, 1870-04-05
THE FUNDING BILL.
Argument OF Mr.. McdfN In behalf OF
the National Banks.

Mr. Metlin began BY saying that he was in
terested chiefly as to how tho bill would affect
tho business interests OF the country. The oh
ject os the Secretary Of the Treasury in tbs
10 be to save some 81 oO0, coo OF interest tho
national bonds held BY the banks that il he
failed in that object, and at the came time pro-
duccd financial cIisis in the country, be would
be guilty Of blunder; that tho Administration
oS roa be held ssn.1 f5 it. and . no n5o I'm
n business 1A of ii the country ~ might ss
rot suffer an hundred times As
much IS thv government expected to savo by
ita proposed coercion Of the banks. He then
said he would examine the bill from common
eense and business standpoint, and not SO INTO
criticism, ~ bankers might, OF Ill its details.
In the 6rst place. tho bill commanded the bAnks
to surrender IS per cent Of their income on
their bonds. It Was not lsfs voluntary With
them, nor Optional. It was mandatory under
the PAINS and penalties Of forfeiture OF their
the second ptace, The bill demanded that the
existing hanks should retire one-ninth OF their
whole circulation, Amounting in the aggregate
to more than $50, ,000, 600, or that they should
rut up securities to the nmout Of over &c, ,ooo,-
the bill demanded that they should au17eudar
Of Inferior bonds drawing bat IL.
rer cent on an average; and that III this was
to be in the form Of coercion. No other pot-
ton Of the public creditors were treated in the
national bonds pledged for the security Of
hank notes, we're alone singled ont, and At
tempted to be drAgooned into compliance with
the arbitrary command Of the Secretary OF the
Treasury.
atr. Netlill stated further that In lis opinion
this VIA not tho road that led to specie resuup-
tion nov or hereafter that il was not the
1oad to financial prosperity, and NOT the road
tbst led to such an Increased confidence in the
good faith, honor, integrity, and responsibility
OF the government ns would induce foreign or
American capitalists to subscribe for the new
par. The market value OF the public securities
depended upon public confidence IN the honor,
good filth and responsibility Of the govern
ment, and where thoee we're wanting. in whole
or in part, the bonds Of such government were
at discount to the extent that such confidence
was wanting. 4 blow struck at the banks Of
the United States, Of this unprecedented de-
eriptlon, would alarm eve1J holder OF every.
bond Of the government, and would alarm
ever. capitaliat at home or sbroad who had
any thought OF investing ingovernment bonds:
They would sny that, il the government would
violate its faith with the banks for the purpose
OF the petty gain that was said to be at stake
ifit would establish precedent Of bad faith in
dicating that it would violate faith with all
ethe5 puhLe, creditors, consequently the
abortion except to the extent that the
banks were compelled By palma and pen
a1ties to comply. with it's requisitious.
The Secretary Of the Treasury seemed to have
his tll, and in PROPOSING to mako this raid
on the banks. Within the Last twelve months
gnld had fallen from 1A0 to III, and, as con-
sequence, Ill the personal property Of the
: Euited statea Of every description, including
the agricultural products Of the West and Of
' The Ennfb imfnT{a frnu Ahr7nd and n1l mann.
facsuEed articles OF the United States, amount
Ing In the Aggregate to ut least two billions,
bad been bought md sold on falling market !,
that whatever price the merchant Obtained for
lower rrice than what be paid therefor; that
the sl,zinka8e il, the selling rAlns Of nacrcan-
tile property during the past rear had not been
lesa than 1s to 70 pc. cent, Which seprs,
ssptss pEs et Is ss BfGt bsae Or - ssPest'a
sum Is III the capital invested in the Na-
tiona1 Banks; that the whole mercantile
community OF the United States were more or
less crippled, Aud had consumed during the
past year largo amount Of their previous
earnings. Not rincs 1862 have tho busineas
classes been 80 dependent upon the banks.
Tho banks AZ over the United States, and
more especially IN the West, where they are
not 70 numerous II in the East, were extended
to their uttnoat limits under their authority in
aiding the business community under this de-
preston Of prices. Every bank waa holding
up and helping along the merchants to its ut
mort powers. In the city OF Chicago xluue,
where they had but 4 limited banking capital
tho banks had extended aid to business men
to The extent Of e14,oo0,0o0, and tho moat
they were doing was renewing the notes Of the
business men nnd manufacturers and traders.
Fery little additional p1essurr ron1d proluca =
financial rapture. 4 blow struck at the bank
Ing system that would cause the country banks
to wind up, would have sueh an effect AZ wouh1
pfftttNF 11t1nf}Ucn hInkT0w md rr4 y,
extending from one city to another until tho
whole United States waE involved in it.
