The New York Herald Newspaper, January 23, 1872, Page 4

& $ NEW YORK HERALD, TUESDAY, JANUARY 23, 1872.-TRIPLE. SHEET CONGRESS. The Amnesty’ Bill and Its Amendments, \ ‘A Kentucky Bourbon on Nepotism and White House Corruption. The Arlington Estato and Mrs. Genera! Lee. Shipbuilding and Import Duties in the House, Whe New Orleans Troubles and the House Committee. SENATE, Wasiunaton, Jan, 28, 1672, Mr. SUMNER, (rep.) of Mass., presented numerous petitions im favor of the passage of the supplementary Civil Rights Dill; also the memorial of the colored people of she United Biates, assembled in convention at Columbia, 6, C., for the name, Mr, COLE, (rep,) of Cal., presented a memorial of the mer- chants and other promtnent citizens on the Pacific coast tor 2 uniform system of coina: THE AMENDED OUIOAGO RELIRF DILte Mr, Wnivt'r, ‘rep.) of Jowiy frou the Finunes Commatt- ten, reported the’ bid forthe Felif of the Chicago sulferers, with amenudmenjs, Withe Bit aa eisended, allows the free importation of all ni from abroad for the relief of the sufferers; also ree iuportation of all building materials used orto be d'upon te ground burned over; also the suspension of he coligetion of taxes from persons who, in the opinion of the Commissioner of Internal Revenue, huve suffered mute: ind loss Dy ae tire. fa.) scapeaeen is Co to SGBLInER, reread the close of the next regular seasion of Congross, 0 mediately, fnstead of dating ¢ effect immediately ack to Votover ¥, 1871. .. POSTAL TELEGRATL, ' Mr- RAMBEY, (rep.) of Minn. from the Committee on Post ‘Dffices and Yost Roads, reported the 1 ‘Telegraph bill and suid that the committee hoped to bring it before the Benate at an early day. 1p almost every other civilized coun- the cost of telegraphic mes: a had been reduced to oout the rates proposed in this bill, and {t was important Shat the subject shouldbe cousidered bore witnout, any un- of Ill, from the Committee on Public Ch NG mendinent, a bill to enable after ita passage + 2 onongbiy mleckerged soldiers and sailors, and their widows and orphans, to acquire homesteads on the public lands, Mr, COLk, from the Committee on fp propeiats “i 78- ‘without amendment, the House bi! ¢ good the ho Pont by tue ficiency in ip Office appropriation caused four ation. eeeiLouG Crep.) of Lia. from the Committee on Com- reporied, With amendments, the bill relating to the Guiry of merchandise at New Orleans. L THE rig age bya tition from Mary Mr. Lewis, (rep.) 6! 'a., presented.a petition ‘ann’ K. Tee, widow of General Robert Let, wattiug forth that tue Arlington estate was Lequeathed to her by her father, George W. P. Curtis, in 18:7, and occupied yy herself ehd family uutil the commencement of the ‘late civil war; for non-payment of @ direct order of Vresident Lincoln bid in by 3,800, no portion of which.sum has ever been paid to the owner of said property. ‘The petitioner argues that the above named proceedings were lasuflicient to ass a iegal or vaiid title tothe United States, because act of Congress under which said sale was made 1s unconstt- tational; the constitution authorizing Congress to exercise exclusive jurisdiction over h places only a purchased Dy the corisent of the Siate in which they are situated, for the purpove nione of erceting furis aud ather needcw billa- Jugs, It is Curther argued that the general government has ever attempied to exercise any exclusive legisiation, or to ball tn question the jurisdiction of Virainia over that portion pf the county of Alexanuria; and also toat the mule of the Prhole 1,10 acres to pay a tax of wiitle the tract was clearly divisible and the sale of a portion.amply detent to pay the tax upon lt, was unoonatitutiona, Tt ie ‘od that the uin unt “of this tax was duly tendered ‘ux Commissioner vefore the said gale. In view of se circumstances the petitioner asks Congress to appro- te 800,000. to purchase the estate from lier, whereupon Five wit give the government a clear titie. BILLS INTRODUCED, Bills were tatronueed und raferrad as follows: a \, Appropria to eataultah militury prisons; Ing lads for the Lunatic Anvinun, Btate University aad Deat ant Dumb Aaylum of Nebiuska; relating to preemption trie sy ir. Fron, (rep) of N. ¥,—Authorizing the estab- Waban nt of Ocean mui! seryice between the United States xico, by the New York and Mexican Mali Steamship jue, from New York city to Vera Cruz and Progreso, aud puifiorising tHe Postmaster Ceharel to oaatract tor, tripe bvory two weeks, wt @ compensation not exceeding i; er iri P e THE PUROASE OF CUBA. ¥ Mr, Tain, (dem. ) of Mo,, introduced the following joint feaolution, which was laid on the tavie and ordered to ve “to the printed Whereas the Istand of Cuba ts no longer 0 the, o! United safety of any continental dominions of Spain, am jo mectire the southern shores of the jon and the commerce flouted from the Continent tuto the Gulf of Mexwwo trom predation, and whereas the acquiaition of Cuba by the nited Staies would enuance its commercial importance, pot only (o the Vulied States but to all the commercial na- Mons of the world, and especially to Spain, and for the same reasons at the in- Borporation of the colonies of Enzluud, France, ‘and Spain has promoted the development of their commerce with thorr mother countries; aud whereas the acquisition of Pubs would free the American Ountunent from the Jas i of slavery, by the operation of the laws of the U: tates, wonld open for Immigration 10 the frep men of now realcing to the United Biates n conge- D wi in descent Rin! climate aud rich soll, well adapted to their vhysical con- piilutions, where thelr totelligent labor would find its richest Fewards, promoting the improvement of the race and guar- picelng tholr prosperity aud equally under free institutions; herefore be 1 >» Resolved, by the Senate and House of Representatives of ¢ United States in Congress asserabled, that the President aad ix hereby requested to open negotiations with Spain Tor the yee and cession of the Is'and of Cuba. ‘The bil! for the relief of. Chicago went over by the expira- Mon of the moruing hour, TUE AMNESTY BILL pame up as unfintsbed busivess. Mr. Edmunds bad the figor, ut was wnuble, owing to other engazemouts, to proceed with his remarks. GRANTOPMONIA AGAIN. Mr. Davi gern.) of Ky., movod to lay aside tbe Amnesty bill informally, for th@purpose of taking up bis resoiution directing the Comuntiter on Ketrenchment to !aquire whether the President has conferred public offees of trust or profit In return for preasnis, and bas been gully of other mlecon- auc He offered a modilication of tt, directing the com- mittee to lugdire into the expediency of Congress passin jaw forbidding any persun in the service of tho United Stat to receive uny gift or to appolut any of his relatives to oilice. Messra. CONKLING, (Fep.) of N. Y., aud MORTON, (op. of fod., were willing to have the resoinion taken upy but not by laying ibe Amnesty bill aside Informaliy, because that would enuble any Senator to cut off the debate by calling for the regular order, Mr. SUMNER opposed laylog the Amnesty bill aside other- wise than informally, and thonght that Mr. Davis ought to be allowed to take up bis resolution and make nis speceh Ao thie the ordinary way. KitG said that this wae a very extraordinary nd he desired, whenever it should “be taken up, * {uly divcussed and pressed to a vote, ac that atof ihe American Senate might be promptly n Its merits and {ts propriety. Mr. Davis—] concede that tii resotntion 19. very extra. ordinary one; but 1 insist chat the eubject and the gceasion of tt are very extraord!n ughter,) They are Bioply sudictent to justir least they are so Rate Judgment~and | decide questions of propriety for myself. Mr. Davie then quoted from ‘opose any investigat rofficials, oF would pol ¢ he (Mr. Conlktt and sweeping invent 4 anid. “Now, here ina lic service needing furestiation.” resolution on my own responsiujity, and. wh the scandal of it T am ready to bear it. want the bine of the political forest as well is the lesser beasts to be lavestie pated. (Langbt want the committee to imvestiyave the Hos in. gias to bis lair," and for one I to beard that’ ion tn his ven, jel Exeoutive maglairate ig a Wt itis the fountain of dis. 8 fountain of honor; honor, of abuse and corruption in our couniy. fT want’ tt purified vy fr Manly, untetiered and unfaitering — duvestigatio What’ have wa pecn within a few The President of the United States publishes as a defaulter to the amount of four or five thou- sand deliars for upwards of twenty years. 