Wyandot County Republican. [volume] (Upper Sandusky, Ohio) 1869-1903, 1870-04-01
7rom the Cincinnati Commercial.
THE FUNDING BILL.
Letter from Senator Sherman.
W.su1xGroy. March 17.t1sr

= :
WASHINGTON. March II. 1870. =
To the Editor of the Commercial:
I beg to avail myself of the use
of your paper to answer some criti-
cisms of the bank section of the
Funding Bill. 1t is claimed that it
is unjust to compel the National
Banks to secure their circulation by
a deposit of the new bonds. 1t is
said to violate the public faith
pledged to them, and confscate a
part of their property. This is not
true in any respect. .- .-.-,--,,
We have now the right to redeem
their five twenty bonds at par with
gold, and propose now to exercise
chat right. ., n p. '.' .--.
Some of the National Banks hold
the bonds Of 81, and the ten forty
bonds which are not yet due. These
they have the right at any time to
withdraw, and either to sell in the
market or hold at their. pleasure.
The Funding Bill advances the sis
above par in gold, and the banks
get the benefit of the, premium.
All we require is, that the banks,
within one year, shall secure their
circulating notes with the new
bonds, or retire with all their prop
erty unimpaired, and give way to
new banks who are willing, in ex-
change for a most valuable fran
chise, to aid in reducing the inter
est of the public debt. .,-..-..t..- "
Now, this is clearly within the
power Of Congress, it is just and
right, it is for the interest of the
National Banks, and its defeat in
the name of the banks would tend
to overtime " the whole system. 80
| The right to issue circulating
notes is held by the banks at the
| pleasure Of Congress. So far as
this franchise goes. they are s.ten-
ants at will" Congress reserved
the power to change, modify or al
ter the system, and may withdraw
at any moment tie right to issue
notes as money, which in it's nature
is a Government franchise. Con.
/ gress con not deprive bank of iti
bonds, bills of exchange, or Other
property; but by the terms of the
Banking Act, and the nature of the
franchise, it may withdraw the
/ power to issue circulating notes, OF
make it subject to any conditions i
may deem for the public interest.
/ The National Banks were organ
lied to accomplish three great OBJ
ljects .--...-5-- ...----.. .-e- .-l
i l. To absorb State bank paper
i 2. To furnish 4 paper circulation
Of uniform value throughout the
country, and convertible into coin
3 To fu: nish a market for United
States bonds. r.e7.-s 81
The system has been a success
n profitable to the banks and usefu
} to the public. The Funding Bill i
based upon the supposition tina
q they will continue to be so. I
provides for Withdrawing the green
backs, and giving them the entir,
field of circulation. 1t raises tn
gold value of all their. securities
and allows them to sell any of thei
d securities and pocket the profit ant
premium; In. return for thes
2 great Benefits, we require them t,
buy portion of each of the five
: four and one half, and four pc
3 cent. bonds. IS this a hardship
< The five per cents. would to day,
/ in the market, sell at par in gol(
. They are much more valuable tina
: the ten forties-now worth ninety
n seyen-because they run longer an
: are free from the income tax. Th
e other bonds are not now par, bu
y probably soon will be. The ave-
d age rate is four and one-half po
e cent, so that at the most, the bank
# will not lose over one half of on
n per cent interest on their securitit
a until the bonds rise to par. In r.
is turn, they get the great advantage
g conferred by this bill. They g
s the right to issue United Stat
It notes-printed, issued, protecte
J. and guaranteed by the Unite
l. States-to an amount equal to fou
Gfths Of their securities; and the
Of they may loan at six to twelve p
ID cent. Ought they to complain
is 1t is said they pay heavy take
is If they go into private, bankin
st they become subject to every t;
lie now paid by National Banks, exec
en- the tax of one per cent. on circpl
th tom, The tax on deposits, STAMP
m profits, dividends, and all the Sta
ce taxes, will apply to them as priys
as banks. Even the tax on circulate
in inures greatly to their benefit,
out Of it tue ), United States pay
to the cost Of printing, engraving a