Year: 1860

In the House of Representatives on the 5th inst
who reported the postofiicc appropriation BILL an
explicit statement TO the right under the bill.
Of certain class of contractors TO draw interest on
their claims Those contractors who have obtained
Accommodations from the Banks, by hxpothecating
postofhce scrip as collateral security will see that
they win meet with no difficulty in obtaining inter
est on such scrip. p.


Mr.. QUARLES I desire to ask an explana-
tion.


The CHAIRMAN. The Chair win state to the
gentleman from Tennessee that no debate i in order
without an amendment.


Mr.. QcARLES. Well, I move to amend by
striking out of the Senates amendment all after
the word "blanks." merely wish to state 10 the
committee the condition of certain classes of the
public creditors under this bill, and to know what
IL provides for. In the State of Tennessee nearly
all of this Post Office scrip is owned by the three
principal banks-the Union Bank, the Planters
Bank, and the State Bank. They baye discounted
the notes of the contractors, and hold Post OAfce
scrip as collateral secnTity II understand one of
the amendments Of the Senate II is that the interest
shall only be paid TO the contractors. Now, the
bank will collect the interest on the note from the
contractor and the wrong will be done TO the con-
tractor, whereas the bank will lose nothing by II.
My object is TO know whether the contractor can
under this amendment come 70 the Department for
the interest which he had to pay to the bank? 1t
would be doing to the contractors of my State a
manifest injustice it, after having been forced to
discount their notes, and hypothecae the Post Office
scrip, they should be required TO pay interest to the
banks and receive none from the Government.
The Government Is the wrong-doer They failed
TO provide for this branch Of the public service and
most certainly should not compel the contractors to
pay interest on their notes to the banks, and then
refuse to reimburse them. In justice to them, /
ask for an explanation ofthis provision


Mr.. PHELPS. | will answer the enquiry pro.
pounded by this gentleman from Tennessee Under
the provision of the bill il has now been ADOPTED
in the Committee of the Whole on the state of the
Understanding in the Senate amendment and
so in the original b-these Postoffice certificates
would be paid to the holders These were the terms
on which the certificates were issued The amount
was to be paid on the surrender of the certificate
and where assignment is made, the payment Is 10 be
made to the assignee BY the bill, interest is pro-
vided to be paid to the contractors themselves The
banks will be able to present to the Department the
certificates witch they hold and to receive the
amount appearing on the face of the certfcs,es.
The interest that will have become due on deferred
payments will be credited paid TO the contractors
and to them alone. The banks, as in the cascsstat-
ed by the gentleman from Tennessee, have already
collected the interest the notes as they discount
ed them


Mr.. QUARLES. ] am perfectly satisfied with
the explanation Of the gentleman. Ny only object
was TO know whether, in that state Of the case the
contractors could get the interest allowed them.


Mr.. PHELPS. Most certainly. The interest
will be paid to them and to them alone.