Congressional Record-House. March 20

'1718 CONGRESSIONAL RECORD-HOUSE. MARCH 20,

By Mr. HILL: The petitions of W. Wrede and 100 others, of F. CHANGES OF REFERENCES. Duok and 100 others, of John Mason and others, of J. W. Berry and Changes of references of petitions were made, under the rule, as 100 others, citizens of Defiance and Williams Counties, and of Cas follows: per Kahl and 100 others, citizens of the sixth district of Ohio, soldiers The petition of W. B. Wellgwood, vice-chancellor of the National of the United States Army, engaged in the late war, for the early University-from the Committee on Appropriations to the Commit passage of a law providing for the payment of the difference between tee on Education and Labor. the value of the greenbacks, in which they were paid for their serv The petitions of Eban B. Grant and others; of Bernard McCormick ices, and the value of gold at the time of payment-to the Commit and 6 other~ of C. J. Poore and 122 others, citizens of Michigan; of tee on Military Affairs. citizens of l.Jolville, Washington Territory, and of citizens of Wash 1 By Mr. JOSEPH J. MARTIN: The petition of the publisher of the ington Territory-from the Committee on Appropriations to the Com Falcon, Elizabeth City, North Carolina, that materials used in mak mittee on ~tary Affairs. ing paper be placed on the free µst, and for the reduction of the duty on printing-paper-to the Committee on Ways and Means. By Mr. McKENZIE: The petitions of J.M. Nicholls and Charles W. Fischer, for the removal of the stamp-tax on perfumery, cosmetics, HOUSE -OF REPRESENTATIVES. and proprietary medicines-to the same committee. By Mr. McKINLEY: The petitions of A. M. McGregor, of the pub SATURDAY, March 20, 1880. lishers of the Ohio Volks Zeitung, of the Shreve Journal, of T. E. The Honse met at twelve o'clock m., Mr. BLACKBURN in the chair Peckinpaugh, of W. S. Potts, and of R. E. Watson, of Ohio, for the as Speaker pro tempore. abolition of the duty on type-to the same committee. Prayer by the Chapl~in, Rev. W. P . IlA.RRISoN, D. D. Also, the petition of A. McGregor, that materials used in making The SPEAKER pro tempore, (Mr. BLACKBURN in the chair.) The paper be placed on the free list, and for a reduction of the duty on Clerk will read a letter received from Mr. Speaker RANDALL. printing-paper-to the same committee. The Clerk read as follows : Also, the petition of citizens of Stark County, Ohio, that Congress HOUSE OF RRPRESENT.A.TIVES, enact such laws aa will alleviate the oppreBBions imposed upon the Washington, D. 0., March 19, 1880. people by the transportation monopolies that now control the inter Sm : I expect to be absent from the House of Representatives during to-mor state commerce of the country-to the Committee on Commerce. row's (Saturday's) session, and in consequence herewith name and appoint you. under power given me by the rules of the House, to act as Speaker in my stead for Also, the petition of citizens of Stark County, Ohio, that the patent that day. laws be so amended as to make the manufacturer or vendor of pat Your obedient servant, SAM. J. RANDALL. ented articles alone resp~nsible for infringement-to the Committee Hon. J. c. s. BLACKBURN, on Patents. Member of House of Representatives. By Mr. MORSE: The petition of Benjamin Burgess & Sons and ORDER OF BUSINESS. others, for a change in the tariff on sugar-to the Committee on Ways The SPEAKE.R pro tempore. The Journal will not be read thls and Means. morning, the session of to-day having been assigned for debate only By Mr. OVERTON : The petition of H. B. Kilborn and 34 other on the refunding bill. The Journal will be read on Monday next. Union soldiers, of Bradford County, Pennsylvania, against the pas REFUNDING BILL. sage of the sixty-surgeon bill-to the Committee on Invalid Pen sions. Mr. FERNANDO WOOD. I move that the House resolve itself By Mr. PHILIPS : Two petitions of citizens of Missouri, of simi into Committee of the Whole House on the state of the Union for lar import-to the same committee. the purpose of resuming the consideration of the bill (H. R. No. 4592) By Mr. PIERCE: The petition of citizens of Erie County, New to facilitate the refunding of the national debt. York, for the removal of the stamp-tax on perfumery, cosmetics, and The motion was agreed to. proprietary medicines-to the Committee on Ways and Means. The Honse accordingly resolved itself into Committee of the Whole By Mr. THOMAS RYAN: The petition of Union soldiers of Kan on the state of the Union, Mr. COVERT in the chair. sas, against the passage of the sixty-surgeon bill-to the Committee The CHAIRMAN. The House is in Committee of the Whole on the on Invalid Pensions. state of the Union for the purpose of considering the bill (H. R. No. By Mr. SCALES: The petition of John H. Ferree and others, that 4592) to facilitate the refunding of the national debt. The gentle prohibitory duties now levied upon chrome iron ore and bichro man from Georgia [Mr. FELTON] is entitled to the floor. mate of potash may be removed-to the Committee on Ways and Mr. FERNANDO WOOD. I ask the gentleman from Georgia to · Means. yield to me for a moment. By Mr. STEELE: The petition of A. M. Powell and othera, of sim Mr. FELTON. I yield to the gentleman. ilar import-to the same committee. Mr. FERNANDO WOOD. I desire to make some corrections of the By Mr. THOMAS: The petition of R. A. Edmondston and others, CONGRESSIONAL RECORD in the remarks I made in Committee of the citizens of Alexander County, Illinois, for the passage of the bill in Whole on this bill when it was formerly under consideration. troduced by Mr. DAVIS, of Missouri, for the improvement of the Mis On page 19 of the RECORD of March 5, line 25, first column, what sissippi River near Cape Girardeau, Missouri-to the Committee Qn is printed $5,000,000, should he $500,000. Commerce. On line 27, what shonld read $250,000, is printed $2,500,000. Also, the petition of 0. J. Smith, of Chicago, Illinois, publisher of On line 29, what shonld read $:3,500,000, is printed $30,000,000. the Chicago Express, for the abolition of the duty on type-to the On line 37, what is printed $10,000,000, should read $1,000,000. Committee on Ways and Means. I desire that these corrections should be made. I further state that By Mr. P. B. THOMPSON, JR.: The petition of citizens of Mercer on page 9 or the pamphlet edition of the speech the same errors in the County, Kentucky, that Congress enact such laws as will alleviate the original issue of that edition were 1Ilade, which I desire also to be oppressions imposed upon the people by the transportation monopolies considered as corrected. that now control the interstate commerce of the country-to the Com [The speech to which these corrections refer is printed on page 1313.) mittee on Commerce. Mr. FELTON. At the proper time I shall introduce a substitute · By Mr. WASHBURN: The petition of J. S. Pillsbnry, governor of for the pending bill. I send it to the Clerk that it may be read. Minnesota, and 200 others, citizens of Minneapolis, Minnesota, against The Clerk read as follows : the repeal of the duty on paper-to the Committee on Ways and Be it enacted by the Senate. and House of RePresentativea of the United States of .America in Congress assembled, That the Secretary of the Treasury be authorized Means. and required to redeem any bonds of the United States whioh may become redeem By Mr. FERNANDO WOOD : The petition of distillers and import able during the years 1880 and 1881, to the amount of the $Old and silver coin now ers of New York, for the passage of Honse bill No. 4812-to the same in t,he Treasury which may be in excess of 25 per cent. or the outstanding United States nores, using said excess of gold and silver coin for the redemption of said . committee. bonds. Also, the petitions of druggists of Oswego and Rochester, New SEC. 2. The Secretary of the Treasury is hereby required, six months after the York, for the removal of the stamp-tax on perfumery, cosmetics, and above.mentioned amount of bonds is redeemed, and semi-annually thereafter, to re proprietary medicines-to the same committee. deem said remaining bonds to the a.mount of the gold and silver coin which may be in the Treasury at the time in excess of 25 per cent. of the outstanding United Also, th~ petition of printers and publishers of New York, against Sta.res notes. reducing the duty on type-to the same committee. SEC. 3. The Secretary of the Treasury is hereby required to purchase silver By Mr. WRIGHT: The petition of George A. Lord and 103 others, bullion to the a.mount of $4,000,000 per month with lawful money of the United citizens of Cambridge, Massachusetts, for the passage of the bill (H. St.ates: Prouided, Said bullion can be purchased at par with said lawful money ~ and the Secretary of the Treasury is required to have the bullion so purchasea R. No. 269) known as the Wright supplement to the homestead act coined into standard dollars as now provided by law. to the Committee on the Public Lands. SEC. 4. The Secretary of the Treasury is hereby forbidden and prohibit.ed from By Mr. THOMAS L. YOUNG: The petition of Maddox, Hobart & issuing hereafter any interest.bearing bond for the purpose of funding or refund Co. and others, in relation to the tax on spirits in bond-to the Com ing the national debt or any }!art thereof. mittee on Ways and Means. Mr. FELTON. Mr. Chairman, one of the most important questions Also, the petition of Thomas Digon and others, for the passage of which will engage the attention of this Congress will be the refund the bill (H. R. No. 4327) for the creation of a department of mechan ing of the public debt, or at least so much of it as has not; already ics, manufactures, and mines-to the Committee on the Judiciary. been provided for. When the refunding acts of July 1'1, 1870, and Also, the petition of Colonel A. L. Anderson, late of the United Jannarr 20, 1871, were passed by Congress the national debt was so States Army, for legislation to enable him to be placed on the retire_d enormous, and the financial condition of the country was so uncer list of the Army-to the Committee on Military Affairs. tain as to well-nigh close the mouths of those who are opposed to all 1880. CONGRESSIONAL RECORD-HOUSE.

:refunding systems and processes. Undertheseacts bondsforrefnnd tards the growth and prosperity of the United States. This money ing purposes were authorized to the amount of $1,500,000,000. Of this power for the last few years has exerted an incalculable influence in amount there have been issued $1,395,345,950, leaving available for this country. It has entered our political conventions, our legislative futnrerefunding operations $104,654,050. halls, dictated platforms for parties, disposed of our public securities; We must confess that the refunding process up to this time has re regulated the volume and character of our currency, and held a gra.d sulted in an annual saving to the Government in the interest charge uated ·scale of values over the productions and property of forty of $19,900,846. But the interest at this time on this refunded debt millions of American citizens. It is wrong to continue such a pthe money power or the refunding the national debt, it is compelling the industrious to give power of accumulated capital which now controls the politics, the nearly eighty millioll8' worth of their produce per ,annum for the main prices of commodities, the wages of labor, the relative strength of tenance of the bondholders. sections, and every movement and enterprise which advances or re- The continuance of the debt at this time means the perpetuity of 1720 CONGRESSIONAL RECORD-HOUSE. MARCH 20, the debt. It has been bolcliy avowed by some of the advocates of This debt is a national irritant. It is a sectional irritant. It is not this scheme that their object is to perpetuate this interest-bearing only held almost entirely in our great northern money centers, but it debt, as it would afford in this country a safe investment for the sav is a constant reminder of sectional war. Why did yon wisely decide ings of the people. Where is the nation that ever adopted the fund to strike from your flags the names of the battle-fields of the late ing system which has to any considerable extent ever diminished its war f Because they would remind us of strife and fraternal blood public debt; which has not gone on increasing that debt; which shed. Because their continuance would tend to transmit to the next has not on trivial occasions borrowed money and encouraged extrav generation memories which should be buried with this generation. agance; which has not found therein an incentive to war and ter We want no sectional irritant. We must have a union of heart.a. ritorial aggrandizement, a stimulant for centralized powers and the We must be one in fact as we are in name. This sectional estrange curtailment of the li}?erties of the people 7 ment is blasting this beautiful land. Nature designed us to be an in In England, from the Conquest to the accession of Charles II there divisible Union. We are linked together for all time, and to continue was no national debt. They paid their way. In the reign of William this sectional irritant now means that we intend to make it an heredi ill the national debt commenced. England's distinguished statesmen tary irritant. Its continuance makes perpetual the national banking had been attracted to the funding system by the example of Holland. system. This banking system is founded upon this debt. The funding "On the 15th of December, 1692, the House of Commons resolved itself and banking systems mutually sustain each other; they are inseparable, into acommitteeof ways and means. Somers took the chair. Montague and you cannot strike down the one until yon cancel and discharge proposed to raise a million by way of loan; the proposition was ap the other. These banks, as the embodiment of the money-power, proved, and it was ordered that a bill should be brought in. The have instigated all the measures of contraction of the currency which details of the scheme were much discussed and modified; but the have crushed labor in this country. They are rapidly becoming in principle appears to have been popular with all parties. The mon this Government the power which is greater than the Government. eyed men were glad to have a good opportunity of investing what Their continuance means the continuance of a centralized money in they had hoarded. The landed men, hard-pressed by the load of tax fluence, which will spread more extensively from year to year it.a ation, were ready to consent to anything for the sake of present ease. destructive agencies through all the political machinery of the Gov On the 20th of January the bill was read a third time, carried up to ernment, and which will in the end hazard, if it does not destroy, the the Lords by Somers, and passed by them without any amendment." liberties of the people. By this memorable law new duties were imposed on beer and other In 1871, when refunding of the national debt commenced, these liquors, and these additional taxes were mortgaged for the payment banks held nearly four hundred millions of the 5 and 6 per cent. of the loan. bonds, and from that date to the present time they have held more · . Thus the funding system or mortgaging of taxes was favorably than one-fifth of the interest-bearing debt of the United States. One considered and the debt has gone on increasing in the aggregate until of these banks in.New York last year, by handling 4 per cent. bonds, in 1879the debt of Great Britain and Ireland amounted to £730,000,000 is said to have paid 120 per cent. dividends and carried half a million and the debt of the whole empire was about £966,250,000. to its surplus account. Here is their power. Here is their connec- The interest on the permanent debt of Great Britain and Ireland has tion with this debt. during the present century amounted to more than two thousand 1nilliom ',£he Comptroller of the Currency says in his last report: "The ofp()lmds. This coupled with the other annual expenditures has pushed credit of the Government is now such that it is not improbable that taxation to its limits in that kingdom; has and is driving hundreds before the 4 per cent. bonds mature the present debt may be refunded .of thousands of its producing classes as emigrants to other countries; into 3t per cent. bonds." Here is the intimation that when thirty hai for all time saddled upon the industries of England a moneyed years elapse this debt must be continued indefinitely for the benefit aristocracy controlling its legislation, owning its real estate, its stocks, of this moneyed corporation, or made perpetual, so as to fasten for and consols. all time upon our people this corrupting agency. _ The hope of paying this debt has long departed from the mind of There is a provision in the present bill which intimates that this every English laborer, and every English aristocrat is prepared with refunding scheme is looking to the continuance of this banking sys a plausible argument to show that a great national debt is a great tem. From and after the 1st day of July, 1880, the 3t per cent. national blessing. bonds authorized by the act are to be the only bonds receivable as These facts and inferences apply to all the European governments. security for national-bank circulation; that is, the bonds having the. Spain, with its national debt of £500,000,000, now bankrupt and pros longest time to run and which, from their low rate of interest, will trated; Austria owing £386,000,000; Italy, £400,000,000; RUBSia, an be least likely to excite popular objection. Reconcile the people to interest-bearing debt of £420,000,000. The practice ol' funding has the system by the flattering unction that they pay a low rate of in gradually enfeebled every State which has adopted it, and I would terest to enable these corporations to coin fortnnes; remove the pre inquire if it is likely that in the United Sta.tes alone a practice which judice against banks by removing opposition to a national debt! has brought either weakness or desolation into every other country The Comptroller also, quoting the language of a former Secretary should prove altogether innocent. Is it probable that the system of of the Treasury, says," these banks will be a firm anchorage to the borrowing money and refunding for an almost indefinite time, which Union of States." They can only anchor the States to a centralized in all other countries has established a "money power'' which haf! tyran aristocracy destructive of all liberty. These banks anchor the States nized over and enslaved the laboring classest should discriminate in to this Union! Yes, sir, like the piratical craft, with its black flag favor of this Federal Government 1 The contmuance of this debt will and heavy guns, bearin~ down upon a rich, unarmed East India.man, for forty or fifty years longer divert that amount of capital from the as soon as the Ishmaehte of the high seas comes within grappling productive industries of the country. We most increase our agricult distance of that rich freight the grappling-irons are fastened into ural and manufactured products. We must multiply our markets. We its sides and it is held firmly until robbery, plunder, and spoliation must provide for an ever-growing population. We must enrich the have done their work, and then the despoiled ship is left to fl.oat away finest domain that ever blessed a people. Let us not then lock up in a helpless and worthless thing, the sport of wind and wave. So these non-productive bonds this immense capital. banks will anchor the States to this Union· they will thrust their The continuance of this debt will for forty years longer exempt political and monetary influences into the sides of these States and this vast capital from State and municipal taxation, thus increasing hold them steady until their labor and productions, their lands and the burdens of labor. To-day your farmer must pay an ad valorem houses-all their wealth-become a sacrifice acceptable to this money tax to the State government upon his agricultural implements. That power. .humble home where nestles the virtue, the patriotism, the strength, This national debt is Pandora's box, from which already proceed un and glory of your Government is taxed, with all its surroundings; numbered evils, political and social, public and privat.e, and these but your millionaire, who invests his fortune in your securities and must increase in number as they multiply their power for mischief. never contributes a dollar to the wealth of the country,lives exempted If refunding was necessary, of course I would support the measure from the necessity of supporting the State and municipal govern which contempla1es the lowest rate of interest. I have no doubt a ments which protect his life and property. bond of 3t per cent. can be sold by the Government. The present To continue this debt is to continue for forty years longer the mis premium upon the 4 per cent. bonds and the immense profits made by erable revenue systems which now oppress our people. In additiop. the national banks in disposing of them, and the great readiness with to the tariff upon imported articles of consumption, which is oppress wqich the certificates were sold, all prove that a bond as provided ive in many of its details and should be modified, you lay your heavy for in the committee's bill can be sold at par. Even if that bond was hand upon our own industries, especially upon our agricultural indus made a five-forty bond instead of a twenty-forty bond, the supply tries, by taxing whisky and tobacco. To collect these unjust revenues would not equal the demand for safe ::i.nd permanent securities. you cover the country with a swarm of hungry officials who incite riot But, sir, I am opposed to every description of an interest-bearing and strife, who frequently arreRt the innocent and subject them to debt in this Government. An interest-bearing debt always takes the innumerable annoyances and heavy personal expense. These outra form of a permanent loan, and a permanent loan, I repeat, is nothing geous revenue laws can never be repealed so long as this national debt but a mortgage upon the wealth and industry of the country. It is remains. We have labored diligently to reduce appropriations, and the only form of indebtedness by which heavy and durable incum. have succeeded in some meaaure, but with the single exception of the brance can be laid upon the country. reduction of the tax on manufactured tobacco, where is the burden It may be asked, what would the Government do in times of war that has been lightened or the duty that has been remitted Y I boldly or when sudden and unexpected emergencies demanded large and assert that we cannot, to any considerable extent, reduce taxation. unprovided-for expenditures V I answer, I would meet those expend These burdens must continue, and the holders of these bonds, for ditures by using the credit of the Government, without interest. I whose benefit the tax is levied, will coatinue to impose it upon our would do as this Government did during the late civil war-meet the .agricultural industries. necessities of the Government by issuing legal-tender United States 1880. CONGRESSIONAL RECORD-HOUSE. 1721 notes. You sent your agents to Europe to sell your interest-bearing turity a debt of $782,000,000 in' coin. · The great obstacle is not a. bonds and yon received in payment therefor your own paper cur- scarcity of the precious metals, but an unwillingness on the part of rency. You sold your bonds to the citizens of this country and re- the Government, moved and instigated by the money power, to recog ceived in payment your legal-tender notes. Yon met every demand nize silver on a debt-pa.yin~ equality with gold. upon the resources of the country with these notes. Yon paid your The remonetization of silver has been a wonderful factor in the soldiers with these notes. You purchased your ordnance and com- revival of business throughout the country. Conjoined with the missary stores with these notes. You met your entire civil and mil- large influx of gold from Europe, it has sent joy and gladness through ita.ry lists of expenditures with this paper currency.· It was the out the land. It has brightened homes which were enshrouded in promise of the Government to pay, without interest, that carried you darkness. It has lifted some of our industries out of the "slough of successfully and triumphantly through the late war. That flag despond," and started the whole nation once more in the race for floats there above your head to-day the emblem of a great nation in ·wealth and power. response to the power of the greenback. Did I not hear it asserted on this floor during the Forty-fourth Con- It was valuable because it was the pledged faith of the nation, and gress that if silver was remonetized all the gold in the country would it was especially in demand because it was by act of Congress a legal be driven out by the baser metal, silver Y But the very moment you tender for all dues both public and private. Your Supreme Conrt 1·etouchedand1·evivijiedtheoldcoin, likeamagnetof immense attractive decided that it was a constitutional act which made these notes a power it drew gold from the four quarters of the earth, and emptied legal tender, and I am persuaded that while it remains an incorrnpt- it in your coffers. Did I not hear it asserted that if you remonetized ible court it will never reverse that decision. silver that your bonds would come back from Europe, and the credit Whence comes this clamor against our paper currency, that Con- of the Government would sink below par Y But the moment the gress has no constitutional power in time of peace to recognize as a dollar of. " our fathers ''was rescued from the grave where the bond legal tender that which the Constitution permits and authorizes as holders had buried it, your bonds advanced in price, and the four per such in times of war'f Where is the constitutional authority for say- cents could not supply the demands in Europe and the United States. ing that Congress can make nothing but gold and silver a legal ten- False prophets! How can they have the effrontery to croak their der either in peace or war V States are prohibited from making" any- evil predictions now that honest men are asking for the unlimited thing but gold and silver coin a tender in payment of debts;" but coinage of silver'I We are told by these croakers that the free coinage the Federal Government in all matters relating to finance is sovereign of silver would soon reduce its current value to its bullion value, and within constitutional limitations, and to "coin money and regulate thus establish a single silver standard, and that to prevent this it is the value thereof" is clearly one of its granted powers. necessary for the Government to hold in its vaults the great body of No, sir, it is the legal-tender character of the United States notes silver coin. which keeps them at par with gold and silver; abrogate that char- Now, I submit that it is the debt-paying value of silver which con acter and the advocates of the proposition know that their wish to stitutes its current or money value and not its commercial value which render them worthless becomes an accomplished fact; they know will keep it on an equality with gold. So long as the law-making that it is equivalent to their retirement, that it is a practical con- power of the United States decrees that a silver dollar of 412-f grains traction of the currency to the extent of $346,000,000, a contra-ction is equivalent to the gold dollar in discharging a debt of one hundred which drives the laboring-man back to beggary, cripples all our in- cents, so long will this dollar of the Constitution, this dollar of "our dustries, arrests all enterprise, and throws a cloud over the future of fathers," be on an equality with gold. Then coin it to the extent of our country. your mint capacity. Then, if necessary, increase your mint capacity What did this Government gain by the creation of this enormous in- so that all the silver bullion which can be purchased by the Govern terest-bearing debt 'f For, as I have stated, the success of the Govern- ment may be converted into coin by which we can cancel our national ment was achieved by its paper currency, and not by its bonds. What indebtedness. 'l'here never was a greater fraud perpetrated upon the benefits have accrued to the country T I answer, you have built up a productive classes of any country than the demonetization of silver moneyed class to feed 3!nd fatten on the laboring class. You have ex- by the American Congress, and I hope and believe that by its com posed the legislation of the country to the corrupting influences of this plete restoration to the position assigned it in the Constitution the moneyed class. You have diverted millions of capital from the pro- silver dollar will yet be the great coin which will free us from debt, ductive industries of the country, and converted that capital into a elevate and enrich our laboring classes, and make our vast territory stationary and inactive investment fund. You have also established the happy and prosperous home of millions of freemen. Why should a banking system by these bonds which is ruinous to our industries we wait for an international agreement on a common ratio between through their power to expand or contract the volume of the cur- gold and silver 'I Why should we wait for all countries to establish rency. a bimetallic money when our commercial and agricultural resources You demonetized silver and made gold a single standard of values not only authorize and capacitate us to be a "law unto ourselves," in response to the clamor of these bondholders, thereby bringing on but in some measure to dictate financial laws to the civilized world. a panic in our :financial affairs which impoverished the world to the I repeat, coin this silver in unlimited quantities, and for every $10 amount of unnumbered billions. or the multiple thereof thus coined issue your certificate, and there- All this you have accomplished because you did not rely during with pay this debt, or if the bondholder prefers it, let him have the the conduct of the war upon the credit of the Government toUhout in- coin represented by this certificate. Then require the Secretary o:f terest. the Treasury to exchange legal-tender notes for silver bullion so long Having created this bonded debt, what shall we do with it 'f Pay as it can be purchased at or below par. I am willing to admit that it. When Y Now as far as we are able, and the whole as soon and resumption of specie payments is nominally a success and we must as rapidly as the resources of the Government will permit. In what maintain it. 'l'he country is pleased with the fallacious thought that kind of money will you pay this debt~ In coin, as the law requires. we have a convertible currency, and we must not interfere with the How f pleasing reflection. But since resumption commenced one year ago First. By cutting off all unnecessary expenditures of the Govern- we are informed by the Secretary of the Treasury that only ll,256,b78 ment. We must never forget that it is the excess of revenue above of United States notes have been presentedforredemption. Thepeo expenditure which is the only real sinking fund by which public debts ple care nothing for specie; they would rather have the simple promise can be discharged. The increase of the revenues and the diminution of the Government to pay than to be weighted down with gold and of expenses are the only means by which this sinking fund can be silver. But we must sustain this nominal resumption; preserve this enlarged. We must remember that the payment of a great debt like equality, this imaginary convertibility; and so long as bullion can be this implies self-denial, retrenchment, and economy. Extravagant purchased at par with legal-tender notes so long is the equality of salaries must be reduced; sinecure positions must be abolished; the the two maintained, and resumption of specie payments is a success swarm of idle officials about these two Houses of Congress must be fol experiment. put to work or sent home. The multitudes which crowd the Govern- Again, let the Secretary of the Treasury be required to use the sur ment Departments must be taught that more work and less pay are the plus gold and silver coin now accumulated in the Treasury and that requirements of the future. We must have no more roving commis- which may hereafter accumulate there for the purchase of these sions, no more itinerating committees for investigation, which com- bonds. We are informed that at this time there is gold and silver mittees are frequently created to provide for clerks, messengers, re- coin and bullion in the United States Treasury to the amount of porters, and traveling expenses for pleasure-seekers. We must have 2"25,133,558. Of this sum let 2.::; per cent. of the outstanding legal no more subsidies; no more arrearages of pensions or bills for the tenders, or 86,000,000,remain in theTreaauryforredemption purposes, equalization of bounties. Economy must be practiced everywhere, and that will enable us at this time to apply $139,000,000 of this specie until this mortgage upon the income of the Government.is satisfied. toward the cancellation.of this funded debt. We are told that specie Second. By the unlimited coinage of standard silver dollars. The to the amount of 40 per cent. of the United States notes must be re Director of the Mint reports that the total production of the precious tained for the redemption of those notes; but I submit that, in view metals in this country for the year 1879 was $79,712,000, of which of the fact that only about eleven millions were needed during th& $38,900,000 was gold and $40,812,000 silver. He also says that on the last twelve months for redemption, there is no probability that a. run 31st of last October there waa in the country coin and bullion to the will be made upon the Treasury for many generations to come to the amount of $481,691,069, of which only $126,009,537 was silver. He also amount of 25 per cent. of our legal-tenders. No, sir, there should says that by the 30th of next June the metallic circulation of this not be an idle dollar or a surplus dollar in the Treasury of the United country will have swollen t-0 over $600,000,000. States. An idle dollar in a free, representative government is worse Now, I submit that a country producing this vast metallic treasure than an idle brain; surplus money there is worse than a thousand in every year, and with mines which promise to be inexhaustible for J active hands. It becomes a ':corruption fund" capable of incalcn generations to come, should find no difficulty in discharging at ma- la.ble mischief, and besides is a tangible demonstration of oppression 1722 CONGRESSIONAL RECORD-HOUSE. MARCH 20,

and fraud on the part of the Government toward the tax-payers. death but a month or six weeks before resumption took place pro Hoarding gold and silver when we owe $1,996,414,905 ami paid inter- phetic of what wa:s to happen if. the~e eyer sh?uld be such a thing est last year to the amount of $101,453,118 ! m fact as resumption. I recogmze with JOY this renewed prosperity I assert, sir, that this maturing debt can all be discharged within of the country; I am glad to see it back again; I hope it will stay. the next ten years. The great increase of our revenues over the esti- But does history justify any such sanguine predictions f What do mates, as submitted by the Secretary, and the probability that they these gentlemen think 'f Do they suppose that the balance of trade will continue to increa.se as the country grows under the present will be in our favor for thirty successive years f Does the gentleman prosperity, authorizes us to assert that from the excess of revenues from Georgi~ [Mr. FELTON] suppose that there is to be an Irish famine over .our expenditures under an economical administration of the every year for thirty years Y Does he suppose that there -are to be Government we can cancel this debt without increasing taxation or short crops in Europe for thirty years 'f Does he suppose that God without inflation of our paper currency beyond an equality with gold will smile upon this country, and give us abounding crops every year and silver. for thirty years 'f Does he suppose that there are to be no panics, no Instead of reducing interest only 1 and 2 per cent., which is valu- business depressions, ·no hard times 'Within the next thirty years f able and desirable, and making that a plausible excuse for perpetu- Does he suppose that even if prosperity lasts there are to be no ex ating this debt, I desire to wipe out all this interest, amounting on traordinary expenditures in this great Republic induced by this good these maturing bonds to over $40,000,000 per annum, and apply the fortune f Are there to be no wars and no. rumors of wars 'f money thus saved to the extinguishment of the remaining portion of Is the old ship of state to enjoy calm seas and favorable winds f the national debt. Thus within the next quarter of a century the Are there to be no rocks, no lee shores, and no tempests f present generation can settle its own accounts, adjust and balance It seems to me that history warrants no such conclusion, and I be its books, and transmit this splendid estate of liberty and wealth, of lieve that in fifty years from to-day, whether we continue prosperous power and intelligence, unencumbered to its posterity. or not, we shall find that it would have been a safe thing to have The dream of ancient empire never conceived the power and glory funded five hundred millions of our present debt at 3t per cent. in -0f such a government as this. Cyrus, Alexander, and Augustus Cresar terest. Yet, yielding to the gentlemen on the committee, I gave up are all dwarfed when their thrones are compared with this heritage that proposition, and submitted to and voted for the one contained -0f popular liberty. Modern European nations, with their dissevered in the pending bill. Yet the gentleman from Georgia says that the territory, their distant provinces, their vast standing armies, their bill ought not to be passed. Why not t Because the rate of interest pauper population, their intolerable burdens, their effete political is too high 1 No; he agrees that the rate of interest, 31- per cent., is systems, their fully developed resources, having no future, they all, right. But he contends the bill ought not to be passed because we separately and collectively, shrink beside this last western home of ought not to postpone the payment of this debt twenty years. Why, civilization. Like the sun coming out from his eastern chambers Mr. Chairman, are we to pay this debt in twenty years f Is it poa and prepared in strength and beauty to run his race, so this country Bible for us to pay it in twenty years, and relieve the people from is preparing for its future. We have only witnessed the dews and burdens which the gentleman from Georgia so earnestly prays they clouds of its morning hours. We are upon the threshold of the inner may be relieved from T No man hopes for that unless you resort to temple. Our posterity are to reap the ptomised rewards. Let us that crazy·scheme of setting the printing-presses to work and paying labor for those who are to come after us, and as rnoney is one of the the debt in irredeemable paper money. ~rand agencies in building and garnishing this home of unborn mill- Mr. KELLEIY. Will the gentleman pardon a brief question T Are 10ns, let us ·take the capital now invested in these bonds and put it to we not now paying the debt at a rate which would extinguish it in tvork among the people iu mines, in factories, in workshops, in rail- a great deal less tha.n twentyyears, and without "setting the print- · roads, in ships, in grain and cotton fields, in schools and colleges, in ing-presses to work 'f" all the thoroughfares of business, and thus make our country all that Mr. WARNER. In less than ten years. e'nligMened statesmanship could suggest, all that an intelligent pa- Mr. KELLEY. Less than twenty years, I put it. triotism could seek after or desire. Mr. FRYE. The gentlemanfrom New York [Mr. FERNANDO WOOD] Mr. FRYE. While following to-day immediately the gentleman in his carefully prepared speech says, that during the period from from Georgia, [Mr. FELTON,] it is not for the purpose of undertaking 1875 to 1879, inclusive, we have increased the debt. If that is true, to reply to his argument. There are many things in the very able I ask how lo_ng it will take to pay the national debt T speech which he has just made that excite my earnest commendation. Mr. KELLEY. That is not an answer to my question. I aver that I congratulate him upon his fidelity to governmental integrity, upon ,:i.t the rate at which wo have paid tha.t debt in this fiscal year, when his eloquence, and able recognition of the fact that a na.tion must be Pf(Ople are not especially complaining of heavy taxation, it will dis a nation of integrity 'if it expects its public men to be men of integ- appear in fifteen years. rity. I congratulate the gentleman from Georgia also thathe is almost Mr. FRYE. M:r. Chairman, I have no doubt it is true that if the although not altogether a hard-money man. I congratulate him, too, rate at which we have been paying the public debt within the last that he is almost persuaded to be a re-publican, although not quite. six months should be continued for twenty years, it will pay the debt. I purpose rather to Teply, to a certain extent, to the able speech of But is there a man on this earth so crazy as to believe that the pros the distinguished chairman of the Committee on Ways and Means, perity of the last six months is to last for twenty years f {Mr. FERNANDO WooD,] delivered in this House a few days since. I Mr. KELLEY. Will not the payments of this fiscal year diminish do not join issue 'With the gentleman's argument so far as it is strictly the permanent interest fund more than 3,000,000 and give us that -0onfined to the pending bill. I recognize him as the leader of that amount of money with which to buy bonds next yearf .side of the House, as the chairman of the Committee on Ways and Mr. FRYE. But does not the gentleman know that already the Means. I recognize him, too, as a hard-money democrat, a very re- balance of trade is changing! Is the famine to last next year! Are markable species in modern days; but I also recognize the fact that t he short crops in Europe to continue Y while his speech was sound almost entirely, yet he found it abso- Mr. KELLEY rose. 1utely necessary, as ademocrat and the leader of that side of the House, Mr. FRYE. I am not putting these questions to the gentleman. to scatter through it democratic poison. Mr. KELLEY. I thought you were. I rose to answer them. I do not join issue with the gentleman from New York on the bill. Mr. FRYE. As I am progressing in my speech I am answering very which, under the instructhms of the Committee on Ways and Means,. much that I have heard the gentleman say heretofore. I lili:e the he has reported to this House so far as its main features are concerned. sanguine spirit of the gentleman. He has received new light within In the proposition to issue a 3t per cent. bond, payable in twenty t he last year and a half; and it is a-·glorious light; it makes his face years, I concur with the majority of the committee. shine now like that of an angel though a year and a half a(J'o in the I was originally in favor of the first proposition of the gentleman light of approaching resumption it looked like that of the devil. from New York [Mr. FERNANDO WOOD] to issue a 3t per cent. bond, .[Laughter.] payable in fifty yea.rs. I believe that a bond like that would be Mr. KELLEY. Because all my prophecies have been confirmed. eagerly sought as a means of making permanent investment of idle With the stoppage of the cancellation of greenbacks and the remon -0apital, and that it could be floated easily at par. The whole amount I etization of silver the period of depression is ended and our prosper to be invested would not be over $500,000,000, and the payment of it y has made a "boom" throughout the world. The greenbaokers that amount, it seems to me, might well and reasonably be postponed" and the silver men have redeemed the country. [Applause.] even to the extent of fifty years. But we were overruled by the com- · Mr. BUTTERWORTH. Have they increased the number of bush mittee, and for reasons which the gentleman from Georgia Iias, to a els of corn to the acre or t he number of potatoes to the hill' certain extent, given to this House to-day. Mr. :FRYE. Mr. Speaker, I am inclined to think I will not under- Many gentlemen on the committee are opposed to perpetuating, as take now to reply to the gentleman from Pennsylvania.. The gentle they call it, the debt of the United States; opposed to binding upon vian from _Georgia, as I was saying, insists that this debt must be paid the people a burden which will last for fifty years. They drew vivid,. ·Before; that you must not put off the payment for twenty yea.rs. He beautiful, and refreshing pictures of the magnificent prosperity of forgets that ten years from now we have bonds becoming redeemable, -Our country, of the humming wheels of industry, of the busy men and which we can take ca.re of with our surplus revenue until the twenty women, of the great iron and steel works, of expanding railroads and year bonds become redeemable; and it will occupy our full time and go on, assuring us that with this superabundant prosperitjr, within the full extent of our resources to do this. 1ess than thirty years, the whole debt would inevitably be paid. But, Mr. Chairman, it seems to me there is another proposition in I believe that the picture of prosperity which they drew is un- this bill which ought to be amended. I believe an original proposi doubtedly a true one. And, oh! it is refreshing to see certain gentle- tion of mine was that there should be provided a short bond with. men drawing these beautiful pictures of thecountrynnderresumption, ·which to bridge over the ten years between now and the time when who painted such horrible daubs of dismay, destruction, despair, and the 4t per cent. bonds are redeemable. That proposition commended 1880. CONGRESSIONAL RECORD-HOUSE. 1723 itself to the committee ; and this bill provides for a short bond to take upon its payment, and I will print the table in my speech, taken di care of about $250,000,000. This is a short bond redeemable after two rectly frorft the Secretary's books, conclusively showing this : years. The rate of interest which it seemed to me this bond should bear was 4 per cent. Why 4 per cent. when the other bonds are to Statement showing the amount of the principal of the public debt, ( exclu bear 3i per cent 7 Because it ·is well known to all financiers, I be ttive of accrued interest,) less cash i1i the Treasu1·y, fi·071i its highest point, lieve-it is argued by them all, at any rate-that a long bond at 3i August 31, 1865, to March 1, 1880; with the annual redncti-On tlzereon. per cent. is better than a short bond at the same rate of interest. I think the gentleman from New York recognizes this principle of Date. Amount. Reduction. finance in his speech which I have 1*fore me.

