The daily gazette. [volume] (Wilmington, Del.) 1874-1883, 1881-02-24
THIRD EDITION
Fror the New York Herald.
SAFEGUARDS AGAINST CON
TRACTION.

TRACT1ON.
The commercial scSre which one
of our city contemporaries is max
ing frantic attempts to get up in
connection with the Funding bill is
all nonsense and moonshine. The
same journal was not more moon
struck and delirious when it fulmi-
mated its singular pronunciamento
In the name of General Garfield,
promising his protection to mem
bers Of the New York Legislature
who might vote in opposition to the
presumed wishes OF Senator Conk-
ling.
The hysterical cries of alarm rails
cd by this Journal against the Fund
ing bill have been exposed by Secre-
tary Sherman in the call for bonds
printed in all the journals yester-
day morning. On Saturday and
Monday some of the national banks
declared war on the Funding bill by
depositing three or four millions OF
lawful money to retire correspond.
ing amount of their circulation
But on Monday evening Secretary
Sherman discharge a heavy masked
battery III reply TO this fusillade.-
He advertises his Intention to put
twenty five million dollars out of
the Treasury into the channels OF
circulation by redeeming that
amount of bonds for the sinking
fund. This formidable broadside
should convince the national banks
that they cannot alarm the COM
munity with the threat of a sudden
contraction of the currency bv
withdrawal of their note circulation.
The natural effect of this menace
will be to induce the House to &C
cept the Senate amendments to the
Funding bill and pass it at once. If
it should pass to- day the President
will probably sign it to morrow );
and from the moment it is signed
the banks are estopped from with
drawing their circulation by the pre-
sent facile method. A veto of the
Funding bill is not to be expected,
and the President will doubtless
make his approval prompt enough
to froestall attempts on the part of
the national banks to thwart its pur-
pose by am extensive contraction of
the currency. This would be plain
duty to the business interests of the
country and be in the line OF Secre-
tary Sherman's efficient counter
check to the menace of the banks.
Secretary sherman does not like the
Funding bill. but he recognizes The
authority of Congress and will make
faithful effort to carry out its policy,
as will also his successor. The ma
tional banks cannot he permitted to
usurp the preTogatve Of Congress and
dictate the financial policy of the gov
eminent. Ii this Congress is making
a mistake the next Congress will rec
tify it; but the banks cannot put
screws on the business of the country
as a means of defeating legislation.
Their facilities for contracting the
currency aud distressing the business
community will cease from the mo-
ment the Funding is signed and to
disarm their power Of mischief the
A-sident will probably sign it as soon
and emes into his possession Mean
stockholhahks cannot, at the utmost,
L. g. more than ten millions OF
\, circulation, which is already over.
borne and dWarfed by the public noti-
hcation of the Treasury Depar ment
that it will add twenty five millions
to the circulation by the redemption
of bonds called for the sinking fund.
Even if President Hayes should de-
lay signing the bill and thereby give
the hos lie banks time to act, all they
could do in a few days would be a
bagatelle against the resources OF the
government for tolling them. The
fourth section Of the Funding bill an,
thonzes the Secretary OF the Treasury
to use temporarily, if he deems it ne.
cessary, fifty million dollars OF he coli
in the Treasury, and also any mouey
not o herwise appropriated, for retirin!
the old bonds. The twenty-five mil
lions soon to be paid out OH account o
the sinking fund, the fifty millions 0
coin and the surplus of inappropriate,
money, make SO large an aggregat
which can BE- employed by the Treas
ury 10 create an easy money make
that tue threats of contraction by tb
banks are futile and ridiculous.