The PRESIDENT protempore. The motion is withdrawn. The special order is before the Senate. The Senate proceeded, as in ComWhole, to consider the bill (S.No.300) to reduce the rate of interest on the national debt, and for funding the same. It proposes to authorize the SecyTreasury, if he shall deem it expedient for the purpose of funding the national debt and reducing the rate of interest thereon, to issue registered or coupon bonds of the U.S., in such form and of such denominations as he may prescribe, payable, principal and interest, in coin, and caring interest at the rate of not exceeding 5%. perannum, payable semi annu ally, such bonds to be made ayable in not over 30 years from date, to be issued to an amount sufficient to cover all outstanding or existin obligations of the U.S., and to be disposed of in such manner and on such terms, not less than par, as the SecyTreasury may deem most conducive to the interests of the Government. The expense of preparing, issuing, and disposing of the bonds is not to exceed two%. of the amount disposed of, and the bonds, and the proceeds thereof, are to be exclusively used in taking up or retiring the obligations or indebtedness of the U.S. other than U.S. notes. The bonds thus issued are to be known as “the consolidated debt of the U.S., ” and to be exempt from taxation in any form by or under State, municipal, or local authority; and in consideration of the reduction of the rate of interest effected by the negotiation of these bonds, they and the interest thereon and the income therefrom are to be exempt from the payment of all taxes or duties to the U.S. The amount of interest saved by a substitution of 5%. bonds for other Government securities is to be applied to the payment of the principal of the national debt, and for the purpose of insuring the payment thereof and in lieu of the sinking fund contemplated by the act of February 25, 1862, the sum of at least $30,000,000, including the saving of interest, is to be annually applied to the reduction or extinguishment of the debt in such manner as may be determined by the SecyTreasury, or as Congress may here after direct. For the purpose. of enabling the SecyTreasury to prepare for the funding or payment of the outstanding Treasury notes caring interest at the rate of 7 and 3 10ths%. perannum, the holders of such notes are required to advise the SecyTreasury, in such manner as he may prescribe, at least 6 months before their maturity, whether they elect that the notes shall be paid at maturity or shall be converted into bonds of the U.S. commonly designated as 520 bonds; and the right on the part of the holders of converting the Treasury notes into bonds shall be deemed and taken to be waived as to each and every note in relation to which notice shall not be ven as thus prescribed, and the same shall e paid at maturity in lawful money of the U.S.