The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1935-09-12
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swers, II does appear 10 me that there
is quite biz of unnecessary barking
going on about this one incident.
So, without defending a flibuster in
any wise, it occurs to me that we
ought TO look back into history and see
the benefits accruing from unlimited
debate in the senate, procedure which
the New Dealers now want TO change.
Through all of the years that congress
has existed the senate has moved in
! deliberative way. II has been slow,
10 be sure; yet, records Of the past
make il appear that This slow pro-
cedure has resulted inevitably in BET
| ter legislation. Many are the schemes
! that surged forward on the ballyhoO OF
q minority 10 passage in the house OF
Representatives only TO be blocked and
| properly examined in the senate. Many
| are the times as well when the delib-
| erative character of senate debate gave
| time for expression Of a majority
sentiment in the country and saved II
from being preeipitated into policies
Of national legislation that would have
worked untold harm l cannot but
! believe that the privilege Of unlimited
| debate in the senate has more good
| features than bad; that the occasional
flibuster of the type employed by the
Louisiana kingish, much as they are TO
be deplored, have been more than off
set by the results Of thorough consid-
Grafton Of legislation, and that any
| restriction upon such debate would
| sooner or later be responsible for
| enactment of some legislation for which
we would be sorry.
Time after time in years past, de-
| mands have been made for lberaliZa-
| ton of rules in the house Of repre-
sentatiyes so thar individual members
might voice their views at length The
house never has yielded from the posi-
ton it has taken that its numbers were
| too great TO permit free-fOr-all discus
sion such as takes place in the senate.
The house does its work in committees
and those committees are generally
under the guidance Of the political
party in control of the government.
the viii of the administration In con
sequence of this, it is hard TO believe
that the senate ought TO bind and gag
its members and prevent their free
expression. If there is minority,
that minority ought to be heard The
senate is the forum As personal ex-
preston, do not see where any good
al all can come from the proposed re-
strictions for senate debate and l do
not believe il will eventually
For the first time since the Civil
war, a federal government bond issue
failed the other day
Bond issue TO attract enough
FuiIIre subscribers TO alb
sorb the offering II
was a small offering al that. The
amount was only S1O0,000,0O0. The
bonds were not, strictly speaking,
United States government bonds They
were being issued by the Federal
Farm Mortgage corporation but they
bore the guarantee of the United
States treasury that they would be
paid both as TO interest and principal
and to all intents and purposes may
not be distinguished from government
bonds.
When the treasury received offers
of only SS5.5O0000, Secretary Morgen-
THAI was both surprised and ehagrined.
He laid the failure of the issue TO the
fact that the bonds were TO carry only
Ia per cent interest, a very low rate.
II was a part of the treasury policy
to sell government securities ar inter
est rates as low as possible TO reduce
the burden of the interest charge
which the government must carry on
its gigantic public debt Nevertheless,
1t amt so good"
The national debt now outstanding
is something like S30,0o0OO0.0O0. 1t is
approximately S9,000.000,O00 higher
than when Mr.. Roosevelt took Office. II
is due to 90 still higher because addi-
tional money must be borrowed 10
carry out the works-relief plans Of the
New Deal Some authorities predict
that before Mr.. Roosevelt's present
term expires as President the public
debt viii aggregate something Ike
$4,000, 100000. the highest in all his
tory for our nation
Long experience as a student OF
financial affairs prompts my conclusion
that failure of the S100000.000 issue TO
be fully subscribed does not mean that
government bonds are a bad invest
ment / am inclined TO the opinion
that the treasury tried to drive down
the interest rate too low and that most
| investors figured they could obtain a
better return than that which Mr.
Morgenthau offered them. But, after
all, there is something of warning in
| this circumstance | believe the warn
| ing Is that if the Roosevelt admins
tration continues to spend and spend
| and borrow and borrow, it must pay
| higher and higher interest rates for the
money il borrows Again. that .'ain't
SO good-7
Then. there is another thought TO be
| considered II is the question Of repay
| Ing those from whom the government
has borrowed and is borrowing funds
| for this vast program of expenditure.
| Government receipts now are less
than S4.0oo.ooo.0o0 a year Expendl-
| lures this year viii exceed SS.000000.-
o00- Even though the expenditures
are cut down and the reduction is
made quickly, somebody is going to
| pay through the numbers More taxes
and higher raxes-the highest we have
| ever known-aer in prospect The
| lately enacted tax bill win yield only
aho,,* So5n 00a 400 rao- To-;,~