1 presented my Fervlution. ‘Fhe newspapers opened upon him, and at lasi, eriven by the the devunelations of the papers or some other forced to come forward and make good the his defaleation, N, Oblo, suggested that the Senator i Ce merits of his resolution al- mate. Mr. Davis) though it was Mr. Davig--Then I will ni Mr. SHPRMAN sald that pursue that line of remark, he Senator from Kentucky (Mr. avis) must know that when he offered a resoiution ar raignlng the President in this way it must give rise to a ge eral discussion. He was willing to postpone the Ami Dill with the understanding that {his resolution was to 8 tha in until they shall have made up their minds to 51 Hi {ifad press it (9 a vote. sive ‘Mr. THURMAN, (dem.) of Oblo, advised Mr. Davis to with- to press it would plainly give rise to ‘excited debate, wicn would posipone Davie said he knew it would cjve rise to a debate, be was prepare for the most excking debste t arise. Cre but be did not wish to antagonize it against the Aumnesty bill, and therefore be would withdraw Ai now, but would soon again briog It before the Senate. The Ampesty hill was then taken up. The pending amend- ameot was Mr. Sumne: GUUPLEMENTARY CIVIL RIGHTS FILL. __ Mr, Morrow sugeested to Mr. Sumner to strike out all of ft Felating to church and cemetery organizations. Mr, BAWYER, (rep,) of &, O, read @ repiy to eriticiems made upon bis_gourse to opposing the tacking of-the bapple- Civif Rights bil to tbe Amnesty brit. Lt, (rep.) of Ga, replied to Mr. Sumuer's criticisms yon him for doing the same pine. Mr. ROLRRTSON, (rep,) of 8. C., moved to lay (bis bill aside and lake up the last Amnesty iil nassed by the House, nd ry Mr. THUMUULL, (rep.) of Il, supported the motion, and ie"woud pass tbe bill hope’ the Senate just House Ampest t, and if Mr. Sumner should pe offering the Livil Rights bil! ap an amendment Benate would declare itout of order, as it 1p also expressed the hore that Mr, Sumner's bill pase io 6 ees form. would never Messrs, OONKLING and MORTON opposed the motion. Mr MOnTON said tbat Nr, Sumner bad agreed to accept the amendment jugcested by bim to-day. Mr. THURMAL Mioyorted th, und repeated bis opinion, ex- pressed when Mr. ners amendment was ire offer bat it was unconstivutional Mr, Nyk, (rep.) of , Opposed the motion, advocated Mr. Sumner's amendment, apd eaid that tbose at the South who were so anxious to be allowed to come baok tof Wash- ington and take part io making the laws had better bay to Jet colorea men ride in the same care with them, lest other. ise they shoulinot be allowed to comet all. He had beard, ghts bili was unconsututional, but if it was 49 Constitutl n should be amende Mr. ROWEKTEON said he intended to vote for Mr. Bum ney's biti, but thought jt unwise to tack it on to this Amnesty I Mr. THURMAN sar be Knew too wuel ect to mak & constitu. oh one jesse ont Ob som it tue bil wnronauivauowale e ¢ Hen ator from Nevada (ar. Nye) wodersun eee inp i ‘ah arate ¢ otuera lieposed to ridicule the constitution be would im which though! yeas ot length ‘Thon, at half-past four o'clock P* -» Without action, Benate adjourned. HOUSE OF REPRESENTATIVES. WAsninaton, Jan, 82, 167% BILLS INTRODUCED, ‘The following bills were introduced and reférred to appro ~ priate committees :— By Mr. BUTLER, (rep.) of Mass.—To promote and sustain American fisheries, 3 By Mr, 8aRGENT, of Cal.—To suppress polygamy and to enable the people of Utah to form a constitution and State government, By Mr.. SLocUM, (dem.) ot N. Y.—For the resumption of specie payments and the reduction of the mational debt. ‘The following bills were also introduced and re! Authorizing buliding of i River at, ou ey to ; for the protection of home industries; to amena the Homestead act; for the disposal of United veasols, ordnance and avy Yi State to United States Court disabilities, do. ; Rouse, Lato grant families of diplomatic and consul to indemnify Kentucky and other tes for expenses curred in defence of the U: es; providing for forts and military posts in Texas; repealing grants of land to ratl- road companiesin Indian ‘Terzitory; to seoure the public lands to actual settlers; to reduco the duties on imports and to equalize the burdens thereon; to distribute the number and rank of government employes among the Con- greasional districts und Territories; to amend the con- stitution by making Senators ‘and Representatives ineligible :o the Presidency and Vice Presidency; allowing the officers of the Missouri State militia, three months! extra pay; Authorizing ho Commissioners of Southern Claims to appoint special commissioners to take teatimouy; for a bel- ter system of quarantine in the Southera States; to tademnity certuiy States for expenses inourrod in the defence of the i appropriating 30,000 tor the completion of onument, MPORTATION OF SHIPBUILDING MATERIAL The call of States for bilis being conciuded the House re- sir, Hale materiais sumed tle consideration of the bill mtroduced b on a previous Monday, remiiting tho dutics on for the construction, repair ani! tixo of ships. Mr. HAUR, (rep.) of Me.» at nce of the bill and the reasons why Moncey instead of belug reterred tothe Committee of Ways ap ‘Means, as proposed by a pending motion, Mr. Cox, (dem.) of N. ¥., wanted to know why Mr, Halo consumed the tine in short specches every Monday morning instead of getting a vote on the biil. Mr. HALE said he had been forbearing in the occupation of UUme: He preferred n vote to epeceamacin Mr. Cox suggesied an amendment allowing the purchass and registry of vessels bullt abroad; but the previous ques- tion being pending he could not offer it. Mr. Daw, (rep.) of Mass,, Chairman of tne Committee of Ways and Means, supported the motion for reference. He sald that a conference between tho Commitice of Ways and ‘Meuus and the Committes on Commerce had harmonized the views of those committees on the bill. Why should the moat important of all the bills thut would be before the present Congress be passed without the benef of a consideration by the proper committee? reli BANKS (Fep.) of Baas, algo sustained the motion of ference. ~ ‘Aiter further discussion the bill was referred to the Com- miltes of Ways and Means—yeas, 132; nays, a, Darra enna SST Te mtn ot a re nted the report o and Neans on the subject of the negotiation, of the funded lebt, with a ion declaring that the Secretary of the Sy, 3p negotiating the loan authorized by the act of July 14, 1870, has neither increased curred an expenditure contrary to law. the bonded debt nor in- ‘The report was ordered to be printed, to be called up tor future action, Mr. Kevg, (dem.) of Ind., representing the views of the aminority of te commities, Said that a minority report would probably be presented. : OUNTY OLAIMB. A bill introduced last Monday by Mr. Holman, extending the time for presenting claims for additioval bounty, was amended by extending the time to the 80th of —— ~~~ 873, and was passed, THE TORAGOO TAX. Mr. Poxren Introduced a oll establishing the tax on all Aceotiptions of manutactured tobacco ut the uniform rate of aisteen cents per pound, and asked to have it put upon iis age. Phir. Dawes objected, and the bill was referred to the Com- amittce on Ways and Means, Mr. BUTLER, (rep.) of Mass., offered a resolution for the survey of Long Point, in Salem harbor. Keferred to tne Of Va., ofered a resolution instracting Committee ou Commerce. Mr. PLATT, (e] ‘the Committee on Ways and Means to report at its earliest conrenience on the tax on mauufactured tobacco, Adoptea. Mr. FARNSWORTH, (rep.) of Ill, presented the memorial of the Governors of Illinois, Indiana and Ohio, in relation tothe two per cent fund ‘rising from the sale of public dands. Referred to the Judicisry Committee. WASHINGTON CITY CORRUPTION, Mr. FaryswoRtm offered a resolution “instructing the Comimitee for the District of Coiumbia to inguire into the allegations of the memorial of the taxpayers of Washington, Guurging all sorts of corrupt practices on the Board of Worke under the pew territorial government. He sert the memorial to the Clerk's desk and had it read, and then alluded to the fact tat the enormous sam of $119,000 had Deen pai to newspapers of the, district for advertiaing rwithia the last eight months. One of the papers was a Iitue thea:rical programme, and ahother a sheet wich he had never heard of before, and which announced its sub- scription terms to be one cent » year, payable at the end of the year. HOAR, (rep.) of Mass., remarked that the present con- Attion of tings im the district was the result of Congress having pacted with the jurisdiction over it, ‘Mr. Porres, (dem.) of N. Y., said he accepted the re- Proval contained in Mr. Hoar’ arks and sincerely re- gretie] that he had supported the bil for the new Yerritorial government. The abuses of that government were 80 great ‘and extraordinary that they should be investigated by the jonse. ‘Mr. Woon, (dem.) of N. Y., also expressed his regrot that he had supported the Territorial Government bill, but he did not concede tuat that bil parted with the jurisdiction of y over the District, He thought that the investiga: tion snould be referred to a special committee. Mr. DAW#s joined the two New York members in express - Ang his régret iat the new Territorial government bad been entablished. He had long ago pledged himseil that whenever the saw tac head of a rascal or # thief, whether in his own or any other party, he would hit it if hs ‘sonld, He believed in probing tue sorea of bis own party. If the, epudition of uinga fo the distance were such as to commend {teelf to the ule Judzment he wanted the party to have the credit of ft utit as represented in the petition, going from bad to worse and {rom worte to wors!, he wanied the fact to. be Made Known, and the guilty pertdns bold up to reprobation, He therefore heartily aupporte.! (he proposition, Mr. 