, 1870-04-14
MONETARY AND COMMERCIAL
MONETARY.


WEDNESDAY EVENING, April Il
General Epinner is out in u second letter on
the Funding bill, in which he iatimates that he
as his OWL. He SAYS that their idea was first
1 per cent bond, having, Say, forty or fifty
yeara 10 run, free from every kind Of taxation,
BY National, State or municipal governments,
with interest," payable quarterly in coin At
whatever place tho bonds were registered,
II will be nows to the National Banka, however
to learn fFo1n General Spinner that they OPP
posed tlis scheme, and that, in conseqneneeof
tlis opposition, the Secretary Wis induced ~ to
yield to their suggestions" and change the
plan from the uniform per cent to the three
lessp ssssss nur e ina cents G sdoa1 IN aS
Spinner:
thcy turn upon him md his project md naist that
crnmcnt must ot rcdcern stocks held hy It In tf,ist
cent IN gollL"
II this letter Of the Treasurer OF the United
STATED il specimen Of the iegree OF truth
{ulness With which Tho Funding bill il dis
cussel by him and the Secretary, tho National
Banks need expect nothing that Is {air OF just
from them. The letter Of tho Treasurer Is a
direct MISREPRESENTATION Of facts. We do not
tcliere there in a National Bank in tho coun-
try that sAinaista that the government must
not redeem stocks held Ly it IN trust for them"
government !" must continue to pay
them 6 per cent. in gold" On the contrary,
there is not National bank that will not Jump
at the chanco Of having its 6 per cent $50
bonds redeemed at once, no matter whether
the hve-yeat option has maturod or not; but
what the National bankA do object to is that
they shall be required to ftlrnish the money to
redeem the bonds when no other holders Of the
esne honda arc required to do anything Of the
kind. General Spinner eays ho Is convinced
per cent forty-year bonds, they could readily
be negotiated" in Europe. II his suppositon
7 is correct, there Is no necessity for tho at
tempt to conlscatc . portion Of the capital
Of The National banks to begin with. The
sale Of the per eents at par would furnish tho
which the fivc-ye4r option natures, but the
oyidencc that oven Nj. Boutwell, and Mr. SPIN
ner llaye but little faith in negotiating per
pent bond at par is that they find 1t necessary
to force the National Banks to take tho per
cents at the same price AS he aiK per cents,
grecnbacks to the full amount Of their circuia-
tiou, 30 that they may withdraw their $40 6
per cents, and sell them on market depressed
Gv tho large amount Of bonds ttat would be
havo hut these two alternatives. It
10 true that many OF the banka
whose means ars out il loans will lind it diff
cult to lay ont OF the 1.fe at tho erecnbacks,
and upon striking balance may find that the
immediate loas Of about IS per cent in the
annnll interest, would be less than IN tho
other alternative Of dcroaitiug greeuhaeka
against their circulation. 90 that they might
withdraw their per cent bonds and sail them
on falling market. and they might thus be
obliged to continue in the business. But this
necessity of the banks does not excuse the
ur,scrurulous proceeding proposed by the
Funding bill, and while majority Of tho
banks would thus be Obliged to submit, there
arc some that would undoubtedly 80 out at
once. Let US suppose that only one.
| The Nalonal system, Is ths business public
prepared to stand u contraction Of even eighty
| rai1iuns of the currency within month after
! tho passagc Of tho bill When Mr. McCulloch
| contracted it ut the rate Of four millions per
| month, tho whole commercial community were
; il, distress. How would they etsnd twenty
| eslment to try the experiment OF floating a
! AZ per cent bond at par, is to authorize The
issue OF. say Il ,000. 900 00D Of banking bonds,
| uYon which banking ahould be free to III. II
thrso is any profit in hanking Oh Or ~ pei
ncss than those who,- under. the
| prcaeut Funding bill, would be Obliged
| to exchange per cent bGnda for tho II per
cents- Lot us suppose that, undor this pro
ros.l. there was no coercion to make the pres
tut banks e1chanGo bonds, but thst new bank.
increased 70 as to take S150, ,0o0, coo Of addi'
/ tional bank circulation, this would require the
funding Of s157. 900. coo Of gToenbAcks to ge!
the bends to setu1e the circulation, AID woult
1atucc tie volume Of grccnbacks to 1900.
furnish legal reserve against the circulation
and deposits OF the banks. Tho consequence
| would he that, whi1c this ircreasa Of $50.