Now, sir, jf we could sell a 3i pet cent. twenty-year bond at par 3 $'2, 756, 431, 571 43 and no more, can we sell for refuncllng purposes a 3i per cent. two 1-:n~8. {s~~~::::::::: ::: :: ::: :: :: : :: :: : : : : 2, 636, 036, 163 84 ·$i2o; 395; 4o7 ·59 year bond 'f I believe not; I am afraid not; and therefore I would June 30, 1867.--···· ·············-····-·····-· 2, 508, 151, 211 69 127, 884, 952 15 desire to see that short bond amended and made a 3.65 or 4 per cent. June30, 1868 ..••.•.. -····-··········-···--··· 2, 480, 853, 413 23 27, 297, 798 46 June30, 1869 ..•.•.• --·--···-················· 2, 432, 771, 873 09 48, 081, 540 14 Another thing, Mr. Speaker. Onr bill, as I believe it is reported to the June 30, 1870. ·-·--· ··-······-..... ·-···· .•••. 2, 331, 169, 956 21 101, 601, 916 88 House, restricts the Secretary of the Treasury to exchanging these June 30, 1871.---······· ··-·········-··· .•.••• 2, 246, 994, 068 67 84, 175, 887 54 bonds. I believe that ought not to be. I believe it will absolutely June 30, 1872. ····-· .•.••• ···-·· ··-···. ·-·· ... 2, 149, 780, 530 35 97, 213, 538 32 prevent his success in refunding with these short bonds at any rate, June 30, 1873. ···-·· ·-···-···· ·-···-····--·--· 2, 105, 462, 060 75 44, 318, 469 60 and he ought by an amendment to the bill have the right to sell June 30, 1874. ···--···-··-·-·-·· ···--··--···-· 2, 104, 149, 153 69 1, 312, 907 06 to June30, 1875 ..••..•.•.• ·-··················-· 2, 090, 041, 170 13 14, 107, 983 56 and buy others with the proceeds of the sale. June30, 1876.·-·············-···--··········· 2, 060, 925, 340 25 29, 115, 829 88 Mr. CARLISLE. Will the gentleman allow me to correct him on June 30, 1877 ..•••••...... ··-··-··········-·· 2, 019, 275, 431 37 41, 649, 908 88 that point? June 30, 1878 ...... ·----- ·--··· ·-·----·-· .••. 1, 999, 382, 280 45 19, 893, 150 92 June 30, 1879 ..••...... • ·····-··-·-· .•...... 1, 996, 414, 905 03 2, 967, 375 42 Mr. FRYE. Yes, sir. 1, 977, 995, 433 81 18, 419, 471 22 Mr. CARLISLE. According to my com1truction of this bill the March 1, 1880 .. ·····-·······-····-·········-· Secretary of the Treasury will not be permitted to sell any of these Total ••••••...•... -·····-····-···...... •. . .• ...... •••.. 778, 436, 137 62 . bonds for money before the maturity of the outstanding bonds which are to be refunded, but during that time can only exchange on cer Reference to this table shows that there has been a reduction from tain terms specified in the bill. But after thelllaturity of the out 1875 to 1879, inclusive, and these are the years referred to by the gen standing bonds he can sell these bonds for money, and with that tleman from New York. There has been a decrease of $93,626,265, money redeem the matured bonds. up to March 1, 1880, from the date the gentleman named, 1875, and Mr. FRYE. I maybe wrong, but my recollection is that he is only up to February 1, of $112,045, 7'37. authorized to exchange. If the gentleman is correct, it still seems to Again he says in the same statement " there have been no extraor me that he ought to be empowered to sell and anticipate the time when dinary expenditures during that time." I say to the gentleman from t:key would become redeemable. New York that there have been extraordinary expenditures, and I Mr. CARLISLE. I will not interrupt the gentleman further. give here a table showing that there have been about $19,000,000 of Mr. FRYE. In other particulars I do not know that I have any extraordinary expenditures· during that time covered by his state disagreement with the Committee on Ways and Means in relation to ment~ this bill which has been reported. I shall vote for the bill; I shall vote for it in the belief that it will prove a success, and thal; the Extraordina1'Y e,xpenses during the fiscal yoors from 1875 to 1879, inclusive. bonds within the coming two years will be refunded at this low rate 1875: of interest. Awards to British claimants·-·····-·········-······--········ •••••• fl, 929, 819 00 Payment of interest on 3.65 bonds of District of Columbia. • -•• -••• -, 154, 554 64 And, sir, I believe this country in the next one hundred years will Payment of indebtedness of District of Columbia. .• _•. _.•••• _•..• _.. 1, 300, 000 00 not see a time when the rate of interest will be lower than 3i per Home for Disabled Volunteer Soldiers ...... • --··············-··-· 911,505 12 cent. There is, sir, a "hard-pan" in interest as well as in everything Persons suffering from overflow of the Mississippi River • --•••• _... 160, 034 33 else, and I believe when we struck 3i per cent. we struck that "hard Persons suffering from the ravages of the grasshoppers...... 141, 947 26 Observation of the transit of Venus .•••.• --·--· ..•••.••••••. ·--·.... 70, 964 43 pan." I am aware, sir, that England puts its consols upon the mar Special distribution of seeds to sufferers from grasshopper ravages. 30, 000 00 ket bearing 3 per cent. interest, but I am not aware they ever sold 1876: one of them at par except one single issue of a very small amount, Payment of interest on 3.65 bonds of District of Columbia ..• - .•.. -. , 212, 945 36 1877: and I believe the interest to-day costs England at least 3t per cent. Westerp and Atlantic Railroad of Georgia.. __ . __ ••.... - ..•.•. _. ___ •• 199, 038 58 I am aware that France put upon the market 3 per cent. bonds, but Payment of interest on 3.65 bond11 of District of Columbia. .•• _...... 501, 649 61 I am equally aware they sold down to sixty cents on the dollar, and 1878: that the average rate of interest to-day is at least 5 per cent. on Tribunal of arbitration at Geneva·········-·· ..•.•• ·····-··---····· 47, 446 16 French bonds, counting the discount. We can improve on France, Paym~~~9~f inte~at on 3.65 bonds of District of Columbia. ••••••• _... 501, 607 63 but I shall be entirely content if in this matter of interest we stand International bimetallic com.mission.···-·· ••••••...••.• -·-··-...... 37, 067 99 side by side with England. International exhibition at Paris.·-·--···-····-·····-·-.•. -- . -··-·.. 50, 027 31 I desire now, Mr. Speaker, especially to call attention to portions of A wards under convention between the United States and Peru.• _.. 150, 397 35 A ward to Great Brita.in by the Fisheries Com.mission ...•••.•• _• . _.. 5, 500, 000 00 the speech-and it is an exceedingly able one-of the ~entleman from 5 New York [Mr. FERNANDO WOOD] where I do join l.SSUe with him. t=: ~J>3~~i~1:iiic ~~~~:: :: :: ::: ::: ::: :: : : : :: :: : : : ::: :: :: : : • ~~: g~ ~ On page 6 of his printed speech, which I have before me, he gives a · Completion of Washington Monument._ •... ·-··-•..... - .... - • ·-·... 50, 983 07 table showing the amount of unmatured interest-bearing bonds out Education of the blind ... - ••.•••••.•.•.• ·-----...... 250, 000 00 standing; and then, right at the bottom of the table he says: Redemption of District of Columbia. securities .....• ·····-···---·-·. ---342, 714 73 The total debt, less cash in the Treasury, on January 1, 1880, was $2,011,798,504 . . Total ..•..•...· .·-·········-·······-··-· .•... --- ...•...•.... --· 18, 243, 780 78 Then he adds, and I want these words to be marked: Now, I believe the people of this country are entitled to the facts. It will be seen that there has been no reduction of the debt in the past five years, They are not to be bothered or deluded with this " debt and bonded both the debt and the interest char-ge having been increased; thia baa not been debt," this play upon words, this trifling with terms. A debt is a caused by any extraordinary demands upon the Treasury. debt whether it is "bonded" or "unbonded;" and the debt of the Again, farther down: country is precisely as I now have stated it. But, from en-oneous policy or some other cause, the national obligations have. Again, I wish to call the attention of the country to page 8 of the been increased, although the rate of taxation has been rigidly adhered to. gentleman's speech, where he thinks the Secretary of the Treasury is Now, what does the gentleman from New York mean by that 'I Does considerably confused a:bout the amount of bonds sold f.or resump he mean a play upon the words " debt" and " bonded debU " Does tio_n purposes. He gives a table showing the amount sold and cost he mean that the people of this country shall be deceived by that of the same and the interest of the same, making the whole interest play upon words. and th-e cost a certain sum; a.nd on page 9, where he sums up his Mr. FERNANDO WOOD. Does the gentleman desire an answer remarkable conclusions, "there has been $6,000,000 of the legal-ten at t,bis time 'f · ·ders redeemed "-the gentleman from Georgia. [Mr. FELTON] says Mr. FRYE. I do not. Does not the gentleman know that th!3 debt $11,500,000-" which it has cost $13,408,744 to redeem. This was an of the country has been decreased every year since 1866-that there· expeneive operation." is not one single year the debt has not 'been decreased f There may I ain exceedingly surprised that so distinguished a gentleman as have been times when the bonded debt of the country has been in the leader of the democratic side and chairman of the Committee on creased. I admit it. How could you sell $95,000,000 of bonds for Ways and Means should :permit that to go out to this country as a resumption purpose without increasing the bonded debt Y But your statement of facts. "Six millions of legal-tenders have been re money drawn from them was in th~ Treasury of the United States, deemed at a cost of thirteen and a half millions of dollars." Then, and your net debt was no more. says the gentleman, "Is not thisan expensive operation f" Why, the He does not say the bonded debt of the country has increased, but gentleman further on in his speech says " resumption is a :fixed fact." "the debt of the country has increased within the last five years." I Further on he says "resumption was a necessity." Further on he have received four letters within a week from my district, asking finds himself" entirely in accord" with resumption. Farther on he whether it was trne, as the gentleman from New York stated, tbat says that ''no man wants gold." Why 'f "Because he knows he can the debt of the United States has been increased during the last five get it." Ah, there is the secret. I say to the gentleman from New years, that is, from 1875 to 1879. Why, Mr. Speaker, I said a moment York if it cost $13,000,000 to redeem $6,000,000 the moment men knew ago that the debt has been decreased every year since we started that they could get it they did not present their bills for redemption 1724 CONGRESSIONAL RECORD-HOUSE. MARCH 20, because the bills were better than the gold and more convenient for And yet that has been accomplished without any stable or enlight their purposes. But suppose that there had been only $13,000,000 in ened financial policy on the part of this Government! gold in the Treasury for resumption purposes, does he suppose it would Why, Mr. Speaker, I cannot allow this opportunity to pass without have cost only $13,000,000 to redeem $6,000,000 7 Why the thn:teen calling the attention of the gentleman from New York and the coun millions would have been drawn in a single day. Every man would try to our marvelous financial history of the last twenty years; nor have wanted gold, because it was not. without claiming that a success unpa.rallelecl in the world's experi Why, sir, that $13,000,000 bas brought to this country the magnifi ence is largely due to the patriotism, fidelity, and steadfastness of cent condition and the extraordinary prosperity of to-da.y. That is the republican party. Like a rock it has stood firmly against the what resumption has accomplished. That $13,000,000 has made the waves of folly, inflation, and repudiation, saving from their overflow greenback of the country receivable at par in every great commer the :financial integrity of the nation. cial center in all the wide world. That has brought about to a large What does the record show Y Daring the last democratic admin extent the present financial standing of the country at home and istration, under the act of December, 1860, Treasury notes were issued abroad. That 13,000,000 has brought about this equalization be and sold to the amount of $10,010,900, at a rate of interest from 6 to tween gold and silver, national-bank notes, and greenbacks. And is 12 per cent., nearly five millions of them at 12 per cent. Other offers it a heavy price to pay T Does the gentleman think it has cost too were received ranging from 15 to 36 per cent., and refused. Under much f Is he willing to concede that all. the magnificent prosperity the act of February, 1861, a.loan of twenty-fivo millions of United of this country which has resulted from this has cost too dearly f States sixes, on twenty years' time, was offered, about eighteen and a Mr. WARNER. Will the gentleman allow me to ask him a ques half millions sold at a fraction over eighty-nine cents on the dollar, tion! and the balance withdrawn. Mr. FRYE. I cannot yield for a question now. "So low had the credit of the Government fallen that the Secretary Mr. WARNER. I would simply like to ask the gentleman if this of the Treasury, in January, 1861, suggested to Congress, as a finan is the whole cost of resumption, this $13,000,000 Y cial resource, that the several States be asked, as security for the re Mr. FRYE. That is what the gentleman from New York gave to payment of any muney the Government might :find it necessary to be the cost up to the present time, including interests and all. He borrow, to pledge the deposits received by them from the Government states the costs and says "the Secretary is confused," and that a.a a under the act for the distribution of the surplus revenues in 1836; matter of fact over $105,000,000 of bonds were sold for resumption the Secretary believing that a loan contracted on such a basis of purposes. I point him to page 74 of the Finance Report of 1879. security, superadding to the plighted faith of the United States that Then I ask him to take the provisions of the first section of the re of the individual States, could hardly fail to be acceptable to capi sumption act, and what does he find Y He finds that the Department talist.'3." is required to coin, as soon as practicable, small silver for the redemp Before March, 1861, seven States had seceded; a confederate gov tion of fractional notes; and having no surplus revenues with which ernment had organized; their president and vice-president had been to buy the silver, there were sold at once 5 per cent. bonds in the elected ; their congress had convened; an army had been raised; Gen amount of $15,215,500. In 1876 an additional amount of $2,278,650 eral Twiggs had surrendered United States troops in Texas; and a. was sold, making in all $17,494,150. Subsequently there were sold to democratic President of th~ United States had impotently yielded, by accumulate coin for the redemption of United States notes, of 4t the declaration that under our Constitution there was no power in Con per cent. bonds $65,000,000, and of 4 per cent. bonds $30,500,000, gress or elsewhere to coerce a seceded State. March 4, 1861, the re including $5,500,000 rendered necessary by the depletion of ca.':lh in publican party came into possession. Into possession of what Y Of the Treasury on a~count of payment of the Halifax award. This a disorganized, dismembered Republic, with Us forts, arsenals, navy would make the amount of bonds sold under the resumption act yards, soldiers, mints, custom-houses, and post-offices, seized by an $112,994,150; but of the amount sold for coin with which to redeem enemy, without any efficient army, with its little navy scattered to the legal-tender notes there were but $95,500,000, and of this $5,500,000 the four corners of the earth, and with this bankrupt Treasury. But was made necessary by the Halifax award payment, as before stated, it was equal to the occasion. It raised a mighty army; equipped, a mistake of only ten millions of dollars made by the chairman of supplied, and kept it in the field for four years; built and manned th~ Ways and Means Committee! a navy great enough to blockade the whole southern coast. I wish to call the attention of the House to another point made by During the war it expended more than 4,000,000,000 obtained by the gentleman. He says : taxing a willing; people and borrowing from a cautious public. In For the purpose of strengthening the public credit at the commencement of the 1862 unpaid soldiers in the field and unpaid requisitions on the table war and giving confidence to those who were disposed to become Government cred· of the Secretary of the Treasury compelled it to resort to the danger itors, a so-oalled " sinking fund" was established, which was immediately disre ous expedient of issuing legal-tender notes. Then followed the acts garded, even by those who had created it, and which has been irregularly complied with since. of February and July, 1862, and of March, 1863, providing for the issue of four hundred and fifty millions of the well-known "greenback&." That is in the letter true; in the spirit, not so. The payments on Rapid depreciation followed, and tbe greater the depreciation the the debt have met the requirements of this sinking fund and exceeded greater the necessity for more. What should be done Y There was a. them by $300,000,000. The amount of the sinking fund January 1, beaten path trodden by the world before. It was easy to take that, 1880, computed with reinvestment at 6 per cent. per annum upon the and the temptation was fearful to set again the printing presses at total of the debt since January 1, 1866, would be $472,243,621, while work and make the money so much required. But the republican the amount actually paid on the debt is nearly $800,000,000. Now, if party, with a sagacity such as the world had never seen before and that is not a compliance with the requirements of the sinking fund a. courage no nation or party· had ever manifested, stopped, called a. in 6pirit, and more, too, then I do not understand what compliance halt, and enacted into law its solemn declaration- maybe. Nor shall the total amount of United States notes issued or to be issued ever ex· Again-now for a little of the gentleman's democratic poison-he ceed $400,000,000, and such additional sum, not exceeding $50,000, 000, as may be tem says: porarily required for the redemption of the temporary loan. The Finance :aeport of 1865 states that the average interest on 1, 725,000,000 of This declaration, made in the midst of distress, necessity, and almost the debt was 6.62 per cent. The management of the public debt from that period has not been the best that could have oeen devised. overwhelming temptation, was the citadel of the financial integrity of the Republic, and the assaults upon it have been frequent and That may be. I am inclined to think that an omnipotent power fierce. There have been foes without always, sometimes weak friends perhaps might have devised a better way. But hear the conclusion: within. The democratic party, denbuncing the issue of these notes There has not been a stable policy founded on principles of enlightened states· when they were necessary to save the life of the nation, with a strange manship. inconsistency has clamored at its gates for more when peace had been And yet in the same speech, coming from the Committee on Ways secured and safety made certain. An army of greenbackers, with and Means, with a full chance of the completest investigation, the banners, has assailed it. With ranks recruited from weak, vacillating, gentleman says: and disappointed republicans, swollen to respectability in numbers It is evident that the United States has far greater natural resources to meet its by the unprincipled followers of a. false light called democracy, it baa obligations ~n Grea.tBritaiD. or any ot.her nation. ma-0.e assault after assault. At one time there was weakness within And that, too, notwithstanding four years of the most dreadful war the walls, and timid counsels threatened its overthrow, but shortly that ever visited any land on this earth and a debt in 1865 of almost weakness succumbed to strength and timidity gave way before cour $3,000,000,000, and no" stable,"" enlightened" policy financially. And age. Every assault from without has been repelled, every danger the gentleman further says: from within averted, and the financial integrity of the country has She stands even now in the beginning of her national existence as the credit.or been preserved. The danger has passed, and n9w even a time-serv 1lation of the world. All that is necessary to maintain supremacy is wisdom, can. ing democracy shouts vigorously for hard money-so vigorously that tion, and good faith. the gentleman from Iowa [Mr. WEAVER] charges it with treachery; What a position to be attained to by this young Republic, which, and threatens its destruction. - according to the ~entleman, has had no stable and enlightened :finan The "greenback," worth almost as much as gold tho day it was cial policy. Agam: first issued, gradually sinking in value until it fell to thirty-eight Our credit is firmly established on the best basis. It is reco~ed and admitted cents on a dollar, through the fidelity, sagacity, and courage of the b.Y timid and conservative investors in public funds who hazard nothing at any republican party has appreciated until to-day it is receivable at par time ~d under no inducements. WJth gold in every great commercial center of the world. This Again: achievement is without a parallel in history. Fearful of the effect • The rate of Si per cent., which is -proposed-I. is a conservative proposition. As to upon our credit of the issue of paper money with no provision for its · ita feasibility of successful accomplishment .i have no doubt. redemption, the light of experience disclosing only repudiation in 1880. CONGRESSIONAL RECORD-HOUSE. 1725 tho end, the republican party in Congress, February 22, 1862, wisely 1870, eighty-five cents. But the enemy during all this time was sow enacted what is now section 3694 of the Revised Statutes: ing tares; his sappers and miners were continuously at work to de ti.EC. 3694. The coin paid for duties on imported goods shall be set apart as a stroy the credit of the United States. Of course this was not their special funtl, and shall be applied as follows : avowed purpose, but it was the inevitable tendency of their opera First. To the payment in coin of the interest on the bonds and notes of the United tions. They were undoubtedly inspired by a blind determination to States. Second. To the purchase or payment of 1 per cent. of the entire debt of the United overthrow the republican party, and, Samson-like, seemed to ignore States, to be made within each fiscal year, which· is to be set apart as a sinking the fact that the means adopted would topple over this magnificent fund, and the interest of which shall in like manner be applied to the purchase or temple, burying them beneath its ruins. ~t~nt of the public debt, as the Secretary of the Trea-sury shall from time to time In the early days of the war the democratic party began to appeal Third. The residue to be paid into the Treasury. to prejudice and ignorance and arouse hostility to the United States This was virtually a promise to pay interest on our bonds in coin, secnritie-s because they. were not taxed. Attempt after attempt was and to provide for the gradual extinction of the principal in the same. made to impose a tax upon them. The Constitution, as expounded This law, wise and healthy as it was, has met with a like experience by Chief-Justice Marshall in 1819, (see McCulloch vs. The State of to that of the limitation upon the issue of legal-tender notes. It has Maryland,) clearly "left no power to the States, by taxation or other been reviled, execrated, and fiercely denounced. Piteous appeals have wise, to retard, impede, burden, 9r in any manner control the opera been made in behalf of·the greenback, "the savior of our liberties;" tions of the constitutional laws enacted by Congress to carry into charges hurled at us that we have dishonored them by refusing our effect the powers vested in the National Government," and there had selves to receive them for customs dues; specious pleas entered in been since an unbroken line of decisions to the same end. But to save every hamlet in the land that we, with the same hand that scattered the public credit harmless against these attacks the republican Con them abroad, branded them with disgrace; anathemas proclaimed gress was obliged to reaffirm fu statufies this constitutional exemp fromeveryplatform against us as the fatherwho sends his own child tion. It did so twice in 1862, again in 1863, twice in 1864, twice in into the world and stamps upon his brow the infamy of illegitimacy. 1865, again in 1870. And section 3701 of the Revised Statutes-" all Legislative attempts to destroy the validity of this statute have stocks, bonds, Treasury notes, and other obligations of the United been frequent, by requiring the receipt of legal-tender notes for cus States shall be exempt from taxation by or under State or munici toms dues, by authorizing the payment of interest on the public debt pal or local authority "-is a. monument to the folly of the opposition in the same, by an unlimited issue of irredeemable paper money for and to the determined purpose of the republican party to stren~hen the payment of both principal and interest of the debt, by every the credit of their country. The right on the part of States and mu strange scheme that could emanate from the disordered brains of crazy nicipalities to tax the national obligations would enable them to men. They seemed to forget or recklessly to ignore the fact that this cripple the Government in time of war; might make power weak law was a vital part of every such contract entered into by our Gov ness, turn victory to defeat. No nation can allow it, and no patriotic ernment after its enactment; that a disregard of its provisions would citizen ought to desire it. be bald and disgraceful repudiation. The republican party never From 1867 onward there was a vigorous warfare waged against the forgot, but earnestly and persistently stood by the law, maintained gold character of the bonds, principal and interest. Again a repub through good report and ill report, through prosperity and adversity, lican Congress came to the rescue of our imperiled credit, and in through :flush times and through panics, that the financial integrity March, 1869, to strengthen and establish it, enacted into law these of the nation should be preserved, that its contracts should be kept, provisions, now contained in section 3693 of the Revised Statutes : that its promises should be redeemed in both letter and spirit. Its The faith of the United States is solemnly pledged to the payment in coin or it.s success is evidenced by section 3694, in our Revised Statutes, the law equivalent of all the obligations of the United States not bearing interest, known enacted in 1862, not an i dott-ed nor a t crossed, changed, or modified; as United States notes, and of all the interest.-bearing obligations of the United States, except in oases where the law authorizing the issue of any such obligations in no respect other than it may be held to be modified by the resump has expressly provided that the same may be paid in lawful money or other cur tion act. rency than gold and silver. * * * The faith of the United States is also solemnly The repeal of this law during the war would have destroyed our Ii_~d-fr:~ s~:f:O~ii: ~;~~e earliest practicable period for the redemption of credit and given success to the enemies of the Government. Its re peal or essential modification since the war would have dishonored From that day the assaults upon this statute, in Congress and out, us in the eyes of the world aml made our vast expenditure of blood by democrats, greenbackers, nationalists, and fnsionists, have been and money a mere wicked waste. Thanks to an overruling Providence, constant, but the law still stands as a witness to repnblican fidelity to the patriotism of our people, to the valor of our soldiers, and to the to principle. The nation was receiving the benefit of this fidelityin sagacity of our statesmen, the war ended, peace was restored, and an improved credit, so that its legal-tender notes in July, 1870, were the Republic preserved. Then we at once looked to our financial con worth eighty-nine cents; and, relying upon this improved credit, a clition. The war had been long, its·demands upon the energies and republican Congress, July 14, 1870, and January, 1871, passed the a-0ts resources of the people fearful, the expenditures enormous, the strain for the refunding of the bonded debt at a lower rate of interest, upon the public credit terrible. We balanced the books and found, known as "the funding acts," under which the 5 per cent. bonds com August 31, 1865, our debt as follows: ing due next year were issued; alBo authorizing the issue of two hun Four percents. ______----·-·---·---··----··----· '618, 127 98 dred million 41 per cent. bonds, redeemable after fifteen years, and Five percent.a-·-·-··-·--··------·-·--_·---·-_·-· 269, 175, 727 65 seven hundred millions of 4 per cent. bonds, redeemable after thirty Six percents-·----·------· ---- _•.. -- -- ______1, 281, 736, 439 33 years. It was further provided that these bonds should not be sold Seven and thre&-tenths percent.a·--·------__ .. 830, 000, 000 00 -----$2, 381, 530, 294 96 for less than par in coin. Debt not bearing interest·-··------·---·-·--·-·· -----· ·---· ---- 463, 119, 331 60 The transactions under these acts I will come to before I close. ----- From this time to 1875 the legal-tender notes were :fluctuating be 2 Less :!::l1iib.6"T;e;;.;,;y·:::::::_·:::::::_·:::::_-.-.-_-_._._-.-.-_-_-~::: :: : ' ~ ~t~: ~ ~ tween eighty-two and ninety-two, and a republican Congress detier mined that good faith required their payment ; therefore, January Net debt-··--··---·---·---·-···-···--- .•••.. ·------_--·--· 2, 756, 431, 571 43 14, 1875, they passed and the President approved "An act t• provide for the resumption of specie payments." Annual interest charge·------_---··-·---· ... ----·-·-·-·-·--- 150, 977, 697 87 This was the highest point of indebtedness reached, and was a sum SEC. 3. * * * And on and after the 1st day of January, .A.. D. 1879, the Secre tary of the Treasury shall redeem, in ooin, the United States leO'al-tender notes total, well calculated to dismay the people and seriously disturb our then outstanding, on their presentation for redemption at the office of the assist creditors. ant treasurer of the United States in the city of New York, in sums of not less To give courage to the former and restore confidence to the latter than$50. was the first problem to be solved. The republican party determined From that day, to January, 1879, this law has been the point of to accomplish both, by commencing at once to pay the debt, and under attack. Every conceivable combination has been formed against it; their auspices the Government applied to this purpose the surplus new parties sprang into existence whose only platforms were opposi revenues, and made the following reductions: tion to it; State campaigns have been run with this the only issue and it entered largely into the Jast presidential contest. It has been Fiscal year. R-eduction. Fiscal ye~. Reduction. discussed in Congress without limit, in State Legislatures, in town houses, in school districts, all over the country. It was boldly declared that it would bring swift ruin upon the country; that the "bloated 1866 ·---·-··-·---·--·· $120, 395, 407 59 1874 ····------· ·---·--· $1, 312, 907 06 1867 ,_ -. -•. ---. --..••. 12'7, 884, 952 15 1875 _____ -··----·-··--· 14, 107, 983 56 bloodhounds of Wall street "would make a run upon the Treasury and, 1868 ·------·--·---· 27, 297, 798 46 1876 ·-··- ·----·---· ·--· 29, 115, 829 88 in the twinkling of an eye, deplete it of its hoarded gold, bringing 1869 ·----·--··-·-··--· 48, 081, 540 14 1877 -·-·- ·------· ---· 41, 649, 908 88 bankruptcy upon the nation; that our refunding operations would 1870 ·----·--·-·---·--· 101, 601, 916 88 1878 ---·------· 19, 893, 150 92 be paralyzed, and our credit destroyed. 18TI-·-·-·------··-·· 84, 175, 887 54 1879 ·------··------· 2, 967, 375 42 1872---··------··--· 97, 213, 538 32 1880, to February 1 ___ . 26, 423, 015 45 It haa been fiercely denounced as "the robber resumption act," 1873 ·--···---·---··--· . 44, 318, 469 60 "the thief from the poor," "the iron heel of despotic power." It has Total reduction._ •. - 786, 439, 681 85 been charged that it was enacted at the demand of the rich, in their interests, to make them richert the poor man poorer. In these Halls This served its purpose. The people grew stronger and more hope- and from every platform in the land it had been proclaimed that "it fnl, the holders of American securities more confident, and the legal- would stop the wheels of businees," "it would close every forge and tender notes gradually appreciated. They were'worth in July, 1864, put out every furnace :fire,"" it would seal up every open-mouthed thirty-eight cents on a dollar ; in July, 1866, sixty-six: cents; in July, mine," "would stop every revolving mill-wheel,'' " would make every 1867 seventy-one cents· in July, 1869 seventy-three cents· in July, . honest toiler a tramp." So fierce and noisy was the cry that it 1726 CONGRESSIONAL RECORD-HOUSE. MARCH 20,