'OX also nupported tue resolution. He said he had not yoted for the miserable caricature of a government existing in the District of Columbia, for he would not consent to tie. the whole D'strict to the door bell of the White House, Fr, ELDRIDGR, democratic friends had though J. dent the power of appointing the members of one branch of the Leglsiaturs would bav« resulted in placing on that Board men of the highest character anJ reputation, without regard to,polltes but the resuit Lad falsized auch ab opinion, ir, STARKWEATHFR, (rep) of Conn., chairman of the District Coaumittoe, favored the proposed investigation; but held that his commitiee was quite comyetent and willing. to 6 CATE of it, Mr. FARNSWORTH remarked that himself and the peti- Honers were quite satistied to have the matter relerred to that committee. . CHIPAAN, Delegate from the District, deprecated an; Of the case, and expressed his own, desire and Territorial government foF full, complete aud 1in- al ization, Pfite resolution Was tuen adopted, DEW YORK QUARANTINE. Mr, NRGLEY offerek a resolution directing the Committee ‘on Commeree to Investigate the quarantine and harbor regu- lations of New York, and also into the means of reviving And sustaining American commerce, with power to seud for raons and papers and to hold sessions in New York city. ererred to the Committee on Oommerog, Ci UN NELL, (rep. ) of lnn., introduc id creation, an additiona: land district in Minnesota, Passed, TNE FOREIGN BORN AND THE PRESIDENCY, Mr. MORGAN, (dem.) of Olilo, moved to suspend the rules nd pass the joint resolution proposing to amend the consit tion by making naturalizea citizens eligible to the Pi dency and Prealoency. Negatived—yens 91, less than the mm re. Mr, WitrTELEY, (rep.) of Ga. introduced a bill removing political disainifies ‘from ferschel V. Johnson and other Citizens of Georgia. Passed. THE CONSULATE REPORTS, for ‘the reports and 4 to examine and a0 tor information ccomplishments of United States Con. corres onde: supervise the to the ling Unite istic abroad, with s'ataments of Cousular (ees, 4c, Referred to the Commiciee on Foreign Affat Mr. KUYFINTON, (rep.) of Mask, offered a resolution gallldg (or tutormation as to the lights'and buoys at Mrovinee- town Harbor, Mass. Adopte: Mr, Wali Ave, (rop.) of 8, Cu iotroduced a bill to remove the political disabilities of dome balf # dozen persons in South Casolina, Passed. Mr. Couunn, (rep.) of Ind., offered « resolution instruct- Ing the Commiites on Pubjte ‘Buildings aod Urounus to ine ire into the feasibility of putting the seats of inombers tn the inner ers of the i i Closer proxinuly, 60 as to chance of getting nearer to on the outer ters a chair. Adopte THE JAPANFSE EMBASSY, Mr. GaRrrecn, (rep. ) of Ohio, from the Committee on Ap- proprtation Pa bit appropriuting $0000) to defray he exper assy from Japan, aod asked that it be passe: Mi NEFLRY, (dem.) of Iil., objected. ARIIZLD moved to suspend the rules and page the . ave a brie! explanation of the matter and refer! to brecedents for the vid. ERR Inquire! whether ft had been understood by the cae authorities that the United States authorities: understanding. one of the bigheat character; iis object (ras to make inquiries and to gain Instruction in reference fo the renewal of the existin: treaties with the treaty Powers. It was not authorized to maxe new treaties, but to ask extension of those now existing unt the Japanese abo have time to tniorm themselves as to their revision. Smbassy consisted of @ Chief Ambassador, who had been descrived in despatches to the government, as @ person aiways im attendance on the Emperor, lo was accompanied by thres Vice Ambassadors—one o Whom, Governor. Tio, was well known to many memoers of fie, House. ‘There were twenty-one me of the Em- assy Who were the chief officers ‘at dierent de- Partments of the government of id who Were in- departmente'm the Uuited States ang forehsraea eae e fpote of tae rent re ‘orelgn countries, He rea without yea TUR NEW OVLEANS NUDDLE COMMIT Mr. GARFIELD, from the Cowmittee on Rpprepriations reported @ resolution. rnstructing (he Clerk of ine House ¢) furnish funds to the Belect Ooi ntitae £0) ‘The SPEAKR: connection with that nounced that be ppointed Mr. Archer, Of Mary a iwnembers of that cominitiee, in- nd Marshall, excused from ‘ggr- ce. Mr, FARN@ WORTH inquired of Mr. Garfield as to f the committee going to New Orleans at anes Pre F, GARVIPLD replied that was a matter for which he was not ‘responsible, The House had ordered the euuyect tone cominitted, and if the House took bacs that order he should be oF glad to back the rasolutio: Mr. FaRNSWOuTH aid that fhe aduption of the resolution would be taken as am order of instruction to th jo £0 to i trys to big that the diicuity bere wa Ung itself as to render it une cessary comuitiee. F osidet ite wee what Congress was going to do avout ft, It that Cougross might p. siself of the fact boariy ‘a8 well without sending a committee there as by sending one. je knew that the committee dia nol want to goto New Ur- jeans, but If the House desired {t to go ft might so Intimate its desire by adopting a resolution. Mr. GARYTRLD eaid he should be very glad to hear from the commiiee itself on the subject. that the facts could be got as in Washiogton without any considerable expense, and the vote upon the resolution roe course determine whether of Mr. Seoiield whether or not, tn bie rs had been change: #9 much since the passage resolution as to obviate the necessity of the Committee going to New Orleans. He saw by the newepa- pers that what was called the Warmoth faction had posses- Sion, If that was 4o he would Ike to know from Mr. Sco- feld what the commities could do wheu it got there, either im confirming the ery ‘by the Wari faction or in cont rerting it. In lis opimion it could do nothing but recite the facta, and he did not know wnat the House could do afterwards, Mr. SCOFIELD replied that tome aspects of the case had changed for the better, while others were quite as bad or worse than they had been bel SHELDON, (rep.) of La., sald that bis opinion all the d been adverse to ing any committee to Louisiana or te the appointment of @ committee to remato in Washing- ton and lovestigate the matter. He was aware, of course, that matters tuere were in s very dimagreeable condition. It was, howover, a thing with which Congress had no right to meidie, or, if it has a igh is meddling would not accomp'ish apy other result tnap to prolong that Glagracet conuition of things. Tuere could be no question now but that the Senate of Loulstana was logully couaiitued, but there Was attil some nas to the of the House of Representative ‘Stil he did not see how Congress or the overament of the United States was to aetermine that ques- So far as the had information from there things seemed to be going along rather better or to be at least approximating ® more peaceable solution, His judgment ‘was that these things would better be left @!one by Con- gress and that matters would seitie themselves. He bad not Voted against the resolution, because several geutlemendn the House and elsewhere were very decided in thelr optnion onthe subject. But, as the aueasiion ‘now come up, be deemed tt bis duty to say exact.y what be thought on the subject. He did not think ft necesdary for tue committee to 0 to New Orleans or to {avestigate the matter here. bi itever had been necessary be ibor *hidbat that necessity was less #0 now than it had beea belure. A-BRVENUF CUITER CARRYING OFF LEGISLATORS. Mr. GARFIELD said he was glad to see that Louisiana was 80 nearly restored to her right mind. It seemed to that there was litue to be aves: ated concerning the Bi ernment of Louisiana, 60 far as veatizate it, but there was ove elt thought Congress ought to iuvestigate—he referred to ¢ duct of the ollicers of the government of the United State the city of New Orleans. If public report was to be truste revenue cutter of the Unitea States had been used to carry away & portion of the Legislature and to keep them out of the Peach of the officers. He thought the conduct of the committes ought to be investigated, and the orders which they had received for making that movement, If the officers down there had donea tthe of what had beer m it was high time that their conduct #| id, andif they had motdone it, tt wan high ti vernment shesid be freed from the odium which Sustly {ail upoo ft if those things had been done, Mr, FaRsSWoRTH inquired woetber & resolution calling on the Secresary of the Treasury for information as to whether the revenue cutter had been #0 uted answered all the purposes. Mr, Gti tetp rop\ted that he was not now speaking aa to the vest method of getting information; but he thought that 1 Congress was for making any investigation at ally should. face to it, 1a the orat place, that the agents of the government ‘Wore nut moddiing in the affairs of Louisiana, Mr. SURLDON, (rep,) of La., remarced that the President nd the Secretary of tue Treasury were in possession of ail 0 facts relating to the action of the