0a0, ,0u0 in National D.nk currency was taking
place. the banks would bc obliged to ust
more and naess EeM as Psst Ut their te =,
gold before there hnd been 5000, ,00t
Ct increase in the aggregate volume OF N.
:ionaI Bank notes. In fact Just as eoon as i
became apparent that tho proportion bet1cct
greenbaeIs and National bank notes Wa
changing, We should have grccnbacks At par
md for all practical purposes We should h.v'
attained t1tr7e resumption II must be appa
rent that a. soon As this point was attained
the ~ per cent banking bonds would b0 a
par with gold for banking purposes, becaus
grcenbacks would be at par. The proceeds o
the rale Of the 1tS per cents could then b
honorably applied to the redemption Of Il
5-:Rs on which the option Was due. This kim
OF funding" would incite the loan Of new aut
additional private bank capital to th
sovunmcnt, but tho Funding bill attempts t,
oocrcc the oWncrs Of that which las al1ead
Loen loaned. Thas would csuse the dec1ine Q
blu will have damaging effect upon the credi
Of the government aud at the saue tmo pro
duee hnanciA crisis The truth sesma to be
that Nr. Boutwell, and General Spinner, hayin
committed themselves to khei- I,lon, are to
stubborn to 80 bach On It, even IL they know
il wrong. Sir. Boutwell, intinasee that th
delegates from tho National Banks were be
+ | Of lars, who do not represent the truth: an
| General S, inner, on the other hand, intimate
tha., even Il they tell The tnih. the people ~
: dishonest, and win rrpudtAte the whole debI
unless the hanks consent to the couhscaio
i Of part Of their capital
Euincss exhibits very little Of the tendenc
to revive which is usual 1t this season Of th
: year. Under ordinary circumstances the.
would Lave been more preparation for til
; movement OF the stock OF grain in store he1
when the complete opening Of navigation VI
0 | no 1oadiuE OF seese1s, la usual. in ADVANCE {
: tho opening Of the Straits. Therc il conside
5 able activity in cattle shipments, which hi
Increased the amount OF exchange on the ma
. ktt during the past two days. but otharwlf
! tie novcmcn. Of products tows1d tho East
. very light.
! Noney is easy. Tho banks ase still e1teas
5 ing l1rEe loans To the grain dealers, bat
!. demand trun qthet departments OF trade
> Light enough to leave surplus over IL
above what il required to meet tho denAot
Of Ill approved borrowers, At 10 Per cent
In the open market, money Is plenty
eo!latczals at 10 to II PEI cent Ihe banl
: a9e, however, willing to tale Ill the dsst-cls
. pspar s:,t Il offered, and there is thereto
4 none offered IN Tho street
= Exchange was lower to-day. and eee.ns tol
in creator supply, owing principally to An j
; crosse ot catt1a shipments, and possibly, ais
! to disposition on the psrt OF bankers heze
= = call some Of their capital home from New Tor
i, Sales OF exchange we're made between banka
&c premium, and 1t tho close OF busine
eou,aa not have been sold better thsn par.
lie counter bankers sell st Ito premium, n
buy at psr.
bids and offers wcre made:
~ GuyXRSlksI SECURITIES
'f hd Al
! CniteS States e, ,lsS1..-.....-.....u& :.
tinted St4tea SOS, 1ses. :.
I.njted Sta3es 5eoeI 1sa5...........1fo =.
CuIted st$sca te0sJ 1865 tuew1.. JOSH 10
& Euited Ssslcs 5-eos, ls6'-.-........lo9A :.
IR United StsseS 1l<au ..x..........-,1o3Es 10
!: ~. x,,,o,,, n.ne hSk% 1,s
el Third National DanE--.... ...-...1S y
le Filth National RAnk. .-..........-.,N3 II
3, Northwestern National hAnk-.-+ a0o