frightened the whole democratic party into the" soft-money" ranks, The railroads tell the same story, and the exchanges repeat it. I made the venerable "bullionists" forget gold, their idol for fifty quote from the New York Tribune of March 1: · years, and tarn devoutly to the worship of paper gods, made the Railroads continue to report very satisfactory gains in gross earnings. Among knees of timid republicans tremble and shake like Belshazzar's at the largest proportionate gains report.ad since January 1 are $.1.98 000 or 140 per the feast. Scores of bills for the repeal or modification of this law oont., on the Saint Louis and Sa.n Francisco; $276,000, or 82 per cent., o~ the Missomi Kansas and Texas; 95,000, or 60 per cent., on the Burlington Cedar Rapids and have been introduced into Congress, and car-loads of speeches de Northern i $301,000, or 58 per cent., on the Iron Mountain; 1252,'ooo, or 50 per cent., nouncing it have been made, printed, and scattered over the country. on the Chicago and Alton; 186,000, or 38 per cent., on the Atchison Topeka and Once an act for its repeal passed the House. Amid all the din, the S~ta. F6; $3~.ooo on the Milwaukee and .Sa.!nt Paul; $359,000 on the Philadel confusion, the babel of tongues, the noise and war of democrats, phia. and Reading; and $246,000 on the LoUISville and Nashville, each 37 per cent., and 1306,000, or 35 per cent., on the Wabash Pacific. greenbackers, nationalists, communists, and demagogues, the main The exchanges at New York for the month of February, 1880 were larger by 55 body of the republican party stood by their· guns, and on January per cent. than in February, 1879, and the increase in amount of 'stock transactions 1, 1879, the resumption provided for by law, became resumption in has been smaller than the increase in other exchanges. At Boston, during three weeks of ;February, the exchanges. amonnf:ed to $212,000,000, against $l40,000,000 in fact, a-s silently as the stars move in their orbits. 1879, a gain of 52 per cent. ; at Philadelphia, for the same period the gain was 63 Where is the national bankruptcy, the run upon the Treasury, the per cent. ; at Chicago, 51 per cent. ; at Milwaukee, 55 per cent. · at Pittsburgh 68 depletion of its gold, and what now of the paralysis which was to per cent.; a.t Saint Louis. 43pei; cent. ·i at Ba.lti~ore, 26 ~r cent.; a.nd at New '0r. strike refunding f The records of the Treasury Department show leans, 25 per cent. At other mmor p aces the mcrease m transactions was also that the amount of coin paid out in redemption of legal-tender notes large. from January 1, 1879, to December 31, 1879, is $11,456,536; but dur But, Mr. Speaker, why need I say more in this direction f Pros ing the same period legal-tenders were received in payment of cus perity has surely come, and, if we are wise, has come to stay. toms dues to the amount of $109,467,456. It may also be stated that I recur now to the refunding act of July, lb70, and call the attention during the same period the TreaBury paid out on account of coin ob of the Honse to the operations under it as further evidence of the wis ligations more than $250 000,000 in legal-tendernotes. Thishaabeen dom o~ the republican Congre_ss in stre~~hening the public credi,t. done by consent, not by iaw, because resumption made the greenback No action was taken under this law untiI March, 1871, when Secre as good as gold, while in form it was more convenient for use. There tary Boutwell invited subscriptions. Before tJ;i.e 1st of August he are millions more of gold in the Treasury now than there were on sold for coin at par or exchanged for outstanding six percents a.bout the day of resumption, and there is to-day before the Committee of $75,000,000 of the five percents authorized by the refunding act. He Ways and Means a bill requiring the Secretary of the Treasury to then made arrangements with associated bankers. by which he sold devote a part of it to the purchase of bonds. during the remainder of his term of office $125,000,000, making in As to the influence of resumption upon refunding, the information all $200,000,000 sold by him. ' from the Treasury Department shows that it waB most beneficial. SecretaryRichardsoncontinuedsubstantiallythearrangementmade During the eight years previous to resumption the Government had by his predecessor, and sold, in round numbers, $120,000,000 of the same kind of bonds. Secretary Bristow succeeded Mr. Richardson, been able to sell for refunding purposes only $500,000,000 of five 1 percents, 185,000,000 of four and one-half percents, and about $175,- and sold the balance of the five percents authorized, being, in round 000,000 four percents. Then came specie payments, and in the three numbers, 180,000,000. Secretary MoITill succeeded Mr. Bristow, and and a half months following .lanuary 1, 1879, there were sold $540,- made a contract for the sale of the $300.,000,000 of q · per cent. bonds. 000,000 of 4 per cent. bonds and certificates. · authorized by the refunding act, under which he sold during his term Where is the widespread ruin f Where are the silent forges, the of office $90,000,000. Under this same contract Secretacy Sherman fireless furnaces, the motionless mill-wheels, the honest toilers turned who succeeded. Mr. Morrill, sold $95,000,000 of the same bonds. ~ to tumpsf all these ti;a~s31Ctions up to this p~t the t of 1 per cent. provide.d Why, the whole aspect of the country was changed by resumption. by law for the pa;yment of expenses in refunding w~s used in paying Confidence was restored, timid capital recovered its conrage, de commissions and other expenses appertaining to the issue o~ the pressed business became active and elated, sluggish discontent gave bonds. Secretary Sherman also sold of 4 per cent. bonds for refund way to buoyant happiness, adversity yielded to prosperity, the silent ing 710,345,950; but of the t of 1 per cent. ~owed for e~p~nses and, forges became noisy, the firele8s furnaces were lighted, turning the commissions there still remains unexpended about $1,1001 000, · · darkness o~ night into the light of day, and the honest tramps be It may be further stated that in some of the transactions interest came busy toilers. There are those so blind they will not see, but was paid for a period not exceeding three months both on the bonds the wayfaring man, though a fool, need not eIT in the signs of the issued and the bonds redeemed. No exact am,ount of the so-calleq times. The stock lists, the bond quotations, the dividends declared, '' double interest" paid can be stated, but the Dep~ment is satis the new enterprises started, are sure indications of a renewed life fied that it does not exceed! of 1 per cent. on the amount of bonds and activity. In my own city of 20,000 inhabitants the manufactur refunded. None was paid·on the first $75,000,000 spld by Secretary ing stocks alone ha.ve increased in value, since January, 1879, nearly Boutwell, nor on the amount sold by Secreta.rY, Bristow, and Oil the $3,000,000. Iron has doubled in value, and steel rails have gone from four percents sold by Mr. Sherman a premium of t of ~ per ce.nt. w~ $45 a ton to $85, and yet the railroad companies have ordered over a secured on $150,000,000, thus compensating in part for the extra in million of tons the last yea.r. From 1868 to 1873 the average annual terest paid. During all the negotiations, whenever calls were ma~e area of wheat in this country was in round numbers twenty million in advance of subscriptions a corresponding saving was e:fiect~ 'i.J;l acres; last year, thirty-three millions; of corn, from 1868to1873, thirty the amount of interest thus paid, and these calls were made to th.e four millions; last year, fifty-two millions; and the increase in oats, extent sometimes of thirty or forty million dollars. rye, and barley equally great. From 1868 to 1873 the balance of trade The expenses incurred in refunding since 1870 may therefore be against us was two hundred and seventy-eight and a half millions, stated as follows: · ' while last year the balance in our favor was $269,333,000. From a reli Amount of bonds issued_·-. --- . -- -- - .• _--· . _____ $1, 395, ~45, 9~0 00 able paper I quote the following table, as a comparison of a few arti cles of export of 1873 with that of 1879 : Appropriation authorized of i of 1 per cent _____ . ______. $6, 976, 729 75 .Artioles. 1873. 1879. Gain. Balance unexpended.- ____ . ____ .__ 1, 100, 000 00

, 5,876,729 75 $69, 024, 059 f210, 255, 528 1141 331, 469 Amount expended-----·-----·-·------··---·----· 30, 436, 642 116, 858, 650 86, 42'2, 008 Add a liberal estimate of amount of extra interest 2, 033, 447 11, 754, 359 9, 121, 208 paid - -_- • ---______•. ______. _____ . ____ _ 10,000,000 00 1, 142, 824 6, 164, 024 5, 021, 208 Total . ______. . ______. ______. 15,870,729 75 Tota.I . - -·. ------. -- . . ·-. ---.. -- . ·--· ---- -.• -- . ·----.. - -· _--· 242, 496, 589 Or, say, in round numbers $16,000,000, which I am confident will In 1868 we were doing business on an irredeemable cUITency, and more than cover every expense involved in the refunding transac.. were therefore unable to compete with foreign manufacturers. Let tions. The total saving in interest on account of refunding the debt us compare the export of a very few manufactured articles of 1868 from 1871 to June 30, 1880, will be $52,139,560.50. The saving in in with the exports of 1879, as follows : terest by reason of reductions of the principal of the public debt be tween August 31, 1865, and June 30, 1879, is $527,486,549.18, making a total saving by reduction and refunding, not including the large red ac Articles. 1868. 1879. Gain. tions by purchases ma-de during the fiscal yea.r 1880, of $579,626,109.68. The present annual saving in interest by refunding is $19,900,846.50. Agricultural implements-·-···.--··--· $673, 381 $2, 933, 388 $2, 260, 007 After this refunding, February 1, 1880, the debt of the United Copper and brass, manufactured • ____ _ 496, 369 3, 031, 924 2, 562, 555 States was as follows: Cotton, manufactured ..... _ ...... ___ . 4, 871, 054 10, 853, 950 5, 982, 870 Iron and steel, manufactured.----··--· 5, 491, 306 12, 766, 294 7, 274, 988 4 per cent. bonds, including certificates -• _. __ - - -. _ $7 40, 84fi, 950 00 Leather, copper, and lead, ma.nufact;. 4t per cent. bonds-----·-----··------·----· __ _._ . 250,000,000 00 ured. -----· -----· ·------. ---- · -· 607, 105 6, 800, 070 6, 192, 864 5 per cent. bonds ______• ______---- •.. _-_ • __ _ 506, 495, 350 00 Oils .• -. -• ·-· -••• --- -- ·-·--- .• ----·... . 19, 752, 142 25, 999, 862 16, 247, 719 6 per cent. bonds . ____ . ___ • _.• _.• _•• _. _____ • _ __ _ _ 270, 345, 550 00 Tallow··---····--··-··-·----·----·· - -· 2, 540, 227 6, 934, 940 4, 394, 713 3 per cent. Navy pension fund .••••• ·-···· .••••• ·- 14,000,000 00 Total···-···-·---·-·-·· ~--··-· ·--····-····-· ·--··-·····-·· 44, 915, 718 1,781,686,850 00 1880. CONGRESSIONAL RECORD-HOUSE. 1727

Brought forward·-·· -- .••• ·-·-·· -----· -----· 1,781,686,850 00 But, Mr. Speaker, I should not do justice to the republican party Debt not bearing interest ••• - •.. -.••.. -•• - - . - -- - - 394,510,095 96 if I should stop with this magnificent record. Its eye was not single Debt on which interest has ceased .••••..••••.•.•. 12,002,445 26 to the ~eduction of the debt,~ the strengthening of our credit, to the Interest due and unpaid .•••••.••••• -····· .•.... - 3,330,628 65 refunding at a lower rate of mterest. It never forgot the people, nor Interest accrued •..•..•••••••••..•••••.•••••... _. . 12,996,489 62 was umnindful of the burdens they wero bearing, and it commenced at the earliest possible moment the lightening of them, as will appear 2,204,526,509 49 by this table : . Deduct cash on hand .•••••.••••••.••.•••••..•.•.. 203,742,268 57 TABLE No. 1.-Statement showing estimated reduction in internal-revenu-6 Net debt .•••••..••••••••••..••••••••••••.• 2,000, 784,240 92 receipts a1'ising from reduction, in taus to 30, 1879. The annual interest being less than $83,000,000, in place of the annual June interest-of 1865 of 150,977,697. 0 i:l The 6 per ~ent. and the 5 per cent. bonds are all redeemable at the ::s '°d ~ ~ option of the Government during this and next year, amounting to a 4> &> O•pO> f-4 ~ ..... little more than $776,000,000. To redeem these, the Committee of Date of a.ct. 'g fD Ways and Means have reported the bill under consideration and ~ f-4 ... have eJtpressed the opinion that it can be easily accomplished. I cer 1~ ~ :gs tainly hope they may be right. If they are, the annual interest will 0 ~ ~ ~ be reduced to a little over $65,000,000. What a magnificent financial achievement ! When has it been 165, 000, 000 13 '845, 000, ()()() paralleled in the world t ~lcfi32~~:: ::::: :: ::::: :: ::::::::::: ::: :: :: 40, 000, 000 12 480, 000, 000 A bond bearin~ a lower rate of interest than 4 per cent. has never Febrnary 3, 1868 ••••••.•••••••••••••••••••••••• 23, 000, 000 11 253, 000, 000 been sold at par many country, yet our fonr percents are at a pre :March 31, 1868, and J nly 20, 1868 ••••••••••.••. 45, 000, 000 11 495, 000, 000 68,500,000 9 616, 500, 000 mium of 7 per cent. I call attention to the rates in England and 20, 651, 000 7 144, 557, ()()() France, as shown by these tables. ~~ ~~·f:l~:::::::: :::::: :: :::: :: ::: ::: :: ::: :: It will be seen that while the English consols are three percents, Total...... 2, 834, 057, 000 they always sold at a discount ; that the debt of England in 1878 was a little over $3,800,000,000; "the annual interest and cost of manage ment" were $142,063,756; so that the interest must have exceeded 3l There has also been a reduction in duties, as will appear in the fol per cent. lowing table:

TABLE No. 2. Comparative summary of the values of imported commodities entered for consumption in the United States, toith the amounts of duty recei-i;ed on the same, during the jiscal years ended June 30, from 1867 to 1879, inclu.si.ve.

~ e~ ~ <+-< 0 1 0 ~,,; I>. Average ad valorem. $al ::i«> 'S$ 1j . rat.a of duty on- .;::~ '°d~ 4),.0 'd'°d Fieaal year. <+-< 0 p~a) <+-<:a 'S~ oo os ::i~ ~ 4> ~~ l>'d;a R .... IP a ::I 0 ::;l ::I ..... 0 3-co 0 Dutiable. Free and os d o~S a dutiable. ~ ~ E-l ~

1867.••••••• ··-••• -- - -- • ---•• ·-· ••••••••••••• ·-•••••••••• -·. - ••• -· ••• $39, 103, 605 00 '361, 125, 552 50 $400, ~. 157 50 $168, 503, 749 58 46.667 42.101 1868 .••••••• -····. -· •••••• --•••••••••• - ••• - - ••••••••••••••••••••••••• 29, 071, 796 00 329, 661, 302 30 358, 733, 098 30 160, 53'.l, T18 78 48. 628 44.687 1869 ..•••••••••••••• - - ••••• -· •••• - --•• - - •••••• -· - ••••••••••••••••• - •• 41, 499, 601 78 372, 756, 641 51 414, 256, 243 29 176, 557, 583 72 47.219 42. 561 1870 .•••••••••••••••••••••••••• ···············-·····--·-· •••••••••••• 46, 743, 760 69 406, 131, 904 99 452, 875, 665 68 191, 513, 974 45 47. oea 42. 223 18n .••••••••••••••••••••••••••••••••••••••••• -·· -- •••• • • ••• - ·• •••••• 59, 162, 460 46 459, 597, 057 86 518, 759, 518 32 202, 446, 673 J2 43. 946 38. 936 1872. - • -·. ···-•• ··-· ••••••••••••••••••••••••••••••• ·-··-· ···-•••••• -· 61, 177, 600 98 512, 735, 287 38 573, 91:.!, 888 36 . 212, 619, 105 45 41. 352 36. 944 1873 .••••••••• -- • -· .•••••••••••••••••• - •••••••••••• ·-···· ···-•• ·-·· •• 199, 886, 874 80 484, 746, 861 27 684, 633, 736 07 184, 929, 041 74 38. 072 26. 956 1874 .• - •••••••••••••••••••••• - •••• - •••••••••••••••• - • - ••••••••• - • - ••• 180, 117, 061 45 415, 718, 692 65 595, 865, 754 10 160, 522, 284 63 38. 530 26. 883 1875 •••••• ··-· ••••••• - ·-·· ••• -·· - •••••• ··--••••••••••••••••••••. -- ••• 167, 255, 004 42 379, 795, 113 48 547, 050, 147 90 154, 5.')4, 98'i 55 40. 617 28. 201 1876 .••••••• - •••• - ••• -- •••••• , •• - •••••••••••••••••••••••••••••••••••• 156, 268, 347 06 324, 024, 925 96 4!!0, 293, 273 02 145, 178, 602 75 44. 744 30.186 1877 •••••••••••••• - •••••••• - ••.•••••••••••••••• - •••• - •• - ••••••••• - ••. 181, 528, 251 47 298, 989, 239 93 480, 517, 491 40 128, 428, 343 44 42. 885 26.684 1878 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 1n,144, 273 38 297, 083, 409 48 468, 227, 682 86 127, 195, 158 99 42. 754 Zl.127 1879. ·-- - • ·-· ••• ·-·· •• ···-· •.••••••••••••••••••••• - •••••••••••••••••• 162, 827, 622 03 296, 7 42, 214 94 459, 569, 836 97 133, 395, 4.'35 90 44. 874 28. 975 Total .••..•••..••.••• ··-· .•••••. -..• --· .. -- •••••..••••.....• - •••••• -·· ... ------..•••...•.. - .•.•.. 6, 434, 924, 493 77 2, 146, 377, 715 30

In the matter of reduction of tariff duties it will be seen from table interest and for the resumption of specie payments; refunded the No. 2 that the rate of duty on a.11 goods imported, free and dutiable, has whole debt refundable· resumed specie payments; so appreciated decreased since the year 1868 from 44.687 per cent. to 28.975 per cent. tho legal-tender notes that they are at a premium; so strengthened Assuming that the same amount of goods had been imported with the the national credit that the bonds of the United States bearing 4 rate of duties :fixed at the rate existing in 1868, the total amount per cent. interest are at a premium of 7percent.; that the Committee of collected would have been $2,875,574,308.18, or $729,196,592.88 more Ways and Means insist that the balance of the debt can be easily re than was actually collected. funded at a rate of 3l per cent. ; reduced the annual interest on the From table No. 1 it will be seen that the total reduction in internal debt from one hundred and fifty-one millions to about eighty-four; revenue receipts arising from reduction of taxes to June 30, 1879, is took every step in these directions, from the :first day of the war to $2,834,057 ,000 ; making a total reduction of. customs and internal now, in the face of a determined opposition; neverTetraced a step, revenue dues of more than $3,500,000,000. In other words, had there though the temptations to do so were alm:ost overwhelming, though been no reduction of taxes, and other conditions remaining the same, hard times, panics, and popular clamor lashed them fearfully in the the people would have paid this latter sum as taxes to the Gov face ; at the same time reduced the burdens the people were bearing ernment during the period in question in addition to what they have by repealing in revenue taxes alone from July, 1866, to July, 1872, actually paid. This amount would be sufficient to wipe out the pres over $262,000,000, saving the people to the present time from the pay ent public debt and leave a surplus of $1,500,000,000. ment of nearly $3,000,000,000. Now, Mr. Speaker, let me summarize. The record shows that in This is the glorious financial record of the republican party, and, 1860 the rate of interest for Government loans was 12 per cent. ; that sir, almost in the presence of the history itself, I dare declare that the a:v:iount required could not be obtained for that; that the repub no party, no nation in the whole wide world, from the day of its lican party, in 1861, came into possession of a dismembered nation creation to now, can show its parallel, and yet the gentleman from and a bankrupt Treasury ; carried on to a successful issue a four New York says, "The management of the public debt since 1865 has years' war; expended more than 4,000,000,000; in 1865 found the re not been the best that could have been devised. There haB not been storedRepublio owing about $2,800,000,000, $400,000,000 of which were a stable policy founded on principles of enlightened statesmanship." legal-tender notes, greatly d.epreciated, and still more to depreciate; tt The :figures ~ven in the following table, relative to the loans of legislated from time to time to strengthen the credit of the country ; 1793-1817, inclusive, are based upon information derived from a some to the same end, for several years, paid that debt at the rate of one what similar table originally published in McCulloch's Treatise on hundred millions a year, the whole amount paid to the present date T:nes and the Funding System, London, 1852, and republished in the being about $800,000,000; provided for refunding a.t a lower rate of appendix to an essay of William Newniarch, on the Loans raised by l728 CONGRESSIONAL RECORD-HOUSE. MARCH 20, Mr. Pitt, which essay appeared in the London Statistical Journa.l for Iderived from Sir Stafford Northcote's Twenty Years of Financial Pol- September, 1855. The fignres relating to the loans of 1847-1856 are icy, pages 94, 265, 278, 288:" - Debt of Great Britain.

· d Money raised Annual inter- Year. Stock issue • on stock is- est on stock, Kind of stocks. (£=$5.) sued,(£=$5.) (£=$5.)

Pe:rcent. Pe:r cent. 1793 .••••••••••••••••••••• ···-········------$31, 250, 000 $22, 500, 000 $950, 000 28. 4.22 3 per cent. consols. 1794. ·-· .•••..••• -----••.... -- • - •••••• --·· -- 78, 350, 000 64, 550, 000 a, ooo, ooo 17.6 4.65 3 per cent. consols; 4 per cent., with long annuity. 1795 .•....•..••.•••••••.. •••••••••••••.••••• 277, 700, 000 210, 450, 000 10,650, 000 24. 2 5.06 Do. 1796 ••••••.••.•. ········-······· •••••• ------284, 700, 000 213, 800, 000 11, 350, 000 24.9 5. 31 3 per cent. consols; 5 per cent., with.long annuity. 1797 .•• ! .. -----.... - .... - . ----·----- ..•... -- 145, 100, 000 73, 100, 000 4, 650,000 49.6 6.36 3 per cent. consols; 4 per cent., with long annuity. 1798 . •••••••••••••••••.•.•••••••.•..• • .••••• 178, 100, 000 90, 000, 000 5, 500, 000 49. 5 6.11 3 per cent. consols ; long annuity. 1799 ..•..••.•••••••••• ·--··------109, 350, 000 62, 500, 000 3, 250,000 42. B 5.20 3 per cent. consols. 1800 .••••••••••• ---· -- • - •.••• - •• ------•.• 145, 200, 000 92, 500, 000 4, 350, 000 36. 3 4. 70 Do. 1801...... -···-············------279, 750, 000 172, 050, 000 8, 850, 000 38. 5 5.14 Do. 1802 .•• --- ··---- ·---·- ...... 151, 750, 000 115, 000, 000 4, 550, 000 24.2 3.96 3 per cent. consols, with long annuity. 1803 •••••••••••••••.•••••• •••••••••••• •••••• 80, 000, 000 50, 000, 000 2, 550, 000 37. 5 5.10 Do. 1804 . ••.•••..•..•••••••••.•••••• ·--- - · ··•·•· 90, 100, 000 50, 000, 000 2, 700, 000 44. 5 5. 40 3 per cent. consols. 1805 .••••••••••• ·······--·-················· 197, 700, 000 107, 600, 000 5, 700, 000 45.6 5.30 Do. 18~6 .••.•• ················ ----·-············ 149, 400, 000 90, 000, 000 4, 450, 000 39.8 4. 94 Do. 1807 ••••••.•..•• ·•·••••••• ···-····-········· 91, 850,000 61, 000, 000 2, 900, 000 33. 6 4. 75 Do. 1808 .••••••••.•• ···-························ 68, 450, 000 60, 000, 000 2, 950, 000 12. 3 4. 92 1809 •••••• •••••• ...... ------••••.••.•.•. 110, 850, 000 97, 650, 000 4, 750, 000 11. 9 4. 86 1810 ...... ------99, 050, 000 81, 550, 000 3, 800, 000 17. 7 4.66 Three percents. 1811. ..••••••. ~ •• - • •.••••• ··-••••••• •. --- ••• 14fi, 200, 000 120, 000, 000 5, 950, 000 17. 9 4.96 3 per cent. consols, with long annuity. 1812 ••••••.••••.....•••••••••••• •••••••••••• 203, 700, 000 139, 350, 000 7, 400, 000 31.6 5.31 3 per cent.. consols; five rcercents. 1813 .••••• ·······-·· ...... •..•••.••••• ····-· 468, 650, 000 293, 800, 000 16, 150, 000 37.3 5.50 3 per cent. consols, with ong annuity. 1814 ...... ··-··-·-·· •••••••••••• •••••• •••••. 123, 450, 000 92, 500, 000 4, 250, 000 25. l 4.59 1815 .•••••.••••.•.••.•.••••••••.••.••• ·----· 354, 450, 000 225, 650, 000 12, 900, 000 36. 3 5. 72 3 per cent. consols; four percent.a. 1816 .•••••• --···· --- ...... 15, 000, 000 15, 000, 000 450, 000 0. 3. ------·-- --~ Totals ...... 3, 881, 000, 000 2, 600, 550, 000 134, 000, 000 33. 5.15 February, 1847 ...... 40, 000,000 35, 800, 000 1,lilOO, 000 10.5 3.35 April, 1855 .•••••••••.••••..•. -·- · ········· · 80,000, 000 70, 100, 000 2, 400, 000 12. 4 3. 42 Three percenta. February, 1856 ...... 25, 000, 000 22, 500, 000 750, 000 10. 3.33 Do. May, 1856 .••.•..••..•.•...•.. ··· · ······--·· 25,000, 000 23, 177, 500 750, 000 7.3 3. 24 Do. ------Totals ...•.••.•.....••.. -- ...... •. 4, 051, 000, 000 2, 752, 127, 500 139, 100, 000 32.1 5.05

In 1793 the total funded and floating debt of Great Britain was $1,239,372,170, the Mr. FRYE. I have already trespassed upon the time belonging to interest on which, at the several rates of 3, Ji, 4, and 5 per cent., amounted annu another gentleman, and must do so no further. . ally to $48,556,190. In 1817 the rotal d.ebt, including exchequer billa, had reached the sum of $4,196,910,725, carrying an annual interest of 157 959,635. In 1857 the Mr. JONES. Mr. Chairman, whatever difference of opinion there amount of the funded debt, e~chequer bills ~d exchequer bonds, was 4,0~0.?4~·610, may be respecting the measures of financial policy contemplated the annual interest u'J)on which was $142,7;>0,195. The total debt had diminished by the bill under consideration, all will agree that their importance in 1875 ro $3,876,741,900, with an annual charge for interest and cost of manage ment of $135,472,400; while in 1878 there appeared a slight increase, the amount of is such as to demand our first and most serious consideration. • the debt being then 3,888,907,980, with interest and coi;it of management equaling In any condition of the Government financial legislation in its nat $142,063,756. ure is of vital importance. Money is the life-blood of civilization, The following tabl!3 in !eference t,o the French loans of 1870:'71-'72 ha:s l;>een and its equal and uniform circulation is as essential to equity and pros compiled from data given m the May, 1877, number of the Bulletin de Statist1que et de Legislation Comparee: perity as that of the natural blood to health and enjoyment of life. It pervades every governmental function and permeates the entire ~. '°~ rd""' ci>ai body-politic. Whatever affects it reaches every condition and inter CD 0 ~.a .. "'m '°. t>o CD "'"'O :; ~i est in society. "' ~~ CD- $.S On the 1st day of February, 1880, onr national indebtedness ag $ <1-<0 §'"" ~ OM ~-;.,.cl 0 So .a~ Date of loans. ~.,; gregated $2,188,191,000, a sum quire equa.1 to one-sixth of the entire .s ~o) ....o-;., .... j:I .... ~~- ~]~ stock of gold and silver in the world. 0 i:t 11 ~Cl.>'° 'd .... a) Cl.>d~ 0~1i 3~ '! ~Cl.lei.> To provide for the payment of this immense debt consistently with s .... ~ o·"'""' <1.1;..I> ~CD,_. the national faith, and yet distribute its burdens equitably and so as ~ !~

The commission as organized consisted of Messrs. John P. Jones, Lewis V. Bogy, The gold yield of Australia and California was at its maximum in the five yea.rs and George S. Bontwen; of the Senate; Messrs. Randall L. Gibson. George Willard, ending with 1856. Tho a_ggregate production of both metals was also at its maxi and Richard P. Bland, of the House of Representatives; Hon. William S. Groes mum during the same period. Since then the combined annual production of the beck, of Ohio, and Professor Francis Bowen, of Massachnsetts. George M. Weston, two metals, instead of augmenting, has diminished.-Ibid., volume 1, page 14. of Maine, was appointed secretary. It is true that new sources of supply may be discovered. but it is improbable The sessions of the commission were held in the city of New York until t.he re that new sources equall.v prolific will ever be discovered. and it is only barely pos assembling of Congress in December last. They have since been held in the city sible that they will be discovered and made available within any near period. It of Washing ton. has been said that, " unlike agriculture, there is but one crop in a mine; " and it Immediately after the creation of the commission circulars were issued to bank· may also be said that the greater tho number of mines and gold-fields worked out, ers, publicists, and commercial men in this country, and to eminent financial an· the less chances there are of finding now ones -Ibid., page 15. thorities in Europe, and (through the State Department) to the representatives of An increasing value of money and falling prices have been and are m ore fruit the United States in forei~ countries. These circulars contained interrogatories ful of human misery than war, pestilence, or famine. The:v have wrought more which wore intended to elicit the widest possible information upon all topics cov· injastice than all the bad laws which were ever enacted.-Ibid., page 10. ered by the resolution of August 15, 1876. The chambers of commerce in the lead If metallic money becomes insufficient, by reason of demonetization of either of in~ cities in this country were invited to furnish, and did furnish, lists of the per- the precious metals, or from any cause, one of two things must happen : sons most likely to be able to give information. . The commercial, industrial, and numerical progress of mankind must be arrested, A large number of persons appeared before the commission, who were orally ex and if the decreaso of money shall be a. continmng one and cover a long p eriod of amined. In addition numerous written papers from varions sections of this coun time it must end in an absolute check to progress and possibly the destruction of try were received in answer to the circulars of tho commission. These papers, as existing social and political institutions. Or, what is most probabll.', relief would well as the oral testimony taken down by steno~aphers, at"e reported herewith. be sought in an extension and perpetuation of existing systems of incon• ertible Our ministers abroad have exhibited a patriotic and intelligent zeal in collecting money, which owe their origin to the pressure of expandinJ? population auU com official and other information in the countries to which they are accredited. The merce against the restrictive bounds of a stationary and per haps declining aggre documents which they have furnished are very valuable, and some of them not gate supply of the two metals. attainable except through official applications. Some of our ministers ha>e added able and interesting original papers. All these documents and contributions are A shrinkage of money and falling prices always have had and always must have herewith submitted. a tendency to concentrate wealth, to enrich the few and to impo>erish aD!l degrade The commission are much indebted to the Secretary of State for his prompt and the many. This tendency is subtle, acti>e, and portentous throughout the world courteous co-operation in facilitating their communication through his Depart to-day.- Jbid., pages 24, 25. ment with our ministers abroad. Theyarealsoindebtecl to the Bureau of Statistics, which promptly and courteously furnished all the information asked for. The alternative thus presented is Several gentlemen in Europe, eminent as financial authorities, have addressed communications to tbe commission, which are among the submitted papers. One INCONVERTIBLE PAPER MO?l'EY. of these gentleman, M. Cernnscbi, appeared personally before the commission and It is the horn of the dilemma to which the logic of events has brought furnished important and valuable information, which will be found in the reported us, and on which hang not only the existing social and political in testimony. The thanks of the country are due to him and to the other distin gnishecl citizens of forei~n nations who have made these disinterested efforts in stitutions of our country, but the hopes of freedom and cq uality the elucidation of a question important to the welfare of mankind. throughout the world. Thanks to the commission for the issue so It thus appears that the commission in purpose and work embraced sharply, so plainly defined; and since there is no other escape from finance in its widest range. And surely the thanks of the country the inexorable logic of demand and supply, surely the philanthropist and of mankind are due the commissioners for the very able, exhaust and patriot will not hesitate to explore the alternative in all phases ive, and disinterested investigation and elucidation of the questions and bearings. covered by the resolution creating the commission. And certainly This is what the commission did, and after the most thorough, phil the information obtained and the conclusions reached could not be osophic, and exhaustive investigations, reached the conclusions ex more strongly commended to the consideration and acceptance of preased in the following passages of the report, volume 1, page ~: their countrymen. Thece can never be practically two money standards whose units of account differ in value in any country at the same time. It is all-important that the value Germany and the United States demonetized silver in 1873. * * * Manifestly, of the standard should be unchanging. !tis not important that the material which the real reason for the demonetization of silver was the apprehension of the cred represents the value should be unchangin~. Itis of little consequence of what the itor classes that the combined production of the two metals wonld raise prices and material consists, if it be portable, divisible, and indestructible, or, i r destructible, cheapen money unless one of them was shorn of the money function. In Europe that it can be replaced with facility. There should never be any hesitation in this reason was distinctly avowed.-Report of Monetary Commission, page 4, vol ~3b~g the material of money for the purpose of maintaining its value undis- ume I. Such is the language of the commission. It is bold, direct, and This passage embraces two fundamental and vital propositions: unequivocal. The information furnished is of the most important First. There cannot be two money standards differing in value; in character. It establishes two propositions: other words, if there be two differing in uses, or the one based on the First. Demand and supply, the exclusive factors of value, govern other, the superior absorbs and controls the inferior, and by its own money value. And hence, whatever diminishes supply or prevents volume exclusively regulates value, and hence bank-notes and Treas its increase benefits the creditor classes and money-holders by raising ury notes not fall fonder do not affect the value of money. They the purchasing power of money and augmenting the value of credits. produce contractions and expansions at the bidding of the superior, On the contrary, whatever diminishes demand or increases supply but in their subserviency to their superior, are al ways guarded against benefits the debtor and wealth-producing classes by raising prices and any diminution of this power. Upon this point I repeat the language diminishing the value of credits. Classes naturally take sides in of the commis»ion, volume 1, pages 8 and 7: accordance with their interests. 'rhe two metals together fill but scantily the measure of the money needs of the Secondly. The dangerous influence which the creditor classes and world, and they can o; ly fill it upon the condition that both are money in the fnlleat money-holders exercise upon financial legislation. sense; and nothing is such money if it be restricted in its legal-tender function. To these forces the commission refers the origin and success of the • • * * * * * scheme of demonetization soon after the discovery of gold in Califor Prices, notwithstanding the use of bwnking expedients and CTedits, goveTned "by the nia and Australia. volumB of money. At that time gold promising the more abundant yield was selected for demoneti· On pages :36, 37, 38, and 39 this subject is elaborated by the com zation. The creditor classes and those having fixed incomes boldly demanded it mission. Volume 1, page 36 : in order, as they frankly avowed, to protect themselves against the anticipated rise It is sometimes maintained that a cempensation can be made for a. shrinkaae in in general prices. Under their appeals several nations in Europe, notably Ger the volume of money by an increase of such banking expedients as checks, bills many and Austria, in 1857 demonetized gold. It is probable that the movement of exchange, and clearing-honses. These expedients are now resorted to, and. be n that direction would have become uni>ersal in Europe but for the resistance of cause protlt is found in their use, always will be availed of to the utmost possible iFrance. It was changed, at least as early as 1E65, into a mO\·ement for the demoneti· extent. It is manifest, therefore, that, whatever the proportion or percentage they zation of silver. * * * But this change from demonetizing gold to demonetizing bear to the volume of money, it cannot be increased except through an increase in silver was more of form than of substance. The object aimed at by both was that volume. And it is as manifest that, when the volume of money is diminished. through a disuse of one of the money metals to protect tho creditor classes and those these expedients must diminish, and prices must fall in a. corresponding ratio. having fixed incomes against a fall in the value of money and a rise in general Money is tho primary and governing force, whose functions cannot be suspended prices. This is the pith and marrow of the monetary discussions of the last twenty by any device whatever, and whose volume or existence does not depend on bank five years.-Report of Monetar.y Commission, page 15, volume 1. ~fth~~~fents, while these expedients grow out of money and could not e:xi.s~ Yes, and it is the pith and marrow of the money question of to-day. The same motives and interests actuate creditors in demanding the This proposition is so plain and so universally attBsted by experi demonetization and abandonment of paper money as influenced them ence that it is deemed unnecessary to add further in its demonstra in demanding the demonetization of gold or silver, one or tbe other, tion. Its importance, however, cannot be overrated. It accounts for as fluctu:.i.ting supply affected their interests. The cause is clear, the the partiality of the creditor classes and those controlling money for reason plain. Whatever diminishes the demand for money by sup bank and Treasury notes without the legal tender, and their abhor plying its uses and taking its place checks its rise and diminishes rence for fiat or full legal-tender paper money. Secure behind the its value. "obstacles which nature opposes to the production of the mines," if In the language of the commission : they can only maintain the metallic basis, decreasing volume assures It is the limitation of the quantity of money, without any reference to the cost their triumph and rule. of its production, that re,!!Ulates the value of each unit of money, whether fiat or RFFECTS OF A DECREASING VOLUME OF lllO?l""EY. metallic. In the case of fiat money, the limitation is imposed by law. In the case of metallic money, it is imposed by nature. The effect of limitation upon the value While the volume of money is decreasing, even although very slowly, the value of money is precisely the same in both instances. In the one case the limitation of each unit of money is increasing in corresponding ratio, and property is falling isregulated by the wisdom and justice of man; in the other, it is regulate d by the in price.-RepOTt of MonetaTy Commissi-On, volume 1, page 53. variable and uncertain obstacles which nature opposes to the production of the I.tis estimated by the commission, as a consequence of increase of motals.. The value of money, of whatever kind, is measured by the cost of obtain demand in excess of supply, that from 1809 to 1848 money increased in ing it after it bas been produced, and not by the cost of its production, and this value is indicated by the general range of prices.- RepOTt of Monetan.J Commission, value 145 per cent. Volume 1, page 55: volume 1, page 35. A loan of money made in 1809, if repaid in 1848, woald have been repaid with an addition of 145 per cent. in the purchasing power of principal and interest, besides The hard-money theory that nothing but gold and silver can be all the interest paid. Those who have ~aned money to thi11 Government since 1861 mvney photographe a dismal future for mankind. have already received nearly as much in the increaSed va.la.e of their principal as X-109 ' 1730 CONGRESSIONAL RECORD-HOUSE. !fARCH 20,.

