The Portland daily press., 1881-02-22
THE FUNDING BILL.
Different Views in Regard to it's
Construction.
GARFIELD BELIEVES IT DESIGNED
TO EMBARRASS HIM.
A Protest from Cleveland Bankers.

Boston. Feb. 21.--A Washington despatch
to the Journal says number of New York
bank men have arrived there to ascertain
whether or not there is any prospect of veto
of the funding bill, and to obtain an official
construction of it's provisions. 1t is found that
opinions greatly differ as to the construction,
particularly of the fifth section. National
banks have generally supposed that they would
have until July LIST next to determine whether
or not they would retire their circulation, but
treasury officials maiut in that the provision
relative to the retirement of circulation will
go into effect whenever the act shall be ap-
proved. The bill certainly provides for an i'm
mediate repeal of the fourth section of the act
of June 20, 1874, which is the act by which re-
tirements are now made, by presentation of
legal tenders through the treasury as a clear
ing house, and also re-enacts sections 5159 and
5l60 of the revised statutes, which requires the
national banks to collect their own notes; but
even this does not permit reduction of circu-
lation below one third of the capital stock. To
Saturday morning there was no increase of re-
tlrements OF circulation as consequence of
the passage of this BILL To-day the bank
statement, however, will show different re-
suit. Notice has been received of the retire.
ment of the circulation of several New York
banks. The impression in banking circles,
too, that the fifth section applies only to circu
lati0n hereafter to be issued is incorrect. The
amendment to that effect was not agreed too
Banks whose circulation is based upon curren-
cey Us and upon the and A per cents will
have great advantage over banks whose cir
culation is founded upon the SIS and 6s of
1851 as the as and A Is are not affected by the
refund!ng act.
The belief that Congress has reported
q pill to take off the taxation upon
Dank deposits in order to relieve the banks
from some of the burdens of the funding bill
is also not we'll founded 1t is true that such
bill has been reported in the House from the
ways and MEAS committee, but this report IS
part OF general scheme to reduce $4,000, 900
internal revenue taxation. 1t was reported by
men who distintly refuse to agree to take off
the tax upon bank circulation. The object of
the bill is that the Democratic party may be
able if the bill shall pass to say that they have
relieved the people of SIS, 200. 900 internal
revenue taxation. The bill was reported by
Mr.. Carlisle, who is the author of the fifth or
proscriptive section of the funding bill, which
is the most serious blow that the national
banking system ever received from Congress
since the national banks were organized
Tha truth is that the fourth section and
other important features of the funding bill
were designed in hostility to the banks Many
who voted for the bill will be we'll pleased if
the banking system shall be seriously injured
by it. The strongest opponents of the national
banking system were the foremost advocates of
this bill. The bill to repeal the small amount
OF bank taxation, that upon deposits it is true
has been favorably reported, but it is upon the
House calendar. 1t is a long way from House
oaloHudr W d law, uuu0r favorable ClrCum-
stances, and it is less than two weeks to the
end of this session. The fact that the tax on
deposits is war tax and is tax upon the saw
ing OF industry, is consideration of little
consequence to Congress, inasmuch as the de-
posts in some way relate to national banks
A telegram was received at the Treasury yes
terday, asking If deposit of legal tender to
redeem national bank circulation, which a
Boston bank proposed to surrender, would be
legal If made upon that day Sunday. The
its circulation. The deposit ofc legal tenders
to surrender bank circulation will be good if
made at any time before the funding bill is
signed. The Senate amendments to the fund
ing bill are yet to be considered and approved
by the House. The ways and means commit
tee has not yet reported it back. It is now the
expectation that the House will approve them
without sending the bill back to the Senate,
and that the bill will then become a law by
the approval of the President 1t would be
possible 1or thirty men in the House even now
to prevent the passage of the funding bill a.,
if that number should combine, they would be
able to successfully resort to fllibustering and
so prevent the passage of the measure. 1t is
true that such course would be very likely to
involve an extra session as it would be hardly
possible to defeat the funding bill and not at
the same time consume so much time as to de-
feat some of the appropriation bills. A few
Republicans who desire an extra session have
suggested the propriety of such course, but
such movement has not been agreed upon,
nor is it likely that it will be.
NEW YORK, Feb. 21.-A Cleveland despatch
states that yesterday Gen. Garfield said, when
talking of the funding bill, that the bonds
orght not to be foated at less than 81 per cent
He believed that the Democrats urged the 3
per cent for the sole purpose of embarrassing
the Republican party and the coming admins
tration.
CLEVELAND, Feb. 21.-The associated banks
and bankers of Cleveland this morning sent
telegram to President Hayes saying that the
passage of the funding bill with the section in
the present form will prove disastrous to bust
ness of the country, and express hope that
the President may see his way clear to inter-
pose veto if the bill passes.