New-York tribune., 1870-05-11
THE FUNDING BILL.

TO the Editor Of the Tribune.
SIR: The Senate Funding bill, now under con-
sderstion the House of Representatives, authorizes
an issue Of per cent TenFory bonds in exchange for
per cent Five-Twenty bonds in amount not exceeding
s4OO 10000; issue OF II per cent FifteenForty bonds
in exchange for any United States bonds bearing more
~ per cent coin interest in amount not exceeding
100000 OOO and an issue Of per cent Twenty Forty
bonds in exchange for any outstanding debt Of tho
United States, including legatender notes, In amount
limited only by the provision that the debt Of the United
States shall be increased in consequence OF such
issue; such bonds to be payable in the United States,
principal and interest in con and to be exempt from all
taxation The Secretary of the Treasury is authorized to
advertise the loan, and employ agents for negotiating
the same within the United States or in
Europe, and per cent on tho amount Of
bonds authorized ia appropriated to pay for
preparing the bonds, advertising commissions, and
other expenditures in and about negotiating the loan
The present Sinking Fund arrangement is discontinued,
and $4,000 900 annually in coin is appropriated TO pay
the interest and reduce the principal OF the public debt
Banks may the bonds and others security
for currency using all in per cent not exceeding
one-thrd in each II and per cent bonds They must
take up their bonds held for that purpose and sub
sttute therefor bonds OF the Issue within year
from the passage Of the bill have their currency called
In and Cancelled They in sums of $4,000 surrender
legaender In exchange for such per cent bonds
using such bonds for issues OF currency without
gard to the limit Of s3OoOO0oO, in which case legal
tender notes equal In amount TO such issues are To
he retired. The bonds without regard to their rate
OF interest are be received upon the basis OF 500 Ia
bonds for $50 in currency.
Thus 1t is seen that this bill contemplates important
changes in banks and banking, and in relation TO the
currency Of country both Of which should be con
sdered and treated by Congress primary matters In
separate bills The Funding bill should contain only
what is necessary 70 the funding and managing Of the
public debt.
A SUBSTITUTE FOR SENATE FUNDING BILL.
Of United States bonds and Treasury efaes
limited ohy that the debt OF the United States shall not
be increased in consequence Of sncb issue , ,, .,
& ,n9a. se ss ds :n s %1aSs nns s. ntrs ms@ All
from Their date and all per cents mature
from their date each eon 70 DC p.yais & a. A1
per- holding debt against the United States que o. ho'
due have e gh % sSTsIa% % s s If as a. u pa d
Any person holding United states OF per TN oos & uae "a
r cep bonds maarng within forty years such party de-
8 Any holder Of suy United per cent bonds due not due to
b.v, The gh, 20 surrender exchange for such per cent
maturing at such date within ten years a. t oocfeA' " ''
Treasury from time TO time deternne , ,,,-- -. 4,
Auho the exchange either es OF
equal amount indebtedness OF he
or 10 dispose for such CON IN paying a'h
dshtedpe.s or In replacing the Treasury oon previously 20 used
An gspdei notes exchange for such bonds 10 DC
s, provided il can b purchased par when interest
bearing had such notes shall DC he' suo
Assorp an issue Of Treasury certificates. bearing not exceeding Eve
Per per interest pa,. principal ana % , 40
be time and not exceeding .
any such certificates 10 be issued only a. M con-
notes Of United States debt aud ioi ueh
purposes Secretary have authority issue them within th. limits
prescribed bis discretion usng the coin and nos thus feo'o "
10 koons issue Of certificates paabls pnneDsl