in interest, and all the probabilities are, in respect t.o the 4 per cent. thirty-year is cause~ in a great mea ure by the insidious and cou~tant encroachments upon national bonds now being negotiated, if they are redeemed in gold, that more profit the precious metals of other demands for them than as money. When the ma!mi· will be made by the augmentation in the value of principal twm throu~h interest. tude of th~ world's inter~ts and equities, which rests on steadiness in the value Indeed, the signs of the times are that the bonds of a country possessmg the un- of money, IS con~ted .with the comparative unimportance of the uses of the bounded reso.nrces and s~ble instit-.;itions of the United Sta.tea, payable in gold at metals as ?Ommod1tie~, it becomes apparent that the subjection of the value of the end of thirty years without any mterestwhatever, would, through the increase money t-0 disturba.nc~ fr~m the d~man.da for e:ilded sirns and looking-~lasses, for of the value of that metal, prove a most profitable investment. * * * A shrink- bangles and breastpms, IS an evil which the oenefits 8-erived from such uses but ~!nv~d.l?:fn~~~:Y 0~~~t~ existing property unjustly, and causes a concentra.- poorly compensate. The second proposition embraced in the passage quoted from page This argu~ent to a fair a-i:d nnprejudfoed mind is overwhelming 9 is so fundamental and pivotal and so vehemently decried and furi- '.l'nd con~lusive; but to a mmd obscured by prejudice or biased by ously denounced a.a hnmbuggery uy the creditor classes as to deserve mterest 1 ~ may be !18 "S?nn~in~ brass and tinkling cymbal." "A special consideration. man convmced agamst hlS will IS of the same opinion still ·" and it "We are apt to believewhat wemostdesire tobel~ve." Thecred- is felt that there is ~ut little hope of reaching the head o~ heart of itor classes will naturally seek to persuade themselves and convince one who cannot or will not understand the difference between the tool others that the proposition is fallacious, for if its truth be established and the uses serve~ by it. It certainly requires no argument to show they will be stripped of pretense and forced to avow the real motive that the tools which serve equally the highest uses of which either of their opposition to paper money, or else yield to the cause of justice ~s capable are al ways equal in value, the lesser uses being merged and humanity. The proposition assumes that the money material is rn the greater. Who would contend that a horse is unserviceable for not of itself money, but becomes such only when indued by law with the plow because not suitable for the turH Who could think that the functionsof money. It discards the theory that money is wealth. the woodman's ax is unserviceable and valueless because the metal It accepts as true the views of the inconvertible-paper or fiat-money of .which it is c<_>mposed is not capable of ueing used as a surgeon's school, which are very fairly stated by the commission : k~ife f But, dn ven from the field of argument, the votaries and myr- ~idons of.Mammon arrogatetothemselvesthe prerogative of defend- The views of this school aretha.tutility, accompanied by limitation of quantity, mg the views and purposes of thei·r opponents. They are alwnys is the basis of exchangeable value. That this utility may either depend upon such ..., intrinsic qualities as would render the thing possessing them valuable to man in sure t~ make them so extravagant as to render them ridiculous. They isolation as well as to man in society, or upon such intrinsic, artificial qualities proclaim aloud that fiat money has no basis, and is therefore value whi~h s?cieo/ may confer upon any ~rticle, however in~sically valueless, by en- less; whereas. like gold. and. s.ilver coin, it rests on the obligation of dowmg1t WI th the power of perfonmng the money function. That the evident fact th G t that this function does not inhere in and cannot be conferred on any article so as to e overnmen to receive it in payment of all public dues and the make it either valuable or useful t-0 man in isolation, while itis essential to the very fiat of the Government making it a legal tender in payment of pri ~xis~e11:ceof S?<;:ietydemonstr~testhatm overcome resistance; the motive ofmoneyis more probable and more tobe feared than anexces , and this deficiency for it must be extinguished. 1880. CONGRESSIONAL RECORD-HOUSE. 1731

But the creditor classes insist that Congress cannot constitutionally ~s is indeed very simple; yet many minds, because of cnstomt make anything but gold and silver a tender in payment of private do not readily understand it. debts. If this be true, what a powerful fortress for them! For if A familiar example: the power be annihilated, then the control of the money volume is in The market value of 412t grains of silver is eighty-three .cents; in their own hands. This is indeed a momentous question, for without money value one hundred cents. Whence comes the difference! this power we can hardly be esteemed an intlependent n1;1tjon. Unquestionably it is the obligation of the Government which money It is one of the admitted advantages of our present system of irredeema. ble paper implies-to receive it at one hundred cents in payment of dues. This tbat it sbelters us from the recurring demands for gold by the Bank of England. obligation would be as potent to raise one grain of silver to one hun The London I'6Volution of 1866, when one of the banking· houses (Overend & Gur dred cents. The value is derived not from the material, but from the ney) went down with liabilities of 90,000,000, was scarcely felt here. With a. cnr· money function which the Government confers upon it. It cannot rency of gold, or paper convertible into gold, we should feel instantly every change ,in Eru·ope, and eRpecially in England.-Report of Silver Commission, volume 1, be unjust to the creditor, because the Government is bound to make page 115. it good to him in the taxes and revenues of the Government. The In the Hipburn-Griswold case, (8 Wallace, 615,) Chiof-Justice Chase Government to the extent of its liabilities is the creditor of tqe whole delivering the opinion of the court: people; and surely no just-minded man will complain that he re It is not doubted that the power to establish a standard of value by which all ceive of his debtors what his creditors will receive of him. Bnt other values may be measured, or, in other words, to determine what sball be law obstinacy appeals to precedent, French assignats and confederate ful money and make a legal-tender, is in its nature and of necessity a govern· currency being shining lights; and yet how little worth. Analysis mental power. It is in all COllDtries exercised by the government. * * * Ma.k discovers the absence of credit, t.he substa.nce of money. ing the notes legal-tenders gave them a new use a.nd it requires no argument to Were this Government to pass a law making confederate money show that the value of thin~s is in proportion to the uses to which they may be applied. (Supreme Court United States, 12 Wallace, p. 543; 12 \Vallaoo, p. 567; receivable in payment of all Government dues and a legal tender in Justice ]~mdley concurring.) I do not say that this is a war power, or that it is only all payments it would be at par with gold before the morrow's sun to be called into exercise in times of war; for other pnulic exigencies may arise in set. But "sophistry cleaves close to hide sin's rotten trunk." Con the history of a nation which may make it expedient and imperative to exercise it. But of tho occa.

WooD, in addressing the House a short time since, affirmed his belief in tation by water can be secured and made available,. the duty of thus our ability to refund at a lower rate, namely, 3 per cent., citing the ex securing it is so self-evident as to admit of no argument. ample of England, who rarely paid over 3 p er cent. interest, although The experience of the commercial world has long since demonstrated r:>he never made any considerable payment of t he principal, and added, that transportation by water is not only the cheapest in itself, but "It is evident that the United States has far greater resoul'Ces to meet that it also creates a competition which most effectively prevents the its obligations than Great Britain or any other nation." exorbitant charges to which so large a portion of the country is now The contrast between our national credit to-day with what it was inevitably subjected. in 1860, only t wenty years ago, is one which should· bring pride and Take as an instance in illustration of this position the article of joy to every patriotic heart. It is full of food for thought, rich in its corn,so extensively produced in my State. The rates at this time estab lessons of experience, and eminently worthy the a,ttention of the lished by the railroad companies for transporting it thence to "tide American people. water" is equal to twenty-five cents per bushel. The market price What does such contrast present 'I The democratic party in 1860 was for "May corn" in New York is about fifty-four cents per bushel, so in full possession of every department of the Government, and had been that the railroad companies :.ire most magnanimously consenting to a so for thirty years, with the exception of a brief interval. The nation pretty equal division with the farmer of the money realized from the was then in a Rtate of profound peace, without any public debt worthy sale of this important cereal, and thus putting into their coffers by of the name, and with no demands upon the Treasury beyond the ordi means of these combinations nearly one-half of his year's labors for nary expenses of the Government. Congress in December of that year carrying his products to market. authorized a public loan, under which Treasury notes amounting to Tb is unjust; condition of affairs results from the fact that no healthy about $10,000~000 were negotiated at a discount which compelled the competition exists, or ever will exist, under the present system of Government to pay a rate of interest ranging from 6 to 12 per cent. railroad monopoly, of " pooling freights," and of combinations which About four millions of this loan was negotiated at 10 pe:i; cent., and no sense of justice and fair dealing and no legislative enactment is five millions of it at the extraordinary and ruinous rate of 12 per cent. strong enough to overcome or destroy. To speak it plainly, so miserably and inefficiently were the affairs of This is an evil which ought not much longer be endured, a grievous the Government then managed that this great nation, with all its vast wrong which should be remedied as speedily as possible. So far as resources, was literally without credit and practically bankrupt. regards ::i. very large and important portion of our country, nature has How stands it with us to-dayf Although an exhaustive and ter pointed out and almost furnished an ample remedy for the removal rible war has intervened, calling daily for its millions to meet the of a large portion of this burden now borne by our people. I refer public exigency and deranging almost every branch of productive to the Mississippi River and its numerous tributaries, and to our chain industry, our national credit is higher than at any other period in of lakes, the former affording an outlet to the South, and the latter our history. Our bonds are not only rapidly taken at 4 per cent. in affording equally an outlet to the North. These great water-ways terest, but command a TJremium even at this low rate, while the hon need comparatively but small sums of money, judiciously and scien orable crentleman from New York, [Mr. FERNANDO WOOD,] who, from tifically expended by the National Government, to give thousands of his abUity, his age, and his experience in public affairs, is justly re miles of cheap transportation for the products of the people inhabit- garded a-s the leader of his party in this House, assures us that our ing this most fertile part of the Republic. , debt can readily be refunded at the low rate of 3-! per cent. interest. This Congress bas already initiated a project for the improvement These remarkable facts fully attest the wisdom, the integrity, and of the Mississippi River commensurate with the vast interests in ability with which the republican party has managed the financial volved and the almost incalculable benefits to result from its comple affairs of the Government. tion. This action of the Government must be followed by similar The result of this management is seen in the rapid reduction of the improvements of its most important tributaries; and also, wherever principal of our debt, which, on the 31st of August, 1865, amounted to the same is practicable, by improvements which will connect the tbe enormous sum of $2,845,907,626, but which, on t.he 1st of January, waters of the Mississippi with those of the lakes. 1880, had been reduced to the sum of $2,011,798,504, a reduction with A proposition is now before the Committee on Railways and Canals <>ut a parallel in the history of any nation, followed by an equally for consideration, asking for an appropriation of money sufficient to gratifying reduction in the rate of our interest. test by actual survey the practicability of constructing a ship-canal While much has been accomplished much yet remains to be done. or channel of water transportation between Toledo on the Lake and The money required for the extinction of so much of the debt as has Lafayette on the Wabash River, one of the great tributaries of the .already been paid has come from the labor of our people; the balance Mississippi, and I feel a reasonable assurance that the proposition of our indebtedness must be extinguished in like manner. Our daily will receive favorable action on the part of the committee, and also .revenues are within a fraction of a million of dollars, and after meet of this House. ing all the various obligations of the Government there remains to us What, then, is fully comprehended in this proposition Y The city an annual surplus of abnnt $70,000,000, to be used from time to time of Fort Wayne is in the immediate vicinity of the" divide "-the line in the payment of the remaining principal of the debt and in prose whence flow to the northeast the waters of the Maumee to the Lake cuting such wise and practical mea-sures as will result in the devel and those of the Wabash southwest to the Ohio and Mississippi Rivers. -0pment of the country and affording such facilities to our people as By the course of these two rivers, the Maumee and the Wabash, na will enhance the value of their labor. Such enhancement is equiva ture has marked out for man the true route for this contemplated lent to a practical reduction of taxes. Prominent among these facil improvement. It will pass through five counties in the State of Ohio ities, within the ability as well as within the undoubted power and and seven counties in the State of Indiana, and if we add to these .authority of the Government, is that of the improvement of our rivers twelve only the counties adjoining them in both States as being di and harbors, and, intimately connected therewith and as part of the rectly interested in this improvement, we have thirty-three rich and syswm, "the construction of lines of water communication between populous counties, forming an area almost equal to the average of -0nr rivers and lakes. the States forming this Union. This large extent of country thus to The question of cheap transportation, especially of our :i.gricultural be benefited, with its present and rapidly increasing population and products, from tile inland portions of the country to the seaboard is development, gives to this contemplated canal a natiJ:>nal character one which is now largely attracting the attention of om: people and and importance deserving of national recognition and encouragement. Tapidly pressing for a practical solution. It will form a most important part of the general system of water The magnitude of the interests invol vecl in this question affecting communication and transportation which is now claiming public the present and future welfare of the millions of our citizens engaged attention, and will soon demand Government aid, liberally' bestowed, in agricnltural pursuits demand early and careful consideration on in adapting it to the rapidly increasing agricultural and commercial the part of the National Government, which alone has the authority interests of the great Mississippi Valley. Not alone to that valley, and ability to provide adeqnate protection and encouragement for for it will be a connecting link between the waters flowing to the those interests. Gulf of Mexico and those flowing to the Gn.lf of Saint Lawrence, giv Upon the prosperity of agriculture depends largely, if not entirely 7 ing to the surplus productions of the large and fertile valleys of the the prosperity of other pursuits. Without markets for his surplus Wabash and Maumee the advantages of both a northern and southern products, or without a.venues to reach such markets the husbandman market. toils in vain. To provide these avenues is one of the plainest duties The friends of this measure present. no chimerical scheme. They of the Government, because the very magnitude of the undertaking are not indulging in a mere Utopian dream; they have faith in its places it beyond the reach of private enterprise, or if left to private practicability, a faith founded upon rea~on and the fitness of things. ~nterprise will result in combinations which completely regulate and It has the hearty support of practical business men ; of merchants,. -0ontrol, at their own option, the price of products and reduce their manufacturers, and agriculturists, and of experienced and intelligent value to a point which affords a bare subsistence beyond the actual civil engineers, all of whom have given the matter much thought -cost of production. and whose best judgment favors the undertaking. We ask in its Competition is not to be expected among individuals and corpora behalf the friendly aid of the National Government; and as no one tions where combination always results to their advantage at the State or single locality is alone to be benefited by the work, so no expense of the producer, who is unable to protect himself against State or particular locality should be called upon or would have the "pools" and "rings" formed forthepurpose of enriching themselves ability from it.sown reRonrces to undertake a work of such magni at his expense. tude. Its beneficent results would to a great extent be felt by the Transportation is either by railways or by water. When by the entire nation; and hence the nation should undertake its construction. former, even if honestly and fairly managed, it exceeds the latter It is too late to entertain or express doubts as to the power or the mode in cost not less than 20 or 25 per cent. This large percentage- ability of the National Government to do this work; and in no more should be saved to the producer, and therefore, whenever tra.nspor- substantial and endaring manner can the aid of the Government be 1880. CONGRESSIONAL RECORD-HOUSE. 1733 given to the people than in the construction of works of internal im our commercial system the sudden fluctuations in the price of these provement like the one under consideration. ,The first step to be articles would be impossible. They are the inevitable result of the taken is to gather information as to the practicability of the work falsely called" American system," which seeks to foster one branch and its commercial importance when completed; and this can best of industry at the expense of all others. The discussion upon this be done bv a complete survey conducted under the auspices of the measure will not have been wholly in vain if it but has the effect of Government; and from the report of such imrvey, such gathering of callin()' the attention of the country to some of the iniquities of our facts and statistics, the public mind can judge for it elf whether it tariff legislation. More exciting topics have unfortunately been per would be the part of wisdom to embark in the enterprise. We sub mitted to engross public attention, but I trust the day is not far dis mit that this much· is due to the opinions and judgment of the thou tant when the question of tariff reform, of such vital interest to our sands of our citizens immediately interested and who have asked this people, will receive the attention to which it is so justly entitled. at our hands. I trust therefore that during our present session a As I have suggested, .Mr. Chairman, in the ordinary course of trade, sufficient appropriation may be voted to enable the Government by such a sudden advance in the price of the articles mentioned in this actual survey to collect and report to us at a subsequent session the bill would be impossible. The cause muat be looked for elsewhere. data upon which alone a correct judgment may be formed for our The only explanation, sir, lies in the fact that combinations have future action. been formed by manufacturers for the purpose of realizing enormous In close connection, and as part of the scheme already foreshad profits out of the manufacture of these articles. With competition owed, is the farther improvement of the Wabash River, whose navi cnt off, "prot,ected" by law, the manufacturers are enabled to effect gable waters are reached at Lafayette, the southern terminus of the combinations, securing a rapid rise in prices, to the end that they proposed water-route from Toledo, and for which improvement an may be enriched and the people plundered. Can any reason be as appropriation will doubtless be made during this session of Congress. signed for the increase of nearly 60 per cent. upon the price of paper Forty years ago, before the era. of railroads, the entire transporta within a few months~ The fact that a combination has been entered tion of this 1·ich valley was upon its waters. Merchandise of all de into by paper manufacturers to double their profits at the cost of the scriptions, from Pittsburgh, Cincinnati, and Louisville, and groceries consumer affords the correct, the only explanation. By our tariff from New Orleans, for the various points on its banks in the States laws, under the guise of "protecting American industry," we create of Indiana and illinois, thus reached their destination, and this river, and foster monopolies. too, was then th~ only outlet for the various agricultural prodnctions What is the pretext upon the part of the manufacturers for this of the valley seeking a market. The Wabash then presented a busy ad,ancef The only one assigned is the increased price of the raw scene of trade and commerce, and this, by judicious legislation, can mat erials entering into the manufacture of paper, resulting from the be made to reappear with largely increased and constantly increasing high duties imposed upon such materials. A sufficient answer to this proportions. The building of railroads, the neglect of river improve is to be found in the fact that upon the articles mentioned the tariff ments by the National Government, and the consequent and inevita has undergone no change for years. The increased price of paper is ble increase of the danger of navigation, resulting from such neglect, in no sense the result of the cause assigne<.1 by the manufacturers; it is forced the trade into other channels. The rapidly increasing settle to be fonnd only in the combinations designed to affect the price. mc::its in the Wabash Valley since that period, and its equally rapid But, sir, if the reason assigned by the manufacturers be indeed the increase of agricultural productions, now demand additional facili true one, then by the passage of this bill the cause will be removed ties for reaching a market. The railroads crossing this valley in all by placing the ra.w materials used in the manufacture of paper upon Q.irections, besides furnishing a most expensive and almost ruinous the free list. Lot it be borne in mind that while the passage of this mode of transportation, are unable to furnish sufficient transportation bill will relieve an important business industry from the burdens for the growing wants of the people. resulting from monopoly, it will in no considerable degree affect the With the construction of a canal or channel of sufficient dimensions revenues of the Government. It will be remembered that the tariff to accommodate the trade of the Wabash and Maumee Valleys from upon the larger portion of the articles mentioned in the bill is simply Lafayette to Toledo you open up an avenue of transportation leading prohibitory. A protective tariff is necessarily prohibitory. To ade to both a northern and southern market for an amount of farm products quately" protect," it is indispensable that competition in trade should which in the not distant future will require means of transportation be prohibited. far beyond that which can be furnished by any present or prospective I will be pardoned, Mr. Chairman, for calling the attention of the railroad facilities. The improvement of the navigation of the Wabash House to the views expressed by some of the leading public journals from Lafayette to its mouth follows as a necessary part of this con upon this question. This feeling is but an earnest of that which will templated project, in order to give an outlet to such productions as be aroused throughout the count.ry when the glaring injustice and may seek a southern market or a transit to and across the ocean by robbery of our tariff system is properly understood. way of the .Mississippi River, whose permanent improvement has, as The Journal, a lea-ding paper of Ohio, in a recent issue, sa.ys: I trust, become a part of the settled policy of the Government, and The heavy and unprecedented advance in paper is, in our opinion, wholly un especially so since the removal of its bars at the Gulf seems to be an necessary and unjustifiable. It injuriously affects almost every person in the coun accomplisbecl facts. try of the age of ten years and upward, and it is oppressive to publishers, and especially to publishers of newspapers. .dlready some of tbe lea.din.a newspapers . In point of dollars and cents as compared with the importance of the country have been compelled to advance the price of their pubfications; and and value of commerce attracted to its waters, the cost of improving if the price of printing-paper continues to ad>ance, or even if it remains at its the Wabash River would be a mere bagatelle. The main thing re present price, nearly all of the weekly papers of the country will be compelled, in quired to furnish steamboat navigation for a large portion of the year self-defense, to put up the rates of subscription. would be the removal of sand-bars usually formed at the mouths of This is a general and almost universal grievance, and an unnecessary grievance at that. Congress can remedy it in less than two weeks. .A. joint resolution sus its tributaries. When these bars are once removed and a channel pending indetlnitely the duties on raw materialc; entering into the mann.factare of formed, it would be kept open by the passage of boats or at most but paper shoulll be pa.ssed by Congress. That will test the sincerity of the profes a slight annual expenditure woulfl be required to prevent their sub sions of American manufacturers. And if this should not have tho effeot to reduce the price of paper within reasonable limits, then let another resolution be passed sequent formation. Such an improvement would give six months of susµending the duty on foreign paper. uninterrupted navigation to the Wabash and create an impetus to We ha\e always been and are now in favor of givin~ the preference to American commerce and production almost beyond the anticipations of the most manufacturers; but when men deliberately combine to take advantage of our prac sanguine. The broad acres of this matchless valley would teem with tically prohibitory paper tariff, and to thereby amass fortunes at the expense of the publishing interest and the readinp: public, we hold that a time has arrived an energetic and indu~trious people, laboring with hope, because cheap when relief should he asked in such a tone as will command the attention of our transportation will secure to them the fruits of their daily toil. national legislators. Mr. STEVENSON. Mr. Chairman, on tbe 20th day of February last I introduced into this Honse and had referred to the Committee of In a late issue the Chicago Tribune, in discussing the advance ln. Ways ancl Means, where it is now pending, the following bill: paper, says: .A bill to place certain articles importetl and used in the manufacture of paper, and Ninety to 95 per cent. of the "raw material" of news print used in the West con unsized printing·paper used exclusively for newspapers, pamphlets, and maga sists of straw or basswood pulp, and we had not heard of any particular failure of zines, on the free list. the _grain crop last season to occasion a "scarcity" of straw, nor has basswood visibly become scarce or dear. That excuse for the action of the paper combina Be it enact.ed by the Senat,e and. House of Re:presentatives of the United Stat.es of tion won't wash any more than the nonsensical one of a" great increase in the .America in Oongress assembled That from and after the 1st day of July, .A.. D. 1880, demand for paper," which is simply untrue. aJl unsized printing-paper used exclusively for newspaper1:1, magazines, pamphlets, and books, and all soda-ash and impure carbonate of soda imported, to be used in The New York Journal of Commerce of February 20 says: the manufacture of paper, shall be admitted free of duty. SEC. 2. All acta or parts of acts in conflict with the µrovisions of this act are The American press is almost but unanimous in demanding the abolition or de hereby repealed. cided reduction of the duty on foreign printing-paper. Protectionist and free-trade journals for once agree in this. The common misfortune of high-priced paper made I avail myself of the courtesy of the gentleman from .Maine [Mr. them comrades if not friends. To this unanimity the Cincinnati Gazette is the FRYE] to call the attention of the House to the provisions of this bill, only remarkable exception. That paper opposes the relief that would be so wel .and to urge its passage. I regard it as an important measure, not come to its contemporaries. It would still prohibit the importation of paper by retaining the tariff rate desi~ed for that purpose, though it does concede the ex only to publishers, but to all classes of our people. It is a fact known pediency of abolishing or reuucing the duty on paper-manufacturing ingredients to us all, sir, that within a few months past there has been an un and chemicals. · precedented advance in the price of the materials mentioned in the bill. Upon printing-paper the advance has been nearly 60 per cent., The leading organ of the South, the Conrier-Journal, of LonisvilJe, and enormously large upon the raw materials entering into the man Kentucky, says: ufacture of paper. This advance cannot be the result of natural laws, It is perfectly apparent that the paper-makers have no earthly excuse for rais ing the price of print papers 70 per cent., except that they want to make more cannot be the result of the ordinary laws of supply and demand. money. To gratify thell' greed for ~ain they are levying, under the sheer pretense .Mr. Chairman, but for the vicious principle of protection underlying of "protecting American mdustry,' an enormous tax on book and newspaper pnb- I

1734 CONGRESSIONAL RECORD-HOUSE. MARCH 20,

lishers, whi.ch is in effect a tax: on knowledge and an obstruction to its acquisition. hibits the redemption in any one :fiscal year of more than $40,000,000. This is one of the manifold barbarities of the protection system, and to call it a barbarous system is to use a very mild term. We say, Let this fight against rings It will thus be seen that the saving to the Government will be the of this kind be waged to the bitter end. That protective tariff has too long proven difference between 5.35 per cent. (the present average rate) and 3.50 a lrindara.nce to American prosperity, and the whole high-ta.riff system must go. per cent., the proposed rate per cent. of the new bonds and notes, At a recent meeting of the newspaper publishers of New Orleans which would bel.85per cent., or$14,468,3'26.45 per annum-an amount the following resolution was adopted: of saving quite sufficient t.o enlist the earnest effo:rts of Congress. It is believed that the option of the Government in this arrangement . llesolved, That the Representatives of Louisiana in Congress be, and they are hereby, earnestly requested to use their influence to hsve the duty on printing is quite sufficient, and under it no oppression is likely to come to our paper. chemicals, and materials used in the manufacture thereof removed or ma resources or business interests. terially reduced. I am not of those, Mr. Chairman, who believe in the policy of a low I.n addition to these, Mr. Chairman, there is now pending before the rate per cent. on an interminable bond something after the English General Assembly of the State of New York the following preamble plan. Shou.ld the present bill become a law, then, as compared with and resolution for adoption: the English debt, our rates of interest are certainly very satisfactory. Governments, like individuals, should arrange to pay their debts as Whereas a combination has been organized and does exist among the paper man ufacturers of this C?untry by which the price of printing-paper has been advanced rapidly as their resources permit. The EngliRh system is mentioned some 40 per cent. without any just reason: Therefore, as worthy of precedent; but it is submitted that our Government .Resolved, That our Senators and Representatives in Congress be requested to and that of England, although organized alike for the protection of vote in favor of the passage of the bill now pending to remove the duty on paper the citizen in his rights, have many points of difference. In fact, in imported into this country to be used in printing books and newspapers. this country each citizen whether high or low is entitled to the same Now, sir, the extracts and resolutions I have read, and to which consideration before the law. The people constitute the government, many hundreds of others of like import might be added, indicate in and before this tribunal alone will an appeal lie. No other power is unmistakable terms the deep feeling existing upon this subject. It supreme; no co-ordinate courts or forces can claim any rights what is idle to suppose that the book and newspaper publishers alone are ever in the presence of this august body of sovereigns-this court of affected bythe combinations to which I have referred. The burdens final appeal in all departments of our Government. No question as resulting from these combinations must of neoessitjr eventually fall to the "divine right of kings " or special privileges of the peerage upon the shoulders of the people. In this as in all other oases where can intervene in the decision of questions of public policy here. The monopolies are encouraged by a prohibitory tariff, the consumer is independent citizen-creditor ha.s a right to expect the payment of the the sufferer. The effect of such combination is to impair and in many debts of his Government the same as from a just and honest indi cases to cripple an important-in fact, one of the most important of vidual with whom a contract has been made. We must not thus our business enterprises. It has, sir, appropriately been called "a early in our national history, with our immense resources at command tax on knowledge." Upon the country press it is peculiarly oppres and our comparatively light debt upon us, attempt to interminably sive. It is with the greatest difficulty that the publication of many of perpetuate it for any purpose whatever. our weekly newspapers is con tinned under the burdens resulting from I believe it to be a wise policy to retain to the Government a liberal this monopoly. Publication must at once be suspended or the cost of option ; and the provisions of this bill are thought to be ample in material met by increasing the price of subscription. The latter this respect. Care should be observed that no more rapid payment course, even when practicable, but illy compensates for the additional of the debt should be permitted than the commercial and general outlay by the publisher. · business interests of the country appear to justify. It is believed The tax imposed by this prohibitory tariff upon the publisher event that payment should be made as rapidly as possible without overtax ually falls upon the reader. In this we see the "beauties of protec ation. tion." The great curse of a protective tariff, Mr. Chairman, is that We have referred to our indebtedness a.a comparatively light, and by cutting off competition it makes such combinations against the that we may in this statement be the better understood we herewith people possible. It is through the instrumentality of the country present a table showing the indebtedness of France and England in press that the masses of our people, far removed from the great centers comparison with that of the United Sta.tea. The oompila.tion is taken of population, receive their information. To them their weekly news from the latest obtainable information upon the subject and is as paper is a welcome, an indispensable visitor. Sir, the channels of in follows: telligence to the people should be unobstructed. Whoever seeks to France. - - -- .. - . - -- ___ . ___ . ____ . ____ . ____ ~ ______$4, 695, 600, 000 00 lessen the facilities for "the diffusion of useful knowledge among Great Britain and Ireland. __ --· ------· _____ 3, 888, 907, 980 00 mankind," to cut off the primer or periodical from the hearth-stone United States, (March 1, 1880). _. __ . ___ . _•. _.. ____ 1, 995, 112, 221 17 of cottage or hovel, is a public enemy. It will thus be seen that our debt is not burdensome in comparison Upon the intelligence of the people rest our hope for the preserva with that of the other nations mentioned. While our resources are tion of republican government. If the people are educated, intelli- fully one-third of the whole, our debt is only a little more than one . gent, virtuous, then is our Government safely anchored. To the end, sixth of the aggregate of the three. It may be of interest to note Mr. Chairman, that the channels through which light and knowledge the debt per head in these countries. It is as follows: rea-0h the people may be broadened rather than narrowed, I urge upon France_ - - - -.. - - _- . __ - __ . ______.. ____ . ____ . __ . ____ . ____ . ___ $127 23 the House the passage of this bill. Great Britain and Ireland. ____ .. __ . ______• _____ .. ____ . __ 114 62 In conclusion, Mr. Chairman, a single word as to two other bills United States, (at 46,000,000 population) . _... ______. ____ . 43 50 now pending: the one introduced by .my colleague, [Mr. MORRISON,] reducing the duty upon sugar; the other by the gentleman from Ken By the foregoing it will be seen that with our national debt in tucky, [Mr. McKENZIE,] placing salt upon the free list. It is impos such satisfactory condition and our ever-increasing resources, we sible to overestimate the importance of these mea.sures. The tariff cannot justify authorizing the issue of an interminable bond; there upon these necessaries of life should be removed at once and forever. is no necessity for such a step. . If this Congress, sir, will but pass the three bills to which I have It is not my intention, Mr. Chairman, to discuss at great length our ·-referred, it will have taken an advance step on the line of true re funding operations. Much valuable information will be presented to form, and will entitle itself to the gratitude of a tax-burdened people. the country upon this subject during the continuance of this debate. Mr. HAWK. Mr. Chairman, upon careful examination of the bill I shall confine my remarks more especially to a general examination under consideration we believe its provisions are wholesome and its of our national finances, and to re~ommendations ancl suggestions tendency toward economy. from various sources upon our financial system, and hope thus to be Our national finances being at the present in a most satisfactory able to assure and encourage the country in its commendable determi condition it would appear to be the part of wisdom to take every pos nation to keep good the promises made in the dark hours of its peril sible advantage of our prosperous condition in our coming fTinding by the honest payment of the debt created for its preservation. In operations. It will be found by an examination of the late report of the prosecution of funding our debt the greatest care should be pre the Secretary of the Treasury that, from December, 1880, to July, served that no taint of bad faith cause the least surmise of repudia 1881, inclusive, we have maturing the following amount of debt for tion in any manner whatever, directly or indirectly. Nations, like which provision must be made, namely: individuals, in order to prosper, must be strictly honest. If our splen Maturing December 31, 1880, at 6 per cent. interest. -. _. _. ___ . __ . ____ •• $18, 415, 000 did fabric survive the storm of the coming centuries it must be strong Maturing June 30, 1881, at 6 per cent. interest .. ··------.·--· .•. __ .. __ 254, 392, 550 in its determination to stand firmly by its promises. It was hoped Maturing July 1, 1881, at 6 per cent. interest _____ ,----··. __ .. __ . ___ ... 8~, 800 the discussion of the national finances had subsided until a few weeks : Maturing May 1, 1881, at 5 per cent,. interest._._ .• _- . - .. _. _. _. _.. _ . __ . 508, 440, 350 since the country was freely treated to the peculiar views and opin ions of several honorable members of the House upon this subject. Total····-·. --- -- . -·-·· ·-·-·· ·-·-.. ---··· -·-· .. ·-·-... --- .. -·- .. 782, 071, 700 Judging by some of the arguments and theories presented by gentle By careful computation of the interest upon this sum at the given men upon this floor it would be a fair inference that much of our po : rates it will be found to average 5.35 per cent. The bill under con litical history has been written in vain, especially that portion which sideration proposes to fund the foregoing indebtedness by authoriz relates to fixing some rule of action by which our reputation for na i.ng the Secretary of the Treasury to issue bonds in an amount not tional honesty and intearity is to be kept intact. It is not, however, exceeding $500,000,000, bearing interest at the rate of 3-! per cent. per our purpose to discuss these questions from the st~nd-point of what annum, redeemable, at the pleasure of the United States, after twenty has been said by members of Congress at this session. We desfre to years, and payable forty years from the date of issue; and also notes call the attention of Congress and the country to some of the rec . in the amount of $200,000,000, bearing interest at tI+e rate of 3t per ommendations of the present Administration with reference to our ' cent. per annum, redeemable at the pleasure of the United States after finances. two years, and payable in ten years from the date of issue; but pro- At the opening of the present session of Congress we were startled 1BBO. CONGRESSIONAL RECORD-HOUSE. 1735 by the recommendations contained in the annual report of 0!11" here port of the Director,-compiled from tables of prices in Europe. It is -tofore sa(J'acious Secretary of the Treasury, and more especially by as follows: the follo~ing recommendations and sugg~stions to Congress con- Similar -tables of prices in Europe, combined with those of AI_neriean exports, tained in the President's late message, to wit : . show the following comparative purchasing power of gold and silver for the last ten years: I would however strongly nrue upon Congress the importance of authorizing the Secretary of th~ Treasury tg suspend the cc;iinage of silve_r, qolla~s upon the present legal ratio. The market value of the silver. d<_>llar ~emg ~niforml_y and Purchasing value (measured largely less than the market value of the gold dollar, i~ is ob".1ously i!Il~racticable by commodities) of- to maintain them at pa;r wit~ each c;ithe_r if _bo~h a~ com~d w1th?u~ lif!Ut. If the Years. cheaper coin is forced mto Clrculat1on it will, if corned without limitation, soon be come the sole standard of value, and thus defeat the desired object, which is a cur Gold. Silver. rency of both gold and silver, which shall be of equivalent value, dollar for dollar, with the universally r ecognized money of the world. . . . The retirement from circulation of United States notes, with the capacity of legal tender in private contracts, is a step to be taken in on;r progress toward a safe and 1870 ______··-····-·---·---·· ------······ $100 $109 97. 9 98. 9 stable currency, which should be accepted as the policy and ~uty of t1:J.e ~vern 1871. .. ------·- ·- ··------·-- --- ·---·· -----· ment and the interest and security of the people. It IS my firm c<_>nVIction thl!-t 1872 .. --··------·-----·-·----·---· ·----·-·----·----- 95. 4 95.3 94 92_9 the issue of legal-tender paper money basecl wholl.r. up~n the author1t:y: and credit 1873.-----·-·--·-··-----·------·------·-····----· of the Government, except in extreme e_mergency, is w1tho11:l warrant~ the Con 1874 ...• .• ·--·-· ------·------·--·--·------··-·· 95.6 92.9 stitution and a violation of sound financial prrnciples. The issue of Umte!1 Stat.es 1875 ...... ··-··--··-··--···--···----··-·-··--· ·--· 101. 8 96.8 103.8 notes during the late civil war with the capacity of legal ~nder between pnvate. m 1876 .. ______--··-· ·-·-·-·--··-··---·----·· 94.2 dividuals was not authorized except as a means of rescumg the country from im 1877. _____ ·-· · ·--· ·----- ··--·------·-·-·---··--· 104. 3 93 96. minent peril. The circulation of these not~s as paper money for any protracted 1878. --·-- ·--- ·----- ·--·. - ··---··--·-··-·--·-· ------109.2 9 period of time after the accomplishment of this purpose was not e<_>~emplated uy 1879. ______·----· ·--··------··-·-----·-----·- 115. 3 97.1 the framers of the law under which they were ISsned. They anticipated the re demption and withdrawal of these notes at t_he earliest }Jractic~ble period consist ent with the attainment of the object for which they were proVIded. In view of the foregoing the question is forcibly pres.ented :vhet!1er it would not be wise should a change be thought adVIsable m exist The people of the coun~ry feel a~ai:mecl a~d an,noyed at the un in(J' laws to adopt so~e plan for bringing the purchasing power of looked-for reopening of this perplex1i;ig question; ~he great mass of gold do~ to tha~ of silver, inaamuch as silver-has been, as shown by -our business men an

