, 1870-03-23
JAYHAwKrFa fHE RANKs

his Funding bill which requires tho National
Banks either to e1chsugo thair par cent
bonds for Is, 4 l-ss, and 4s, and lose ths
difference, or forfeit their charters aud
surrender their circulation. At the outset
OF the discussion VIC might enter demur-
ref that Mr. she1man is not good Judge
Of mosality - applied TO The national
finances He holds, or did hold, that the
existing SEQ bonds are payabls in green.
backs. II he can see no infraction of 1,or,,
prnople IN requiring the holder OF an in
se1eat-oeas'ng bond to exchange it for due.
OH bearing no interest, aud possessing no
n'ghe1 security than the bond, he cannot
be expected to see any harm in requiring
tho holder of 6 par cont bond TO exchange
it for per cent bond But this is mere
" an argun7esatuHs ad hominem, and doea
not 50 70 the merits Of tho question.
Mr. Sherman says:
We have now the right to redeem their ESQ
c ~, ~ ~ wiIa guild and propose now to
Very good. The $50 bonds ara worth
~ cents in gold, or thereabouta. The hold
era viii accept 100 centa without cayl.
-. onsiuA eoes On:
ST. md the bonas 1hje aps af sae 9ond; ~ Of
Ihsss they have M he night At an9 time to Withdraw,
pleasure. The Fuudas iii sdyances ~. a. IaS's ~
above ~ u guild tx'e, and tho bants
require Is, las thc hants. i within one ~. yest ~
, shas sesa!r taess circulating noses n1th the new
Ind gre WAY to new banks Who sts xiunr1 IN e4.
nS ts or nos. =! A., to aid In re-
ANow, this Is clearly within the power OF Con-
& r. e: IT, snea eao III 81 Is lof ne interest
Of ihc banks would tend to overthrow the whole
s'1sem ~an-
ss.1e So 49, =. 4o' .11 pHase lnoi-
e.1 :, t 'o'' A@'.ec Auno1ea MILL
~ - $3.50 - 'Se oonos ~ .oe onet OF
se.-s1. s44'Aosea, Anas tnese
fa "ess Nv ete"'ef tian they had
H.. :, ~. sa!': ,su !" proved ~ INC TACT
:. "''' Ae"4ia nee<'sas5 % impose tar
4op.' ee"' PoF annuna on the atate bank
.n.nAeon 10 compel the banks to accept
sa uea la1vleees. this WAS perfectly
A4eu1- A4e o'a esa'e oank system was an
e>e4eseeoes ano nuisance, and II needed
eon1e sacn shafp measure to get it
oo' u luo way. We alnde to 10 per cent,
'"1 ~ sno" mat INC parties who finally or
gaizea unoef me National Rankin s system
t,'a no' esteem II IN my sense privilege to
GO so- 1hey were forced out of the old
ssstem' and invited to enter the new upon
CERTAIN conditions. The usual saving clause,
tisat congress may at any time alter,
amend. OF repeal this act, wns inserted in
The law, bnt Tor no such purpose rs that
which senator Sherman now invokes. It
WAS never intended to make this reservation
the pEetext for confscating IL per cent
OF the capital Of the banks. Congress may
repeal the act entirely for sufficient reasons,
but not for the reason that the banks would
rnther pay 15 per cent Of their capital
than have it repealed In point of fact,
the banks IN the West cannnot nf-
ford to pay either Is per cent or
one per cent to savo their charters,
It's a mere "toss-up" with Thorn
whether they will continue, under tho pres
ent weight Of ta1ation, to exist Us National
Banks, or surrender their charters volun-
tarily. The National Banks in this city pay
p<r cent upon their capital, annually,
in national, State, and municjpa1 tarex-
Senator Sherman says that, "If thcy 70
into private banking, they become subject
to every tax now paid by National Ranks.
except the ta1 on circulation They NAV
be 80, perhaps, in law. but not in fart. The
machinery for collecting taxes from tho
National Banks is perfect; while, as regards
private banking, there is no such machin-
cry. 1t is safe to say that the National
Banks pay three times as much in the way
of taxes, in proportion to their capital, as
private bankera
The legality OF the Funding bill is not
disputed It's mozality is another question.
We have shown that the State banks were
taxed out of existence, and offered the OPP
ton of organizing under the natioual sys-
tenn on certain conditions. And now cotnes
forward bill avowedly intended to
induce all holders Of United States
per cant bonds to exchange
scheme Lacks tho essential feature Of value
received. It is feared that the holders will
prefer to keep their G per cents, the sa-
ci51ty being the Same and the interest high
| CT Bat there is one elsss OF bondho}ders
VINO can be reached with ''persuader.
! tne1e Is one claas VITO can, perhaps, DO
| loteeo 70 90 Wha1 the othofs notof7ousiy Will
not; nnd, IN order TINT the trainers and
fathers OF the bill may not rest under the
snspacaon OF being gFeenhosns, and incur
the oolnm oi failure, they propose to reach
out and nut THIS particular class iou' blow,
regardless OF tho consequences to the
What will these consequences to tho pub
lie bes The first consequence would be
the throwing Of some $3.50, COX, 400 of per