, 1870-03-22
THE FUNDING BILL
Letter from Senator Sherman.


Letter from senator Sherman
WASHINGTON, March II.
Tb the EIiter u the Ci,,einhai Commercial:
beg TO avail myself Of the nse nf your pa
rer to answer some criticisms Of the bank acc
lions Of the Funding bill It is claimed that it
il unjust to compel the National Banks to ee-
cur. their circulation by deposit OF tho new
bonds, It il said to violste thu public faith
property. This ia not true in any respect
We have now the right to redeem their FIVE
twenty bonds at par with gold and propose
row to cxereise that right
Some Of tho National Danks hold tho bonds
OF VI, and the ten-ioEty bonds which are not
:irnc to withdraw, and either to sell in the mar
let OF hold 1t their pleasure. The Funding
ill advances the ta1s above par in gold, and
the barks get the benefit Of ths premium. All
~e require is, that tho banks, within one year.
shxn secure their circulating notes with tho
rtw bonds, or retire with al their property ln-
isuraircd, and give WAY to new banks who are
willing, in exchange fr a most valuable fran
:'bise, to aid in reducing tho interest OF tho
public debt.
Now. this is clearly within the power of Con-
ress, it is Just and night, it is for tho interest
lame Of tho banks would tend to overthrow
lie Whole system.
Tue right to iesus circulating notes is held
by the banks at the pleasure Of Congress. So
far -s this franchise goes they arc tenants at
will" Congress reserved the power TO change,
modify. or sfter the Fys,em. md my witbiraT
at any moment the right 70 issue notes as
moncF. whici, in its nature il = government
fr1nchise- Congress cannot deprive \ bank Of
its bonds, bills Of exchange. or other property !;
hut By the terms Of the Banking act, and the
noUer ~ ;asn. circn1.t;,r notes nr m,kn !,
snh;ect to anS rnm]itinna Il NAV deem, Tar tl,s
public interest.
c,mpi;sh thr.c cre.t oh,erts e
- sh.o,b st.te i,.nt r.ner
. ~ fnn;sb = ns,,er =; ,.1,ist;on oY uniform
,,7r,o th,aHvhont ia corntrr snJ canrar+;h1a
insn com
s To furnish market 10, United States
The nvssero b.s ham . succe.s- -nroat,hlo IN
tbc hsnx snd nscfnl to the n,.l,1;c The End.
~, In :. hss.S ,,yo ,ho S,nrat;o,, ~. ther
III cnnt;nne r. ite ~ n ntor;isa ~ ,E;.L, <
S-sS;mr ~, ~ r-asnhset, .,5 1E.;,e, +ba,, ~
cns;ro Sa1d ~ c;rrnintion Il 1a;ses tb,a coi1
a " ~ M ~ ,,ocnot tho 1,tt
~ ~ 1rcrn;nm NJ IN rctnrn far theac crsat kanc.
n4 e1s .s,,,;., th.,n ~ h,,- ,.,r+9ar, ~ !. ~
- ths < AZ and / ner ce1t hmas Ia hi.
" hsnssh,n The 1 rer certs wonl,l to-iay
r. IN thr marLnt sail 1t nar in roId'
1n40s-noF worth nincty-seyen- bec.use
th.v r,n 1onper and nre frct INN, The INCOME
az The % oIRer E,nf,s sre not NM s,ax n,T % In.
,.,,h.i,,y soon xil1 h. The .yernce rate Is
~ ner cent. 80 AS, At the most the bxnks viii
Ill ioee over one-haY Of / rcr ceut interest
On their securities until he bonds rise to DIR.
In rrsur,,' they ret tha Great aiy.ntspee eon-
1n,resl hr tE;s i,If They cet the r;rht ~ ;ssn.
i:n;ted S,sees note.-TfintAd issntsd nTotect-
ID and Guaranteed by thc l1nited sites
~ .,non,,, aa,.i n fGnr-tifths ~ ths;r sscnE'
s;as. a snd thsls tso1 ,n.y 1n.n ~ So 1S III
e"nt 0ncht thcr h coinn1,;n - pet
,ens ~ .te4 49, - hosT te1ns 1t,h.- ro
~. ~ - ~ IIss - u .Ss ee% LII T.
m.o p,.vs.s es, n,d Hss Wt;o1si Re,s saDle 70
@ .he =. 70 81 T ner r cent on ercuI.,;on Ihs t Il
On e denos;t. ~ Il stanee. pro6ta dividends md Ii
NE eta9e saaes WI app's 70 uen Ae riltAte
aanks- Even tho t4x on e1fculauon lnnres
greatly - their beneht. "a out of 1t The United
staseh ray n the set OF printing, eng1aslng.
and iesning theT o11e, and AL the n'ach1nes!!
Of the naas,ng sn1s nsaui ,h.x .o,,a ;,.n. r;,rc.
laslng notes i Vou,a eose tasm hes[ one a.. ~.
OF per cent AZ iot soanS paek 10 state