1880. CONGRESSIONAL RECORD-HOUSE. 1737 useless to think of the people again submitting to such wholesale the interest upon their bonds would be assured without the taxation. robbery. while it must be plain that by continuing these banks in existence The insecurity of the.bills of these State imstitutions in the bands and making the bonds a basis upon which to issue bank-stock, they of the people, caused by the precarious nature of the stocks upon are indirectly made taxable. A further issue of -paper circulation by which their issues were based, was the cause of great loss to the hold the Government would also necessitate the hoarding in the Treasury, ers and created a panic in 1857 that a.lmost pa.ralyzed ~be whole busi in coin, for redemption purposes of at least 33 per cent. of such i~sue; ness of the country, bringing trade and commerce to a sudden and which, if the same be made to cover the presentoutstandin(l' issue of disastrous stagnation. It is said that the panic of that year cost the the national banks, would amount to the sum of $114,070,2' 9. This State of Illinois alone $6,000,000. Surely, with the history of that amount is the least that, according to the rules and experience of safe trying period, and in fact the whole banking system prior to 1863, so banking, would be necessary to maintain the aforementioned issue of fresh in the memory of the people, we do not care to try such an ex paper at par and prevent ourcreditfrom becoming disastrously affected periment again. The advantages of our national banking system as in the markets of the world. No statesman or party can afford in th& now organizetl are so markedly in contrast with those of the old State least during times of peace and prosperity to enact or advocate laws plan that there can certainly be no question as tow hi ch is the better. affecting in any manner unfavorably the credit of the nation. Nor do we believe it to be a wise policy to destroy our present ar The necessity of maintaining the credit of the country untarnished rangement unless a markedly better, more constitutional, and legal cannot be too strongly presented or sacredly guarded, and must be one can be substituted for the same. We have been calling the at particularly manifest when it is remembered that the Government is tention of the country to the old democratic man:µer of. transacting and must of necessity for years to come be engaged in funding its in business, that we may the more effectually show the wisdom of re debtedness as the same shall become due, and which it is impossible publican methods; and we think it not unreasonable that the p eople at the moment to discharge. Any decrease in value in our securities should be asked to compare the past with the present, and we appeal or increasa in interest paid must finally come from the productive in to them to be careful bow they remand this important matter to the dustries of the country. We claim for the republican party the honor hands of those whose record is a standing monument of folly and of placing national credit upon such a basis as to enable the Govern lack of business sagacity. . Wo submit that while the loss of the vast ment to borrow unlimited sums of money at an unprecedented low sums mentioned was a direct tax upon the people, no man ever lost rate of interest. a farthing by the national bank circulation, nor is it possible for any We have, too, the spectacle of leading democrats upon the other person to lose anything on account of the issues of these banks. The side now advocating funding our obligations falling due in a short matter of difference, however, is whether the Government shall issue time at the very satisfactory rate of 3t per cent. interest per annum, directly the paper circulation f!f the country, or shall such issue be and this, too, in view of the loud protests of the democratic party by made through ban kin~ corporations based upon the bonds of the Gov the enunciations of their platforID.B and orators-only a little more ~rnment as securities for such circulation. than a year ago, that the credit of the Government was not such a.a During the year 1862 and 1863, while the war of the rebellion was to warrant the presumption thatitwas possible to resume specie pay at itshe1ght and thecreditof the Government was being taxed to its ments. Surely the world does move-when the Bourbon democracy,. utmost by the constant draft upon its resources, Congress, by acts driven by the logic of events and the persistent patriotic efforts of of February 25 and July 11, 1862, and March 3, 1863, authorized the the r0publican party, is now through its leaders upon this :floor found issue of what was called legal-tender notes, the volume of which is advocating these low-funding projects as a result of specie resump sue has fluctuated from time to time as the requirements of trade and tion and as a consequence of the established credit of the nation. commerce appeared to demand, and amounted on the 28th day of Feb It has been stated upon this floor that national banks are robbers of ruary, 1880, to the sum of $346,681,016. In the discussions in Con the people ; that vast sums of money are made to their stockholders gress at the time of the first issue of these legal-tender notes it wa.<; and, that they are crushing out the legiffimate business of the coun claimed that such an issue couJd only be Justified by the most urgent try. This is hard to comprehend. If inaeed these banks are so very necessity, and that such necessity was then upon the country no per profitable, why do not our people organize them more generally all son for a moment doubted in the least. These issues have been de over the country Y The franchises of national banks do not consti cided, by the Supreme Court of the United States as unconstitutional, tute a monopoly. National banking is practically free; any five but afterward constitutional and admissible, and allowable as a ne citizens or greater number ma.y engage in this lucrative business, cessity and sustainable upon this theory. Waiving all questions as may organize one or more of these institutions provided always that to the constitutionality of the power of Congress to authorize the they can procure the money with which to purchase the necessary issue of paper money in times of peace, a question concerning which Government bonds. It may be said it is difficult to get a sufficient tLere can be but one opinion, let us examine for a moment the propo amount of capital together to purchase the requisite bonds. It is sition to supersede national-bank circulation with greenback issues. submitted upon this point that the same argument applies in organiz Should this be done we would be benefited to the extent of 4 per cent. ing any business requiring capital, such as merchandising or manufact on $342,210,867, the amount of the national-bank circulation Janu uring. By organizing these banking associations all over the country ary 31, 1880, provided an equal amount of interest-bearing bonds almost every citizen could become a sharer in these lucrative institu was called in and canceled. The amount of such interest would be tions. A geneml investment in Government bonds and national-bank $13,688,434.68. At 3t per cent., as proposed by the bill under consid stocks would also increase the circulation of the country, and it is sug eration, the amount would be $11,977,380.34. This sum is certainly gested that those of our friends who think there is Ia.ck of circulation of sufficient magnitude that it should be saved to the Government, conldin this way very properly and legitimately, not to say philanthrop and at first thought it appears that this amount would be clear gain ically, increase the per capita circulation, add to the taxable property of to the Treasury. A candid view of the subject develops the fact that the country, and at the same time become direct sharers in this lucra in taking out of existence this amount of national-bank circulation tive business. The shares of these banking institutions are divided in there is taken from the taxable property of the country the said sum such manner that any person may purchase them at about $100 each, of $342,210,867, and by so doing a greater burden must be added to thus placing the holding such stock within the reach of almost every the visible property of the people, andletusseewhatthistax amounts person. Such increase of the circulation would be brought about upon to in 1878, the last year for which we can find a compilation. It is as a perfectly legitimate and safe basis, and without the slightest in follows: crease of the obligations of the Government, which, it must be borne United States tax ..· . -_ . - _--- ___ - . ------.. ----- . - - --. $6, 727, 232 in mind, would not be the case were greater volume of greenback State and local tax ____ . _. ___ - - -- ..•. -.. _- --.. - ---.. _. . 8, 056, 533 issue resorted to; unless, as before stated, a corresponding amount of interest-bearing indebtedness should be immediately canceled. Total ______. _-- -.. _- .. ---- - _- _. --- --.. _. - -. __ . _ 14, 783, 765 It must not be forgotten that the only way by which an organized government can procure its necessary revenues is by the taxation of It will certainly not be argued or maintained by any person that its people, and this is the only means for providing funds for the the Government can tax its own indebtedness. This proposition is payment of its accumulated indebtednesss as well as the payment of so utterly preposterous that it needs no demonstration; and it is cer current expenses. tainl~ unsafe to permit a State of the Union to do that which would Governments are not, neither should they be, organized for the pur ultimately destroy the Government by the final destruction of its pose of conducting mercantile, commercial, or other business for the credit. It is unquestionably true that our greenback issue is only an purposes of profit. These are the special prerogatives of the citizen. issue of certificates of Government indebtedness, which, by agreeing The prime object of the banding together of communities under forms not to increase beyond a certain amount and by keeping a percentage of government is not that they may organize for the purpose of con-· of coin jn reserve, is kept at par with the precious metals. This green centrating the powers of commerce, traffic, and trade, bat that the back issue must then, being no more nor less than an evidence of in citizen may be the more secure in the enjoyment of his life, liberty, debtedness of the Government, be non-ta.xable under all laws and and property, the first great natural rights of man. As well argue decisions upon the subject. In the event of the retirement of the that the Government being its own bank of issue, and the people national-bank circulation and issuing Ckvernment notes in its place, being satisfied therewith, therefore the people would be a-swell satis we would relieve the country from interest to the amount of from fied with the manufactures of cloth, iron, or any other necessity of $12,000,000 to $14,000,000, and add to the burdens of our industries a the country by the Government; hence, the people being col!tent, the taxation of almost $15,000,000, by retiring the aforesaid amount, Government should do all the manufacturing and mercantile business $342,210,867, of taxable capital and supplying in its stead an equal of the country and take these also out of the hands of monopolies that amount of non-taxable capital. It may be said these national banks are robbing the people by the accumulation of profits. It is, howeve1:z ·pay no more than their proportion of tax with private banks. This hardly presumable that any gentleman upon this floor, who hasreaprince, potentate, or power to invoke to his aid esty and integrity must in the end affect our credit unfavorably and this most powerful auxiliary. The knowledge of its wonderful power increase the burdens of the people. was concealed from man from the dawn of creation through all the I believe the consideration of financial measures should be divested darker ages, to be revealed in the blaze of th6 civilization of more of every other matter. No appeal should be made in any manner modern times. To the statesmen and the philanthropists oftbese later whatever to prejudices of any kind; no class of citizens should be years Heaven bas reserved the priceless boon of conceiving the great appealed to as a class in order to force through any measure of a idea and developing it into a powerful engine of fiscal administra financial character without the most mature and deliberate consider tion. To them belongs all the glory and all the honor for having .ation of the subject. discovered and perfected this wonderful engine of state-craft that so Ex-soldiers,as a class,have rights undertheGovernment that must rapidly, so noiselessly, so effectually, so remorselessly condemns be sacredly guarded; but they must not be used by cunning, design without crime to unrequited toil the generation now living and all ing parties by permitting themeelves and their interests to be dragged the generations that are to come from the womb of the future. [Ap into and made a factor in the discussion of the national finances. By plause.] all means pay these gallant defenders of the nation in her hour of The wise men who founded and administered governments in the peril every cent to which they are entitled. Parcel out the public earlier ages of the world provided in times of peace for the expendi domain to them. Provide liberal pensions for the unfortunate, the tures of war. The Jews, Egyptians, Assyrians, Medea, Persians, Greeks, widows and orphans of the nation's defenders; equalize their boun Romans, and all the peoples that followed them hoarded treasures in ties as contemplated by the bill for that purpose introduced by the their national coffers in times of peace to be expended when the exi gentleman from Ohio, [Mr. FINLEY.] Provide homes for the wounded gencies of war required it. Violent and reprehensible as were too and unfortunate on a grand scale if need be, but do all this by direct often the methods practiced under their policy, yet it had one redeem _grant and taxation, and not by dragging them and their interests ing feature, wholly unknown to the funding system, it laid its exac into and complicating them with financial legislation in passage of tions at the door of the opulent and powerful, while thefundingsystem which there is no hope and less necessity. clandestinely, surreptitiously, stealthily lays all its crushing burden Mr. Chairman, these views and suggestions are presented with a upon the shoulders of the weak and powerless. full desire to do justice to the business interests of the country. I A bonded public debt is a plant of vigorous growth. It flourishes know these questions will enter somewhat into the discussions of the in all countries and climes. We find it in all the governments of -coming political campaign and I have thought best to present them Europ.e, in Asia, in all the countries of South America, in Mexico, in to the House and country that the necessity may be made apparent every State of the American Union. In 1848 the public debts of the of not tampering with existlng laws upon the subject of our national civilized world were $8,000,000,000. In 1870, only twenty-two years finance. We have all the legislation necessary at present for the afterward, only the life of a generation, only a breath in the exist good of the business of the country, and any tampering with the ence of a nation, the public debts of the civilized world hadincrea-sed finances will tend to disturb business and affect contracts unfavorably. to $19,-000,000,000. In this short space of time France increased her 'The policy of letting "well enough alone'' is the correct one, during debt eighteen hundred millions, Italy twelve hundred millions, Aus the present session of Congress certainly, if not indeed for many ses tria. nine hundred milliQns, Germany six hundred millions, Spain five sions to come. hundred millions, and the United States twenty-eight hundred mill . Surely, Mr. Chairman, in view of our splendid financial condition, ions. it is wise and statesmanlike to at least make the effort to save to our This enormous mortgage takes from the earnings of the laboring Treasury all in our power. We believe the refunding bill now under people of the world $785,000,000 annually to pay interest to its owners; ·consideration to be a mea-sure the provisions of which are worth test "785,000,000 of taxation laid upon the clothing that wraps the bodies ing. No evil can result from it, and we may venture to hope that of the poor, $785,000,000 of taxation laid upon the food that sustaina much good will accrue to the people. As a matter of sagacity the re human life, $785,000,000 extracted from the poor toiling people of the .publican party shoulcl take advantage of the credit of the country world is a denial to that extent of the satisfaction of the wants, the produced by the management of its :finances under its administration comforts, and necessaries of life. The governments that have created of affairs, and reap the rioh harvest of reputation for honesty in the these debts, and laid these burdens upon the shoulders of the poor, management of the national :finances which it has in past years sown take for t.heir annual support three thousand millions more. Mr. .and to which it is justly and properly entitled. Fenn, in his work on the public debts of the civilized world, said that Mr. MILLS. Mr. Chairman, there are two opposing theories in refer in 1870 the debts and investments of the civilized world were over -ence to the effects produced by public debts. The adherents of one $30,000,000,000, and at the rate at which they were growing they maintain that a public debt is a public blessing; that it is so much would by the year 1900 reach $75,000,000,000. Then be overwhelmed ..added to the national wealth; that it facilitates exchanges, stimulates us with the startling interrogatory : What then shall be the issue f trade, promotes agriculture, and encourages every species of in The solution of this question is a subject that commends itself to dustry ; that it brings prosperity and power to a nation, and makes it every statesman. What is to be the issue f We can all answer it in independent and self-supporting in war as well as in peace. All these the light of history. Increased taxation on labor, increased accumu ..advantages, so incalculable in their value, :flowing directly from a lation of wealth in the hands of the few, increased corruption in funded debt, it follows, as they maintain, that it should be the con Government, increased destitution and suffering among the masses, stant care of a wise statesmanship to preserve and perpetuate its increa-sed pauperism and crime. existence to the remotest posterity. In the creation and retention of this vast funded debt, which presses The adherents of the opposing theory as stoutly maintain that a like a mountain upon the shoulders of om· people, all the salutary public debt is a public burden; that it is a cunningly devised scheme lessons of our fathers have been disregarded. They have warned us -0f the rich and powerful to enslave the masses for the greater and time and again to shun the dangerous rock; they have admonished more rapid enlargement of their own fortunes; that through its in- us time and again that a public debt is a burden whose weight and 11.uence the burdens of taxation are shifted from the shoulders of the proportions no power of mathematics can measure. The Contqiental wealthy to the shoulders of the poor, and in such manner as to trans- Congress, as soon as peace with Great Britain was secured-a Con fer, under its deceitful disguises, the earnings of labor to the coffers gress composed of the same men who framed and gave to us the Con of the wealthy; that it creates and supports a vast money power, stitution of the United States and founded the system of civil liberty whose existence is a constant menace to popular government; that which we now enjoy-called upon the States to invest them with it is the parent of national banks and indirect taxation; and that power to lay duties upon imports, and urged them to levy upon them through their pernicious results the laboring population is continually selves specific taxes to be set apart and pledged to the payment of rendered poorer, and a large portion of them reduced to pauperism the public debt within a period "not exceeding twenty-five years." and crime. Holding these opinions, duty to the people, whose wel In the spring of 1783 they called again upon the States for more power fare is imperiled, demands as they maintain, that its extinguishment to lay duties and again earnestly urged the States to cede to the Gen .should be as rapid .and their deliverance as thorough and complete eral Government their public lands to be sold to pay bounties due to .as the constitutional powers of Congress can make it. the soldiers and to meet the claims of the public creditors. If there What course, therefore, any of us shall take upon the bill reported were no harm resulting from a public debt, why these urgent appea.ls by the committee to refund the debt falling due in the present and for its extinguisbment f In the language of Mr. Jefferson, in refer -ensuing year, and to draw on posterity for its payment, will depend ence to a bill reported to Congress imposing taxes in 1812 to meet the in a great measure upon the opinions that each may hold as to the expenditures of that war, "it was a dashing proposition." Think of -wisdom of the one or the other of these two opposing theories. those poor people, prostrated by a protracted and desolating war, 1880. CONGRESSIONAL RECORD-HOUSE. 1739 their country laid waste on every side by marching armies, with a taxes enables a nation to anticipate in war the resources of peace, debt resting upon them eqnal in amount to the value of all their prop he says: erty, real, personal, and mixed; a country barely able to rise and stand The misfortune is, that in the mean time we shall plunge ourselves in unex· upon its feet to receive the crown of victory. Think of the Congress tinguishable debt, and entail on our posterity an inheritance of eternal taxes, which will bring our G<>vernment and people into the condition of those of England, a of the General Government asking the States to tax themselves and nation orpikes and gudgeons, the latter bred merely as food for the former.-Vol give them power to tax the people again in imposing duties upon im mne 6, page 409. ports. Think of it and ask yourselves, why were they so earnest, so To Mr. Galla.tin, minister to }'ranee, he writes in 1815: urgent, so importunate 'f What was the urgent necessity that in Put down the banks, and if this country could not be carried through the long duced the States to heed that appeal and pour into the lap of the est war, against her most powerful enemy, without ever knowing the want of a Confederation the vast areas of their public lands 'I What great cause dollar, without dependence on the traitorous classes of her citizens, without bear @tirred the heart of the old Commonwealth of Virginia to respond ing hard on the resources of the people or loading the public with an indefinite to that call and cede to the General Government that vast empire of burden of debt, I know nothing of my countrymen.-Volume 6, page 498. the Northwest, now grown into so many great States and the homes To John Taylor, of Caroline, he wrote in 1816: of so many happy and prosperous people 'I In the language of the ap Funding I consider as limited, rightfully, to a redemption of the debt within the peal of Congress, it was "to hasten the extinguishment of the public lives of a majority of the generation contracting it ; every generation coming debt." equally, by the laws of the Creator of the world, to the free possession of the earth he made for their subsistence, unencumbered by their predecessors, who, like them, Mr. Madison tells us that a public debt is a. public curse, and worse were but tenants for life. in a republic than in any other form of government. · * * Mr. Hamilton, in his celebrated report, says: And I sincerely believe, with you, that banking establishments are more dan aer- It should be a fundamental maxim in the system of public credit of the United ous than standing armies; and that the prineiple of spending money to be paid' by Sta.tea that the creation of a debt should always be accompanied with the means posterity, under the name of funding is but swindling futurity on a large scale.~ of extinguiahment. Volume 6, pages 605-608. He tells us that the payment-not the retention, but that the pay To William H. Crawford, Secretary of the Treasury, in 1816, he ment of a public debt is the only means of making public credit im writes: mortal. But the statesmanship which has conducted this country No earthly consideration could induce my consent to contract such a debt as Eng since the war does not seek the immortality of the public credit, but land has by her wars for commerce, to reduce our citizens by taxes to such wretch edness, as that laboring sixteen of the twenty-four hours, they are still unable to the immortality of the public debt, that capitalists and corporations afford themselves bread, or barely to earn as much oatmeal or potatoes aa will keep and bankers and bondholders may riot in an immortality of spolia soul and body together.-Volume 7, page 7. tion and robbery levied upon the laboring masses of the country. Again, in 1816, he writes to Mr. Kerchival: Mr. Gallatin told Mr. Jefferson, in some comments on his message I am not among those who fear the people. They and not the rich are our in 1803, that one of three things had to be done : either taxation must dependence for continued freedom. And to preserve their independence, we must be increased, or expenditures reduced, or the payment of the public not let our rulers load us with perpetual debt. We must make our election between debt retarded; and of these three he would not consent to the latter. economy and liberty, OT profusion and servitude. If we run into such debts as that He would not consent to the continuance of the public debt beyond we must be taxed in our meat and in our drink, in our necessaries and our com forts, in our labors and our amusements, for our callings and our creeds, as the the time when it could be paid. He would increase the. taxes. . He people of England are, our people, like them, must come to labor sixteen hours would reduce the expenditures, but he would not retard the payment m the twenty-four, give the earninas of fifteen of these to the Government for of the public debt. their debts and daily expenses ; anif the sixteenth being insufficient to afford ua Mr. Jefferson, in his message of December, 1802, characterizes the bread, we must live as they now do, on oatmeal and potatoes; have no time to think, no means of calling the mismana.gers to account, bnt be glad to obtain public debt as a "moral canker" from which he anxiously looks for anbsistence by hiring ourselves to rivet their chains on the necks of our fellow ward to the emancipation of our posterity. It was but $80,000,000 at aufferers. Our landholders, too, like theirs, retaining indeed the title and ateward that time. It was small, but he knew how easy it would be to inflame shlp of estates called theirs, but held in trust for the Treasury, must wander, like that canker and make it spread all over the body-politic upon which theirs in foreign countries, and be contented with penury, obscurity, exile, and the glory of the nation. Thia example reads to us the salutary lesson that private it bad fastened. He and all our revolutionary fathers looked forward fortunes are destroyed by public as well as by private extravagance. And this is to 1808, the period of twenty-five years, from 1783, for the extinguish the tendency of all known governments. A departure from principle in one in ment of our national debt. But, alas I when 1808 arrived the addi stance becomes a precedent for a second, that secoml for a third, and so on till the tions bad been greater than the diminutions, as is usually the case bulk of the society is reduced to be mere aatomatons of misery, to have no sensi bilities left but for sinning and suffering. Then begin8, indeed, the beUum omnium with national debts, and the debt was found still to be $57,000,000. in omni.a, which some philosophers, observing to be ao genera.I in this world, have The war of 1812 coming on, it amounted to $1Z7,000,000. The old mistaken it for the natural instead of the abusive state of man. Ancl the forehorse fat.her and founder of our system of government became alarll!ed, and of this ~ghtful team is public debt. Taxation follows that, and in its turn wretch his alarm increased with the debt; and, though in retirement, he ness and oppression.-Volume 7, page 14. addressed a letter, in 1813, to the chairman of the Committee on Ways To Governor Plumer in 1816, he writes : .and Means of this House, urging upon him to bring before the House I ~lace economy among the first and most important of republican virtues, and and press upon Congress the duty of paying that debt within the lives public debt as the greatest of the dangers to be feared. \Vo see in England the -0f the then living generation. I beg to commend the lessons of wis conseqnences of the want of it, their laborers reduced to live on a penny in the shilling of their earnings, to give up bread, and resort to oatmeal and potatoes for dom in that letter to my honorable friend, the chairman of the present food; and their landholders exiling themselves to live in penury and obscurity Committee on Ways and Means. If these words were wise then they abroad, becaUBe at home the government must have all the clear profits of their are much wiser to-day. The burden and the dangers of the public land. In fact, they see the fee-simple of the island transferred to the public credi· debt are eighteen times greater to-day than they were then; and the tors, all its profits going to them for the interest of their dobts. Our laborers and landholders must come to this also, unless they serenely adhere to the economy wisdom of this warning should fall with eighteen times more empha you recommend.-Volume 7, page 19. sis upon our ears than it did upon those who heard it then. I will read a few extra-0ts from this letter : Again, in 1816, he writes to ex-President John Adams: It is a wiae rule and should be fundamental in a government disposed to cherish What do you think of the present situation of Englanct ~ Is not this the !!l'eat its credit, but at tho same time to restrain the use of it within the limits of its and fatal crash of their funding system, which, like death, has been foreseen by all faculties, "never to borrow a dollar without laying a tax on the same instant for but its hour, _like that of death, ~dden ~rom mortal prescience~ It appears to me paying the interest annually, and the principal within a given term; and to con that all the Cll'Cumstances now exist whlch render recovery desperate. The inter· sider that tax as pledged to the creditors on the public faith." On such a pledge as est of the national debt is now equal to such a portion of the profits of all the land this, sacredly: observed, a government may always command, on a reasonable inter and the labor of the island as not to leave enough for the subsistence of those who est, all the lendable money of their citizens, while the necessity of equivalent tax labor. Hence, the owners of the land abandon it and retire to other countries and ·is a salutary warning to them and their constituent'! against oppression, baiik the laborer bas not enough of his earnings left to him to cover his back and to fill ruptcy, and its inevitable consequence, r evolution. But the term of redemption his belly. The local insurrections, now almost general, are of the hun!!ry and the must be moderate, and at any rate within the limits of their iightful powers. :But -naked who cannot be quieted but by food and raiment. But where are the means what limits, it will be asked, does this prescribe to their powers l What is to hinder of feeding and clothing them i - Volume 7, page 40. them from creating a perpetual debt 1 The laws of nature, I answer. The earth In a letter to Hon. Ed ward Everett, in 1822, be eays: belongs to the livin~, not to the dead. The will and the power of man expire with his life, by nature's taw. ~ have long c~nsidered the present crisis of England and the origin of the evils * * * * * * * which are lowenng over her as produced by enormous excess of her expenditures In seeking then for au ultimate term for the redemption of our debts, let us rally beyond her income. To pay even the interest of the debt contracted she is obliged to this principle and provide for their payment within the term of nineteen years to take from the industrious so much of their earnings a~ not to leave enough for at the farthest.- Volume 6, pages 136, 137. their backs and bellies. They are daily, therefore, passing over to the pan per list, to subsist on the declining means of those still holding up, and when these also Again, in the same year, he wrote to the chairman of the Commit shall be exhausted, what next~ tee on Ways and l\feans : Andrew Jackson, in his inaugural address, in 1829, says: We must raise, then, oll!rnlves the money for this war, either by taxes within the year, or by lo!lns; and.if by. loans, we must i;epay them ~urselves, proscribing The unnecesaa,ry duration of a national debt is incompatible with real independ forever the English practice of perpetual funding ; the rmnous consequences of ence. which, putting right out of the question, should be a sufficient warninu to a con· So deeply was he impressed with the fearful consequences that fol sidemte nation to avoid the example.-Volume 6, page 197. "' low the continuance of public debts that he waged relentless war He writes again to the same gentleman, in the same year: against it and its offspring, the national bank. His tenure of the At the time we were funding our national debt, we heard much about "a public Chief-Magistracy was distinguished by the donblevictorythat anni debt being a public blessing;" that the stock representing it was a creation of act hilated both the debt and the bank. In his message to Congress in ive capital. for the aliment of commerce, manufactures, and agriculture. This paradox: was well ada:pted to the minds of believors in dreams, and the gulls of that 1833 he says : .size entered bona fide mto it.-Volume 6, page 239. If Providence permits me to meet you ;.n another session, I shall have the hign gratification of announcing to you that the national debt is extinguished. I cannot To Mr. Monroe, then in Mr. Madison's Cabinet, be wrote in 1815, in refrain from expressing the pleasure I feel at the near approach of that desirable which, while he readily admits that fonding on specific redeeming event. 1740 CONGRESSIONAL RECORD-HOUSE. MARCH 20,

