision
authorizing the issue of gold bonds 10
fund outstanding gold bonds OF Arizona.
Over a score Of members were drawn ihto
the controversy. An amendment was
dnally adopted by an overwhelming vote,
limiting the authorization Of gold bonas
to Arizona.
Mr. Hainer rep, Nebraska), who had
charge of the bill, explained its provisions.
Tae hil carried 50 It's, ,325. based on
recommendations aggregating SlS,390, BOT.
or the items in the bill 81 195, ,076 were 20
meet contract obligations authorized by
the current law Mr.. Hainer called at
fention to the comprehensive scheme Tor
fortiScations. entered upon last year, the
appropriations previous TO that time for
nine wears having averaged but S3lS,-
56S. If il were not for the urgent neces-
sity for economy in expenditures, he SAID,
the committee would have felt fully
justified in bringing in bill carrying the
full amount of the recommendations
The bill providing for funding the debt
Of the Territories then came up and
aroused the oposition of Mr.. Mcmillan
Dem.. Tennessee) because it provided
for gold bonds and the payment of IN
terest in gold or IT'S equivalent
Mr. Knox rep, Massachusetts, SAID
that the stipulation regarding gold bonds
applied only to Arizona, which had out
standing gold bonds TO be refunded. lie
agreed with Mr.. Mcmillan that Congress
should not enter upon policy OF author
izing issues OF gold bonds.
Mr.. Payne Rep, New York; said ne
saw no reason why the other Territories
should not be permitted to issue gold
bonds. He said this bin bore no relation
TO the question of whether we should
put gold in the bonds of the United
States. He had voted to put gold IN the
bonds. he added when the administration
put the country in a position where not
to do 50 would cost the people S12,000,00O.
Congress refused, and now the taxpayers
would have to pay those $12000,O00.
"And yet you maintain" interrupted
Mr.. Terry lDem.. Arkansas that we
should pay those bonds in gold, although
we paid S12,000,000 for the privilege OF
paying them in silver"
Almost every one maintains, replied
Mr.. Payne, ''that the bonds are payable
in gold Even the late Democratic can
didate for 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 t(Rep, Montana) indig-
nantly denied this statement, but Mr.
Payne insisted that he was right He
said that the Western debtors, in order
to get money at a respectable rate Of
interest. were obliged to agree to pay
principal and interest in gold. He said
he believed every United States bond
shonld be paid in gold.
Mr.. Bailey Dem, Texas) made a brief
argument to demonstrate that gold con-
tract, being contrary to public policy, was
Illegal.
He then yielded TO Mr.. Walker (Rep.,
Massachusetts,. chairman Of the Com
nittee on Banking and Currency, who
declared it was as notorious as that the
eun shines that there were certain States
OF the Union whose monetary system
was beyond the reach of Congressional
legislation. There were seven States
where all transactions were in gold and
yet it was curious, he said, that the rep
resentatiyes from those States on TINS
floor sought to compel the rest OF the
Union to take 80 cents one dollar. lie
insisted that Congress should not inter
fere with private contracts. lie urged
the House TO vote down an amendment
that had been submitted by Mr.. Mcmillan
Dem.. Tennessee) which was as follows:
s'Provided that the principal and interest
Of the bonds funded under this act shall
be payable in any lawful money OF the
United States, except the Arizona bonds
above described, as heretofore issued.
Mr.. Bartlett Dem., New York;, VINO
described himself as a "gold Democrat,
warned the House that the adoption OF
this amendment was equivalent TO de-
elaration in favor of soft money
Mr.. McAfillan's amendment was agreed
to-149 to 7-after which the bill passed.
The House then went into committee
ef the whole and took up the postof-
fce appropriation. Mr.. Loud, (Rep.,
CALI, IN charge, made an opening state
ment in which he said the bill as re-
ported, contained substantially the items
recommended by the Department. The
estimates were 81 ,903 693 more than the
bin carried $95.611, ia, which was $3,-
040150 morde than the aggregate of the
current year.
Mr. Bromwel, (Rep., Ohio), mem
Der of the postoffice committee refused
to give his assent to the subsidy given
the fast mail from New York TO New
Orleans. He declared that the S19e, 900