United States officers at maltane not to go be su jon. New Orleans aud were competent to manage the adatrs themselves ‘Mr. BEOK, (dem.) of Ky., said that when the question first came up as to the sending of a select committee he had voted agatnat it, becatise the joint committee of the House and the South had outrages in condiion of it was the proj But 4 Senate upon _ alleged been looking into t and supposed tl garry on the investigation. thought othorwise tion Was had it should be held uj Ought, therefore, efther to withdraw eter or direct it t» go to New Orleans and furnish {t with ho means of doing ao, It snould do sometuing ur do nothing, An investigation at Washington would amount to notbing'at all, and the reports from Louisiana were not to be relied upon, If the gentlemen would read what Governor Warmoth suid of Mc. Carter and his faction they wouid come -to the conciusion that these merely were a set of pluoderers and thieves; and 4f, on the other hand, the; Would read what was eaid of Governor Warmoth and bis faction by others who were acting on the other side, they ‘woud be equally satiate? that ho was wholly unlit tor public t. When that question had been up before the Joint Gommatttee on Southern Quirazes, every democrat on tant committee voted to go to Lout: and investigate the con. dition of things there, while every republican the comuuitice had voted against that proposition. Mr. STEVENS (rep.) of Ohio, asked Mr. Beck to state, tn fairness to the committee, thal when that’ motion was mado the recent troubies in Loufsiana had not ocourred, ‘Mr, BECK repiied that at the time that motion was mado and voted down by the gentieman from Ohio and bis f & convention had been held In New Orleans, and the Ci House ollicers oallea in the milltary. These Jecent events had not oceurred, but others equally ai disgraceful had occurred, Itbad bee. cnown ty We committes at the time that Gov- ernor Warmoth and faction had not-only distranchised every man opposed to them and requiring every man oilering to he was in favor of everyting register to take an oath that jone in State since 18%, but that ther Lad aiso robbed and plundered the State to an enormous extent, Phat was the condition of affairs down there. ‘The way that Eonislcna was going on was n diegrace to American civilizae tion, and he, therefore, trusted that this cemmittee would go down tere.” The comiittee could not touch anything cown thereshat ft would not tind to be rotten to the core, boliing over with corruption and rising to rot. hr, SYCHER, (rep.) Of La, stated that he bad voted fr the committee, and had done'so in view of tha condition of tinge in New Orleans, where there was no security tor life or property; where business houses were clorod and where no business oul bo transacted. ‘Tao United States troops Were quartered in the city. the militia ealied ont and the Metropoliian Police mtatloned around the State House. Ho referred to the proclaation of Speaker Carter, whicx ap- peared in this, morning's papers, and spoke of that official lacing himself to-day at the bead of 3,000 armed men, with wo pieces of attilery, and investing tne State of Lou- fslaga, and yet with that condition of thinus these gentie- men talked “about there being no reason to senda com- mittee to New Orleans. He concuvred with Mr. Gariel that the investigation should reach the government officials there, and he concurred with Mr, eck 88 to, tho, prevailing corruption in the State, but be thought it prevalle mong the democrats a® much as among the repub- caus. When the democrats wanted ignorant members of the Legtalature to Lecome their tovis, aud to vote for thelr Schemes they corrupied them to do’ ao, But the schemes were concered by the old citizens of the. State, If ever an Oocasion existed Yor the committee to go there that cocasion was now, Mr, GARFIELD wanted to know what the commiltes was to do against 2,000 men end two pieces of artilery. (Laugh ter.) Mr. Dawrs said that he had introduced the resolution raising the committee and had not done so suddenly or watil After consultation, Stuce the raising of the committee it had Io tata! ers that efforts had been mai 7 ie Bx in the news; coutivo apd others to prevent it from goin to New Orieang, fo had on! way that toat was not true. It was not true that tie [Executive was opposed to the appointment of this committee or to its oing to New Orleans, Nor was it true that tiose people Kew Orleans who were generally supposed to be adva the Executive were opposed to this tuvestigatton, - Been the day wi he (Mir, Dawes) bad first offered the resolution and tho “day it was adopt had recetyed a telegraphic communication from the head ef those in New Orleans who represented the, opposition to the Executiv calling for the investization, The necessity tor it oriinated in the intrinsic didiculties of the case, The President hi det ppiies to by Governor Warmoth to use the federal forces to keep the peace, and his reply was that there was @ contiict ot authority there; that there were two parties there, eg claiming to be tue bn government of Louisiana. it was lunpossible for the Kxecutive to com with the request of either party. It mas decide between them, that Cause the President was unavieto the resolution for the AP ee toe ot @ committee was pre- sented and adopted, It had been said by sume, when the lution was pending in the House, that it was best not to cover the proceed! fn New Orleans, that such a ondition of things ‘existed there that they had ier not be brought to light. He did not belong to that class of eas A ae Lig (eat ed an roe my ‘as the gentleman from wel j Genrive! oue alte ‘a least to be. not Beok) had a described one a! to He did ‘now eliher Side in the matter, nor did he care about elther side any fur- than to ‘bring them to the surface and let and what tl what see who doing, "He aid not underatan nt 6 changed down there that there was any less occusion for the investigation to-day than there had been tho day it was ordered. The ofticials of the United States down there were Banded with oue side, whether rigutly or wrongly the Exeour tive, bimsell, ‘confessed that he dia” not “know. He Felerred to Speaker Carter's proclamation, under which « Serious riot and distarbance today, was Very provabie, He thought, in view of all the circumstances, that tue House could not alford now to stop the layes!ization. Mr. Vooruers, (dem.) of had voted for ‘the investigation,’ a bad differed from his politfeal frien <Hio. had voted for it, because he. beltev something should be done, Swportance of the events transpinog din doing so fa the Honse, ft necessary that No momber had exaggerated th in New Oricans certainly no one had colored the occasion to highly.” The gentiemon | from Mnasachuse:ts (Mr. Dawes) was ontiied, in bis judgmeut, to tue thanks of the country "for the independence of his condnict in coming forward and fnviting an iuvestigation Which Would fall on his own political friends." The conition - Of things [2 Louisiana was @ most extraordinary one. An American St had ‘been trying tor two or three 9 couvend tie Legislature, had been 4 in vi During that time the. syed: tacle bad been resented of an American oficer {i commind of United Stat and forward dally betwe House, under orders from had gone to his (General ja a way acerutl the age, him in troc marching his troops back their barracks and the State omen ere, until at Test w mob orv's) headquarters, and ther f and disgraceful XS proclaim jal law. to to Tue auswer was not creditable to the oflicer, but was Just to asked m the servile mob, Ho told them to go away, Or Le would give them grape and Canister. MAYNARD, (rep.) of Tenn., suggested that that states ment had been denied. Mr, Voonuers knew that the denial had been made, but HHH) the Legis d not been able to conyeae, and some. ay was to blame, and to-day there was jamation oF ronunclamento, after the Mexican fasision, 4. jour the Speaker would proceed to open the’ Le; force and arms, telliog the peoie, with due regard ust safety, to their houses and places of business and cep of the streets, as svmebody migat be burt. He dh! not now what bad taken place in that respect and did got ca If such a state of things did not call tur investigation a bands of the American Congress be did not know what would do a0. Mr. Faryswontu asked Mr. Voorh jt out the facts to be (excidedly.)