Mr. ALLISON. The SecyTreas nary, as a matter of course, can receive compound interest notes in payment of long bonds, and under the existing law he can reissue compound interest notes. But. that may not be desirable; it may be desirable that he should have some power conferred upon him by which he can sell his long bonds directly for greed Jack currency with which to pay off 730 and compound interest bearing notes, both of which I believe it desirable to pay 00 at the earliest possible moment. Now, sir, the compound interest notes and the temporary loan which m colleague [Mr. rectly, to so convert this indebtedness into long JPBICE] says will cost us noting, I regard as the most obnoxious loan now in existence; I regard that loan as the most expensive loan whichwe now have; and for the reason that it now amounts to $119,000,000, and the SecyTreasury is compelled to keep in his vaults a la of amount 01 mone for itsWedemption. He as today in the Treasury if the U.S. the sum of $23,000,000, and perhaps more, of greenbacks, for the express purpose of paying this temporary loan as it maybe presented and besides, the way in which this tem orary loan is managed, is, I think, obnoxious an injurious to the public interest. How is it managed? By giving the NewYork association of banks $25,000,000, the Boston association of banks $10,000,000, and the Phil adelphia association of banks $5,000,000 or $10,000,000 more, which sums are payable upon the presentation of the certificates. The SecyTreasnry is therefore compelled to keep constantly onhand a large amount. of greenbacks in order to pay this tem orary loan whenever presented and he will always be compelled to pay that temporary loan at the very time when it ought not to be paid; that is, when there is a scarcity of currency in the country. Thus he is paying a large interest for a loan that is of little practical value to the Treasury. Now, sir, asIhave said, I know of no power that is directly given by this bill, exec it the power to sell those bonds at less than par 2; ould such a necessity arise. For one, I am not in favor of perinitting the evidences of the indebt edness of the U.S. to be sold forless than par. I believe that since the beginning of this war we have not at any time sold our evidences of indebtedness for less than par in notes of the U.S. But it may be for the accommodation of the bankersand brokers, who seem to me to be the terrorof my friendfrom Illinois, [Mr. wENTWORTH] thatthose bonds should be reduced:1. little below par. If that should be done. will anyone say that the wheels of this Government would be stopped. because for a time we were compelled to sell U.S. bonds for less than par? Sir, the inevitable interests of the banks and capitalists of this country holding these securities willhave a tendency to keep them at par. The national banks alone hold $500,000,000 of them. Now, the very momentthe SecyTreasury issues any of his bonds at less than par, that moment the other bonds of the U.S. will be reduced to the price for which he sells his. Therefore it is that I believe the incvi table laws of trade and finance will keep these bonds at par. One single remark further in reference to this greenback circulation. The SecyTreasury does not, in his annual report, propose an immediate return to specie payments. I believe that the state of the country is now much more satisfactory than he believed it to be when that report was written, because at that time prices were ruling high, and gold was at a premium of 47 perceut., while the premium is now but 30%. a reduction of 17 %. But the SecyTreasury, in his report, states that the reduction of the greenbacks or U.S. notes by $100,000,000 will probably secure what we all desire, the resumption of specie payments. Now, sir, my friendfrom Illinois, [Mr. Wnxrwourii] my colleague upon the ComWays&Means, has great anxiety WiThreference to a class of men in this country, who, he apprehends, are seeking to destroy the public credit. I have no such fears. I believe that the interests of the moneyed men of this country are all upon the side of keeping our securities at par and I believe that it is to our interest as a people, as a nation to keep as many of these securities as possible within our own country, so that the interest and the principal may finally be distributed among our own citizens. Therefore it is that I am desirous that the clause with reference to the dispositions of these bonds abroad shall be stricken out. It is true that the SecyTreasury may under existing law and by this bill, if he believes that it will be good policy, negotiate a loan abroad. He may negotiate a loan outside of the U.S.; but the interest and principal must be payable in the U.S. I can see but very little difference, whether the SecyTreasury authorizes an agent to sell these bonds abroad, or whether he permits NewYork bankers and foreign agents to purchase them and send them abroad. But this bill limits the power of the Secretary to increase the national debtunder existing law; he can if he chooses increase the public debt to a large amount, and the people are anxious to know where that limit shall he; and this bill proposes that there shall be no further increase, which is an important limitation upon existing power vested in him. Mr. Speaker, I yield the remainder of my time to my colleague on the committee, the Gentfrom NewYork, [Mr. Coxxuxe]