The sun. [volume] (New York [N.Y.]) 1833-1916, 1870-07-13
THE SCIENCE OF POLITICS.
THE GREAT FINANCIAL PROBLEM
or THE NINETEENTH CENTURY

TIE Report Of the Conference Committee on
the Funding Bin Rejected-Auotbcr Effort
TO be made to Hn rmopizc the Views Of the
Great Financiers.
WASHINGTON, July 12-In the House to-day
Mr.. soHEScK CRep., Ohio, IRON the Conference Com
mittee on the Funding bill, submitted report The
ori, 'nal Senate bill, he said, had provided the
issue Of 81 800 $4,000 OF bondst 900 at per
cent, s40o,0e00oO at ~ cent, and ss000oOO GOO
at4 per cent. The House had proposed to put on
the market long bond at lower rate of interest
ti,O00000,0O0 at per cent? payable after thirty
years Another point OF difference had been tlat
the Senate proposed TO compel tho National Banks
o substitute the bonds for those deposited
while the House LETT out everything in that connec-
ton. In the Conference Committee the Senate had
agreed to adopt the House bill as the basis Of the
report already presented.
MIXED LOAN RECOMMENDED.
The report proposed an issue Of t9oO CcO, bear
ing I'VE per cent, and payable utter ten years
$500 OO00O0, bearing four and half per cent, and
payable after fifteen years and $1,000 0OO0OO bear
ing four per cent. and payable after thirty years.
The conferees were satisfied that 1t was not only
the opni ON Of capitalists That this oler Of a mxed
loan would be taken, but that the Secretary OF the
Treasury was confident that whatever doubt he
might have OF the praccablity OF n four per cent
loan, he would be enabled, with the aid Of these
smaller classes and shorter date, To- put all the
market in shorter time The bill therefore, is "a
nearly as might be accommodated TO the views Of
the Senate, the House, and the Secretary Of the
Treasury, and al were much better satisfied than
they expected to be. The House confer, es had on
ected to the employment of agents and that part Of
the Senate bill had been abandoned by tho Senate
hut with the agreemep ut that the Secretary might
sum not exceeding one-half of one per cent, for
the purpose of engraving printing, issuing, advcr-
Using, and disposiug Oft the bonds.
No SPECIAL AGENTS.
The House confcrees had agreed 10 THE with tic
assurance that there would be no attempt to ever
else power not given TO appoint special agents, but
that the bonds would 60 on the market generally and
that those who exercise any agency In the matter on
putting the bond. in the market will receive their
commission in other words, the business would he
open TO everybody and there would be no special
| agents. Another point Of difference was as 10 the
section allowing interest on deposits OF gold in the
Treasury, and It had been agreed TO reduce the in
tcrest to ~ per cent, and 20 limit tho tine 20 two
| years. Another modification was to require new
national banks to use these new bonds as the basis
| MIR. GARrIEID rep, Ohio inquired whether the
ercsed bv tho banks themselves or by tue Treasury
| Mr.. soarsoK expressed his belief that the bonds
deposited by the new banks would be just such as
tho Secretary sboud think proper TO issue TO get
| the loan snoat. The Secretary would not offer the
fours alone, the four and halls alone, the
fvos alone. There good reason to expect that
the Secretary right in his conclusion that persons
for the sake Of getting hves would be very glad TO
take some fours and he could thus dispose OF mixed
quantities OF the nves, four and halls, aud fours,
4
MIR. GARFIELD inquired whether It would be in
the power of the Secretary to say that new banks
| should deposit only iour per cent bonds.
| Mr.. SCuESCR-No. sir; nothing of the kind.
Mr.. Jupp Qtcp.. ny opposed the report. II Ave
per cent. bonds were to be issued free from all
ner of tax. and If one-naf OF one per cent was to
| be paid for commission. he did not see that the
| country would save much by the operation. But
| his
GREAT OBJECTION TO 1T
| was the unfairness Of discriminating against the
| new banks by compelling them TO use ihe new issue
| II continued the MONOPOLY of existing banks.
| MIR Cox Dem, n. y opposed I e report, frst.
because it did not provide for uniform rate of in
terost second, because was job for agents at an
| expense OF seven and half millions, which would
eat mp the saving in Interest; tbird, because would
make the United states stl more tributary to Europe.
| The present year showed difference OF nearly two
| hundred millions against the United states 10 be
| Maid by bonds So long as there was no effort TO
| reach gold and silver aud no steps taken In that
direction this and all other policies would fan The
only ranacea for the country was far, gradual and
| honest resumption OF spece payments and God, the
| laws OF trade, commerce, and the Democracy would
| 6Rht hereafter for It,
| which requires new national banks " deposit the
| new bonds az an indefinite suspension OF the bank
ing feature of tue late Currency bill. lie also OPP
| Iosed the allowance Of one-half of one per cent.
commission, thinking one-quarter OF one per cent.
| ample.
Of the hill would be very unjust TO the people ~ the
south and West no needed banking facilities.
| Mr. MORGAN Dem, Ohio said that the DAY was
| not far distant when
| IuE PEoPLB WOULD BE HEARD
| as well rs the bondholders and would make Il
| known that they had rights as well as the bond
Mr. scuENcK moved the previous question.
| Mr.. HOLMAN Diem. Ind moved TO table. Mega
| tived-yeas IS, nays ~.
| Tie report was then rejected-yeas 90, NAYS 10i.
on motion OF Mr. GARFIELD, another Conference
COMMITTEES We. ordered and the same members
were appcnted-Messrs sehenck, Hooper, and
Marshall