—Ob, don't ask Congress was ed. me whht Con- Mr. Fagxaworta—What ought It to do? Mr, Yooanrys—In my etre it ought to do » great many things connected with Southern a! hich t fleman from. iliaols, with even his strong eci justice, which I . me ii T b be 48 that tbe Bouibern world, without any exception, Ti yw here They ari Infamy or’ re M y ® Legisiature, four-tifths of whose members can nett! nor write, who do nut pay even ® po!ltax, and set them to tne duty of levstn taxes for, untold milijons, and iafellge ee of ti On the propery a he community, I wilt veroment that inthe worst be- show you, sal heath’ te sun. Mr, Voorn mn to depict the terrible conaition of things, mot only in Louisian but in all tho Southern States, attributing thal Condition to the Reconstruction Jaws of Congress. In this connection he referred to the immense piling up of devt Various St f the South, declaring that all those 8 were virtually and absolutely bankrupt. It mattered What became of either of the factions now warring ja Louisiana, bnt 1 ald matter much to the obat ter of American government whether # si shontd it sorganize Tiself and dissolve inva the ele y tents of anarchy. As well Baritaria pirates {9 raise the: Mexico as most might they allow the fiag once more in the Gulf of to wiiow those pecile to go on as they Were going. The remedy was too vast @ subject for him to ven: tore “on. some ‘ot “iuese” daye he. Eataht.. expreas bis views elaborately on tuat suoject. In bls deliberate Judgment the goverumenta in th. e South had been butts on the Wrong end. Tue mid tood, mot upon its base, bat ypon, ite apex, They “had” built those governs ROL on stability, ndt on Jule gence, ‘nor om the thee ake. Jgence, ‘not on the classe Are respousibie for the piace and order and wel community, aud those were some of the frulte whieh they D, (rep.) of Pa,, Chairman of the Committee, to the polnt of the committee going to New omrmitiee had no voice im the mater, The it to make the Jovestigation in 5 Ye or elsewhere, and if the — resolution stood that way the commilice, although at yg mrenience to all its members, would go to New means and execute the auty ass; toi, he bel } at every member of the comiittee preferred not to go, wo of thom count ceciined to serve on the House ct We mind aod thought it w tue com- Were now reaping. ‘They might be known \ y Vo men gather grapes of Motus or “bee of tinier Neither could they gather tne b sof good jorermment from a system which fas brought nto power and position the worst and most {gnorant olase of Mankind. At the endof six and «hall years of repubiicwa '¢ and governm the South this was the result, Was be repudlican mi ot the Hi content with ft? Would they go before tho courtry and say, an Loner me (hat thetr plan bad borne the (ruiis of peace, vrosperity a Hotegring * THE SYNDICATE. Boutwell’s Negotiation of the New Five Per Cent Loa Examination of the Seeretary of the Treasury Before the Ways and Means Committee. OFFICIAL INTERPRETATION OF THE LAW. How the Interest on the Old Bonds is Paid for Ninety Days After the Taking Up of tho New. REPORT OF THE COMMITTEE. The Secretary Acquitted and Sus- tained in His Action. WASHINGTON, Jan. 22, 1872, The fqllowing 13 a full report of Secretary Bout- well’s examination by the Ways and Means Vom- miitee, January 11, 1872, concerning his transac- tions with the Syndicate tn the disposal of the new funded Joan. s Mr. Boutwell appeared at tne request of the com. mittee, and made a full state nentin regara to Mr Uox’s resolution of inquiry, previously adopted in the House, Mr. Boutwells Statement. Tho resolution seems to look at two points; one | Purblle bonded debt has been ncreasody- nad eke. other tat ho expenses of nexotisting {t have exoceded one-half of one Per, cont, im regard to the first point—the increase of the ouded debt- in one view of the cuse that is true. ‘That is to say, in Issuing these bonds we have for the moment « lar; ount of bonds outstanding than that outstanding im the tive cents. mere consideration, that mode; but kf the Ways ani je interest of the a Knowledge of what was desired bi feans Committes, as “well ne. from th nited States. I was of opinion that the law could not construed to defeat the object for-which it was framed. If ou const Janguage atri » of course It means go on ‘undigg the debt, For example, if'Mr. Cox should come Into the Treasury and give the ‘Treasury @100,000 in coln, he would be entitled to 100,000 five per cent bonds instantly, Asa matter of fact we cannot redeem the outstanding six pex,cent bonas by any compulsory process. We can only «lo t atter ‘iuinety days. by stopping tho interest ‘Therefore, it is Dot me ie v0 issue ony ive per cent y e ws, ‘ob por ‘bonds unless you increase for the time bonded debt ot the Histon” There were two Slows tak i Paes en, both of which were entirely, autiafactory, to me. One was that the object of this dect n the aw was to.give the plodge to thé world that when. the process of funding was accomplished the bonded debt of the United States would not be increased. In other words, that we were not asking the world to loan ‘us $19,000,006 for any other purpose than “= eadacm the out- standing six per cent bonds; that we were NOT INORRASING THE DEBT. It was @ declaration in aid of the credit that we were not borrowing money for orinary expenses, In one respect the bonded debt was increased; but, on the other hand, the bal- ance of the indebtedness was not inoreased—that {= to say, we bécredita in banks and money in the Treasury Depart- ment growing out of this operation equivalent to the tempo: rary increase of the bonds issued, ao that if we struck a bal- ance the indebtedness of the United States, so to speak, would not be increased, . Mr. DAWES —he strict construction of the law would not ermit you to sell a Dew bond until you bad taken up an old ne, and you cannot do that without ninety days’ notice. Mr. BouTWELI.—Certainiy ; but the evident intention of Congress was to strongtien the public credit by a pledge that the mpney repeived by the sale of these bonds should not be wed tor the ordinary expenses of the roveroment, but In the meantime it would be impossible to carry out the law without @ temporary increase of the bonded debt. As @ matter of fact do not suppose the bonded debt of the Untied States at any time since tho now issue was commenced has been greater than it was on the 14th of July, 1870, when this act was passed, But never construed the act to mean that the bonded debt could not “be temporarily increased during the process. AsT Lave said, wo luaye ne means for the compulsory redemption of thé debt except by stopping the interest and saying to the holdera that we lave the money in the Treasury to pay the bonds whenever presented, en in point pe tee the obligations of the Mr, MAYNADD—' goverument have not been increase: Mr. BouUTWELL—The net obilgations have not been tn- creased. Mr, Roornts—Do you understand that the specte that ac- erued from the sale of new bonde ts, pledged for the Tedemp- tion of an equal amount of old ones ? BoutweLi—Y e law. The act of C gress saya that th from the sale of t new bonds shall ct redemption of matter of fact, tt bonds and nothing else. Intely Mapossibl 6 identical money rec that purpose. For fistance, we sold bonds in Santa in Portland, Oregon. delivered the bonds and wi nd, Ave not to this day received that identical iaoney in Washingtor aud I do not know that we ever shail: We cunno keep tt Separate; wo caunot deat with the pubiie money In. tat a, When we receive $600 In coln in Santa Fe or a 4900 boud We cannot Keop that identical $000 ta coin for tue redemption of one of the old Mr. ROBERTS—Bui you reservo In the Treasury ai amount of money equal Bn ONEONTA of Nz, BouTy ave movey on hand, of cours the Treasin'y othe amount of money we reseve fro the sale ot bew bonds, but itis uot the same money, and would notas Secretary of the Treasury permit the amount of coin oF notes to be reduced oelow the amount we owe for the redemption of bonds. I consider the govertimant pl to that, and I want the committee to understand that a literal compliance with the law requirlug us to-pay ths identical coin is impossible. For instance, that woi Tequire us to bring the coin recetved in Santa Fe or Portland for the sale of bonds here to Washington, and when the gorernment ‘wants to use money in Santa Fe or Portland a transfer of an. equal amount back again, involving an expense of three or four per cent in case of transportation, which comy say that if we were to buy or ny new bonds were law would not be ob $100,000, new bon Greased Over what It was before t! was le. ircular issued by the a9 Tey to the other point il de- Hi oh on the 10th of “August last addrossed to the cashiers {national banks. sent to every bank in the country, con- teined substantially th» basis of the whole ing. That circular I leave with the committee. Tt provides that banks suoscribing tathe new loan may be made deposi:ories of the lie money to the extent of their subscription. That is au- orized by the forty-lifth seciicn of thé Banking act. result is that ioe the of this money for ninety days, more or less, without interest; {tis deemed that the money will not be called for within ninety days, Mr, KRBR—Do I understand that the banks get a commis. ston in addition for the oonda they subscribe for themselves? Mr. BousyatL—W pay them one per cent on all their we Pte out yor oa a of eae ir. KERR—But you do not pay any other class bers anything on ‘hetr subscription ? sampop cc Ar, BOUTWRLL—No, sir; except those who are designated ‘8 agents, and receive one-eighth of one per cent, Mr. BROK—Your practice is, I ne to pay one-eighth of one per cent to your agents, whether they subscribe or get the subscription trom othera? e Mr. BOUTWELI—Yea, to inks. Mr. BECK—Then the cost of negotiating the entire loan is We received in one-eighth of one percent ? M JOUTWELL—It