The Manitowoc tribune. [volume] (Manitowoc, Wis.) 1866-1878, 1874-12-31
THURSDAY, DECEMBER 9th, 1874
THE SENATE FINANCE BILL.

The text of the financial bill passed
by the Senate does not remove the
blindness or indistinctness which seems
to render the meaning obscure in certain
particulars. The act clearly removes all
the restrictions upon the aggregate IS
sue of notes by the National Banks, and
provides that the Secretary shall ''re-
deem the legal-tender notes of the
United States in excess of three hum
bred millions of dollars to the amount
of so per centum of the increased issue
of National Bank notes. This ''red-
emption'' is to continue ''until there
shall be outstanding the sum of $780,
100000 of such legaltender United
States notes and no more" This SEEM
ingly is very plain, but what is meant by
redemption? The mere taking In OF
Inc greenbacls, and putting them away
in the vaults of the Treasury until want
ed, is one kind of redemption; to take
them in, and cancel and destroy them,
and not issue others in lieu of them, is
quite another form OF redemption.
When Senior Sherman was asked which
form of redemption was intended by the
bill, he declined making an answer.
When asked if these notes, when ''re-
deemed" might not be issued again, or
others in place of them, he refused to
answer. From all this, the country is
to understand that the redemption of
Treasury notes prior to 1879 is to be
subject to the discretion OF the Secretary
of the Treasury to reissue them when III
his opinion it is desirable or expedient.
After January, 1879, the bill requires
that the Secretary ''shall redeem in coin
the Treasury notes then outstanding on
presentation, sc. This plan of redemp-
ton is easily understood. But the bill
is little Opaque as to the mode by
which the Secretary is to get the funds
for this redemption and for the prelimin-
airy or preparatory redemption of the
eighty millions. For both these re-
demptions he is authorized to fuse any
surplus revenues" in the Treasury, and
to tissue, sell, and dispose of at not less
than par in COIN any Of the 5, 4 IL, and
4 per cent bonds heretofore authorized
to be issued The acts of 1S70-'71 au-
thorized the issue of $500, 600, GOO of 5 per
cents, all of which haye been negotiated
except 1913, 100000, for which certain
persons have an agreement securing to
them an option until Jan. 81, 1875. This
will dispose of all the 5 per cents au-
thorized to be issued, leaving the Secre-
tary with authority only to issue bonds
at 4 II and 4 per cent. As the per
cents are just struggling to keep at par,
it is moi likely that the Secretary will be
able to sell any of the or AZ per cents
at par for coin for many years to come.
We believe there is no nation III the
world which can sell 4 per cent bonds
at par except England, French and Ger
man 5 per cents are hardly at par. The
whole issue of 5 per cent Government
bonds when the Syndicate take the
S123, 100000 viii be nearly 800, 900, 900,
and, until these take permanent value
above par, the opportunity OF selling the
lower rate of interest bonds will not pre-
sent itself. It may be that Congress
Mill J,ox,a 70 outbOrize an increased issue
of per cent bonds to meet the redemp-
ton of greenbacks.
The mode of redemption before 1879
is also indirect The bonds are to be
sold for coin; but is this coin to be sold
for greenbacks, or is the coin to be used
for redeeming the greenbacks which are
first presented, by somebody posted as
to the proper time to do so2 The OBJ
security of the bill Oh these details is by
no means essential to make it acceptable
to the public. The people like plain
dealing, and do not like this double
meaning legislation, which in time viii
prove plague to its inventors. If the
House will only relieve the bill Of its
equivocal phrases, it will not only make
the bill clear, but viii add immensely
to its popularity. The people are all
right, and Congress should not be afraid
to trust them.-C Chicago Tribune.
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THE Grand Duke Nicholas, son of the