Year: 1879

SENATE.


Mr.. Bayard reported favorably from
the Committee on Finance on the House
bill for the exchange of subsidiary coin
for legal tender money, and asked for
its reconsideration. Invent over under OBJ
lection.


Consideration was then resumed OF
the legislative, executive and judicial
appropriation bill.


The clerk read the clause which the
Committee on Appropriations proposed
should be stricken out, namely: "ln
order t) provide for the speedy paw
ment of the arrearages of pensions, the
Secretary is hereby authorized and di-
rected to issue Immediately in payment
thereof the ten millions of dollars in
legal tender currency now in the treas
sury, kept as a special fund for the re-
demptiOn of fractional currency


Mr. Booth opposed the amendment
striking out the clause and could see no
reason why the money should not be
used for the payment OF arrears OF pen
siOns.


Mr. Bayard supported the amendment
and caused to be read letter from the
Secretary of the Treasury, saying that a
diversion of the money for the purpose
stated would be to increase the public
debt To that amount and suggesting that
it would be better to issue bonds to
meet the obligation.


Mr.. Beck said that the Committee on
Appropriations were divided on the
amendment. For himself he was in
favor of directing the Secretary of the
Treasury to pay out the residue OF SlO,-
100000, namely, SS,446,3SS, for arrears
of pensions. The redemption of frac-
tional currency had fallen from - 2,OOO,-
600 10 Sl,200,OOO month. Why not
pay out money which was lying idle in
stead of issuing bonds to bear interest? &?
He criticized the fiancial policy of the
Secretary of the Treasury, saying that
the latter had made himself the trustee
of bankers and bondhOlders by giving
them the choice OF coin in which they
shall be paid instead of paying them
with silver coin.


Nr. Plumb wished TO say that when
ever the expenses of the government
exceed its receipts he would increase
the taxes instead of increasing the
public debt. He was in favor of paying
pension arrears with the remainder of
the money heretofore set apart for the
redemption of fractional currency, now
idle in the Treasury.


Mr.. Davis, of West Virginia, chairman
of the Committee on Appropriations,
said that the question of increasing
the bonded debt was not in this bill.
The question involved was whether
they should take a backward step
in resumption, which he was not
willing to do. Although ne did not APP
prove of all the Secretary of the Treas
ury had done in the way of resumption,
he thought the Senate ought not TO in
teriere with the law for the redemption
of fractional currency; but they might
paw the arrears of pensions with the
twenty-three million silver dollars in
the treasury.


Mr.. Voorhees, said he was going to
vote for the application OF ten millions
lying idle in the treasury to the pay
ment of arrears of pensions. The Sen
ator from West Virginia Davis in
formed this body that he would take no
step backward in resumption. He
Voorhees, would take thousand steps
backward ii he could restore theinterests
of the people, wrecked by bankruptcy
thrust upon the county. The machinery
of the Secretary of the Treasury had
withdrawn the benefits of cir
culation from the business channels
and placed them in the hands of capital
lists resting on the shoulders OF labor.
There was no specie resumption, but
only an equalization OF the currency.
II an act had been passed declaring that
the Government would receive IS own
money for what was due it, GreenbaCks
could have been put ten years ago where
they are now. The boast was made of
Sl50,OOO,O 900 of bonds being taken in one
day bv National bank or
two. When so much money was
drawn from the channels of circulation
the country became a dead instead of a
running stream, carrying iructltylng
power over the land. Ii business was
prosperous money would not be found
seeking investment at four per cent, in
time of peace. The spirit of avarice
seeks an opportunity to hold more OF
the public debt, while the people are
hungry, owing to the withdrawal OF
capital from trade, and unable to obtain
the labor which they seek.


The question was then taken on strik-
ing out the clause as recommended by
the Committee on Appropriations, dI-
recting the Secretary of the Treasury to
pay the arrearages of pensions with the
ten millions kept as special fund for
the redemption OF fractional currency.
lit was decided in the negative-yeas %,
nays 81; and, therefore, the clause re-
mains in the bill.


Ali,urpaH