costs more than that, Aug Cooke & Co., in connection, as i am led to belfeve, with other houses tn a ey d for fe st last from Ja: ny proposition that they would subscribe 810,000,000, in the Month of September, and further for an’ average of 000,000 each month watil April, when they should have the o; 000,000, oF tion of taxing the remaindef of the $1: Geciialng ius itey shove. “When reached the sonaation that 1t was desirable to enter upon this arrangement T made ‘the stipulation that the banks of this country should have the right of subscribing $60,00,000; and I did tt for the reason that the banks of the conutry had alrendy taken $55,000,009 during the summer, anv I did not want tue whole #125,000,000 4@ to Enrove,’ Twanted the people of this country, Maiter of justice, to have the opporwuulty of subscribiny Toast one-halt of the 200,000,000; and te $68,000, which they ind subscribed for, and $60,000,000 In add tion, thought was a reasonable abate 1a the opportunity Wo tuke e loan, Gait ae are now speaking of the new five per Mir. BOUTWELL—T am now speaking of the fv £$200,000,.00 of which were offered to. the public.” ne on engraving and 0 wale of Lis #2U0,00 one per cent of thelr # Mr. Bkox—Then you per cent on their own Mr. BoUTWwELL—Yei one-eighth ; wa tna nks our mge this one-fourth on the bonds sold through them; the same commission was allowed the long list of agente which I have here, some acting as agents in this country and some abroad, Mr. Kenn—Was anything pafd anybody for the amount subscribed for by whe banks except the one-fourth or one- eg thot one per cent which you allowed the banks them- seives Mr. BouTwett—I will tel you what we did in the ar- rangement with Jay Cooke & Co.; after paying all expenses for evgraving, printing, advertising and ail other expenses for transporting the bonds to the diferent places of delivery, in- luding the one-fourth or one-eighth per cent commission, Jay Cooke & Co, anc the parties with them abroad ato hg ry Qrinting the bonds, and advertisin aud pald the babks one-fourth ription of $65,000,000. w the banks one-fourth of one scriptions? one-fourth at oo nt ceive wintever amount was required to make the one haif eae 4 mat which was authorized by for 0 DAWES—So, then, the entire cost of th be exactly one-half of one per cent? rags ated F, BOUTW ELL~ Yes; one-half of one per cent, Mr, MaYNaRD-~Do you interpret the law to mean that more than one-half of one per cent could be used in Dego- Uiating, any portion of the loan, oF, that the aggregate mount of the wi jonld not exceed ones egt for the whole amount ? °° pup sdoesed ir, BOUTWELL—That question came up m the very submitted to Mr. Tayler ine Fiat Coup. lon at the limitation to one- yn not apply ekg to portions of the ‘ized tbe asury Department, for in- a ‘ace, to purchase paper and incur the of engraving and advertising before we sold any boa: At was just one of those instances w: if you oor, the law in any other way, it would be Tmposslble } fe So ty? eee Le. ite been taken that the inteation of ja as not mit the regate expense of the loan to one-half of one per cent. bagi Mr. MAYNARD-Suppose, for instance, Mr, Dawes comes forward and advances money and takes $10,000,000 of the loau at par without commission or cost, would you when you same to egotinte the second $100,000,000 feel yourself mited to one-hal £100,000, 000 in the clear if wo had nego- tlated @ part of the loan at a cost of less than one-half of one percent. The difference of commission or the actuai cost and one-half of one per cent could be applied in negotatiay ¢ remainder ; but I shovid not feel that the Secretary of tt half of one per Joan; that tt to the Se" pb Treasury was justified in advancing except what might Absoluisly necessary to get tbe tnuchinery in motion en Mr. DAWES—Thed you conalver the entire amount author ied te ve expended as appropriated in advance for that pur- Pol. BOUTWELY—We consider that a limitation of the amount that could be expended. Mr, Cox--Did Mr, Tayler decide that you could expend the whole $7,000,000 appropriated on one portion of the loan? if, BOUTWELL—That is pultiog 1 pretty strong. ir. COX—But it might come wo tnat, ir. BOUTWELL- I suppose bis opinion might have that imate construction; but we endeavor to do bu nN ch a way that when Wwe bad disposed of @ certain portion of the bonds we could not have expended more than a fair Proportion-of the apprepriatior Mr. BECK—Let me ask whether the ninety days’ notice you allow the banks, and by permitting the money to remata ‘on deposit without Interest would be in addition to the one- bail of one per cent of the entire amount? ‘Mr, BOUTWELL—It Would io @ certain pease, bat agt asl i the. Treasury” gangl2, sithou oat the Treasury would Py ‘fe and accrued interest: but at the end of ninely stopped, and then the will come 0 ing with the banks nin during the proceas of the con- yeraion of tho six pet cents tS fve per conta, ana requived it to have been paid foto the Treasury, it woud have veea of ‘no sort of use to the government. Mr. Ropents—Is tt Leen fo which you could have received interest on this one Mr, BOUTWELL—No i tho uty, question was whether re should hold the money in the banks or hold {t to the reasury. hr, BORORARD—How much of the eengennione has been actually converted into five per cent bonas! Mr. BOUTWELL—The fret $55,000,000 has been actually gonyerted and passed through the Treasury, and on the 180,009, we have received $83,000 of the six per cent called bends into the ‘Treasury, and have passed 090,000 throu. the books of the Treasury; the other y ayy Bane shite ia acahian bey Rae Ager rod av in the treasury, our force ts only able through $2,000,060 a day, ‘and when you oonsidor that these da are & large portion of them in $60, $100 and $600, you witl see that we cannot do mere. Mr. MAYNARD—The first lot were substituted—were they not—aix per cents for five per cents? Mr, BOUTWELL—The banks exchauged six per cents for five per cents, Mr, FINKELNDERG—Is the notice of ninety days fixed by law? OUTWELL—The law ‘The CuAmmMAN said that he had invited Mr. Cox, the mover of the resolution, fa response to which the Secretary Yat Present, to meet them 10 ask the Booretary gush quce- dvi and Mr. Cox would now have the opportunity ef patting eations as he desired, f° opportunity of putting such questions 23 he desire, Mur, Vox vald that te thformalion upon whieh ne founded his resolution was almost as authcnlio a that of the Secre- tary hiniself, Some of the questions he had noted down had already been responded to by the Secrotary himself, He would, however, ask ulm sotne additional questions, and, first, how much dit the Syndicate make out of the tranaao: tlon, allowing reasonable interest upon the money remaining within their control ¢ Mr. BOUTWELL—I cannot answer you how much money ey made, a 5 COX They reserved interest om money left in their ands BoutwRit—Probably so. The money has been left ‘with banks which have three months’ time, Mr, Cox—To what extent has ry bonded debt been tem- Poranly inorgased, as you have saud euowue” ELL—I suppose to the extent of $130,000,00) or Mr. COxX—You consider it s fair construction of the law to increase the bonded debt for that purpose temporarily Mr. BoutwrLu—| consider it the only practical mode of executing the law. As I have sald, if we had taken money to Tedecm the six before we Cig at five yer 5 nds were sold and issued, the bonded debt would be in- Uteral jourwEr.—t donot, consider tt tmposalble under the mate gonstruction, for three months for the benetit of the Byndicate? deponit to kept in the 1 we said, under tho an! this power which has been ed by my the money remaining deposited with them three monthd, in fer gent a font it would stilt follow that, as soon as Lita cent creased. Mr. 09x80 you conaluer it impossible to execute the law Mr. construction we have given it, and I think it the only logiti- IF. Do you hold the six per cent five-twenty bonds remaining unc Mr. BOUTWELL—We do our business with the banks, and we have only to allow the banks to i in the ea on as forty-ftth section of the Banking law. I consider that the qanes power issgiven to aliow this money be as in cerci redecessors in negotiating all loans made during and since Mr. COx—Ia not tho interest which these banks make on addition to the one-half of ome per cent them f Gisposal of the bonds? ches aoa ir, BOUTWELL—That fw precisely as you look upon it: we leave with tue banka this amount of money, for the securhiy ernment bonds In the Treasury; dg of thi trandaction there are 150 or 160 banka which re designated as government deposi ‘an usually fiave trom %5,000,000 to 15,000,000. govortiment bone. at x time on deposit; we pay interest on bonds depos Danks in the Treasury preciealy as wo do on of the government while they have our money 1n their hands— amount on which they may receive interest, Mr. Kegr—Does the government save or lose by deposit- ing money in . * fire ‘BOUTWELL—I 8; there is no doubt the govern- yanks in this way ment saves vy using ‘A the nad by which the government cap. a Mr. BOUTW&I.L—There are plenty of people who would be [ 2 eee the