National Republican., 1881-02-28
The Funding Bill.

The national banking system is not an
swerable for the indiscretion of few OF
its friends. Nor is what is usually termed
"the money power, having its centre in
Wall street." fairly to be held responsible
for the conduct of few bold and DASH
ing operators Because of these truths
we venture to suggest that Congress can
afford to consider the funding bill and the
bill to abolish the tax on bank deposits
without regard to the bull-dozing pro-
cesses which have been attempted upon
that body.
The loud ranting on the subject of the
funding bill by some of its opponents in
New York is as ridiculous as it is disgust
ing. 1t is one thing to have an opinion
and TO maintain it decently, but quite an
other thing to threaten penalties which
cannot be enforced if Congress shall dare
to legislate as its majorities shall deem
wisest and best. The shrill cries of a
single editor do not control Congress, nor,
indeed, do they guarantee veto by the
President of measure obnoxious to q
few Individuals Yet one would think, to
read the pronunciamentos Of one OF these
Simon Tappertits, that in him had the
veto power been vested by the Constitu-
ton.
1t is an undeniable fact that the fund
ing bill, as it stands, would change the
conditions under which the national
banks now exist. A provision has been
inserted which would take away their
present power to withdraw their circula-
ton and repossess themselves of their
bonds by deposit of lawful money. This
would not be a continuation of the present
banking system. 1t would be free going
in, but compulsory staying in until they
had redeemed their own bills.
No doubt the fifth section was placed
there as security against the execution of
threats. Some of the advocates OF q larger
rate of interest than three per cent.
loudly proclaimed that the banks would
sooner retire their circulation than be
compelled to accept three per cent. bonds
in exchange for those bearing a higher
rate, upon which their circulation now
rests. These threats ought not to have
been taken as the deliberate expressions
of the banks, but only as the croaking
of jealous advocates of a
higher rate OF interest for the new
bonds.
The fifth section is wholly due to
the silly system of intimidation which
has been in vogue for some years
in certain newspaper Offices and among
the few they represent. As soon as Con-
gress was menaced and bulled on the
subject of the rate of interest, not only
was the rate quickly settled against the
blIstereFs, but an ingenious device was
invented by which the national banks
should be bound hand and foot, and each
one compelled to continue in business
with three per cent. bonds as its basis
untilit could gather across its own counter
the notes bearing its name.
This is not to our mind wise or Just
thing to do. To permit capital to invest
itself in banking with free permission to
retire as soon as its owners shall deem
some other investment more profitable is
an honorable agreement which should not
be broken. To say to a national bank
directory that it shall draw less interest
after certain day upon the bonds by
which its circulation is secured, and that
it shall lose the option which the law
now gives it to Immediately go out of
business if the new and reduced rate is
Objected to, will seem to plain people as
4 clear breach of faith. Congress must
not allow itself to be badgered into in
Justice and wrong.