Mr. Nediu went on 20 say that he hal no
doubt whatever thAt the passage Of tho Fu1d-
ing tin unucadited, with tho seventh and
eighth sectons retained, wo,l1d have tust that
effect. He then inquired il, in the event Of a
financial reruIefon over the United States,
wlat influence it would lave upon thu. e.rae enues
| Of The Government Who could saJAio what
extent it would destroy the revenue? Instead
OF seeeiviug nearly fesn hundred millions, it
| night be cut down to, two hundred millions, in
consequence q: the general dist1eas among the
| people. Thousands Ind tens Of thousands Of
business men would be ruined and ba1kzuPted-
! Hundred of banks, 10th NATIONAL and private,
would faN in the common czssh with their c1s-
tone1u, aud We might hasa repea:ed the same
state OF AfIairs that followed tho iesninE Of the
/ specie circular during General Jackson's Last
| ADMINISTRATION, which first produced wide
epresd ruin, and then = fearful oSedthrov
! VI lilo D6lQQE1A1s faIlt& 1AG2A' NAC4 IL
never fully recovered Like causes would
produce Ike Effects. Nov, Il this
Administration shan adopt any ::.nancil scheme
| which will preciritate financial crash upon
| the country, il would requi1,; no prophet X
fo1etelI the speedy and inevitable overthrow
| ol the Republican party; Ad Whit tho ooun
try would recetye as the effect OF such blum
der would be, Hrst, bankruptcy, and, secondly
| Democratic rule. From Republican stand
point, be thaaght either OF theEe es1s wout
10 al much - could well ba endured at time
Il ho we're Democratic member of CongreE.
Praferring the sucoees Of party to tho prosper
lty Of the country. he would support eArneett
tbs ratenIion Of the Seventh and eighth rec
tons Of the Funding bill, feeling certain tha
sheiE adoption would totally overthrow th.sEe
pobNcan party.
I Mr.. Nedin then argued that the bill p ii
rect violation OF the epifit, u not OF the !ettet
of The Republican national platform Of 1883
which hid down tha doctxins that tho enly wa:
to reduce the intesess on the public debt va
by 60 Improving the pabhc efcd1 n1 asas 6, .
| good faith as vosld ineteaRe the cus,1aencs q
capitalists to tha.t extent thhr t7ey- would d
| Wiling to tAka i. hwer rata Of interest fG
their bonds. The Funding bIl ACTED upon !
I precisely oppoe.te Hypothesis l.: attempted
I bv tie eho5t-eut of coercion, 70 aocopaptlah 2
aforced loan in tine OF Pesee What AZ expert
enca had enown could on1y be sdectad BY vol
| unt.ry scta3a Of capitalists: and, therefore, +
xas ablundeE--snd hlundef. in finance wsa
N unp1raonsb.e crime. He then vent on =
show b. agurcs thst it Vas against the intsrss
q the National Esnks to continue hnsines
1nder ehe hi11, simply bacarse they cnnli
Tue The asae.s s1m thai ooaia b msd
in the West under the bin was ca
dscting sAras On circulation md loss On mutt
sted potes and express charges On currency
whereas any MN couiH losn his unss.1 at sin
rly IL per cent md realfze 100, and at The eatn
time could esc7pe al the either compulsory L.
.: lecsl clanaes Of The aet- Tbs ine,isble aaeS
of the passage Of the bm xozld be to eans
hundreds Of the country banks and tho bank
. in the smai1e1 Gitiae 10 withdraw from the bus
: pesa BY selling their dva-tEeusies. and to cor
Feet their banks into private shaving shop'
where they could make oe 8 or per cet
rrute interest thin waa possible as Nation:
time, the searching and annoying 3nqn.slsaaso =.
t 70 Ehsch they vera subjected undef 6ne ~
3 hcDN B1nE system .......,
2 The sesrriarr Of the Treasury seemed
. overlook three circumstances IN regard % ~
honh EAnks: F1s. thas she5 sers 12ss 10 sass %ss
I 20 longer kept in compound interest," notes
4 but Eerr kinr idle IN their Eaults drawing
!, interest: ttat they were ID longer govesume1
! depcetoriss, nadng Psoa. upon EoSefnms1 @ m =
i mon tha sale, de-, Of national bonds of su
= iFs%rntio,. Second, tince the great fall
I I she 7slue d eoM, Their deposits were not !.
q eressins, but decssaerg: They TsSe sssf5an II.
{ them They were now meeting cent:nu;
It losses by reason Of the failing Of their DAB
= or vffips cut Of margins, snd t
: bankruptcy Of ynen who be1zowt
q I | rroney from them. Heneeiqrsh tho ben}