he would not trespass on their patience by any
further discussion of the subject, unless such dis-
cussion should be rendered necessary by others.
He believed the merits of the question had been
fully elaborated by previous debates, and he
would therefore now content himself with simply
recalling to the mind of the Convention the true
nature of the question at issue.
It was this : It was admitted by all, and had
been several times stated by himself and others,
that a great change was about to take place in
the monetary affairs of the world. To what ex-
tent this change was to go, none could foresee or
calculate with any certainty—it was certain only
that the change was in progress. That from the
action of ordinary causes, as well as because of
the great and unexpected augmentation of the
amount of precious metals, the relative value of
money was to be greatly depreciated, to be ac-
companied and followed, as the shadow follows
the sunbeam, by a low rate of interest—possibly
in a few years as low as three per cent. even in
this country.
The State of Maryland has a large outstand-
ing debt, bearing interest at the rate of six per
cent. If the state of things anticipated should
arise, the State, if the amendment prevails,
would have the power, through her Legislature,
to exchange her outstanding debt, which bears
this high rate of interest, as it becomes redeem-
able, for a debt at the lower rate of interest—
say three per cent; and thus secure to the State
the difference between the two rates of interest,
three and six per cent. upon the amount of her
debt so converted. The saving would be, sup-
posing the whole debt could be so converted,
three hundred thousand dollars per year, and in
the same proportion upon such a commission of
any amount of said debt less than the whole.
Without this amendment, under the sweeping re-
strictions imposed on the power of the Legisla-
ture, by the section as it now stands, the Legisla-
ture will have no power to do this; and you will
be obliged to continue the payment of six per
cent. per annum, upon all that part of your out-
standing debt which is now or may become re-
deemable, when you have not the cash in hand
to pay it off, although thousands of others may
be ready and anxious to lend you the amount
at three per cent. interest Would it not be wise
to give the Legislature power to turn to the ad-
vantage and relief of the people of the state,
this condition of the money market, should it
arise as anticipated—taking care, as the amend-
ment does, that the gross amount of the state's
debt, shall not be increased, by providing that the
new stock to be issued, shall not be for any
greater amount than the amount of debt redeem-
ed, and shall bear a less rate of interest. It is a
power which cannot be abused, and if used can
be used only for beneficial purposes. The case
is precisely similar to that of an individual who
owes on his land some fifty thousand dollars,
hearing six per cent. interest. He has not the
money to pay off this debt, but he has other
neighbors or friends, who are willing to lend. him
the fifty thousand dollars at three percent, would
not every one say he was blind to his interests, |
if he did not take the loan at three per cent. in-
terest, and pay off the debts bearing six per cent.
interest? It is not proposed to require the Legis-
lature to do this, but to leave them the power to
do no, if that state of things should arise which
will enable them to do so; and the circumstances
and condition of the State is such, as to make it
wise and proper at the time. In my judgment,
this salutary power should be left with the Legis-
lature; and this is the whole question the Con-
vention have now to decide. They must under-
stand it; can judge of it; and, therefore, I for-
bear any further remarks.
Mr. MCLANE spoke at some length on the sub-
ject of financial operations. The remarks will
be published hereafter.
Mr. MERRICK said:
He was glad to find so few points of difference
between himself and the honorable gentleman
from Cecil, (Mr. McLane,) and the wonder was
that there should be any, after the statements and
admissions of the honorable gentleman. He ad-
mits that by the operation I have before explain-
ed we shall save three per cent. per annum upon
the amount of State debt which may be so con-
verted. That is the great and the single object of
the amendment. If circumstances arise in which
that object can, in whole or in part, be accom-
plished, the amendment proposes to give power
to the Legislature to accomplish it—should those
circumstances not arise, then the amendment
will be inoperative, and can do no harm. it is
one of those rare propositions which will give
power for good but none for evil. The gentle-
man admits the good, if it could be accomplish-
ed; he also admits the approach of that state of
things which will favor its accomplishment—
why not then give the power? The honorable
gentleman has gone into a long argument upon
general subjects of finance, and the fluctuations
in values and exchanges about which there is no
dispute, no differences of opinion, and upon which
we may discourse as long and as eloquently as
we please, and at the end, find ourselves just
where we started. I have proposed to bring the
mind and judgement. or the Convention to near
upon a single and plain proposition in the science,
(if you so please to call it,) of finance: which is,
that if you can exchange a six per cent. bearing
debt for a a three per pent. debt, you save three
per cent. by the operation. Nothing could be
plainer nor more simple. And believing, for the
reasons assigned, that that state of relative values
and exchanges is about to arise which may en-
able you to effect such an operation, I propose to
give the Legislature power, if they can accom-
plish it, to do that most desirable thing The
correctness of my facts are admitted—the ap-
proaching depreciation in the value of money is
admitted—the consequent fall in the rate of interest
is admitted, and the great probability that
the object might in whole or in part be accom-
plished is not controverted. And yet the measure
i» opposed; and we are told that the approaching
season of prosperity, is to be followed by another
period of revulsion and distress, when money
will again become high and scarce, and the pro-
ductions of labor and industry low. Well, sir, 1 |
