The evening Argus. [volume] (Rock Island, Ill.) 1861-1871, 1870-06-15
DAILY ARGUS.
THE NEW FUNDING BILL.

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The new funding bill introduced into the
House, by the committee on ways and means
differs very materially from the one whose
cause Mr.. Secretary Boutwell, espoused with
such singular ardor of affection, and whose
defeat he took 80 much to heart The o'a
bill authorized the issue of 81 ,2oo, ooo'ooo
new bonds, in three equal portions the hrs'
$40O. 600. 900 to bear per cent. interest,"
the second third to bear 4! per cent, and
the other third to bear per cent, thus av-
ersgipg the loan at 4! per cent. The pres
en-, bill authorizes the issue of 81 900, 000,-
900 coupon bonds, of $50, or multiples there.
of, bearing gold interest at per cent paya.
bic thirty years after date, and exempt from
ell taxation. These bonds are to be sold at
their par value for gold, or to be exchanged
at par for the per cent. fve-twenty bonds
now payable, at the pleasure of the govern
ment. If holders of the fve-twenty bonds
decline TO exchange them at par for the new
per cents., the secretary of the treasury is
directed to redeem the fve.twenties in suita-
BILE sums, at three months notice, taking
them in the order OF their issue. The inter
est on those not presented at the expiration
of three months is to cease but the holders
may still exchange them at par 'ot per
cents. The bonds purchased by the oeere-
,arv of the treasury and held by the sinking
fund are 10 be cancelled, and the amount
deducted from the debt; but the money
which the secretary has heretofore used to
pay the interest on these sinking fund bonds
shall be devoted to reducing the debt. The
secretary is authorized to receive deposits of
gold in sums of not less than $780, and
issue for them certificates of deposit bearing
, per cent. interest aud any amount of such
deposits may be Withdrawn, thirty days after
deposit, on ten days notice; IS per cent. Of
the certificates with, and the remainder to
be devoted to a reduction of the public debt
at the discretion of the secretary.
The bill possesses the rare merit of sim
plicity snd is, in truth, all that reasonable
and fair funding bill should be- The com.
pulsogy feature of the old bill which com.
PEELED the national banks to exchange their
per cent. bonds for 5! per cent. bonds of
the proposed lean on pain of being wound
up, ia omitted. There is no force or com.
pulsion in the new bill at all it merely pro-
vides for the exchange Of per cent. bonds
into per cents, or the payment Of the s
per cents. on three months notice: the holder
can take his choice. Ii the government could
ST once exchange the new loan for an equal
amount OF the old debt, bond for bond, it
would begin to save . per cent. interest on
$1,000, 100000, and equal to $4,000, 900
per annum; but as 4 per cent. is low rate
of interest, it remains to be seen whether the
whole loan cal be negotiated at all or not
At first there will be little demand for new
bonds except from abroad; but with the low.
ering of the rate of interest throughout the
country, which the release of money now in
vested in fve-twenties will cause owners of
money will become reconciled to the reduced
rate and gradually invest in the 4 per cents.
The new bonds are to run thirty years; but
they are not payable even after that time,
except at the option OF the treasury depart
ment, and the interest on them Will contin-
ne till the sscretsry shall call for their
presentation for payment. This is esteemed
accommodation of the bonds, as it gives
to them the character of a permanent
investment It is altogether probable that
the entire lot of new bonds will be absor bed
10 two or three years, and that the remain
ing $500 900, 900 of the fve.twen.y bonds
may be converted into per. cents. in the
same way.