New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1870-04-02
TIE FUNDING BILL.

Telegraphic advices inform US that the
national bank delegation yesterday made,
before the Ways and Means Committee of
the lower House of Congress, further ar
gument against the Funding Bill.
The Secretary of the Treasury had the
temerity to stake bis financial reputation
on the success of this bill if passed, and
at his urgent solicitation it was suffered to
50 trough the Senate as favorite measure
Of the administration. The disposition of
the House seems to be against the bill
from present manifestations, and should
it eventually go through, a formidable
opposition will have to be overcome, be-
fore arriving at such result.
The measure is bad because it is unfrau-
gibie. It prop oses the issue of new loan
of twelve hundred millions, divided into
| three equal parts at four, four and half and
five per cent rate of interest respectively.
| The national banks, under pain of for
| feitlng their charters, are to take the new
four and four and half per cents in lieu
of the six per cents noE pledged as secur-
| ity for their circulation. So far the scheme
is made possible through compulsory leg
islation, but its effect will be to drive some
Of the banks out of existence. Surprising
| the banks to accede to the terms thus
thrust upon them, all Of the five and about
half OF the four and half per cent bonds
| Of the loan remain to be disposed Of In
Congress one of the opponents OF the
views of the Secretary of the Treasury.
states that he expects to exchange these
| bonds at a lower rate of interest for the
six per cents, or what is commonly known
| as the fye-twenties. 1t would be interest
lag to know on what this expectation is
based, for it is difficult to understand why
a superior value should be exchanged for
an inferior. On this point the Congres
sional mouth pieces of the Secretary have
been anything but clear. If the exchange
is to be effected through intimidation and
special legislation. again it is possible, but
at sacrifice of the national credit. But
the Secretary is an honest man, and it
would be Unfair to attribute such design
to him.
1t is doubtful if he really hopes to sell
much, if any, Of this loan on American
soil. This is implied to some extent in the
act itself His idea, evidently, is to dis
pose of the remainder abroad. To see
what foundation there is for such hope,
let us see how values are quoted abroad.
English consols at low rate of interest
have been, and are held, in families
averse to change, but Englishmen do not
at this day invest in them. 1t is the same
with the old Dutch two and half per cent
loan. Disposable capital IN either Hol-
land or England seeks higher rate of
interest than these old values offer. The
French three per cent rente is first-class
loan which no change of dynasty or gov
eminent can affect, and is usually quoted
at seventy, which gives nearly five per
cent. Real estate in Paris and its vicinity
usually gives i've and half per cent on
best mortgage. Austria, who has always
acknowledged her obligations, gives six or
seven on her loan. Italy gives eight or
nine.
The Secretary hopes to place his loan
on the same footing as the French rente.
The United States is remote and imper-
fectly known; her credit is not Of the best,
for there has been much talk about repu-
diaion, and in past days one or two of her
States did repudate, and no amount of
bird of freedom scream abou. our im-
mense national resources and honor will
induce the foreigner to forget the detest-
able fact.
It is safe to predict the failure Of the
funding bill if passed.
mr.