, 1866-05-28
FKOM WASHINGTON.
The Merits and Denerits Of the
fnnling Bill.
Why the BILL IL ImpractfcnbIc.
From Our Own Correspondent

An nnlmhicd contest upon question OF The
highest national Importance was anticipated
to-day in the Senate. 1t was expected that
during the consideration Of Tic special order
the Funding Dill-Mr. Sherman on the one
side, and Mr.. Fessendcn on the other, would
enter The lists rs champions for and against
the measure, and TINT, both being nblc de-
batcrs and determined parliamentary fighters,
their rcncontre would be franght with ab-
sorbing interest. Bnt this expectation was
not realized. The discussion was opened by
Senator Sherman, in g lengthy speech, but
the Senator Of Maine, owing TO his feeble
physical condition, absta'ncd from making an
immediate reply.
Mr.. Shcrman's effort this afternoon will
hardly add TO his reputation as leader in
financial matters In the Senate, next iu stand
ins to The Chairman Vi the Finance Commit
tee. He had au opportunity, such as Is rare
II presented to public men, 10 enlarge upon
one Of the most delicate aud difficult prob
lens III the administration of our public af-
fairs in a manner that would have made
lasting impression nron the public mind, and
raised him high In the public esteem. by m
cllort, worthy Of the subject under considcra-
lion, he could have commanded the attention
ofthc reading world rs much as did the late
speech Of Alr. Gladstone in the British Par
lament upon the critical condition and pros
rcct OF Grcat Britain. But he failed to prove
Himself equal to the OCCASION. By his own
admission, hc spoke without much pgepara.
lion, although he had had ample time for 1t.
llis delivery wanted animation. HIS diction
was commonplace and ill-closcn. Ills argu.
ments were not to the point His conclusions
lacked logical force, and his statements OF
facts were not always correct.
In one respect only his speech WAS q snc-
ceas, and this is the demonstration Of tho
propositions, that It WIS necessary to do away
with the mu1tifnrious character Of the M
tional obligations, by funding them into uni
form evidences of Indebtedness, md that it
was desirable 10 rcd1cc the interest Of the
public debt. But these propositions are Of
ing mind in this country will dispute their
suuuduess. The main question presenting IT.
self to tue Senate and the country at large IN
connection with the proposed measure, Is,
whether Il Is calculated to afford the means
Of attaining these necessary and desirable
| this. He scarcely referred to it: Ills supern-
clal, incidental treatment OF this part of the
| subject, proved indeed, that he had given but
| little, II my consideration to this, the most
important bearing Of the bill. Tic true test
Of wise legislation is the practicabillty Of
contemplated measures. That he omitted to
| apply 1t TO the funding scheme. which he has
thought before Congress, aud tlnt lie has d.
gcstca It very crudely appears clearly from
certain statements he made In the course Of
his speech. liz held that the funding process,
| proposed IN the bill, should be carried ont
| before the resumption Of specie payments, aud
| that It could DC carried out Immediately.
Now, contend that but an insignificant por-
slon Of the public dcbi eau be funded un,ltr
the terms Of the bill, before the resumption
T. fufu
what he did Il trust for the credit Of the Trc.l.
sury Department that his views did not re-
Lct those prevailing in that quarter), lie
Cvinced m extraordinary oversight Of the
characteristics Of the different kinds Of mate
rial obligations. that render their reduction to
Uniform securities, harm. uniform rate Of
interest, impractieab!c until We have return.
| ed oncc more 10 the tpeclc basis.
On the first Of May last, the total amount
OF the Futlic Debt, less cash in the Treasury.
bearing no interest, including Ereenhacks,
fractional currency and gold certificates Of de.
| post, OF which the action Of Congress this
winter has left but small portion within the
score o: immediate funding operations. was
s!5ss. Saa 10, leaving hut ~! ,os7 as the
object Of Inc proposed funding schr1lc.
The total debt bearing interest In cam that
ferns rnrt Of this amount was, on the day
mentioned, 81 ,1SG, Or, ,sit.So. made up Of the
following classcs Of bonds:
Eve y cent bond: !l0 ,1oo g
SIX pr cent bonds of ofts6l........... 155.C1
six pcr cent SO beuds....-... .... 6351St-U01 On
Of:hcsc, four kinds OF gold bearing bonds,
The five per cent or tcn-!or:fcs and the six per
cents due III 1867 and isis could not now be
converted into the proposed live per cent
thirty years bonds without evident loss to the
Government, the former being ut q discount
ard the latter at 4 high premium, and hence,
1t is not supposanle that Mir. slcculloch
would apply the funding bill to them. As 20
hundred and ctchty.thrce millions, the fact
| that they have get fifteen years to r1ln that
they are payable, principal und interest In
gold, and that the Government cannot, uu-
less by a breach of faith toward It's creditors,
compcl their conversion into bonds bearing
less interest, renders It certain that the hold
ers will not exchange them for five per cent
bonds. For the advantage that the latter
will have longer to run, will not be sufficient
induccmcnt to them 10 foteEo the other Of
ono per cent Eaore interest per aunum for tl,-
teen years.
In regard to the fiye-twent1cs, 1t Is the
height Of absurtlitY to suppose that the Gov
e1nment will lc ablc to prevail on their hold.
crs, voluntarily to surrender their six per
cent bonds, The principal and interest Of
which are both payable in coin. for five per
cents Of the proposed description. As long
as the Government Is not In copdltion to
take them up, the highest rate OF interest and
| the certainty OF fece1TlnE IAtf pSlHcfp1l
eventually In coin, will naturally make their
| holders prefer them to bonds that they can
| buy at par for curT1ncv, and thai bear one per
cent las Interest And, ns 10 tho ability OF
the Government to redeem these bonds, and
| substitute five per cunts In the(r stead, It
needs no special demonstration that It is i'm
possible for 1t to find the means to do this as
lcuc as its paper money cannot com
mand It's face value In specie. Next
year no less than Ave hundred and
fourteen millions of ttve-twcntics bcc3mc
rcdecmable; but tue Government eau only
redeem them BY paying 10 the holders thell
rar value In coin OF offering their equivalent
The former II cannot do. To offer the 1Attel
In currency. including the premium on gold
would bc q curious operation. And holders
| will certainly not consider five per cent
| bond, pnrchasable fol currency ut par, an
equivalent. Again, 1t must be remembered
that the largest portion OF the t1ve-twcnties
: is held In Europe. What the foreign holders
who bought them Mt from forty TO seventy -fiyt
cents on the dollar. are after Is the high inter
, | est they realize now on their original invest
mcnt, and the principal in coin at maturity
and they will not part with them for i've pei
c,nt bonds they eau buy at q discount fol
coin, rs long as specie payments are not re
, 4 sumcd.
have thus shown, that the proposed
funding Law will be q dead letter as to tht
! whole gold bearing bcbt Of the Government
! until the latter Is prepared to resume speci'
, naymcnts. l intend to show further, thai i