money aud pay ‘the interest; but 1 don’t think jt would be for the interest of the government to use its mo- ney inthat way. Banks who ar ntors do @ great deal of work in one way and ancther which could not te done the Sub-Treasurer of the United States tles to collect the internal revenue and to do other business, Mr. BEok—And you re that as @ fair equivalent for the use of the money of the government whieh they had Mr. BourweLL—I think they consider the reputation of Belng designated as & government depomtory us about ihe only advantage they receive, They are liable at any-time to have the money deposited by government in, and must keep funds in hand for that purpose. Mr, MAYNARD—Do you not find it @ prevention of defalca- tons om the part of collectors to furnish them fasilities by which their money may be depusited every da} Mr. BOUTWELL—Of course; the longer lector keeps money in his pocket the more exposed to be robbed and the more temptation he bas to, it improperly. Mr. Cox—Is there no 4 which you can cancel these onda without paying double interest ? Mr, Bourwrua— it coulg be done by a summary no- ic eer: ciel would be on the perue Sesaviors: 1 jak ney Jong @ notice to give. te Hat aay coNalat boca’ rade. oa Cy tle have penn oC note thie aia oe, s been iven in other classes ir bonds heretofore redeemed? BouT ee, notice bas been given for the reason that until the fasues of the fivetwenty bonds the bon: government have always been made payable at e, and there {s, therefore, no precedes for ‘are now pursuing. Mr. Cox—Does the Ryadiente reserve any commission ex- op those you have named ir, BOUTWELL—None whatever. Mr. Cox—What do you mean by Syndicate? Mr. BooTWELL-I'mean Jay Cooke & Co, and others con- nected with them in this country and in Europe. [ don’t know who they are. Mr. Cox—Can you tell what {t will cost to put these bonds jin the market ? Mr, Bourwe L—One-half of one per cent; but I may say that from the ping of the go ment until mow ong per cent bas always been allowed for every loan put upon market by the Secretary of the Treasury. Mr. Cox—Mr, Spinner says ip bis a that it is fmpos- sible to negotiate the foan in Europe at less than one per cent “ye .- “ Mr. BOUWELL—Mr. Spinner did not consult me about his have never read it, Syndicate agree that you shoula borro' money from ihe Treasury, without paying interest for \ nde i fold has never been loaned to any one with my consen ‘knowledge. Mr. bon aa he what has been the expense of ad- ing these bon Mr. BOUTWELL—The expense bas been very large; I could Rot tell you how much. Mr. COx—Did you advertise. abroad as well as at home? Mr, BouTwRii—We did. Mr, Cox—How much dia you save by this arrangement of funding in these five per cent bonds? OTWREL—T did not put jt in my reports T did put if speech in Obio; I reckon the amount at about ‘on $100,000,000, supposing bonds to be paid at the of tei yo vears. r. COXDid' you tnclude tn, that tbe loss to the govern- ment by negotiating these bonds ? JOUTWELL—I did not; if you consider the loss of interest on the money remaining on deposit in banks, w5tld vat $1,700,000, not including one-hait of by law as the cost of negotiating nds, Mr. COx—Do you not believe that this law should be amended #o as to enable you to execute it literally, without being obilged to regort to the liberal construction ? Mr. BOULWELI.—I will toll you just how feel about it, ani that is, while Lam glad td be ‘here to-day, if this com: mittee of the House of Kepresentatives suould be of opinion that it Js an unlawful way of doing business oF an unwise way of doing business, of course 1 should not pursue it fure ther; I believe Ihave executed the law in good faith, with. ut Construing any of its, provisions improperly, and if this comm iuee fs satisfied of the fact, I have no doubt we can f° ith the negotiation of the loan both for the five per cen! Tour nd one-haif per cents and the four per cents-with- out turther legislation, and this despatch which I bat from Mr. iichardaon Wil show you the facts on which I make statement tae Coxe Then you do not want any further legislation ? Mr. BOUTWELL—I do not ask for any further legislation At the Commalttee of Congress thinks Tain ‘proceeding prop- erly now. You cannot possibly negotiate the loan at Iss than one percent on tue five per cent bonds, one and one- baif percent on the four and one-half per cent bonds, and {wo per cent on the four per cent bonds, unless the busines through the banks fa continued in the way pointed out, wish to add that 1n eve! and al all times the Treas has held urity for the need certificates of deposl| ‘on account of subscriptions an equal amount of government ads, Report of the Committer, The Committee of Ways and Means, to whom was referred the resolution of December 4, allog- ing that the Secretary of the’ Treasury im placing the newly-authorized five per cent bonds upon the market has violated the laws, submit the following report:— The resolution ts in the following words :— one it is alleged thatthe Secretary of the hing tn placing ihe newiy-authorized five per cent bonds upon f 8, in defiance of the law creating thew, increased lic bonded debt and has exceeded the one-half of | 7 — Ens law for all expenses of mmittes on Ways and Means be di- rected to investigate sald allegations and have power to send jor persons and papers, and. report the amount of such increase of the bonded debt, if any ; the agentseaployed and paid ty him for the service,’ and all contracts pertaining to 10 same and the sums paid to such agente, THE ALLEGATIONS of the resolution arg, first, that this negotiation increased the bon tof the United States, in detiance of Inw; second, thattl ey has ex} Jed more than one-half of one ver cont, limited by law, tu the expenses of funds sald loan. ‘The hrat of these allégations Js founded upon the followh oe et the act authorizifig tne loa ing in this act, or tn any of the laws no’ clause of the frat ni amely "But not in rorce, shall be construed to authorize any increase what- ever of tho bonded debt of the United States.” ‘Ihe Vom. mittee are of opinion that thie provision of the act bas not be which he tou follows:—“That the Beoretary of the Treasury 1s hereby authorized with any coin in the Treasury, which he may lawfully ay ply a hiob may be derived from le mgt wet for in LJ uy made of the United Bistee of bonds, which have become or shall hereatte able by the terms of their issue, and the to be paid and cancelled shall tn all ¢ spectiiod by lags, date and number, in the indicated and oorder of their numbers eet eet on the Gest musaber ond fasue, 4 ue teh folated must in be given and in three months after the interest on the bonds go selected and adi @ clause which it 1s ey has cor ip connection with this that of other parts of the law, which it was enactea, By this f closed the whole purpose of authorizing the Of thes’ “bonds, and. wey ‘can issued for no other. ‘They cannot be issued oF fied in this ones used for any otber purpose than that spect! The purpose of thle inw must be considered together, and i statute wn this provision of the law violated, was Spm lts ‘appropriating the this statute to any other purpose than that by biic debt; so the ti was plete the pat would be assured that the deBt of the ‘hot thereby beea increased. It had the aouble Vent ia eth ae ons Se po grip Ng Towers, and that, on the other band, our policy and pros perlty had so STRENGTHENED OUR OREDIT that we were, so soon after the crea of debtedness, enabled to enter upon the process ot without increasing the same ata much less rate of int In the opinion of the committee, thi» clause of the has no other scope and offect and was not intended Darrass or cripple the elforts of the Secretary to every provision of the law, which y_ provide: fig jatte the new loa atter bi i 5} u id Ff ‘siapl, thas n and of the outstanding indebtedness of the Sulatandiay bonds by the money im the. Treasury” and outstanding bonds by the money tn the ouly uso tho new jenish the Treasury and keep tn funds for that pirpose.as well as ior current exper still, the construction of the cause, which it is alleged Secretary has violated must necessarily be the same as put upon it in the negotiations of “ibis loan and which 4p the opinion of the committee ig the correct vue. Bypposs the Segretary were, with 81,000,000 in the Treasury, = Joem # ialtlion of the outstan ling five-twenty bonus to-day, 8 could not replace hat money in the Treasury, to-mo by the negotiation #f the honds authorized by the act July 14, 13:0, without increasini the puolic debt, as it stand when he began the negotiation of tue new loan. E bond he has taken up kas reduced the Invebtedness ef gountry by that amount, and if the construction conten for is the correct one he's for that very reason from negouating a sitigle dollar of the new loan C the place of the old bonds first taken up, or to replemah Treasury, depieted by the same amount of the Cee ery § There is but one way, #0 far as the committee know, that will be possible for him to carry out any of the provisions of this act, except by a temporary {ncrease in the process of the funding