Mr. Calhoun said in his place in the Senate: On the succeeding Monday, having in the mean time examined the report of the Secretary of the Treasury, I submitted the following: My aversion toapnblic debt is deep and durable. It is in my opinion pernicious, ''Resolved, That the war debt of the country should be extinguished by the gen and is little short of fraud on the people. eration that contracted it is not sanctioned by sound principles of national econ Mr. Ingham, Secretary of the Treasury, in one of his reports, says: omy, and does not meet the approval of this Honse." Whatever the considerations of public policy that have made the rapid extin Here was a square issue made between J e:fferson, Madison, Hamil ton, guishment of the public debt a fav01i.te object of the nation, it is known that the Gallatin, Jackson, Calhoun, and all the fathers on one side, and the· pubJic creditor regards it, individually, as a hardship to be pa.id off. representatives of the capitalist, the national banker, and the man Mr. McLane, Secretary of the Treasury, in one of his reports, says: ufacturer on the other. And what was the result 'I It was that Con It will be a proud day for the American people when to all those noble charac gress, under the control of that party so highly eulogized to-day, did teristics which have rendered their career so memorable among nations they shall scornfully abandon the income tax, and that right speedily. They add the rare happiness of being a nation without debt. did repeal the tax that was imposed on the two thousand millions of From the beginning of the clebt to its close there was no time when capital invested in manufactures, and upon which forty thousand it exceeded one hundred and twenty-seven millions, yet when it was persons realized a net profit of over 40 per cent. They did repeal the paid in 1835 it had cost the people of the United States four hundred tax imposed upon the five thousand millions invested in railroads and thirty-one millions. Mr. Jefferson tells us at one time it had been that brought to its owners a net annual income of one hundred and "juggled" from forty-three up to eighty millions. Juggling is one eighty-five millions. They did repeal all tax upon the less than thre& of the familiar features in the family of that name. Our present debt hundred thousand persons who had a net annual income of over was juggled in 1869 from thirteen hundred and seventy-one millions $800,000,000. They released over two hundred millions of annnal rev to two thousand and forty-nine millions. The English funded debt enues to the wealthy; but what act of generous kindness did they waR ju.~gled between 1793 and 1816 from sixteen hundred and forty do toward that vast army of laborers who eat their daily bread by five millions to twenty-nine hundred and thirty-three millions. This the sweat of their brow-the thirty-eight millions of people that had is one of the prominent benefactions it always bestows, and I doubt no income, that made only a support, and nothing more f They in not if we could ascertain the history of a11 the public debts in the creased their taxes. world we would see the brand upon all their foreheads. Why were these taxes on wealth giv~n away! It was to prevent Mr. Jefferson tells us when we were funding our revolutionary debt the payment of the public debt. If they had all been retained as we beard a great deal about a public debt being a public blessing. :firmly as the taxes on the poor man's food and clothing we would We heard the same when we were funding our present debt. The have been to-day without a dollar of national debt; but the manu-· Enalish heard the same when they were funding theirs. But when facturer did not want the national debt pa.id, because the $100,000,000 ev~ and wherever it has been heard "it is the bugle blast of a. robber that the laboring people had to pay for its interest was levied on band." foreign goods they had to buy, and its price fixed the price of the Mr. Chafrman, we have heard to-day the republican party extolled domestic manufacturer's goods, and the people bad to pay both, and to the skies by the gentleman from Maine for the wisdom it displayed their wealth was released from taxation. Why should not the na since the wa1· in the management of the :finances. Wha.tever of praise tional debt be to them a national blessingf The capitalist did not· or censure is due belong to that party, for they ha.ve had continued want the debt paid. So he was exempted from paying any ta.xes on control of the Government. It was a republican administration that his bonds and income, how did it injure him f If it were paid, where negotiated the bonds. It was their administration that appointed was he to find a safe and profitable investment for his large wealth f the agent who sold them. They are bound by his acts and utterances Who is to "seal up his eyelids and steep his senses in forgetfulnes~' as much as by those of Mr. Chase, who appointed him. In speaking when he lays down at night with his money scattered all over the for the Administration and his party, he says : country among bankrupt and absconding debtors f Now his vast · We lay down the proposition that onr national debt, made permanent and rightly wealth is safely invested, and he has a mortgage decreed by law upon manage~, will be a ..national b~essing...... all the labor of all the people and all the civil and military power of The funded debt of the United States is the addition of $3,000,000,000 to the pre the Government held in readiness to collect and pay his quarterly viously realized wealth of the nation. It is three thousand millions added to the interest. Will any one suppose that Mr. Vanderbilt, with his thirty available active capital. To pa:y this debt would be to extinguish this capital and millions of United States bonds, paying him an a.nnual interest of to lose this wealth. To extingwsh this capital and lose this wealth would be an twelve hundred thousand dollars, desires to see the puhlic debt paid 'F inconceivably great national misfortune. Would a man whose monthly income was $100,000for interest due on In the above clear statement of the proposition, as the agent of his bonds want to see these bonds paid~ Would he not be likely to the Administration, he was pleading with the capitalist, and open exert a powerful influence upon Congress to hold and prolong the debt, ing the way for an alliance between him and the republican party. and keep the necks of the toilers bent under the burden from which The overtures were accepted and the union consummated. Here is he received such enormous benefits T No one is astonished that the what he says to the manufacturers: stockholders of national banks clamor for the retention of the national The maintenance of our national debt is protection. The destruction of it by debt. It is a very natural thing for them to praise the bridge that payment is bondage again to the manufacturers of Europe. carries them safely over. Their very existence is bound up in the It is harthe blood of but one life. Here is w ha,t he says to the national bankers : If the debt is paid, as Jay Cooke says they have no basis to stand That is not a hazardous opinion which declares that in less than twenty years upon. Standing upon the debt "they have," in the language of l\fr. our national-bank note circulation will be $1,000,000,000. * * * The currency Jefferson, "the regulation of the safety-valves of our fortunes to con that sixty-one millions of people, unequaled in industry and untrammeled in enter dense and explode them at thefr will." Under their dominion, as he prise. will require. has got to have the basis of a national debt. There is no other says,'' the country is abandoned to the avarice and jugglings of pri foundation for it to stand on that will impart to it at once security and nationality. vate individuals to regulate according to their own interests the quan He urges the repeal of the income tax, says '' it should be scornfully tum of circulating medium for the nation, to inflate by deluges of pa abandoned, and that, too, right speedily and forever." That "indirect per the nominal prices of property, and then to buy up that property and not direct taxation should be the order of the day." He main at one shilling on the pound, having :first withdrawn the floating me tains that "there is no just way of discharging a national debt except dium which might endanger a competition in purchase." In 1820 the by apportioning the int.erest to generation after generation in per banks had control of our circulation, and contracted it fearfully, and petuity." Whatever else may be said of the doctrines taught by the what was the result f Let the old father and founder of American. agents of Mr. Chase, their courage and boldness would have done democracy answer. He says : honor to any highwaymen that ever infested the road. There are This State [Virginial is in a condition of unparalleled distress. The sudden gems of wisdom and statesmanship in these utterances for which the reduction of the circulating medium from a plethora. to all but annihilation is pro gentleman failed to give the proper credit to bis party to-day. Jay ducing an entire revolution of fortune. Cooke, the agent of the Administration, lays down the doctrine of No wonder that he said "bank paper must be suppressed, and the the capitalist, the manufacturer, and the national banker, that the circulating medium must be restored to the nation, to whom it be national debt is a national blessing. He does not dodge the quest.ion longs." .as some of our statesmen do who profess to hate the public debt while Nowonderthat he said that the bankmania"israisingupamoney~d bringing before Congress and urging the passage of a bill to rnfnnd aristocracy in our country which has already set the Government at the debt and throw it upon future generations that its blessing may defiance." be perpetuated. He boldly comes out of his hiding-place, boldly de No wonder that he said," If we suffer the moral of the present les ·clares the virtue of legislative robbery, and stands by it as a. fearless son to pacSs away without improvement by the eternal suppression of .champion of the highway. bank paper, then indeed is the condition of our country desperate." Now, sh', I desire to read from another distinguished leader of the No wonder that be said," Interdict forever to both the State and republican party, and one of the strongest advocates of manufact National Governments the power of establishing any paper bank." uring monopoly in the United States. I read from a speech made by No wonder that he said'' thefr object is to enrich swindlers at the my colleague, Judge KELLEY, in1867: expense of the honest and industrious part of the nation." Mr. Chairman, within an hour of the opening of the present session ,I introd need No wonder he says," Let us be allured by no projects of banks, the following resolution, which was adopted without dissent: public or private, or ephemeral expedients, which, enabling us to gasp "That the Committee of Ways and Means be instructed to inquire into the ex and flounder a little longer, only increase by protracting the agonies pediency of immediately repealing the provisions of the internal-revenue law whereby a tax of 5 per cent. is imposed on the products of the mechanical and of death." manufacturing industry of the country." No wonder he said in 1 15, " The Government is now issuing Treas- 1880. CONGRESSIONAL RECORD-HOUSE. 1741 ury notes for circulation, bottomed on solid fands, and bearing in hundred millions annually; and national banks, as they expand and terest. The banking confederacy will endeavor to crush the credit contract, swindle and defraud the people to even a greater extent. 'of these notes ; but the country is eager for them, as something they No free government can exist where great wealth is in the hands of can trust to, and so soon as a convenient quantity of them can get the f~w and the masses of the people are reduced to poverty. A 001·eat into circulation, the bank-notes die." America~ statesma~ tells us that a distribution of pecuniary po-\~er is Sixty-five years have passed since that utterance waR penned, but as ess~°:tial to the preservation of free government as a distribution the banking confederacy are as determined to-day to crush the credit of political power. And this is no new doctrine. Sir Francis Ba.con of the Treasury notes as they were then. They clamor for the legal said, three centuries ago : tender quality-the compulsorydebt-paying power-to be taken away Above all things, good polioy is to be used, that the treasure and moneys in a from them, that they may drive them back into the Treasury and State be not gathered into few hands; for otherwise a State may have a good stock if the public debt. He said it did not hesitate to use debt as rapidly as possible, and as rapidly as possible take control of its funds to control the press. Are they not spending ten times the their circulating medium. They must see to it that taxation levied money to-day to control the press that they did then. How many on necessary articles of daily consumption is reduced to the lowest presses to-day in the Unit.ad States are controlled by banking and man possible figure, and a just and reasonable share of the burdens of ufacturing monopolies 'f They are to-day and always have been in government is imposed upon the capital and income of the wealthy leagne, offensive and defensive. classes. A system of revenue that exempts the wealthv from tax. In 1837, after the debt was paid, when we had no taxes save duties tion is unjust and ruinous in the extreme; but when it goes further, on imports and the revenues of the Government were more than were and loads foreign goods with heavy taxes in order to raise the price necessary for its expenses, the representatives of the toiling people of to the poor of all the necessaries of life, stealthily and indirectly the United States found themselves overmatched by the combined taking from them all their earningR, and reducing them eventually forces of the manufacturers and l1ankers, and a law was passed that to pauperism, it is sinful and wicked. took from the coffers of the Government $37,000,000 and gave it to Let ns see how the wealth of this country has been concentrated by the States, and some of the States actually gave back the money per indirect taxation. In 1860 the nine Eastern States where the capital capita to their citizens. is held that controlled our manufactures and currency had one-third of In 1841, wliile Congress was discussing a bill to borrow $12,000,000 the people and one-third of the national wealth. In 1861 the coun -00 Government bonds, another bill was lying upon thei.J: table and try had foisted upon it the present excessive tariff, and in 1870 the receiving the same sqpport as the loan bill that provided for the dis census showed the nine Eastern States had retained their proportion tribution of over $3,DOO,OOO, the proceeds of the sales of the public of population, one-third, but they had gained one-half of the wealth. lands, among the States._ They had five billions of values more than their proportion. The What did all this mean f The manufacturers preferred to give masses in these States were as poor as in the other portions of the back t.be money in the Treasury to the people rather than reduce the country. It was the few who bad gained the great wealth. tariff and give up the profits it gave them in raising the prices of On the 21st of May, 1878, Mr. Burchard, of lliinois, then a member their commodities. It mattered not what the Treasury lost, they re of this House, delivered a speech in this Hall, from which I extract tained their spoil, and the bankers were willing to give away the the following: treasures of the Government that it might create a bonded debt for A New York paper, the Monetary World, publishes the following: the new bank to stand upon, which they were creating but which NEW YORK MILL10NAIRE8. expiretl on a presidential veto. It is not a matter to excite one's spe No street in the world, except possibly in London, represents in the short space -0ial wonder that the moneyed aristocracy are found proclaiming the of two miles and a half anything like the enormous aggregate of wealth repre great source of blessings that a public debt bestows; nor is it a mat sented by Fifth avenue (New York) residents between Washington Square and ter of profound astonishment that when the war was over their rep Central Park. We give hap-hazard a few names: resentatives with such haste demanded the repeal of taxes on wealth from which the Governmentwasreceivi.ng overtwohundred millions =~~?:~o~~~~:::::: ::: ::: ::: ::: :: :::: :: ::: : : :: ::: : : : : : : : : : : : : :: ·~: z~: ~g annually. But bow does the debt affect the laboring people' Are those that toil in the great hive of our industries benefited ' What has indirect taxes, the favorite of the moneyed aristocracy, accom t~~:{:~:~~~~~~:::::::::: :: ::: : :: :: ::: : : :: :: ::: ::: ::: : ::: ::: i: g~: 5 Amos R. Eno ...... ·-----··------·---.. ·-·-·-··-··--· 5, 000, 000 plished 'f What is indirect taxation 'f It is taxation levied on food, John Jacob and William .Astor-·-----·---···-----·--······-··--··---· 60, 000, 000 clothing, and the implements of labor. Direct taxes are taxes levied Mrs. A.. Stewart·-·---·----·--·- -- ···-·· ·-·-·-······ ···-...... •.•... __ 50, 000, 000 on wealth. One is laid upon the rich, the other upon the poor. Tho Pierre Lorillard ----·-····-· ···-·-·-----·-·-.. ----········ ···-·· ···-·- 3, 000, 000 direct taxes were all repealed; the other is left tons and has beeu ~®~!il~v!1:d1e~b"ili ·.: :: :: : : : : : : : : :: :: : ::: ::: :::: :: : :: :: :: :: : : ::: :: 1~: ~: ~ increa ·ed. Indirect taxation is one of the ruost insidious instrumen llis. Calvert Jones. _____ ·-·---·---···---·-···-----···-·---····--·-.... 2, 000, 000 talities for the spoliation of a whole nation that the ingenuity of man llis. Mary Jones ...... ·--···--·--··--···-----·-----·-·· .• ···-·-·----- 2, 000, 000 could invent. While the system itself is unjust in its manifest ine Mr. James Gordon Bennett.····-····-·-···-·-··--··---·-··--·-··-·-·- 4, 000, 000 Mr. Fred. Stevens ..... __ . __ .. ---- .• -·-····-·· .... ---··-· .. ·-·---···-· 10, 000, 000 quality that is the least objection to it. It concentrates rapidly the Mr. Louis Lorillard .....•. ·····-...... ·-····---····-·· ...... ----·· 1, 000, 000 national wealth in to a few hands and -leaves suffering and distress to the masses. If the duty o'n an article were 100 per cent. and ten Total ...•..•...... ·------. -. --.....••. ··-·· ------·--·--. __ . 248, 000, 000 millions were imported the Government would receive ten millions. Surely this wealth a{l()umulated and held by eighteen families ought to pay its That would be an exorbitant tax. But if a hundred millions of the proportional share of the governmental expenses. ·same article were manufactured and sold at the same price the peo Here are eighteen families who have $248,000,000, not one doHar ple who bought and consumed all over the country would pay a hun of which contributes anything to the support of the Government. dred millions to the home manufacturer. This system of taxation They all live upon one street; there are others on other streets of soon makes a millionaire of one and a mendicant of the other. that city who count their wealth by millions, but there is not a la No nation on earth, I care not what may be its resources, can for a borer in that great city of a million of people who does not contrib number of years support the taxation required by a large public debt ute as much to support the Government aa the wealthiest in that and high tariffs, with its circulating medium in the control of cor list. The wealth that is gathering in the hands of a few is not only {>Orations, without entailing great suffering and distress among the large, bnt enormous. We were told a few days ago that a distin masses of its people. They are three powerful causes conspiring to guished lady from the East attended a reception at the White House getbu, and in constant and sleepless activity, to gather into the with $800,000 of diamonds on her person, accompanied by two po hands of a few all the annual earnings of labor. This system of de licemen and a detective. Is this republican simplicity T Is it not pletion and concentration continued for a long time reaches a point coming events "casting their shadows before!" When a million of of exhaustion when a large element of tbe population feel intense dollars may be expended in personal adornment will any one tell us at t;uifering for the want of food and clothing. Then the foundations this day that such vast wealth is not dangerons to the state T Then of civil society are upheaved, and wealth, sensitive to its wrnkness, wby did our fathers dM1are in all the early constitutions of govern begins its intrigues for a stronger government, a governmE it that ment that perpetuities and monopolies were contrary to the genins leans for repose upon a powerful military establishment. Th people of a free people and prohibit them f Why was entailment forbidden of the United States have felt the pang of suffering, but tLere are by them in all the early charters of government they formed for ns f keener pangs and a deeper destitution yet to be felt by a large part Why were laws written upon the statute-books providing for the dis of the population if the triumvirate of pnblic debt, high tariff, and tribution among children of decedents' estates T If concentrated national banks are to be continued for any considerable time. The wealth is not dangerous to free governments these were acts and tariff itself takes from the ea.mings of the people Rot less than twelve utterances of supreme folly. The.distinguished chairman of the Com- 1742 CONGRESSIONAL RECORD-HOUSE. MARCH 20~ mittee of Ways and Means, [Hon. FERNANDO WOOD,] in an inter powerful, and happy nation. Pitt made the peasantry of Great Brit view published in one of the papers of his city, says: ain potent; Walpole made them powerless. Pitt wielded the Parlia The great danger to our institutions does not lie in any attempt to subvert the ment by appeals to their patriotism; Walpole to their pockets. . It was Government by force of arms, nor in sectional controversy or strife, nor in vio the tireless aim of Pitt to secure Englishmen in all their ancient rights,. lence of party conflict, but does lie in the ereotion of mammoth syndicates and and Walpole to make the throne omnipotent in its claim of preroga monopolies who are aggregating into the handll of the f ino the products of indw;try of the many, and who by the money power thus created will reduce and conquer the tives. State governments as well as the Federal Government. Already some of these in Pitt held the helm of Great Britain from 1800 until he died, during terests are making Senators and members of the House of Representatives, and it will the war of Napoleon Bonaparte, shortly after the battle of Austerlitz. Mt be long before they will make a President of the United States. When Pitt came into the control of the administration of Great Britain I cordially agree with him that the danger to our institutions lies did he sell any bonds 7 Did he fund any debt f What was his record f in the creation of a powerful money class. But its control in the He laid an income tax of 10 per cent. upon the wealthy capitalists enactmenil and enforcement of laws must at last leacl to force for its of Great Britain. And what did Mr. Glaclstone tell us in 1853 waa support. Its influence will be exerted to gather into their coffers all the result of that policy T It was that Pitt paid all the expenses of that can be extorted by law from tile products of labor. There will the government, all its civil lists, all its war expenditures in that be no limit to their lust for gold. They will find Representatives in tremendous contest wit h Napoleon Bonaparte, perhaps the greatest these Chambers obsequious to their will, or they will put them here. the world ever saw until within the last few years in our own coun In the name of liberty they will enslave the masses to satisfy the try. He did all this and had left every year seven million pounds greed of their masters. In the name of patriotism they will destroy sterling to apply to the reduction of the debt which Walpole and his the country, and, boasting of their superior learning and civilization, predecessors had entailed upon the nation through their bad admin they will sink the land into a night of barbarism. istration. Through the income tax and other taxes he paid all the Now, Mr. Chairman, we have seen what classes have been benefited expenditures of the great war,did not fund a dollar, andhad$35,000,000- by national debts. But there is a large class in this country whose in excess every year. Mr. Gladstone in submitting his budget to the interests are affected and we should see whether they are benefited Parliament of Great Britain in 1853 said that it was "a most remark or not. Are the laboring people of the United States benefited T Is able fact." It is a remarkable fact, and one that should commend the toiler in the shop, in the field, and on the farm benefited, when itself to the consideration of our statesmen to-day. That debt went he is compelled to pay 100 per cent. duty on the woolen coat that pro on growing year by year until in 1835, the year that our debt was tects him in the chilling winds of winter as he goes forth to labor to extinguished, it amounted to ~3, 00,000,000. From November 5, 1688, make up the money necessary to pay the interest to the bondholder 'I to March 31, 1877, the British people had paid in interest on their Is be benefited when be has to pay 65 and 70 per cent. on the sugar that debt $12,872,268,345, while they had paid at the same time toward goes into his coffee in order to make up the interest that goes to the the reduction of its principal 17,142,502,925. The whole sum paid capitalist 'I Is he benefited when he has to pay 100 per cent. on the during that time amounted to, 30,014,771,370. wool hat he puts on his bead when he goes out to toil for the scanty Mr. BARBER. Will the gentleman allow me to ask him a question f subsistence he ~an get by his labor 'f Please tell me where this great Mr. MILLS. Certainly. army of toilers is benefited by a national debt, the interest on which l\lr. BARBER.. Do I understand the gentleman to say that the is thus extorted from them T national debt of Great Britain was not increased by the Napoleonic We have a lamp by which our feet are guided in solving that in wars Y quil'y. The people from whom came our ancestors that crossed the Mr. MILLS. Mr. Gladstone says that from 1806 to 1815 under Pitt, waters to this continent have enjoyed this inestimable blessing for it was not increased; that is, he said that the ~nnual expenditures two hundred years. How has it affected them 'I What voice does the of the war during that time were paid, besides all ordinary expend toiling people of Great Britain send over to us as their verdict upon itures of government and 35,000,000 surplus. their national debt T With the advent of the house of Orange, as my Mr. BARBER. Does not thegentleman know that Lord John Rus friend from Georgia [Mr. FELTON] has told. you, the national debt of sell, in discussing that question of the acts of Mr. Fox and Mr. Pitt, England began its existence. It was a mere bagatelle when William says that !.fr. Pitt placed an everlasting burden on the industry of of Oranue mounted the throne. It was but sixty millions when he England f left it. But history tells us that no prince that ever sat upon the Mr. MILLS. I leave that question with Mr. Gladstone and the throno of Great Britain ever felt so keenly the truth of that utterance gentleman from Illinois. I have not now time to discuss it. I have which Shakespeare put into the mouth of Henry IV, "uneasy lies the quoted from him his exact words which he submitted to the Parlia head that wears a crown." ment of Great Britain, and they were not questioned at the time by He was a foreigner, supported by foreign bayonets, without a. party any one of its members. attached to bis person. When he arrived there one-half of the people This debt went on growing. It rose and fell like the tides of the were questioning his title, and the other half were warring against sea, but like the sea its vast volume still remains. his prerogatives. The whole country was quivering with convulsions It rose from 1835 to 1837. under his feet. Scotland was hesitating whether she would welcome It fell from 1837 to 1839. him with a salutation ora blow. Ireland was in open war and throw It rose from 1839 to 1842. ing her guantlet at his feet bade him welcome to the arbitrament of It fell from 1842 to 1847. battle. It rose from 1847 to 1849. He listened to the sweet siren voice of the charmer and threw the It fell from 1849 to 1854. influence of the Crown in support of the policy of building up a na It rose from 1854 to 1857. tional debt, to bind, a-s they told him, the ligaments of a powerful It fell from 1857 to 1875. moneyed class to his throne to support it as it reeled and staggered It rose from 1875 to 1877. in the throes of revolution. Scarcely had it existed a dozen years It is $10,000,000 to-day larger than it was in 1835, notwithstand when the Bank of England, the result of taxation and of oppression, ing the fact that the people of Great Britain have paid in that time came forth like a monster from its loins. It was then we heard that on that debt $6,000,000,000; notwithstanding the vast amount which a national debt was a national blessing, that it was a godsend to the they have paid on that debt during the two centuries of its existence~ people, that it was a mine of gold, that it was so much added to the a sum nearly as great as all the property, real, persona], and mixed, national wealth by the magic influence of national credit, and all such owned by all the people of the United States to-day. Our total wealth :flippant fallacies a-s those. Ah! Mr. Chairman, it was a "godsend" is not over forty or forty-two billions of dollars, and they in 1877 bad to one class; it was a godsend to the. capitalists who had millions paid on their debt over thirty billions. gathered together. It took the tax-gatherer from their doors and One English writer tells us in his work that all the money bor bade him go forth not with a blessing as of old to the lost sheep of rowed by England bas been paid five times over, in the shape of in the house of Israel, but to go forth and lay heavy exactions upon the terest, without one jot of progress toward ultimate relief; but another poor toiling millions of her industrious peasantry; to tax their shirts, one in his book takes a mnoh more cheerful view of the subject; thinks their dmwers, their sooks, their shoes, their hats, the beds on which if all future wars could be avoided and rigid economy practiced the they slept, the implements with which they labored, even the wind debt might be paid in seven hundred years. How I do love a man of ing-sheets in which they were wrappecl when they died, and the very a cheerful and hopeful heart! How often his smiles kindle daylight spade that dug their graves where they were laid in their last repose. in our bosoms when we are ready to sink into a night of gloom and But not one dollar did they take from the great aggregated wealth. despair. That declaration revived my drooping spirit like the warm of the capitalists. It was a "godsend" to the capitalists, but it was breath of summer would the despondent spirit of a mariner :floatin~ a devil-send to the poor peasants of that ill-governed land. in ice fields in an arctic winter. Two hundred years in the past ana. We have heard the financial policy of Great Britain extolled by the seven hundred in the future are but nine hundred years in all, and distinguished chairman of the Committee on Ways and Means, [Mr. that is but a trifle to give in exchange for such inoalculable benefits FERNANDO WooD.] And he pays a tribute to Sir Robert Walpole for as syndicates, corporations, stock-jobbers, and gamblers confer upon. having performed wonders in the way of refunding the national debt the government in quieting the refractory elements in Parliament and of Great Britain from a higher into a lower interest debt. making the throne immovable in every storm of state. If they have. Mr. Chairman, there were two great premiers in Great Britain in paid thirty thoUBand millions in the two centuries that have passed, different times. There was one named Pitt and there was one named will some mathematician tell me how much they will have paid when Walpole. Their policies were as divergent as honesty from dishonesty. the year of jubilee shall come, when liberty shall be proclaimed Walpole ruled Great Britain by making the throne great in defiance throughout the land, and the trumpet shall sound the ~lad notes o of its people. Walpole ruled Great Britain with gold. Pitt ruled deliverance; when the captive shall go out from captivity and re Great Britain with the aspiration of making the English people a proud, turn again to.the land of his fathers. I'.

