181 



COXGRKSS. (TiiK BOXD QUESTK 



continue* to exit. even though it exists only 

 tempomrily. to tur 



bearing such ralm of interest, not azoaeding :i 

 percent *> ,1^-m* iiitaM- and proper. SO M 

 to pay off this deficiency just aa fast as it a.- 

 cruet, and leave untouched the greenback ra- 

 ^aourceaof th, 



i States then aea 

 ^whohavegreenb^k^ 1 

 them, and if I hoy are all returned it may be A 

 guide to the people to know what to do with 

 in*** greenbacks. If tbaydOMtehooaeaJ 

 futurr timo to dcMmy tln-m : if. when the times 

 become a* ' lovn during the pa 



t**n Tear*, the people prefer to use them, wo 

 owe debt* enough to employ them, and perhaps 

 they may be used to redeem these very bonds 

 which pnduoi- the gold. 



"80, ahm. whon we come to the surplus which 

 Mr. ('arli*lo thinks is in sight. When wo come 

 to that, if we issue certificates of indebtedness 

 for thr deficit, (vrtifiratos running two years 1 

 would not care if the time was even shorter, but 

 say two years redeemable at the pleasure of the 

 Government, then the surplus can be used to 

 wipe out that deficit, and we shall stand free 

 from that iwirt of ,.ur debt. 



-In addition to that, those I offer 



an advantage to the country over the ; 

 system, t'nd.-r the present system the deficien- 

 cy must bo long-time gold bon, 1. an. 1 

 when we got ready to purchase those bonds, that 

 b just the time that they will get ready to go 

 up. and we shall pay a pretty penny before we 



m back ; but if we issue short-tin 

 tificales of indebtedness, temporary on t heir face, 

 we aupplv the plfi'-e of these long gold bonds, 

 hich will otherwise have to bo 



w, why is not that the solution of our 

 problem without rai-v which 



we know can not be solved f Whv is it not a 

 practical solution of our trouble f Why is it not 

 suitable in every way f " 



The substitute proposed by Reed was as fol- 



A bill to provide for a temporary deficiency of rcv- 



Bt U marfW, V . That to enable the Secretary of 

 UM Treamy to provide for and maintain 

 1 States notes aocorditu/ t 

 k>oof the act approved Jan. 14. I-?:., t-ntitl. 



; -mvidr for the rmumption oi 

 IM ki aotborind, in addition to the i 



aodoTMi'l: ;'.!). f 



iMw,MlU aod dbpow of, at not lew tlum |...r 



' -:..'! /, . -, .i,| 



. ...-,! .. -..I 

 UU*. to an anK> 



Mhorind. And the Secretary of the Treas- 



"*rS^rzttS.<" "" ""*"- 



i That tn rnable the Secretary to pay the cur- 



enoea ahall he deflcicot he i atithorized and 

 rraoiml fmtn tin, 



wlU and diapnw of. t n-t lam than par. such an 

 atnnunt of crrtifiraU* of indebtedneM of the 1 



and floo. or any multiple thereof, 

 a* may be needed for that purpoae, bearing not to ex- 



eeed 8 percent, interest p< r nuuutn. payal'U* sciuiati- 

 nunllv. nnl nxlwmuhlr at tin pleasure of the Govara<- 



. alter t\\ \ rar> t'rin tln-ir <latr, \\ itli 



;-i;-s. niul cxriiijitioiiN proviaad in 



\i.l .Ian. : 



. :ui<l .li-jH'M- >t' tin- t-aiiK ' 



an an equal amount of lawful in'H, \ of tin- 

 I'liit.-.! stat. ... at .li-Miriiat-il depositorieiof the I'uitc.1 



.iixl at Mi.-h (XNltofBcCH a> lie mu\ M l-.-t. and 



tary ^llall u-. the proceeds thereof for the pur- 

 poaepn'vil'-'l for in thi*M . ti-ii. an<l for noiu- otln-r. 



Mr. Swnnson.df Virginia, nrp-d the nrpinM-nts 

 of the 1>. ui..<-r:r Qtfl of tin- in. asure: 



I us < \jiiniin- the prop,.viii,,|i-of ih- jM-nd- 

 in^ liill. Let u- <li\rvt tin-in of nil tho n, 

 c.-ptions with which gcntli-iiicii who advocate 

 them have sought to mvrlop them, so that tho 

 country may H'O them in their nak 

 the farming, producing, mereaiit ile <-la"so> dear- 

 ly understand what is here proposed and its ef- 

 fects. The first section of the hill provides for 

 the sale of $500,000,000. of 8- per -cent, bonds 

 le in gold alone. These bonds are to run 

 for fifty years. They are ix.ntaxaMe. It means 

 an opportunity for that amount of wealth, pos- 

 !> the" rich, to escape all city, county, 

 State, and Federal tajurttoo by being inve-ted \\\ 

 these bonds. It means an annual inienst < har^e 

 upon the Treasury of $15,000,000 in p.M. It 

 a payment <>f $?">( 1.000,000 in p>M 



lids l>y the people l,rf..n- they 

 IM-COIIM- line. It means. Lcfoj-e the l.on.lv 

 tired, a payment to tho holders of $1,250,000.000 

 in pld. 



With the present deficiency in the Tn 

 this additional charge of $15.000.000 in annual 

 interest would necessitate incn-a.-ed tanll 

 Soil means higher food, clothing, and n- 

 ties of life to the peo) ile. It means a perpetua- 

 tion of tho national-bank system and no return 

 to State hanks f. h'nieans the complete 



establishment of tin- p> Id luisis in tliis country, 

 tioiis. for the lir-t t hue \v itli govern mental 

 approval, the making of gold i-ontracts. It will 

 IK- followed by all the contracts and obli-at ions 

 of the people bein-: made payable in u r "l'l. I' i" 

 - for yon gentlemen who advocate this hill 

 to deny that you intend to make all private ob- 

 ligations ultimately payable in yold. All your 

 jirirumont- t.-nd to' tha't. The (Joverninent has 



power now to aell bonds payable in coin, uhidi 



either gold Or Silver. Yon -ay that Ku- 



ropean capital will have confidence restored in us 



If we aell Donda payable in g.ld alone. It will. 



you say, be proof to them that all money in- 



. in the I'nited Mat. -will be pa\able in 



gold. This means, if it means nnythii 



pa\ment of all private nhligat i-.ns ultimately in 



gold. With about $16,000,000,000 of private in- 



and only alN.iit $500,000,( K 10 of gold 



with which to pay it, it means to the people 



bankruptcy and a frightful fall in the price of 



, and", and produce with which to acquire 



id. Convinced of this, I can not vote for 

 Id Ix.nd. 



what tmrf>osos is the money derive.! by 

 the sale of these l..nd- to be devoted '. 

 would imagine that money obtained by Mich ex- 

 traordinary methods and "marking so great and 

 far-reaching a departure would be needed for 

 t he pu rp- -es of national defense or to avert some 

 frightful disa-s 



