Nebraska advertiser., 1868-07-30
The Funding Bill.

The House has matUred, and viii
probably pass, a bill to fund at q lower
rate of interest the present funded
Debt of the United States. Its prin-
efpal features are as follows:
/. The new bonds are to be redeem
able at the pleasure Of the Govern
ment after forty years.
2. They are to draw interest at the
rate of So, IS on every 500 due. That
is to say: Each g Five-Twentyh bond
of 81, 900, which now draws $50 inter
est per annum, is to be exchanged fOI
a new bond drawing but 1851 interest
per annum.
3. The new bonds are to be abso-
lutely untaXable by Federal, State OF
local authority.
4. In lieu of our present Sinking
Fund, the sum of S135, 600, 900 in spe-
Gle per. annum, collected each fiscal
year from Duties on Imports, is set
apart and pledged to the payment OF
the interest and reduction OF the prin-
ciDal of our National Debt.
5. No commissions shall hereafter
be paid on the exchange of one form
of National Debt for another, or on
the sale Of any coin or bullion for ac-
count of the Treasury.
6. All exchanges of bonds on be-
half of the Government are to be
effected by public competition, after
advertising for proposals.
Z. HencefOrth, the income tax due
or accruing upon our existing bonds Is
to be deducted at the Treasury in pay
ing the interest on such bonds.
s. All authority TO issCe new bonds
Of the United States, save in exchange
for old ones, is revoked and annulled.
This bill has good features; but is
it a practicable measure? ? In other
words: Is it probable that those who
now hold 81 900 bonds of our Govern
ment, whereon they draw an interest
Of $50 each per annum, will rush to
the Treasury and offer them for ex-
change into new bonds of like amount
drawing but S364 each per annum
WOnldn't it be advisable to pay hall
per cent. to whoever shall induce them
Tor part Of them) to do so.
We shall certainly be glad to hear
that the holders of our Five-Twenties
are ready and eager to make such an
exchange; but we do not understand
the inducement. And we apprehend
that the cutting off of all commissions
precludes all hope Of any general OF
rapid refunding of our Debt.
As to the S135, 600, 900 clause, itseems
to SAVIOR of Reputation. Here are the
provisions of law which it proposes to
repeal:
i. AU the Duties on Imports to be
collected and paid in coin;
2. Said coin to be specially devoted,
First, to the payment in Coin Of the
interest on the bonds and notes Of the
United States;
Second, to the annual purchase or
payment of one per centum of the
entire Debt of the United States.
That is to say: By existing laws,
the whole revenue from imports Is to
be collected in coin, and the total in
terest of onr National Debt paid there
from, with one hundredth part of the
principal every year.
1t seems to us that the House bill
substitutes a less for a more complete
security TO the National creditors, and
so is unjust.
We ardently trust that a good
Funding bill may be passed at this
session, and that the rate of interest
may not be fixed so low that no one
will accept it. Do let US have the
work of funding our National Debt in
an Americal COnsOl well begun at the
earliest moment. But let us have no
quackery, no demagOguism, and no
faint of repudiation.-N. Y. Tribune.