of the puolie debt. NEW BONDS FOR OLD ONES, That one way ta to exchanye a new bond for a corre sponding bond of the old five-twenties. ‘Zig committee um Gerstaud that he is authorized+* do that by the act, and thas he ta authorized to do much more, and any limitation to @ bare exchange of the one bond for the other would render ; = 3 é A 4 { 4 Uniied redemption the act of very little use, and would at the same time treat as a nuility all those provisions of the law whieh Authorize ii to sell'tho new bond to one party and wih the poaeecn to redeem the old one from any otuer party hold inj th frie committee have considered this resolution in th manuer as if it bad been adopted by the House, fustead of @ simple referenco.to them for consideration. Upon their iave tation the Secretary of the ‘Treasury and the mover of the resolution were botu heard by the committee fu referdnee te ft, The statement of the Secretary accompanies the report, af also that of Mr. Jay Cooke in reference to tue samo. Fhe rangement uni 5 eure! us far finteatthe loan authorized by the act ‘ot daly 14, 1870, as ished by hina, is as follows: — ‘TUB NEGOTIATION ARRANGEMENTS. On the 38th of February last pubiic notice was given thas on the 6th of the following March books would be opened ia this country and {n Kurope for subscriptions to the uationat, loan, under the act approved July 14, 1570, and tue conditions on which the qubscriptions would b6 received were made known. All the national banks and a larwe number bankers, both in this country and 1a Enrope, were auth to receive subscriptions, Tt first preference was given suscribers to the five per cent bonds, within the limit 200,000,000... On the Ist of August’ the subscriptions amounted to 860, 775,550, obielly by the national bauks, Under date of July 4, 1371, m despatch wae received from on, William A. Richardson, Assistant Secretary of he ‘reasury, then in London, stating that certala bankers Europe proposed to take the remainder of the $200,00u, five per cants upon certain conditions. YY ‘this pro ryt 1 Joke & Co. had the right to subscribe for the remainder ¢ $200, 001,000 of sald vonds, by giving notice thereof at any time previous to the Ist of April next, and by subscribing fc 1°000,000 ut once aud for an average of at Least $5,000,000 of jonds per month during the interveuing me, subject to ght of the ational banxe to subsoribe for Bou withlo atsty rom the 36th day of A Ww ust, fecal pare gta fe ee 3, an’ fed nks to the slate the Ti of the areemen| rules represented, by’ Messrs. aay b said bai if to be lodged with the freasurer of the United 8: phous, of the depos Bye printed circular issued Oth of Augual, 1371, ‘it was announced that nation making or obtaining aul ignated by the Se of publie money, on hands of the Tre: United States fur the the commencement month, ni the redemption of an amount of bonds equal to the ami of ee) in coi for preceding month, interest cease in ninety days from the date of such notice, It was alao stated in the ciroular that, as the bonds should mature, the deposits would be drawn from the banks 01 ly. it 2 proportion Wacreed that the subscribers to the should receive as commissions whatever might remain ci half of one per, cent, allowed by law upon the 08 ter ry cograving. ‘Frtating, advertialag, delivery, ‘ood all ‘other expenses of the same. books were opened in this cous- try and to Europe, and by the Inst of August subscriphome were obtatued for the entire amount offere If the transaction neo wentigated be hela a fh the strictest possible bonstruciion e atili the peg not be found to — ate’ ‘a pom ia don listed deporitaries,durh in desighat at elapae:| De} new and the reddompties EShde, Botha] recli¢ Riiouat, ry the sale of @ & corresponding amount 5 therefore, thut the public debt is increased new bond it is diminished by the depository becom! debtor to the government to the full balance of the leaving the peregate the same as before the tr commenced; but the committee-Is of opinion that no Eee is necessary for the justilication of the Secre resolution fs, that the Seoré, tary bas exceeded the oft of ons per cent allowed the Funding act for all expenses of placing said loan, fees es of the terms upon which this loan has thus made 5 ‘3 by the Secreta ter deducting (rom.thé aggre; half per cent of the oan would. amount tending this jotlation, such ag Fy iting the bodds, wad that tothe national banks agencies for such nego! ition o! as they had been able te ake, the balance of said one-half per bent Lag tod ‘was by the arrangement with Jay Cooke & Co. to be paid those parties who took the balance of the loan. If this eorrect—and the committee see no reason to bis apparent that the limitation of one-half HAS NOT BERN RXOREDED THUS F: Jn the ne ion of the loans authorized by this act. But art of the agreement by which the balance of the loan was ken was in substance thus:— the national banks which took this loan for themselves and those_for wi they negotiated it were to be designated as depositories public money, an‘ proceeds of the bonds thus taken we main as deposits with said banks until used by the Secre ary for the redemption of an equal amount of at 4 an! far ng and been paid meat it—then cent eq! onda, But it isclaimed that the use which th of thjs money was a part of the expense Incurred b nitéd Slates in negotiating the joan, and that, th le the extent of that use the expense exceeded the one-halt cent allowed by law. Jt was one of the stipulations ot Agreement inal tho depose ghost Tr als banks for the period 8, clude that such use of the inoney so. deposiied was of come siderable value to the banks and entered largely os a® element into the inducement which finally led to thelr taking to place the bonds-of the entire loan then off {ueretore, that use may be legitimately reckoned 4s a part the re pense ot the y ted States of pogouning th must be added to the ober expenditired ‘aitd the would exceed the one-Lalf pet cent; but the committe Of opinion that this advantage thus derived by che banks from (helt use of the mouey during the time which inust ne cessarily elapse between the conversion of the new bonds {uto coin and the redemption of the old bonds with that cannot in any fair interpretation of the Funding act be & part of the expense, which was limited by that act 10 ome. half per centof te loan. It ts given to such banks by Jaw that makes them depositories, not by the contract of | Becretary ; it the Secretary had received into the Tre: fed iocked up in its vaults a larg t of coin deri : from these bonds, It wou e have resulted DISASTROUS CONSEQUENCES TO THE COMMEROTAL. WORLD: {t cannot be doubted that the withdrawal for any considers: bie time from the current business of two millioris of without anything to supply its place, would be attended disaster, abd should oe avolued, if possible, under law ; by the forty-tifth section of the act establishing national banks it was enacted “that all associations wi this act, when designated for that purpose by the & of the Treasury, be depositories of pub: ex t der ‘as shall 'y, and thoy will also 103 goverment, and they erform abie duties a depositories of lie mor id fi government may 0 end the the Treanky oe juire of the associations thus designated satis: curity by” the deposit of Called States bonds and. other for toe safe keeping and prompt payment of the e mone; ite with them, and for the faithfn! perf Of their duties as Hoancial ¢ it ramen ee nts of the Under this provision of law, fi ft this aa ot mow a the Tene, where ie maid be net Fre aa ee goats " ¢ redemptior 1 five-twent) and pee pate R was autho tore do a laws. Noth! ave United States the use of money in the meantime, for the Ht by the for any ios a erate gM a" ane top as here stated. If such Te aoe ne oo eas te coutta. from vhe Tons and fhe Inw aud cannot, be said {0 be teyal. during which this money was to bé left on depos parks semnAie Secretary only for te purpose of foomp> | fa by no contingeney bo yossible ae ef ore fo eail for until weeded for that parp: ae. 6 fourth section of the Funding act he was only au.beri Ph Le mony el uatce of fe Lind Known aa trecwrenay poegs% ‘tn ‘eco! shall become eeieeen 4 three montis on the BONDS 80 RELROTED AND ADVERTISED 0 patd shall cease, (oye Rutancously with this arrangement by whten thie money was loft on depuslt with these banks the Secretery lasued @ Totice calling in the first @20,000,0U0 of these bonds, in wi he gave notice that “the principle and accrued interest the bonds = below designated, known as hve-tw bonds, will be pald at the Troxsury of the United States, the city of W: 08 and after the first day of ber next, and that the Interest on sald bonds will ceaso om that day.” This notice bore date September 1, 1871. In ref- erence to all the other, bonds called in a similar notice bee ‘been issued from time to time, ‘By the provisions of the fourth section, heretofore reterred to, this three months was required before the Interest woul stop on these bonds. It 1s obviows that until the averest stopped no man had any inducement to surrender hie b: Guithe ower hand, tae gecuritiog are 80 valuabid that