1880. CONGRESSIONAL RECORD-HOUSE. 1743

It baa filled her poor-houses with paupers, her penitentiaries with day, leaving out incomes and all these other taxes except customs criminals, and her whole land with the deepest distress. Mr. Gibbon duties and excises, was $350,000,000. The present tariff, with a few tells us: unimportant modifications and the present excise law, with the mis It has gone on grinding the people to powder until one in every twenty of them cellaneous taxes, brought us $350,000,000. Now, can we not get the is reduced tA> the necessity of begging for a subsistence. same a.mount ofrevenuesfor the next ten years from these two sonrcesf He might as truthfully have added it has imposed a yearly burden Why not f Since 1873 our population has increased four or :five mill of $74,000,000 upon those descending to pauperism to ·support those ions. Taxation is levied on coDBumption and consumption is increased who have already reached it. She paid for the support of her pau in proportion to the increase of population. That is one consideration. pers from 1849 to 1879 over 2,000,000,000. An English writer refer Another factor in.the problem is that consumption is increased in pro ring to" the appalling mass of pauperism" asks from whence it arises t portion to the capacity of the people to make purchases to satisfy and says it is from a vicious system of taxation that takes three-fifths their wants, and this is in proportion to the money in circulation of all the revenues by customs and excises levied on articles of gen among them. eral consumption. He tells us that customs and excises are the father I saw a very intelligent monetary article in one of the New York and mother of British pauperism. Paradoxical as it may seem, the papers some time ago, in whlch it was stated that the actual circnla· national wealth of Great Britain bas increased in an equal ratio with tion of the United States had increased within the last eighteen. national pauperism. The great army of laborers have risen early and months 200,000,000. The national banks have increased their circu retired late, have toiled from dawn till dark, and have created a vast lation, I presume, seventeen or eighteen million dollars. amount of wealth; but their earnings ran into the coffers of the cap Mr. BUCKNER. Twenty million dollars. italists and fundhulders just as the rain-drops run into the sea. How Mr. MILLS. About $20,000,000. The coinage of silver has increased many mouths have dried with hunger, how many backs have shiv the circulation; 75,000,000 in gold has come across the Atlantic and ered with cold, how many destitute have gone without shelter, how been distributed through the country in the purchase of supplies. many bosoms have grown heavy with sighs, how many eyes have Now, nine-tenths of our taxes being derived from levies on articles. poured their griefs in unavailing tears while this vast sum was being going into consumption, the revenue must increase in proportion to. taken from the poor to swell the treasures of the bondholders, the eye the increase of population and the increased capacity of that popu of God alone hath seen. lation to make purchases to supply their wants. Hence, I take it our In 1847 the public debt of Great Britain was owned by 275,83!:.I per revenues will go on increasing gradually for the next eight or ten sons; of that number 2,089 persons owned fifteen hundred millions years, provided we do not have a panic, and I see no occasion for any or nearly one-half of the whole amount. Each one of them owned thing of that kind; and if we should, its effect would only be tempo $750,000, and each received an annual interest on bis bonds of $30,000. rary. Now, I will take as the basis of my calculation not the present Of the one hundred and fifty millioDB of interest paid by the people revenue but something below that. I will make the calculation that one hundred and fifty-two personsreceived$45,0oo ooo, or three hun our revenue will be $300,000,000, instead of $355,000,000, as it undoubt dred thousand each. Of thirty-three million peop1 ein Great Britain edly will be the present year. I will estimate that the ordinary only one million are land· owners, and four-fifths of those mere lot-own expenses of the Government will be $150,000,000, as the Secretary ers in towns and cities. A thousand persons own nearly one-hali of . estimates. Thus we would have a surplus of 150,000,000 annually the British Kingdom. Ireland is owned by twelve thousand non-res to apply to the interest and principal of the public debt. ident proprietors, and three hundred of them own one-third of it. Is Now, taking the annual payment of $150,000,000 on these bonds, there anything in the condition of England to-day that invites us to how long will it take to pay them T I have a calculation here ; and imitate that policy that has concentrated all her wealth in the hands in it I embrace the 4! per cent. bonds that mature in 1 91. That will of her aristocracy f Is there anything in the condition of Ireland that then give us 900,000,000 of bonds. I provide by my plan that the charms us to that policy t From 1841to1871 she drove more than eight Government shall sell $300,000,000 of Treasury notes bearing 3t per millions of her subjects away from her dominions to hunt .homes in cent. interest payable in 1888, 1889, and 1890. That is all I would other lands. Her statesmen are to-day devising ways to get rid of the refund. With the proceeds of the sale of these three hundred mill suffering poor, whom they have persecuted and driven to desperation, ions, not to be sold at less than par and as much above it as we can by heartless, and cruel legislation. Do we desire to reach the same get-I take it we will without any difficulty sell them at par; that condition f If we do, refund and continue the exactions of this enor is the basis ·upon which our bonds are predicated-with the three mous debt, and the system of taxation and currency that stand upon hundred millions we will extinguish all of the 6 per cent. bonds and it. If we lan is cheaper by eighteen millions is the basIS of this estimate Y Before the income tax was repealed than that of the committee. But that is the smallest objection I the revenue derived from the same system of taxation we have to- have to their bill. If the revenues instead of falling :fifty millions- 1744 CONGRESSIONAL RECORD-HOUSE. MARCH 20, shoulcl only fall twenty-five per annum for the next ten years from we not to require this vast wealth to contribute its just share to sup the present figures, then we would pay the debt in 1887. If the rev port the Government ! enues should remain as they are to-day for ten years, we will pay Mr. McKENZIE. What was the greatest amount collected as in the debt in 1886. With the promising prospects before us, is it not come tax in any one year? an act of folly, if not a crime, to retain this debt for forty years Y If Mr. MILLS. About $72,000,000. Congress, unwisely as I think, shall det.ermine to refund these bonds Now, if the tax had been kept on these incomes and on capital in a s the committee propose, what are we going to do with the surplus vested in manufactures we would not have had a dollar of indebted revenues now in our coffers and continually coming in T Leaving ness to-day. Let us keep the revenues we have and add to them the -0ut of the qnestion the payment of any portion of this debt out.of income tax and pay the debt as fast as we can. And as fast as we. money now in the Treasury, the incoming revenues in ten years will can, let us emancipate our people from the dominion of debt, exces pay ~he $900,000,000. I asked that question of the Secretary of the sive indirect taxation, and national banks, that are so rapidly con Treasury, "What are you going to do with this money if you go on centrating the wealth of the country in the hands of the few and refunding these bonds for forty years Y" He said he would buy bonds endangering the very existence of free institutions. So great has the in the market or else decrease taxation. The chairman of the com aggregation of wealth already become that to-day it threatens to take mitbee said, "That would be a better way," and I said, "And thus possession of the Government. We already hear in every direction perpetuate the debt." He promptly said no, he would apply it to the that we want a stronger government-a government whose frown will sinking fund. But if the money is to be applied to the sinking fund, a.we into silence every breath of complaint-a government whose why not pay the bonds without refunding T Why refund and then powerful arm will hold a distressed and persecuted people quiet, make purchase at a premium 1 The chairman and the Secretary let the cat them starve with a smile and expire in decency and order-a govern out of the wallet when they proposed to reduce taxation; and that ment so strong that no indignant public opinion can shake its corrupt undoubtedly is the policy, to reduce internal revenue and retain the and wicked administration. debt. It is vain for us to indulge the hope that after we refund these It is not a government made strong by the powerful support of a bonds into others running forty years we may then purchase them at moneyed aristocracy that we want; it is not a government made strong a less figure than we can now pay them at their present rate of in by the iron arm and despotic will of a military chieftain that we need; terest. If these bonds are placed beyond our power to call and pay, it is not a government so strong in gold and steel that it may reply to the premium will soon rise so high that the Government will find all the complaints of its suffering citizens with a blow; but a gov itself cornered. The Secretary told us the other day that the holders ernment that feels its greatest strength.when it reposes on the pop were making corners on him now. With the bonds maturing next ular will and draws all its support from the filial affection of the cit year, do you think the national banks will stand by with unconcern izen. [Applause.] That government whose statesmen diligently and see undermined their foundations' Do you think the large bond seek the public good as the highest aim of their am bitiorr will never holders, like Vanderbilt with his thirty millions in bonds, will let you find an hour so dire that it must needs covet some other strength to destroy tlte only safe paying investment for his large wealth' Do yon stf>.ady and support it as it reels and totters in the throes of popular think the manufacturing confederacy will remain nenU-al, and lose this convulsion. It is not a strong government but a just government most effective agency for the retention of high prohibitory tariffs' that we want. Let us give the people wise and beneficent laws; let No, sir; you will find in a short time that the price of your bonds comforts- the j usb reward of I a bor-diffuse themselves through all the will be so high that it will cost you more to buy than it would have land, and their magic spell will secure the domestfo tranquillity and done to let them remain even at 5 and 6 per cent. interest. I beg this repel the enemy from the gates when gold, like a recreant, flies the House to understand, and the people to understand, that the moneyed field. Let us aa faithful Representatives so discharge the high trusts confederacy do not intend this debt shall be paid if it is in their power committed to us that the Republic will suffer no detriment at our to prevent it. The first step is to ge1i these bonds beyond the power hands ; that the land shall increase in wealth, in prosperity, and in a of the Government to call and pay and get thsm within their own contented and numerous people. Let us leave open to them every control. The next step will be. to raise the premium and embarrass avenue to their individual improvement and remove every impedi the Government in every possible way, so that it will cease its efforts ment in the path of their progress upward as onward. Let us secure to purcha-se. In the mean time, the representatives of their interests to them the enjoyment of every reward that labor offers as an induce in Congress will tell us it is unwise to pay such prices for the bonds, ment to toil. Then the Government will feel its greatest strength let the people retain their money, reduce taxation, and give back your as it confidingly leans for support upon all the arms and heads and surplus revenues. Pass this bill, and another will follow on its heels hearts of its people. [Applause.] in quick succession to reduce internal-revenue taxation. Mark you, Mr. BARBER. Mr. Chairman, I would like to·have the courtesy not the tariff, but internal revenue. It does not lie in the power of of the committee for a moment. As I understand the remarks of the forty millions of people to touch that accursed robbery. But when the gentleman Mm Texas he sought to impress us with the idea that, capitalists, bankers, and bondholders find they must give up the debt during the Napoleonic war, Pitt did not increase the national debt of or internal taxes, they will give up that which is least advantageous to England. Now I wish to read a brief extract bearing upon tQ.is point, them. 'l'he internal taxes do not affect their interests. It wa-s only from the lips of Charles James Fox by Lord John Russell. He writes: retained to make sure the interest when the debt was so large and Yet in this supposed inviolability of the sinking fund, working at compound its interest so great that high tariffs standing on tip-toe did not meet interest, consisted the whole merit and originajity of Mr. Pitt's measure. As to the boast that this measure would prevent the debt ever rising, during war, t.o the their demand. As soon as it is found that the debt can be retained, height it had previously done, facts have converted these rosy tints of eloq,_uence its interest paid, the banks secured, and high tariffs preserved, the into the somber colors of national incnmbr:mce. The American war left this internal taxes on whisky and tobacco may go. country charged with a debt of two hundred and fifty millions; Mr. Pitt's French How feelingly thev will talk of the burden of taxation when they war left it indebted to the amount of eight hundred millions. Some advantage was derived by st.ock-jobbers from the weekly purchases of the commissioners of come and ask for the repeal of internal revenues. Pass this bill and the national debt, but the nation required every year larger loans and had to pay you will soon pass the other, and all your means of paying the debt an additional bonus to the lenders. will then be gone. Then you will have the debt perpetuated until Mr. MILLS. In response to that I will rea.d what Mr. Gladstone we are all dead, and the same arguments which are being made here says on the same subject, in his speech on the income tax in April, to-day will be made here to the next generation. The same sophis 1853. :Mr. Gladstone says: . tries to which you have listened our children will listen and our Now, every one of us is aware of the enormous weight and enormous mischief grandchildren and our great-grandchildren, and, sir, this debt will go that have been entailed upon this country by tho accumulation of our debt; but it on for two hundred years, as it has in Great Britain, and be greater is not too much to say that it is demonstrated by the figures that our debt need not at the end of that period thari it is to-day; and in every neighborhoo.d at tbia"moment have existed if there had been resolution enon~h to submit to the income tax at an earlier period. This test of my assertion I think yon. will admit the poor-house and the prison will stand as monuments of our folly. is a fair one : I begin by putting together the whole charge of government and Let us to-day resolve that we will hold our taxes as they now stand, war, together with so much of the national debt as had accrued before 1793, so as and add to it a tax on incomes and apply them as fast as possible to to make (if I may so express myself) a fair start from 1793. The charge of gov ernment and war, together with the charge of debt incurred before 1793, amounted, the extinguishment of the debt. Let us imitate the patriotism and on the average of the six years down to 1798, to £36,030,000 a year; the r evenue of wisdom of Pitt, and lay the income tax and make the large wealth that period, with all the additional taxes that were laid on, amounted to £20,6~6,000 of this country contribute to its support. Is there any good reason a year. There was, therefore, an annual excess of charge above revenue-cha~~e why it should not T Why shoulrl all the burdens of government fall for government, for war, and for debt contracted before 1793, but not including me Y charge of debt contracted since 1793-of no less than £15,404,000. upon the shoulders of the poor Why should taxation on consnmp Now the scene shifta. In 1798 Mr. Pitt just initiates the income tax, and im tion alone pay all the expenses of supporting this vast fabric of mediately a change begins. In the four years, from 1799 to 11302, the charge for the government f Great Britain has had a tax on incomes ever since l!'.:150. same items that I have mentioned, which had been £ 36,000,000, rose to £47,413,000 Most of the governments of Europe have the same. Why should the a year; but the revenue rose to £33,724 .000 a year, and the excess for those four years was diminished by nearly £2,000,000 a year ; instead of an annual excesd of immense wealth in this country be exempted Y Here is a very inviting £15 404,000 over r evenue, it was £13,6"9,000. But next look tothe operation of the field before us, from which it seems to me we might glean a little. tax,' both direct and collateral, from 1806 to 1815, during the very time when our In 1866 there were 460,170 persons, who had incomes amounting to exertion& were greatest and our charges were heaviest. The average annual ex- $966,358,599. In 1867 the exemption waa raised to $1,000, and the . penses of war and government, from 1806 to 1815, together with the char6e upon · the debt contracted o efore 1793, were £65, 794,000; but you had your income tax: in number of persons fell to 266,135, and they had incomes $813,968,333. its full force. with your whole financial system invigorated by its effocts, and the In 1868 there were 276,661 persons, who had incomes amounting to revenue of the country now amounted to £63, 790, 000 ; while the deficiency in actual $806,006,476. In 1869 there were 272,843 pE1rsons, who had incomes hard money, which during the war represented something like dout1e the a.mount amounting to $819,907,392. In 1810 there were 275,661 persons, who in debt, owing to the rate at which you borrowed, instead of being £15,404,000 a year, as it was in the first period, or £ 13,689,000 a year, as it was in the second period, had incomes amounting to $806,006,476. was only £2,004,000 a year, from 1806 t.o 1815. These were in the main the same persons, and their incomes-their Such was the power of the income tax. I have said there was a deficiency ,net earnings-for the five yea.rs amounted tc:> $4,128,665,195. Ou~ht annually of £2,004,000, bat it is fair for you to recollect, and it is necessary in order 1880. CONGRESSIONAL RECORD-·HOUSE . 1745 folly to present to you the fact I want t-0 place in clear view, that out of the amount of $500,000,000, which shall bear interest a~ the rate of 3i per £65 794,000 of charge which I have mentioned, about £9,500,000 were due for charge 1 cent. per annum, redeemable at the pleaaure of the United States of debt contract~d before li93; ·so that if you compare the actual expense of gov ~rnment, including the whole expense of war from 1806 to 1815 with your revenue after twenty years, and payable fifty years from date of issue. when yon had the income tax, it stands thus before yon: that vou actually raised Se?cm~. That he may also issue notes in the amount of $200,000,000, £7,000,000 a year during that period more than the charp;e of government, and the beanng mterest at the rate of 3t per cent. per annum, redeemable at charl?e of a gigantic war to boot. That I must s1Jy is to my mind a most remark able fact. the pleasure of the United States after two years, and payable in ten [During Mr. MrLLs's speech the following occurred: years from the date of issue; but not more than $40.'>00,000 of saiU. Mr. MILLS. I see that my time is going fast, and I would like notes shall be redeemed in any one :fiscal year. ' the consent of the House for a short extension of time. Third. That he may issue certificates of deposit to an amount not The CHAIRMAN. The gentleman from Texas [Mr. ?!!rr.Ls] bas exceeding $50,000,000, fixing the rat-a of interest to be allowetl thereon seven minutes remaining. at 3t per cent. per annum for one year, after which interest shall Mr. MILLS. I want to discuss this bill particularly, and I ask the cease; and the said certificates shall be convertible at the option of House to give me a little more time. My friend from Minnesota, [Mr. the holder, when presented in sums of $50 or multiples thereof into Dm."NELL,] who will follow me, can have all the time that he wants. the coupon or registered bonds authorized by this a-0t. ' Mr. LOWE. I move that the time of the gentleman be extended. By these three provisions, the Secretary may issue bonds and certifi Mr. DUNNELL. Extended indefinitely t cates to the amount of seven hundred and fifty millions. The bonds as already stated, maturing in 1880and1881 amount to $782 071 700 Mr. MILLS. I will want but fifteen or twenty minutes. 1 and Mr. LOWE. I move that the time of the gentleman be extended for the conversion of which into securities bearing a lower ~a teof i~ter twenty minutes. est, this bill is now before us. The annual interest now paid upon the There was no objection.] $782,071,700 is $41,839,898. The annual interest which these new bonds Mr. DUNNELL. Mr. Chairman, the Secretary of the Treasury, in will call for, will be $26,250,000. The annual interest which will be his annual report in December laat, called the attention of Congress saved by the operation of this bill will be $15,589,898. Assumin er that to the fact that certain bonds of the Government would become pay the surplus revenues will wholly absorb the difference betwee~ the able upon the demand of the holders, December 31, 1880, and that $782,071,700 of the bonds to bt\ met and the $750,000,000 herein pro certain other bonds would be redeemable at different dates in 1881. vided for, the annual interest charge after this exchancre of the 3! per Those which are so payable in 1880 amount to $18,415,000. The Sec cent. bonds and certificates for the 5 and 6 per cent. bonds has been retary said that these bonds, the loan of February 8, 1861, maturing consummated will be but $68,183,881 over against the annual interest December 31, 1880, can probably be provided for from the surplus rev charge August 31, 1865, of $150,977,617. enues. Bonds to the amount of $1t!2,605,550, authorized by acts of Here will be a reduction in the annual interest charge since Sep July 17 and Auga.st 5, 1861, are redeemable June 30, 1881, and bonds tembe~ 1, 1865, of $82!79l,?36: These figures will find a place· in ooc to the amount of $71,787,000, authorized by act of March 3, 1863, are financial statements, if this bill shall pass and be executed. The in redeemable June 30, 1881. Also, bonds to the amount of $823,800, ~erest-bearing debt will be $1,765,577,000, instead of $2,381,530,294 as authorized by act of March 2, 1861, are redeemable July 1, 1881. All it was August 31, 1865. The thoughtful patriot wiH rejoice over this the above bonds amount in the aggregate to 273,631,350, and bear an result. interest of 6 per cent. A national debt is not a blessing. To a rl publican government it In addition to the foregoing securities, there will be redeemable May is an abiding curse. Indeed it is a curse to any government. No 1, 11:331, 5 per cent. bonds to the amount of 508,440,350. These last party or administration, as I believe, will have an indorsement of the were authorized by acts of July 14, 1870,and January 20, 1871. The American people which does not seek some annual reduction in this total of these bonds, being all the 6 and 5 per cent. bonds of the Gov debt. This reduction, however, must not come, except in pursuance ernment now .unpaid, is $782,071,700. Taking from this sum the of policies and methods absolutely honest. $18,415,000 which are to be provided for from the surplus revenues, W'? ~re n?w, a~ a government, reaping a rich reward, because its there remain $763,656,700 to be taken care of, either by payment in AdmlillStrat10ns smce the war have kept to fulfillment every letter in whole or in part or some process of refunding. our financial pledges. The Committee on Ways and Means have been charged with the I here insert a table to sustain some of my foregoing statements: duty of preparing for the consideration of the House a bill providing for refunding these maturing bonds. Every patriot in the country Year . Total interest-bear- Annual interest would rejoice if we had the money with which to redeem these obli ing debt. charge. gations o~ the Goven;iment and so relieve the people from their pres ent taxation. As this beneficent result cannot now be attained, it $2, 381, 530, 294 96 150, 977, 697 87 certainly will be deemed wise to refund them on the most favorable 2, 332, 331, 207 66 146, 068, 196 29 terms possible, or such a portion of them as cannot be met by the ~m: ~~~;~~~::::~:::::::::::::: ::::::::: 2, 2t8, 067, 387 66 138, 89-2, 451 39 surplus revenues of the Government prior to the dates when the bonds 1868 -- --- •. -- •• ---- •• - • - ••. ------.. --- •• . 2, 202, 088, 721 69 128, 459, 598, 14 1869 ---··--·------·------·------·-----·· 2, 162, 060, 522 39 125, 523, 998 34 are redeemable. If these bonds .could be paid within two, three, or 1870 ------·------·----·------·- · ···. 2, 046, 455, 722 39 118, 78 4, 960 34 even four years by the revenues, it would be far better to continue to 1871 ·-·--· ·----·-· ·---·-·--- ·--··--····---- 1, 934, 696, 750 00 111, 94!), 330 50 pay the 6 and 5 per cent. interest on them than refund for a long time 1872 -----··-----·--··----· ·--·------·----·. l, 814, 704, 100 00 103, 988, 463 00 at 4 or 3t per cent. It is unrea.c::ionable, however, to suppose that even 1873 ·---·-·--··-·····-----·-----··--·- ·---- 1, 710, 483, 950 00 98, 049, 804 00 1874 ·--·-----··-----·--··----· ·--·--···-·-. 1, 738, 930, 750 00 !)8, 796, 004 50 one-half of this amount could be paid in the longest time named. 1875 • - -· - -- . ·----- .• - • ·-· - -- • -- .•.. --.• -- .. 1, 7'.22, 676, 300 00 96, 855, 6!)0 50 Before alluding to the bill under consideration it may be proper in 1876 ------·------····---·-- · ·--··-- 1, 710, 6~5 , 450 co 95, llH, 269 00 this place, to give the suggestions of the Secretary of the Treasrlry 1877 . - - .. -- • ·----- • - • - -- ·-·--- ·----- •...... l, 711, 888, 500 00 93, 160, 643 50 made in his last report. He said: ' 1878 ·-···--··------·--- ··--··--·----··· 1, 794, 7:i5, 650 00 94, 6.54, 472 50 1879 ·-----·--·---··--··--·------·--·-----·. 1, 797, 643, 700 00 83, 773, 778 50 It is respectfully suggested that authority be given at the present session of Congress to issue, sell, and dispose of, at not less than par in coin, 4 per cent. bonds of the description set forth in the said act of .July 14 1870 and refunding certifi The question which the Committee on Ways n.µd .Mflans :first met cates of the description set forth in the act of Febru'ary 26 1879 with like quali was, whether the bonds contemplated in this bill could be exchanged ties, privileges, and exemptions, except as hereinafter stated, to the extent neces. f~r the b~mds to be ta~en up if they were to be 3! per cent. As the sary to redeem the bonds falling due on or before .July 1, 1es1, above described, and to use the proceeds for that purpose. bill provides for an adJustment of the difference in interest from the It is hoped that the advancing credit of the country will enable-the Secretary to time of the offered exchange and maturity, the simple question was sell such bonds and certificates at a premium, but it seems better to maintain the whether the bonds of the United States to the amount ofiive hundred general conditions of the 4 per cent. bonds rather than to undertake to sell a bond millions could be sold at par bearing3tper cent. interest, redeemable - ~t lower.interest. Th~ 4 per cent. co~sol .is now universally known. The rate of mterest is as low as will generally marntain the bond al; par and the premium will after twenty years and payable after forty. The readiness with which measure its advance above par at fa.Torable periods. The ~ertificates should bear the 4 per cent. bonds were sold; the eagerness with which the people the same rate and be solcl on the same terms as the bonds. It is important that sought the new 4 per cent. certificates of deposit; the premium at w hioh the authority granted .should include the power to refund, from the passage of the the four percents sold; the premium at which they are now quoted· act at the p~esent seSSlon, and to prepay the excess of interest on the bond to be r efnndecl prior to its maturity. The present is believed to be an exceptionally favor the fact that these bonds are the only ones which the United State~ able time for such refunding. can possibly put upon the market before 1 '91, and not then unless a. These suggestions are : war intervene; the evident existence in the country of la.rO'e amcunts First. That the bonds and certificates to be issued are to be four of tI"?st funds, which, as experience has shown, seek per~anent and percents. safe investment; the many assurances which bankers and others com Second. That the Secretary be authorized to sell the bonds and cer p~tent to judg~ gave, brought the committee to the opinion that no higher rate of mterest than 3t per cent. need be paid. tificates and with the proceeds purchase the maturincr0 bonds or pay them at maturity. It is not certain, I admit, that these securities at the rate Qf interest The Secre~ary, in his conference ~ith the Committee on Ways and fixed can be used as we propose, nor was it certain that the 4 per Means, modified the second suggestion above, drawn from his annual cent. bonds could be sold. More or as much uncertainty was felt then report, for he said in reference to the sale of bonds for money: as npw. Certainly the four percents did not absorb all the trust funds It will not be wise for us to sell them for the money with the uncertainty as to in t he country, as was apparent when the last sales were made. · ~ I our being able to use that money in buying an equal amount of ontstandinal.Jonds entert ain the opinion that when Congress has p.assed this bill, the not yet matured ; and if you were to authorize that, we should necessarily ~ve to !our percents will reach a premi~m of 9 per cent. at least, and then increase the public debt . We might not be able to use the money. ~vestors can do better by seeking the bonds which this bill will pro Tho committee after mature deliberation decided to report the bill vide than any other class of our national securities. The bonds t.o now under discussion. It provides: be issued are.to be offered in exchancre for the five and six percent.a First. That the Secretary of the Treasury may issue bonds to the till their maturity, and if the exchange is not completed prior to tho X-110 1746 CONGRESSIONAL RECORD-HOUSE. MARCH 20, maturity of the old. bonds, then the new bonds are to be sold and the Available assets : proceeds used in the purchase of the old bonds not exchanged. Cash in Treasury----·-··········-··-·······---···--··-·····-· · ·--· $196, 351, 653 Aside from moneys which may be called trust funds, there are large Bonds issued t.o Pacific Railroad Companies, interest payable in amounts of money in the country which the owners thereof do not lawful money: care to in-vest in active business enterprises. They are in many in Principal outstanding. __ .. _-· .. ·--·-·_.---···------·-··--····-·-·· 64, 623, 572 Interest accrned and not yet paid .....• ···-····--····--·· -...... •. . 646, 235 stances persons who, retiring from business, seek investments which Interest paid by United States .. _.. _•...•.. _•.. _...•.•... -.. _- ...• - 45, 651, 155 shall be free from needed supervision and consequent anxiety. Such Interest repaid by transportation of mails. &c .... __ ·---·· ····-· _••. 13, 656, 910 parties prefer a bond of the ery gradual reduction, though increasing some years, till ci:edit was caused m part by a return to specie payments. Resump January 1, 1 ~ 12, whenit was$45,209,737. From this point it increased tion not only was n, fulfillment of money promi~es ~ade ~uring tp.e till January 1, 1816, when it was ,"127,334,933. The .revolutionary war, lmt it madethelargevolumeof.paper moneym.mr~ulat10n eqruv war was the chief cause of the original debt, and t.he war of 1812 with alent in commercial value to the com of the Constitution. Resump Great Britain was the cause of the increase. From 1 16 it decreased tion, whether begun too soon or too late, "".hether reached by pre till in 1 336, when it was but $37,513. From this time it increased cisely the best methods or not, co~d not .fail to .stren~hen our na, till January 1 1843, when it became $20,601,2-26 · July 1, 1843, it was tional credit, and will not now, while sustamed, fail t.o br~n$ forward $32,742,!>2:l; July l, 1... 51, it amounted to $68,304,796. This increase for permanent and safe investment much money which, 1£ it has not is chargeable to the Mexican war. This debt was annu!lllY lessened been hoarded bas been employed in transactions but poorly remu till 1 ~1, when it wa.<> $'>...8,699,e:n, ancl from this year it was annually nerative and ~o employed till the full credit of the Government was increased till July 1, 1 61, when it was $76,455,2.>"9. As no part.of reached. this increase can be charged to the war of the rebellion, there was a While the returning prosperity in business may .keep in active cir larger increase of the national debt from 1857 to 1 61 than during culation and venture the great bulk of the acqrured wealth of the any similar period of peace since tl;le foundation of the Govern people, yet no inconsiderabl~ fraction of this wealth will wi.thdraw ment. I t is no wonder that the war of 1 12 and the Mexican war from hazards which prosperity always begets and seek security. In increased the public debt, and the wonder is that they did not make the midst of the wildest speculations, there are a few at least who then larger increases. History does concede that our .fi nancial affairs were instinctively retire from business, and all the more readily inquire conducted with marked ability daring these two wars. It remains fOl.· a place where they may safely lodge their money. We should not to be seen what reasons history will give for the large increase of forO'et that the value of the annual productions of all the inuustries the public debt during the administration of President Buchanan.., of the United Stn.tes is so large that the ability to invest in such secur From July 1, 1861, to July 1, 1865, the debt increased from $76,455,239 ities as this bill contemplates, is much greater than we might suppo e. to '2,756,431,571. It is not necessary to say that this enormous debt A full year will be given in which the bonds provided for in this bill wa that part of the money expenditure made to pre erve the Union are to be offered in excbo.nge for the 5 and 6 per cent. bonds. These and which remained unpaid when the rebellion was brought to an bonds are not to be sold for money till after the matori ty of the bonds end. From the clo e of the war in 1665 to this hour the Govern to lJe taken up. If this ex:changa cannot be effected by a 3i per cent. ment has been exerting all her energies so to manage and reer$.5,500,000, notwithstanding the fact that over '• G,000,000 were Government for the same period, which have been $3,299,921,125, paid out during the month on account of pensions. The total rev aside from the interest on the public debt, we have 5,619,834,654 as enues during the month were larger than those ever received before the sum total of our expenditures during these fifteen years. These rlnrinO' the month of February under the present re>enue laws. The figures should warn us against policies tending to perpetuate this vast receipts. from cu toms during the month amounted to 16,BOO,OOO, burden. They should rather impel us to mea ures calculated annu -while i.n the corresponding month of 1879 they amounted to only ally to reduce the burden and end it within the least possible period 10. '00,000. The receipts from internal revenues last month were of time. To the consummation of this great good every party and over ,750,000 while in February, 1879, they amounted to more than e>ery section should struggle. fl,000,000 less. Though the bonded del>t has had a reasonable reduction, yet the The following is the official public-debt statement for February: reduction iu the annual interest charge has been very great. As al Coin bonds: ready statetl, it bas fallen from $150,977,697 to $83,773,778 on July 1, $200, 94e, ooo 1 79, and if tJ1 is bill shoultl pass and go into full execution the annual 501, 418, 900 250, 000, 000 interest charge will be but $&3,1!:!3,881. This fact in our financial sit 738, 91i2, 000 uation isfullofpromise; it is a just cause of congratulation; and it has, 1, 883, 950 in part, been secured by refunding operations. The secured credit ~ir~~t±H+:rnrnrn+~:+ l4, 000, 000 Navy pension fund .•.••. ·--······-···-····-···-·.-·· of the Go>ernment, its honesty, its :fidelity to promises made during 1, 1-;o, 212, 50 Debt bearing no interest: and since the war, have conspired to this grand result. The people Debt on which interest has ceased, (matured).·- ...... --···· ... -·. 10, 823, 135 hase sustained uhese measures and policies. They will continue to Legal.tenders········-···-·-·····-·_····-···-··...... 346, 742, 2il do so, no matter how loudly the few may complain aud however se Certificates of deposit ..•.. ·-·--·_ ... ·--·...... 11, 485, 000 verely the few may criticise. The people love good results. They Fra-0tional currencv .....•.•.••. _•.....• - ..•••... -.. -. 15, 631, 311 Gold and silver ce1:tificates .. _.....•• - ..• _.••...... - 19, 452, 520 care less about methods, provided they are hone t, and nothing about ---- 393,311, 10-2 the theories of pretenders in finance. The Go\ernment has a small debt besides the bonded del)t. I will Total ...... ··-..•. --· ..•... ·----· ···-...... •.• -· ··-· -· .. -·.. :!, 174, 347, Oil7 not stop to enumerate the items, but here insert the following table, Accrued interest ....•.• ·-·-·· •..... ···--· ..••.. ·-·-····--······ .... 17, lW, 787 which will show the aggregate debt each year since 1865, interest Total debt.···-····--·· .•••...•.. ··-··· ..•.•.••..••.. ······-· 2, 191, 463, 874 bearing and non-interest-bearing, less cash in the Treasury: Cash in Treasury ...... •.••...... ·-· .... -·-·····-· 196, 351, 653 1865, A.ngust 31...: _. 2, 756, 431, 571 43 1873 •••••• -- ••.•••••• t2, 105, 4U2, 060 75 1!!66, July 1. .. - ... - . . 2, 636, 036, 16J 4 1874 -- - •••••....•• . -- 2, 104, 149, 153 69 Debt, less cash in Treasury ••. - ••..••.• ·--··· •••. ·-·-·-·---··--··.. 1, 995, 112, ~l 1867 ····-·········-·- 2, 508, 151,2ll 69 1875 ·--··-·--········ 2,090,041,170 13 Decrease durin~ Febrnary. ··-·-·. _-. -·----...... ·-·. -- ··--...... • 5, 672, 019 1868 .•.•••.••.. : ••••• 2,480,853, 4L3 23 1876 ··-···-·-······-· 2,060,9-25,340 25 Decrease since June 30, 1879. ··-··-·· •.•. ·--··· ·-·· .••• ··-·· -·· •••• 32, 095, 03.'l 1869 ••••••.••.. : _____ 2,432,771,873 09 1877 ···---··-·· ·-·-·- 2,0l9,275,43137 1870 ••••••.• - ..•.••. _ 2, 331, 169, 95() 2L 1878 ---··- ••• --· .. -·. 1, 999, ~ 2!l0 4S. Current liabilities: 1871 ··-············-- 2,246,994,068 67 1879 ·--··--····--··-· 1,996,414,905 03 :Interest due and unpaid.·-·- -- ··-· •• -. -- ... -· -... ·-· -- ...... - -. - . - 3, 662, 28 1a12 .•• _•• _____ •••• _. 2, 149, 1eo, 530 35 Debt-On which interest has ceased .. ·-··-······--·-----..•.. ·- .. ·-. 10, 8~.135 hterest thereon ...... ••..• - . ·-·. -•...•. - ·-· - ••.•... --... -· ..•• 897, OO:J The cash in the Treasury July 1, 1879, was 249,0 0,167. It has Gold andsiver certificates. ···--· .••.. ··········-··.~ •...•.•. ···-·· 19, 452, 520 been stated in this debate that the bonded debt increased in 1878 United States notes held ·for redemption of certificates of deposit ..• 11, 485, 000 about 83,ooo;ooo over the debt in 1877. That is true; but it is very: Caab balance available March 1, lstlO-.•• - --• . • - •.• -•• ----•...•.•.. - • 150,031, 7{)6 f~ Total liab\Hties •••••• ··········-······· ········-··· ••••••.•...••••• 196, 351, 653 proper w state the reasons. Bonds to this amount were issued '··

1880. CONGRESSIONAL RECORD-HOUSE. 1747

resumption purposes. This issue did increase the bonded debt, but hour. It has no business with anything except the simple, naked the money received for the bonds was put into the Treasury, and proposition whether or not we shall make provision for these matni' there remains. Whether all this cash houlcl now be kept in the ing bonds; and, if we are to make provision for them, how, or in Treasury to give security to resumption is not a question which this what manner, at what rate of interest, and for how long a time. If bill suggests or one which I deem it necessary to consider. I t is, how we are to make no provision for them, as the eloquent gentleman ever, my opinion that some of this cash could be used in payment of from Georgia. [Mr. FELTON] suggests, then it is for us to canvass care a portion of the maturing bonds for which this bill makes provision fully, if we legislate wisely, the revenues we are to have or how much and in no manner endanger resumption. How much of it could be money we shall ha·rn with which to take care of these maturing so used, I am not prepared to say. Not enough of it should be re bonds. moved to put in the least jeopardy the end for which it was put I have said in the remarks which I have already mac1e that there there. The business prnme or paying them in then be heltl by the banks, if remaining the same in a,mount, will be full, or shall we put them into bonds bearin issued during the next twelve years wlre 6 per cent., and sold at par. fullest investigation; we are for an honest administration of the Gov Those negotiateu in 1814 were 6 per cent ., and sold at eighty cents. ernment and the annual reduction of the national debt. · The first bonds of the Government which were sold for more than We have ha-0, Mr. Chairman, all a.long in our national history' one cent premium were authorized in 1848, bearing 6 per cent. inter able men at the head of the Treasury-Hamilton and Gallatin and est, payable quarterly or semi-annually. The bonds sold at a pre Rush-- mium of three and one-half cents. T1Jose issued between 1848 and Mr. HAWLEY. Wolcott, of Connecticut. 1001 were generally 6 percent., elling at par. The securities issued by Mr. DUNNELL. And Walker, who managed our finances during the Government up to 1861 were largely £ the gentleman from Georgia, [Mr. FELTO~,] language that t longer occupy the time, further than to say that in my gold. .opinion we have great reason, as the representatives of the people, to Fourth. The friend.of an expensive government. In this all the -congratulate them upon the present financial outlook. We have a others can heartily combine, as they pay but a .nominal tax. restored-credit; we have returning prosperity; we have our debt in All of these interests are represented by honorable men, men of such a shape that we can grapple it and handle it. The burden by wealth, who are clever fellows and highly respectable; socially, per way of annual taxation has been so much reduced that the debt has haps, our superiors. But can we consistently listen to their appeals largely -ceased to be the burden which it was soon after the war. when so much want and sufiering exists at home which calls upon our I believe that in legislation it is better to cling to the existing con- manhood for the maintenance of equal legislation f dition of things than to legislate under anticipated adverse condi- Mr. Chairman, I propose in the remarks I make on this bill, if in tions. The gentleman from Texas is full of fear. Foreboding has order, to speak of the various 'interests w~ch are involved, all of !taken possession of him. He is considering with a great deal of an.x- which affect the people whom I have the honor to represent. iety the posterities that are to follow him. If we can pay $50,000,000 If it is manifestly for the interest of the bondholder to continue .annually upon our national debt, as he says we can, the gentleman the class legislation which has so rmjustly discriminated against the from Texas, if he lives to the ordinary period of human life, will see industrial classes, it is equally our interest, now that it is in our this debt completely wiped out. I hope and expect to live to see the power, to pay our maturing debt as speedily as possible, and thereby consummation of the grand result. The gentleman from Pennsylva- force before it is too late a change in legislation in the interest of nia. [Mr. KELLEY] says it will be done in fifteen years or less. If our economy and industry, which can only be done by keeping the Treas surplus revenues in the years immediately to come shall be $50,000,000 ury rea.sonably short by ignoring all refunding schemes. with a Congress in session each year to tell the Secretary what to do We who advocate a change in the interest of the people must not with those funds, how are we to be damaged because of those sur- be discouraged in our efforts by the magnitude of the questions in plus revenues ! We can order him to dispose of them in the purchase volved nor the power and influence brought to oppose our efforts. of outstanding bonds. We run no risk by this legislation. We do We must bear in mind a mighty force is intrenched behind those in not put off a day the final extinguishment of the national debt. We power, with instrumentalities at hand never before trusted to ·1hu £hall sa.ve $15,000,000 a year in interest money if this bill passes and manity. Years of class legislation, enacted under the garb of patriot is put into successful operation. Adding this saving to the $50,000,000 ism, can only be met and changed by the combined influence of all which the gentleman says we shall have, we have 65,000,000. Let now opposed to the republican party. Differences must be buried that $65,000,000 do its work year by year, and the gentleman from for the attainment of the one great object-the saving of the Repub Texas may think less of posterity and look forward to the day when lie. be can raise his voice in a grand acclaim, in a national thanksgiving To be sure our efforts for material progress and reform are now sup tbat the great debtwhich the salvation of the Union matle necessary ported by many active minds of a large class of honest thinkers of :bas been extinguished by the generation that saw it created. all parties, but, unfortunately, not all working in harmony. Those Mr.LADD. Mr.Chairman, thatportionoftheinterest-bearingdebt who worship the financial theories of the pa.st, and those who with .of the United States redeemable in 1881 it is proposed by this bill to larger hope think mankind should increase the material called money .refund in part in forty years, at the rate of 3t per cent. interest, free to correspond with the increased production consequent upon the in from all taxation. troduction of machinery, may have many a hard battle to fight be- This proposition, if the refunding of more bonds is deemed neces- fore they can work in harmony together. '8arJ, has advantages, could we be assured it would be honestly car- The patriot now is he who by conciliation can bring most laborers ried out by those in power, as it will save nearly 2 per cent. on seven into the field now ripe for the harvest. Let me admonish all who hrmdred and sixty-three millions maturing on which we now pay an desire a change in the interest of the people not to be captious as to ..average interest of 5.:33 per cent. what tools the volunteer in this cause brings to the work. The most The distinguished chairman of the Committee on Ways and :Means powerful motor that actuates mankind is enlightened selfishness, and JMr. FERNANDO Woon] has very clearly pre.sented the proposition if this is cultivated in the future by the producers as zealously as by to the committee. For his able speech on this bill he qeserves the the bankers in thepastaspeedychangeisinevitable. Those who have thanks of the whole country, and while I differ with him as to the rapidly acquired fortunes by the class legislation of the past twenty .expediency of refunding any more of our maturing debt I can appre- years have, quite naturally perhaps, conceived the idea that the Gov- .ciate his learned efforts in behalf of economy. But he fails to impress ernment should be conducted by and in the interest of wealth. But me with the importance of refunding the maturing debt when it is they may also have acquired too great confidence in their ability to .clearly within the power of the Treasury to pay the whole amount, maintain our Government as a republic with the present tendency without disturbing the relations of debtor and creditor, by using toward centralization. Those who think that prosperity consists in .present and anticipating, without much expense, future receipts, and an unjust and unequal distribution of property by class legisla~ion, thereby saving a large part of the interest to be paid and the tempt- which has developed into individual extravagance and display of ing influence to fortnne making by those in power. According to his wealth,· must be brought to their senses by the producing classes as :ehowing a 3-t per cent. bond can be disposed of at par. Of this fact suming the charge of future legislation. 1there .can be no question. Admitting the shameful abuse of the The country now calls for a halt in such legislation; it calls for a ,power heretofore given to the present Secretary of the Treasury for scrutiny into the causes that have produced the business wrecks il'efnnding, which has cost the country (as estimated by the honorable which have occurred in all leading industries from the Saint John's .chairman of the Committee on Ways and Means) the enormous sum to the Rio Grande, from the Atlantic to the Pacific; wrecks of busi t0f $115,500 more than it should have cost, I regret to say he has failed ness industries, business men, and all those high notions of political to represent that the whole system of refunding is obnoxious to the integrity which have made us all we are as a nation. No temporary charge of fraud, corruption, and money-making by the ring in power alleviation caused by short crops in Europe can divert the American and highly dangerous to our institutions. I believe the refunding of mind from the producing causes of our unparalleled. sufferings, soon 1880. CONGRESSIONAL RECORD-HOUSE. l749 to return if the causes that have produced them in the past be not language of Burke in his description oi the conquest and subjection removed. Let us look at the spectacle that such legislation presents. of India. by Clive and Hastings, a century or more ago : On the one side the unpleasing picture of wealth easily obtained de .Animated with all the avarice and all the impetuous ardor of youths, they roll veloping into regal expenditn~es, follies! and 'Yi~kedness. On th.e in, one after anotber, wave after wave ; while nothing presents itself to the view of other, distress, poverty, and rum, starvation, smc1de, broken consti the unhappy natives, except an interminable prospect of new flights of voracious birds of passage, with appetites insatiable for food, which is continually wasting tutions, and broken hopes, to say nothing of crimes and all the heart under the attaOks. Every other conqueror, Arab, Tartar, or Persian, has left behind rending scenes of suffering consequent thereupon. While the effect, some monnment either of royal splendor or of useful bene\olence ; England has unhappily still continuing, of our past legislation has unquestionably created neither churches nor hospitals nor schools nor palaces. If to-morrow we were expelled from Hindostan, nothing would remain to indicate that it had been been to increase the wealth and power of the rich and make the la possessed, during the inglorious period of our dominion, by any better tenants than borer still poorer and more dependent, the feature that o~ght to ex the orang-outang or the tiger. cite most apprehension and alarm for the safety of our institutions This dark picture of the English rule in India clearly illustrates is that the middling classes, the embodiment of enduring qualities, the condition of the industrial classes who have suffered eighteen the class that so conspicuously controlled the earlier administrations, years of republican. rnle in this country-a rule, which they have are fast disappearing and giving place to extremes of wealth and cring been able to maintain in consequence· of a divided opposition and the ing poverty. skillful kindling of :fires which should have been extinguishe(l by orur I call your attention to the statistics of failures in the United States civilization. , for the years 1874, 1875, 1876, 1!:377, 1878, and nine months of 1879. Centuries, with all their countless changes in the condition of man Number of failures, 47,332; amount of failures, 1,053,525,147, amount kind, have not and cannot change the heart of man, which wa.s made ing to more than half our public debt. in, him by his Creator; the same overruling tendency of his natare My limited time will not permit me to allude to the alarming in consequent upon the cultivation of avarice remains a fixed but deplor creaRe of insanity, pauperism, and crime, which will be shown by the able fact in the law of his creation, and a warning to all wise states census soon to be taken, and which can be attributed to faulty legis men. to legislate to protect the weak from the aggressions of the strong. lation. I will, however, quote from one of our able editors a state ment made the latter part of 1878 as to the condition of Maine in this OUR BO~"'DED SHIP ::lllKES A SUCCESSFUL VOYAGE WITH THE XATIO~ B~"'KS. regard: · Our. system of banking upon national bonds was inau~arated as a war measure mainly for the purpose of making a market for- our The change that hn.s taken plaf Maine against her citizens. What a record! One in forty of au our •oters indicted as criminals in our courts! Look to our own city. In 1860 there pledge of the United States bonds, provided that for every dollar of were but 824 paupers in Bangor, supported at an expense of less than $7,000. La.st United States bonds placed with the Treasurer at Washington ninety year 1,685, supported at an expense of o>er 26,000. One in eleven of our entire cents of national-bank currency shall be issued to each banking asso- population recorded pn our pauper list! . ciation, which draws the interest on these bonds while hypothecated. Real estate, depressed from causes of which I shall speak hereafter, to the Government for currency circulation. When those banking· and by an exorbitant taxation consequent upon relieving the bond associations went into operation-a majority of them June 3, 1864- holder from public burdens or making him a dead-head in our financial greenbacks, lawful money, were worth 210.7 for the coin dollar. There estimates, has declined in value from 40 to 60 per cent., and in some were four hundred millions of greenbacks then in circuJation and localities has become entirely worthless; and the condition is not im forty-eight millions of fractional currency. The decline in cnrrency proving except in those localities where wealth accumulates so rapidly and lawful money up to this time consequent upon the suspension by as to require a larger area to display its follies arnl the extravagance the banks of specie payment and the provision of law limiting t.he connected therewith. money power of the greenback was as follows : The governing classes alluded to, to retain :power and a continu January, 1862 .. ·--· ·--·-· ·----· ·----· ·----· ·----· ·----·. ·----· 102' ance of their prerogatives, have submitted to the class who lfre by January,1863 ... ______, _____ , _____ , ______, ______145· hanging on "princes' favors,'' who flourish "where low-bowed base January, 1864. ··---· ·····- ·--··· ·----· ··---- ··-··- ---· ...... 155 ness wafts perfume to pride," until peculations, robberies from Gov June 3, 1864 ··---· ···-·· ---· -··· ·----· ···--· -----· ------··--·· 210 ernment, from banks, from communities and individuals, have become January, 1865 ..•. - -· .. --·· ·- - --... _-- . ·-· --· .. ___ .. -- __ ... __ .. 21& fashion.able, and may soon become of importance enough to call for The controverted question between parties as to what caused this organization into joint-stock companies in order to be controlled. I large decline in our legal-tender money I will not discuss at this time-; cannot forbear to allude here to a certain class of teachers, who were for the purpose of my present argument it is enough for me to show formerly powerful for good, who have joined hands with corruption the profit the banks made which went into operation in 1863, 1864,. and justify themselves with the old maxim of the weak voluptuary, and 1865. They purchased their bonds with lawful money to bank "Whose Lread I eat, his song I sing." • upon at an average price of fifty-three or fifty-eight cents in coin on The Commercial Advertiser (New York, January6, 1 0) makes the the dollar, making from 16 to 20 per cent. in coin, besides interest on following remarkable statement: their bonds in gold and interest for all loans made, which could not The rumored additions to the great fortune identified with Wall street from have been less than 17 per cent. each year on their entire capita.Ir the successful specnla.tion of 1879 are enormous in amount. These are some of the estimate : Added to the Vanderbilt estate, $30,000,000; to the wealth of .Jay Gould, Coin was worth in greenbacks-January, 1866, 140; January, 1867,. 15,000¢!_00; to the wealth of Russell Sa~!l· 10,000,000; Sidney Dillon, 10,000,000; 134; January, 186 , 13S; January, 1869, 13..!). · James .tt. Keene, $P,000,000; to tho First ..:-.ationalBank, $2,000,000; to Drexel, :Mor March, 1869, (section 3693, Revised Stn.tutes,) the following act was gan & Co., $2,000,000, and to t.hree or four other f7eatspeculators, $3,000,000, giving passed: a total of profits of $00,000,000 to about ten or twelve estates in a single year. The faith of the United Stat.es is solemnly pledged to the payment in coin or its I also quote the remarks of a distinguished clergyman of Boston : equivalent of all the obligations of the United States not bearing interest, known We haye had enongh of these colossal men, made rich out of the industry of the as United States notes, and of all the interest-bearin~ obligations of the United poor and weak-such men as Blaine, who walks into a convention with -;o,ooo of States, except in cases where the law authorizing the ISSue c,f any such obligation railroadbondsinhispocket, saying, "Obeyme! :maineandMaineareone_! " Cam· has expre sly -provided that the same may be paid in lawfnl money or other cur eron with millions obtained from the GoYernment. saying to Pennsyl>ania. ".Make rency than gold and silYei;. my son senator," and Pennsylvania obeys; Tom Scott holding a bill of sale of half the legislators of the States through which his roads -pass, who slaps his pocket and It will be seen that all the lawful money then issued, including the cries, ''By this Iconquor ! '' President Garrett, caITyin~in the hollow of his band national-bank currency, aud all property, both real and personal, and the .Assemblies of West Virginla and Maryland. e:xclaimmg with Richelieu, "I am all debts and mortgages in the Unitecl States were vn.lued in a cur the State! " Wbat has been tho example of the e giants of finance 1 How have rency worth 135.6 for every coin dollar, and was changed by this act they helped the cause of morality and reli¢on 7 Like the mantle of cha...rjty, their into coin, subjecting the holders to a loss of 35.6 cents on each dollar. ~old covers a multitude of sins. They shine by its glitter rather than by their virtue. V:mderbilL gives $20,000 to a church out of twenty millions derived from Who derived the benefit from this change of the standard of value- watered stock. and erects a brazen statue, which an ob. equious .Methodist bi•hop by lawT . was fonnd \\illing to dedicate. .A. T. Stewart, crushing out thousands of honest First ascertain how much we owed March, 1669, when the standard mercban ts to aggrandize himself, has a church to his honor when dead, that he wonld not g:o intowben living! Let men look with distrnst on the oppressors of the poor was changed by law from lawful money to coin, and then we can on ill-gotten wealth. Public opinion, which make. law and is more poweifnl than measure the loss that the Congress which was elected in 1868 sub law-let it scout such men from societv and brand them with its hea•iest condemna- jected us to, and we shall al.Eo have a base of calculation to deter ti~. • . mine tLe loss sustained by the country at large : Who are the productive forces! "Wbo is it that digs the mines, produces tho ;i;old and iron, makes tho machinery, weaYes the cloth, rai e the grain, builds our Public debt ($390,236,7 " being legal tender and frac- dwellings, ma~es the paper_, prints the book 1 The workin~an ! :By whom are tional currency)·- __ ...... ____ .... __ .. _.. __ ... · 2~ f>BB, 452, 213 these monopolists, COl'POrations, the whole royal class of idlers, the stockholders and dividend-drawers, supported¥ By the workingman, the miner of Pennsyl National bank currency in circulation January 1, vania, the railroad man of the "\Vest, the cotton band of the South, the mill hand of 1869 .. - --• --... - - - ...... - .. - - .... - ..... - .•.. - - . . 299, 629, 3'2-2 the North. This is only a troe picture of the condition of society in the United · _l\.mount .... __ .•. __ •.. ___ .. ____ ... __ ....•. _.. 2, 88f3, 081, 535 States. The industrial classes, the owners of the farm, mill, and shop, This vast sum was changed by law from lawful money then wo:rfJh have a.class to fight which can be best described in the following 135.6 for each one hundred cents in coin. /

