New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-07-13
THE FUNDING BILL IN A NEW FORM


There has been no mismanagement in Con-
gress during the present session more glarihs
than that of the finances. The Appropriation
Committee has done much better than for
many Congresses past, but it has not redeemed
the brilliant and encouraging promises OF the
early DAYS of the session. The Banking and
Currency Committee has secured, as its prln-
cpal work, bill which we could well have
dispensed with, and which is no sooner adopted
than it develops strong opposition to more
needful measures. The Ways and Means
Committee in the House has failed abso-
lutely in its Tax and Tariff measures, reducing
those duties and taxes which were just and
equitable, and imposing those which were I'M
fair and odious. We fear we must now add
TO its other faults the sacrifice of the most
important measure of the session-the Fund
ing bill. In brilliant contrast with these re-
peated failures of the Congressional financiers
how far wiser and more economical appears
the straightforward, simple, and positive pol
icy of the Executive, by which the National
Debt has been reduced at the rate OF more
than S12,000,000 a month";
When the Funding bill reached the House,
though admitted to be measure which the
whole people demanded and every industrial
and commercial interest required, action upon it
was deferred several weeks, in order that the
Income Tax, which the entire nation execrated,
might first be forced through. 1t was believed
that when that object was attained the Funding
bill would be adopted, but if we are to judge
by the latest action of the House, it was hope
born to be blighted. In the last days OF the
session, with half a dozen other measures
to be acted upon, Conference Committee
on the Funding bill has proposed an entirely
new measure, and the House has rejected the
report, and again referred the bill to the Com
mittee. The new bill itself is perhaps better
than the originals of House and Senate, for in
the compromise the best features of the re-
iected Senate bill were restored. Its provis-
ions were for a larger amount than that named
in the first bill-fifteen hundred millions, in
stead of one thousand millions of dollars
being the aggregate amount of bonds to be
issued. There were to be only S5OO,OOO,OOO
of the hgh-priced, shOrt-timed bonds, while
g, 900, 5000 of fOur-per-cents, to run thirty
years, were suggested. The rates of interest
s. At, and 4 per cent, were retained. The
clause which authorized the payment of in
terest on gold deposits in the Treasury was
restored in modified form. A commission
for advertising and selling the bonds was
allowed, and the new banks to be organized
under the Currency bill lately passed were to
be required to deposit as security the low
priced bonds This last provision seems to have
aroused the opposition of the whole West and
South, in which the new banks are to be To-
Gated, and the absolute failure of the Funding
bill in consequence of this antagonism is
threatened.
The bill has been returned to the Committee
which introduced the bank clause, and will
doubtless be Immediately reported again. AT
least we sincerely hope so. The measure is
too important to be sacrificed. We be-
lieve that either of the bills proposed
by House or Senate would, if adopted at
once, enable the Secretary to fund at
least half the debt and one or the other
ought to be adopted. We do not believe that
the bank clause, however commendable in
itself, is absolutely necessary to the success of
the funding scheme, and it ought not to longer
endanger the passage of the bill. There is lit
tie hope Of recOnciling the Western and South
ern members to its adoption, and for that rea-
son we hope it will be dropped by the Com
mittee. But if we have the bill in some shape,
we can trust the Secretary of the Treasury to
do all the rest that is possible.