1750 CONGRESSIONAL RECORD-HOUSE. MARCH 20;

It would necessarily take thirty-five ~done-half cents mo:_e on e~ch of $5,018,989 to the out.standing issn~ of Treasury note . We summarize below the dollar to pay our outstanding debt wh1ch amounts to 1,0-25,269,934, total expansion from a.ll sources dnnng the yWl!T' • which is the price paid to holders of United States bonds aa a gra Expansion of the currency in 1879 : tuity. ~~~::: ~~ ~8~~~ "iioTu;~·:::: :::::::::::::::::: :: ::::·.::::::::::::::: ' 1~: ~~: ~ THE V ALUATIOX OF 1870. Increase of national-bank notes ...•.•.....•.•••••...... ••.•.. -.. 18, 638, 362 Practical increase of greenbacks . .••....••. -----··-·-··...... 5, Ol , 981} The true value of real and personal estates was "30,068,518,507; ------35 per cent. of which is ·10,523,980,877; which is the true amount of Total expansion of year ...•••...•.•...... ------...... 164, 013, 542 loss consequent upon the change of the standard of value ma, 518, 609 possessed by Senator BAYARD shotild now stand up_on the fioor of the Senate and Twelve months ended January :n, .1880 . . . . .•...... •. --.. - .. -... -. . 237, 341, 003 advocate a bill the desi!rll of which is to destroy $346,000,000 more of the money Twelve months ended January 31, 1879 . •..... -.· ...... 297, 633, 315 with which the people ifo business and pa.y their debts, or that any .man s1!-ould be so exacting as to wish to legally compel debtors to procure gold com to disc1?-arge In all for 1879 and 11? 0 .••....•.•.. ------· ....•..•...•...... 534, 974, 408 all llis burclen of clebt. Whatever may have been the result of the destruction of the people's mone~- in the past, to rleatro:y: t!ie balance of the legal.tendE'.r no~s now This larae balance in our favor indicates that we are indebted would increase disaster fourfold. It reJOlCes me to find men of your mtelhgence, chiefly to the producers and t o the misfortune of Europe for our i~ gentlemen, raising their voices against this iniquitous scheme. proved financial condition. Thf\ larger part of this came back to us m Senator BECK says in reply: our bonds. The Secretary of the Treasury, who claims the credit of I agree fully with you in the opinion that it would be a public misfortune to have this had abeut as much to do with bringing about equalization of all the de~~£~£°"' ourrency of the country under the control of ~h~ national bank~; with the · ' te'a power they have to expand and contract thel.l' is ues, the bust· our 'currency and improved times as Columbus had to do ':Vi th the ness of the country would soon be at their mercy. eclipse of the sun. which he played off on the savages of the lsland of I had so many thin"S to notice, when I spoke, that I failed to make a.s clear as I Hayti to induce them to bring out t!Jeir treasures or he would darken ought the fact that tlle resolution for the passage of which your New York friends the world. a.re so clamorous degrades the United States notes far below the national-bank notes; indeed, maintains them only a a debased currency for the benefit and pro The expansion of 1879 settles all controversy as to which theory, tection of the banks ! expan ion or contraction, we must attrilmte our present i.mproved financial condition. I quote from the Bosto Herald an artrnle on Hon. JOHN M. BPJGHT, in his able speech, February 14, says: The House will pardon a. glance at a few of the Secretary's inconsistencies. He OXE YEARS EXPA..'iSIOK. claims the glory of his forced resumption; yet he denounced it.s. inCa.lcul.able c!118 He opposed makin er leual. tender notes receivable for custom duties ; yet he rece1 ves The expansion of .American currency during· the year 1879 is by far the largest them for customs." Ife opposes the remonetizatio~ ~f the silver d?llar; yet he sound inflation that ever in any twelvemonth stimulated the growth of business boasts ita accuni.ulation in the Treasury as an aUXJliary to resumption. He and throughout tho United States. The official figures are still incomplete on some his fiiencls claim that his policy brought pros_peri_t.v to the country; yet he forgets is a~urate :points, but it possible to reaeh a fairly measurement of the unparalleled that the heavens dropped fatness on the land. Ife claims that he ~ronght green mcrease. The imports of gold rank first m both ;tmount and uncommonness. backs up to par with gold; yet he recommends to 9ongress that the1.r t-encler qual. * * • ity in the payment of nrivate debts should be stricken out, so that it would cease The addition to the sfuck of gold in the country stands by our reckoning as under to be lawful money. And after his work of fonding, contraction, force~l'resump estimate of gold expansion in 1879 : tion and consequent financial ruin of ono hundred thousancl of good busme s men ancl the forging of financial fetters for an enslavetl posterity, yet he tha:t Net imports into United States .•...•...... •...... Si4, 556, l!Jl ~ow fin~s the people do not want his hoarded coin aud prefer the gree~backs m _their bus:· Production of Unitou States ...... ••...... •••.• ------36, 000. 000 ness transactions. .After blundering through a long fina"!lcial expenence he .1 brou~ht to the knowledge of the fact that greenbaoks used for all pnrpo es as com Total increase .... _...... : ..•.•...... •••••••.• 110, 556, 191 ueeu no redemption. The sil>er dollar claims the thircl place as an expander of the currency. 'Ve bave OUR BOSDED -rur MAKES A HORT VOYAGE IX THE IXTERE. T OF AX EXCLGSlVE ·not seen an official statement of the coina~e. but the a.mount minted in the twel>e GOLD CL"RRENCY Al.'lffi MEETS WITH A HF.A\Y GALE. month runs •ery close to $27,300,000. Of this supply $16,463.~35 passed into the vaults of the Treasurv, leaving a sum of $10,e36,,765 added to theacti•e circulation. The question of remonetization of silver is unavoid~bly c:o~eote.d There was also an increase of about $2,500,000 in the amount of silver certificates with refundina of our maturinO' bond . Two parties ex1st m this outstanding. Thus the inflation of silver ~gre~ated 829, 00,000for the year. Count country of abo~t equal stren~h ~ to the ex.pedi~ncy of ~nll;r remon ing silver and golu to.,etber. r.he direct and indirect increase of thA metallic currency reached a total of Sl40.35ti,l91. There was also an increase of 18,638,362 to the etizing silver; the wi e s~a~esman would.tak~ ~hlS question 1!-lto con amount of national.bank currency. The greenbacks remained at $346.~Bl , 616! ?ut sideration before determmmg the pract1calnhty of extendmg our the cluu~es in the amount heM by the Tl'ea.sury opN-atetl a;i a. substantial adu1tion national debt by .the iasue of long bonds. 1880. CpNGRESSIONAL RECORD- HOUSE. 1751

· sn.>ER Itoiling millions must pa.y a cfebt double what it should have been, as a money metlll 38caped the attacks of avarice for thousands of made so to enrich a favored class, we, countrymen, can sa.y to those years, with ~"Je .)"J.a exception, that of Great Britain, (sixty-four years wont to c~uster around our frugal J;>oard-those who ~re s?on to take ago) who iirJm enlightened selfishness demonetized silver for her our place rn the Government 3;nd m the battle of life- if .w~ must ho~e business, but continued it in her Indian empire, where co~ - leave.you a ~ebt to pay, large mdeed al'D~ hard to be ~orne, it is. pa;r merce required its continuance. Until a recent date her influence able i~ a com of the legal value. o~ 181 0, the material ?f whieh is had not produced any change in Europe. We have every assurance accessible, even abundant, and withm the reach of your mdustry. ·that those governments of Europe w_hich have been unmindf_ul of t~e T..ilA.TION. interests of their people under her influence are fast retracrng their But no matter what course your legislation may take, it will avail steps and will soon return to their former condition in regard to the nothing to relieve the people wit~out rigorous l~ws fo~· equali~ing utilization of silver as a money metal. taxation. Increase money JJer cap1ta, double the crrcnlating medium, Our Constitution impliedly made silver one of the money metals by if you please; it will in the end bo a failure. The laws of trade, as :prohibiting the States from making anything but gold an~ silver coin sure as tbe laws of gravitation, will in time pass all the money from a lerral tender. The avarice of the bondholder of the Umted States him who pays the taxes to him whose we.alth ~s untaxed. No ~egiti wh~ has controlled legislation has set up a new standard of value, mate business is now profitable enough m this country to exist for ,and has imposed on the ~ouut:y in addition t? the great wron_gof 1~69 any time burdened by the present taxation levied aB it is. an additional Lurden. Sllveris now demonetJZed, the metal m which Our industry, as statistics sbo:w, is but 3 per cent. pe1· a~nu~. If the laws of 1869, 1870, and 1871 provided the bonds should be p~id, one· half of our wealth, as is estimated now, escapes taxation_, s1xty and of the standard of fineness fixed by the law of 18:l7; thus makmg six years will pass all real and movables from the tax· payer mto the .an exclusive gold standard. As the runount of coin existing by law hands of the non-tax-payer. fixes the value of all property and the vaJue of all industry, bystrik- When you have apportioned to wealth, the crystallize~ labor of the ina down silver-about half the coin of the world-you lessen values past its legitimate share of public burdens, you have laid the corner ju~t in proportion as you lessen the material that the law obliges you ston~ of all permanent improvement. To do this you can join hands to measure them by. To restate this: reduce the money metal one- with him whom you may now differ with politically. He who is for half7 you double the purchasing power of that t~t you retain, and reform by equalizing taxation and by reducing eXJ?enditures, and th.is for the exclusive benefit of those having it or the paper that by thereby lightening the burdens imposed on labor and mdustry by our law can call for it in payment. This is the true inwardness of all leg- Government, is one of our party. If we, perchance, may have some islation for the demonetization of silver, which was so slyly accom- advanced ideas of currency reform worthy of attention, we must re plished by the few words smuggled into the Revised Statutes Febru- member they should be based on his fundamental principles of reform, ary 12, 1873 : which al(}ne can lead to permanent prosperity. . The silver coin of the United States shall be a legal tender at their nominal value If we represent the light, the reformer represents the pyramid · 'for any amount not exceeding $5 in any one }Jayment. which towers above the rocks; united we can become the instrument I have not time further to allude to this monstrous cheat. Suffice to auide the ship of state into the safe harbor of equal rights, equal it to say by this lell'islation 20 per cent. profit was to be made by the bu;'dens and a renovated constitution. holders of ouT funded debt. For the consideration of those who may differ as to what money is, allow me to quote authorities as to the REFlJNDIXG THE DEBT REDEElli\.BLE IX 11!81. utility of having it in increased quantities in order to promote pros The able speech of the distingujshed chairman of the Committee on perity: Ways and Means should be read by every voter in the United States. The two greatest event.a which have occurred in the history of mankind have The criticism he bas given us of the proceedings of the Secretary (}f been directly brought a~out by a successive contraction a~d expansion of ~he ci! the Treasury, as to the faults and errors of the administr_ation of his culating medium of socrntv. The fall of the Roman Empire, so long ascnbed m Department in his intercourse with the bankers of the Umted States, ignorance to slavery, heathenism, and moral corruption, was in reality brought leads me to 'ask this question in all honesty : Can we have a Secre about by a decline in the silver and gok~ mines of Spain ancl Greec~. * " " Ao~, as if Proridenoe bacl intended to reveal ill the clearest manner the illfiuence of this tary- has God Almighty created a man able to cope with the com mirrhty a"ent on lmman affairs, the resurrection of mankind from the ruin which bined shrewdness of the world, which bas culminated in the modern thtfse cau~es bacl produced was owing totht: directly opposite set of a_gencies being word syndicate f . . . IJUt in operation. Columbus led .the way ill the. career ciety ment to obtain loans at 4 per cent. per an~nm .interest•. but also to hav~ enabled a. were changed; the weight of feudaltsm. cast off;. the nght.s of man es~abli!lbed. few parties to amass enormous fortunes ill the operation. I c~nno~ with any ap Among the man:r concnrrin~ causes which co!lspired to brmg about th.is nngbty proach to ~ccuracy estimate the total profits th~t have _been realized m these trans consummation, the most important, though hitherto tbe least observed, was the actions. The total amount of 4 per cent. bonds. issued is a bout $740,000,000_ Tb~se discovery of Mexico and Peru.-Sir Archibald Alison, History of Europe. were sold at par and a half per cent. commission allowed to the purchasers, r:etting When the >arious states of Enrope suddenly determined to have a gold stand to the Government per cent. upon the amount sold. ard and took steps to carry it into effect, it was quite evident that we must prepare 9% ourselves for feat convulsions in the ruoney market, not occasione~ by SJ?ecula The account, therefore, stands thus: tion or anv ol cause which has been alleged, hut by a new cause with which we Present market value, at 107 per cent., oµ $740,000,000 . . - ...... -• $0:>~. 800, 000 are not sufficiently acquainted, ancl the consequences of which are very embarrass· $740,000,000 4 per cent. oonds, netting 99! .... _. . ..••..•. . -. . ... -. . . . . 73ti, 300. 000 ing.-.Disraeli, (Lord Beacons.field,) speech at Glasgow, _No>emI?er 19, 1873. . To annul the use of either of ibe metals as money is to almflge the quantity of Making a profit to the holders and loss to the Government of -. .. ..• - 115, 500, OOli circulating medium, and is liable to all the objections which arise from a compari aon of the benefits of a foll with the evils of a scanty circnlation.- Alexander Harn Is it not a proper subject of inquiry as to who haa made this profit ann what re ilton, Report on the Mint. lation the parties bear to the Government 1 Of course, as these bonds have been • T he public indebtedne.. 00 without 1·esults which will prove distressing to millions and utterly disastrous to Profits_ ...... ···-· ·._ . ... ···--· . . .•.. _...... 579, 018 88 45 000 tens of thousands. ~:~~i.o~~~k·s·.-_-_ -_-_-_- _-_-_-_-_-.-_-_·:::::::: :::: :: :: : : : ::: ::-$8," 423: 084 "!).i ' OO Happily we haYe a partial remonetization of silver, brought about Deposits, ind~duals . - ... --. -- . ..•• - .• - ••• .•• -. -• . . • 3, 532, 460 25 11, 055, 5

By this report it will be seen that on the 14th of June, 1879, with a ca.pit.al of only the burden and for those who have been educated so nobly to bear it. a half million dollars, this bank owed the Government $128,109,071, and held bonds of the United Stafus for l29,152,740. Truly, it is a. development of a holy patriotism, born of the love of· These were very large sums of both debits aml credits for so small an institution country at an epoch when that country was governed by equal laws, to deal in. I know that it is said that the bondR are not delivered until paid for, equal rights, and equal taxation. and th;it this apparent mammoth operation is simply a fiction of book-keeping. If this is really so, the fact remains that by some inexplicable advantage a small pri Will not the wail that comes to us from the toiling millions of Eng vate banking institution, the property of three men, bas obtained the facilities for land, Ireland, Germany, France, Spain, Russia, and Austria be heeded the holding of enormous sums of the Government bonds by which they have ac to stop this grand scheme of oppression, and imitation of the dynas qnired iDlIIlense profits. ties of Europe. Must we wait until every hearth-stone sends up its The following is the circular of this bank issued to its correspondents on the 7th warning voice from this broad land, "Thus far shalt thou O'O, and of October, 1879: 0 " To 011. r correspO'Tldents . here shall thy proud waves be staid T" '·Frn T N .11.TIOXAL B A..'\""K, In conclusion let me say, the utterances of republican leaders that "New r ork, Octobe r 7, l 819. something is wanting to strengthen our existing institutions is but " DEAR Sms : With much satisfaction we hand you herewith statement, con· the wail of a departing dynasty, who begin to feel they have not the e figures embrace a total of 284,385,600 four percents, of which $208,- talities for the distribution of the comforts of life among those whose 500,000 were taken directly from the Government and $75,885,600 were purchased labor has made this the golden age of the American Republic! by u~ in the market and represent orig inal subscriptions made by others. :Mr. SAMFORD. Mr. Chairmrn, there are $764,000,000 of Govern "We find, also, going back to the introduction of the loan, t.hat we ha>e sold in all $400,449,0W out of the entire i ~ sue of 737,157,0:>0 four percents. ment bonds maturing within the next fifteen months, some of them " Respectfully, bearing interest at 5, others at 6 per cent. The bill under considera " GEORGE F. BAKER, President." tion, known as the bill of the distinguished gentleman from New From this statement i t will be seen t hat t his bank boasts that out of the total York, [Mr. FERNA.i.~O WooD,] provides for refunding these bond8 at amount of 4 per cent. bonds issued up to that time ( 737,157,050) it had sold $400,- 3t per cent. instead of the present high rate, and further provides that 449,050, or over one-ha.If, and that the total amount of United States bonds it had $200,000,000 of them shall be payable within the next ten years, the handled in nine months amount.eel to $52.1,033,000. There is no instance in the history of this or any other government where any· remainder to be payable at the end of forty years, the Government illing like this has occurred. Neither the Ilank of England nor the 'Rothschilds having the option of paying them after twenty years. There was a have held relations with either or all of the governments of Europe by which they contest between the honorable gentleman who reports this bill, and had the privilege and consequent profits of negotiating so large an amount of gov ernment bonds within the same time. the Secretary of the Treasury, as to whether the rate of interest should be 4. per cent., as recommended by the Secretary, or 3f , as • DEBT REDEEMABLE DJ 1881. contended for by the gentleman, [Mr. FERNANDO WOOD.] There can !\fay 1, 1881, five percents ...... -----· ...... ----·· .... , 50 , 4!0, 350 be no question that as between the two propositions, the latter is vastly .June 30, 1881, six percents ...... ••. ·---···-···· ..... 254, 392,G30 better for the tax-payers, and the gentleman from New York is enti Jnly 1, l Be l, six percents···--· ....•...... ··--··--·- 823,800 tled to the gratitude of the country for his victo;ry. AB between the two propositions, and as between the bill and the present status of Total • __ ••••.••••.. - • -... _. • . . . • ...... 763, 656, 700 the debt, with its high rate of interest, I shall, of course, favor the· T he surplus revenue last year was about twenty-five millions. The bill, because its annual saving will be large, over both the others. But increasing revenue conseq uent upon improvement in business cannot I hope we may obtain something better than either of the three, as I fall short of seventy-five millions this year. The amount of coin on will try to demonstrate before I conclude. hand for resumption purposes is at least one hundred and sixty-five But before addressing myself to the particular measure under dis- millions. Calling 25 per cent. the amount necessary to be held as a . cussion, I shall briefly indulge in some general remarks, somewhat reserve for continual redemption of greenbacks, which amounts to foreign perhaps, to a. literal consideration of this measure, for the eighty-fh·e millions, we have left eighty millions of idle money now reason that under the rules of the House, it is a difficult matter for in the Treasury. So that the debt can be reduced by May 1, 1881, to .any member, except those who constitute the two leading commit a.bout six hundred millions, which remains to be provided for. Now, tees, to obtain an hour for the expression of his views. to pay this six hundred millions- Many of us on this floor represent constituencies composed largely First. Issue Treasury notes-one hundred millions-payable yearly of agricultural producers and consumers, and tlierefore the real la:Ji for six years, redeemable at the pleasure of the Government; paying class of the country. And while I believe we are inamajority Second. Institute an incom~ tax upon non-taxable property, er on here, yet the minority, who represent tax-consuming constituenciesi all incomes over $1,000; by a species of sophistry, succeed year after year, by so mystifying al Third. Remonetize silver, which will give a great impetus to all financial questions, and by artful appeals to partisanship, in spite of business; justice and right, in keeping the yoke of bondage on hOnest effort Fourth. Lessen the expenditures of Government in every Depart and honest toil. ment 10 per cent., excepting interest on public debt. This can be Mr. Chairman, I have no sympathy with a senseless communit:;tic done without injury to any one if the assessments for political pur clamor against fairly acquired wealth. An indiscriminate and wild poses, which it is understood amount to 10 per cent. of the salaries of denunciation of fortunate possessors of money, is not only illogical, all in the employ of the Government , are discontinued. but contemptible, and can find applause only from the thoughtless Without the payment of your debt as it matures, years of extrava and irresponsible, whose favors will be unsubstantial and fleeting. gant expenditure will come. It is certain that there will be a surplus But even if they were more lasting, I have no ambition to win honors of revenue. One of two things will result from the refunding bill gained by arts like these. I have no desire to be popularized by a under consideration, if adopted: The tariff and internal taxation will course so questionable in its methods, so regardless of right and jus have t o go or be increased-yes, wild expenditure will have to come. tice, so thoughtless, as to be almost if not quite criminal. To the man Are you prepared for either 'V who has successfully battled and won in the affairs of life I lia.ve no · A wise oourse, it seems to me, is to pay the maturing debt. After word of unjust condemnation. On the contrary, he has my esteem,· this relieve industry by repealing all internal taxation, and modify admiration, and commendation. Bnt, sir, I do abhor and detest that the tariff on imports in a manner for the benefit of all. species of legislation which under the forms of law wring snbst:mce .Mr. Chairman, what were we sent here for ' What do the people from one class of citizens for the benefit of another. Indeed, suoh expect ~ Is it our farmers, producers, and laborers who ask for a con legislation is nothing more or less than legalized robbery, and that, tinuance of a system so fraught with danger, so gilded by tempting too, of the most vicious kind, in that the 1Mjesty of the law is invoked extravagance ·! I beg of you leave no room to doubt as to the course to inflict the wrong upon the victimized citizen. yon will pursue. Let our mot.t o be, "Lead us not into temptation." Now, sir, the :financial policy of this Government for the paflt fifteen The republican orator, when he looks at the reeord of his party in years has not only been in the interest of money-lords, and exclusively the matter of a magnificent bonded debt, can well exclaim, "\Vhat so, but that policy has been absolutely dictated in all of i ts detail by a. mighty achievement I" What country can present so vast a record them and their agents, and by ways so artful and shrewd, that while in so shon a time of the subjection of so .great a nation to bonded the toiling masses of the people have felt the burden and experienced wealth-extraordinary both for tii,e power of those who co1'1ld impose the oppression, they have been unable to see, much less prevent, the 1880. CONGRESSIONAL RECORD-HOUSE. 1753·

agencies of their great wrong; and bythe legislation whichhasbeen What next? These bonds were payable in dollars, as I have said,,. enacted in this House, where they had a right to expect protection, and greenbacks were legal dollars, but greenbacks were below the they have been fteeced out of their earnings, and had them transferred value of the coin dollar, and were liable, in their very nature, never to the coffers of others, until we have in this country presented, the to be worth more, and would likely often be worth less than coin. spectacle of mammoth fortunes for the few, accreted by a systema The people's Representatives (God save the mark) again responded to tized pilfering from the many, which foreshadows only evil to the the insatiate maw of greed, which like "the daughter of the horse institutions of the country. leech, continued to cry give, gire," and allowed bonds payable in green This concentration of wealth in the han

. '; 1880. CONGRESSIONAL RECORD-· HOUSE. 1.75'5

be safely used, without jeopardizing resumption, to the extinguish Mark you, his language- ment of that amount of bonds. The account would then stand, after expressly declares that a not.e shall- be lawful money as well as 0"'Old and shall be deducting the acknowledged surplus, as I have shown, $690,462,252. receivable in paymE\nt of public debts. ' Deduct of the resumption fund $76,000,000, leaving amount to be r.e He says, "in payment of 1niblic debts j" and the bond is "a publio fun~ed $614,462,252, instead of the gentleman's figures of $744,000,000; debt." a difference of in round numbers $130,000,000, making a yearly saving, There is, there can be, there ought to be, no escape from this inex at 3t per cent. per annum, of $4,G50,000, and a saving during the forty or!'l'~le logic, and 11erer shall be by my vote. ' Nearly fifteen hundred years these bonds will run of the enormous sum of 1 2,000,000. It does millions of bonds were legislated by a republican Congre s out of seem to me that statesmanship, honor, and duty demand of 1is to save this dilemma by the cruel refunding act of July 17, 1870 and these ihe tax-payers of this country this crushing and unjust burden. Im $270,000,000 are all that were left " out in the cold," and the bill now pressed with these views, nearly n, year ago-June 16, 1879-I intro before us proposes, by its provisions, to take them into the ark of a duced a bill to carry int-0 effect this very idea. This House referred "safe depo it," as old Noah's hand took in the wearied dove. i~ to the Committee on Ways and Means, where" it has rested" ever Now, if yon pay off these with greenback, the figurns will then Bl.Ilce. I offer it as an amendment to the pending bill, and sincerely stand: · hope it may be adopted. ~ount, after deducting idle money in the Treasury, .Mr. Chairman, the gentleman from Minnesota, who has just taken m !onnd numbers --- __ ...... --- _ ------______---- _ $614, 000, 000 hIB seat, very forcibly asks whether it is not better to fund the ma Pay m greenbacks, and deduct. ______.. ______270, 000, 000 tured bonds in three-and-a-half percents in Ion O' bonds, and take the annual surplus revenue, estimated by the Secret~ry at $50,000,000, and Leaving balance.~---·---- __ -- ---· ______---- _ 3-14, 000, 000 buy up 4-t per cent. bonds G/ and answers the question in the affirmative. I would agree with him but for two reasons: I do not think it neces But where will you get the greenbacks f Print them. Print them sary to refund but a small amount of these honds; and, secondly, I if _need be, on the same presses you printed the bonds. When I ay have no faith that the annual surplus will be so applied. If a pro this, I am set down by the bondholder as a lunatic, and am answered vision could be incorporated in this bill, which could insure that course, ~hat a etatute on the books. prohibits a larger issue than $346,000,000 then I say it would be wise to adopt his view in regard to the small m greenbacks. Then modify the law. The Congress which passed balance we cannot now pay. th'.l't law cann~t bind this Co~$ress. T~e very authority to issue by But let us look further and see if any other: deduction can be made thIS C<;mgress, iJJ.BO fr:cto, modifies the prior law . . But t-0 issue green from the large sum, unnecessary to be refunded. Of the bonds under backs IS unconstitutional, they ay. The Congress of 1 61 did not think discussion we find a part of them were issued as follows : so. The Supreme Court, the tribunal of last resort, says differently and the memories of other days, at least, which cluster aronnen; yon seem to think t hat the poor in body PETITIOSS ~-n MEMORIALS. must, also, expect relief only beyond t he grave. • . :Mr. JOHNSTON presented a memorial of H. L. Pelonze & Son, of Mr. FERNANDO WOOD. I move that the committee rise. Richmond, Virginia, t ype-founders, remonstrating against the al.loll· The motion was agreed to. tion of the duty on printing-type; which was referred to the Com· The committee accordingly rose; and the Speaker pro tempore hav mittee on Finance. ing resumed the chair, Mr. COVERT reported that the Committee of Mr. DAVIS, of West Virginia, presented the petition of George W. the Whole Honse on the state of the Union having bad under consid Haines, publisher of the Spirit of Jefferson, at Charlestown, West eration the bill (H. R . No. 4592) to facilitate the refunding of the Virginia, praying for the pa.ssage of a bill placing wood and straw national debt, hacI come to no resolution thereon. pulp, soda-ash, and other chemicals used in the manufact ure of paper, on t he free list, and reducing the d\1ty on printing-paper, &c.; which LEA"\'E OF ABSEXCE. wa referred to the Committee on Finance. By unanimous consent, leave of absence was granted to Mr. HALL, Mr. WITHERS presented the petition of K Anderson and others, for two days; on account of important busine s. praying that an increase of pension be allowed to Peter Johnson, l~~e Mr. FERNANDO WOOD. I move that the House adjourn. a private of Company I, Eleventh l\fassachnsetts Volunteers; which The motion was agreed to; and accordingly (at four o'clock and was referred to the Committee on Pensioni:,. t hirty-five minutes p. m. ) the Honse adjourned. Mr. HARRIS presented the petition of Jame ~fackenzie, attorney, of Wa~hington City, praying for equality vf taxation and for com- l'ETITIO:xs, ETC. pensation in respect t o t he public improvewents in the District .of· The following memorials, petitions, and other papers were lail1 on I Columbia; which was referred to the Committee on the District of the Clerk's desk, under the rule, and referred as follows, viz : Columbia. '.By Mr. BAYNE: The petition of Robert E. Balla.rd, for the pa sage l\Ir. CAMERON, of Wiscon in, pr sen ted the following memorials of a bill granting relief to certain citizens of Allegheny Count y, Penn- of the Legislature of Wi con sin; which were referred to the Com- sylvania- to the Committee on "\Var Claims. mittee on Commerce: . By Mr. BEALE : The petition of citizens of Accomac Count y, Vir- A memorial in favor of an appropriation to resto~e t he Ocont~ :1?-1ver, ginia, for an appropriation to clean out a channel in Chincoteague from t he city of Ocont o to its mout h, to a nayiga ble condition, to Bay- to the Committee on Commerce.· . straighten an