Daily Kennebec journal., 1881-02-22
The ReflInsling Act.

authorities regard the scheme of refunding
found in the bill as impracticabe. 1t is,
in short, TO refund about 900. 900, ,0D Of
United States securities maturing before
the first of July. in new issue of bonds
bearing only , per cent interest; and to
further this scheme it is provided in the
bill that the national banks shall take
these bonds to secure their circulation and
government deposits, now secured by )
and 6 per cents.
Now, however desirable it may be to
reduce the interest of the national debt to
as low figure As possible. il is an alb
surdity to imagine that individuals can be
tempted to purchase bonds at ) per cent
when they can invest their money upon
better terms, or that banks can be COM
PEELED to take the bonds and continue
business at loss to themselves. The
opinion prevails that the bonds will not
be taken by private subscription, that
many of the banks in the country will sur
render their circulation rather than take
them, and that the measure if it becomes
law will result in serious contraction Of
the currency and final failure to accom-
plish the proposed refunding of the bonds.
soon becoming due, at the propos .d rate.
While it it reported from the large
monetary centres of the country that
many of the banks in the cities have given
notice that they will surrender their cir
culation fthe reiunding measure becomes
law. we hear but one opinion in our State
and vicinity. viz: that many of our coun-
try banks will be unable to with stand the
pressure and must yield their circulation
and wind up business. greatly to the detri-
ment of the places in which they are To-
Gated.
The articles in our leading exchanges
indicate trouble ahead if the bill becomes
q law. The New York Times closes an
article upon the subject As follows: 1T
now looks very much rs if the work of
refunding. if done ut all, will have to be
done by the Forty Congress The
bill that is about to become law will. in
all probability, have but a partial success
and will be exposed to many Interruptions
and dangers during the coming six months.
An opportunity for placing the American
Government at the very head of the great
Governments of the world in point of cred
it has been trifled with and rs lar rs can
now be told. has been lost. A peculiar
combination of circumstances that no one
expects to last very long made it possible
to float large loan at 3 per cent. at par,
an achievement without parallel in tinan-
cial history. Congress has chosen TO re-
iect the proffcred cooperation that would
have secured this splendid result and has
elected to try coercion instead. 1t is hard
ly within the range of probability that a
means so ill-adviscd and suggested by so
unwise and unjust spirit will succeed"
The tribune saws 1.-THE objections to this
bill are SO serious. and the changes which
might result from 1t are so great. that it
ought not to become u law" and urges
the President to veto it, OF its grossly
pyrtizan character. the same paper speaks
as follows: From beginning to end this
bill has been democratic partzan
measure. Political motives of the least
creditable sort have been the main cause
os its success thus far. The wise and con-
servative advice of four democratic SEN
ators. among whom this State was glad to
see Mr.. Herman. has not availed to over
come the rong-headedness OF their party.
The four republican Senators who voted
for the vital feature of the bill in commit
tse-Messrs. Ingalls,. Kellogg. Saunders
and Teller-certanlv do not represent the
best thought or the highest wisdom of the
party. With these exceptions on the de-
cisive vote in committee. the measure was
supported and passed by the democratic
party. and opposed by the republican
party. In the House. the division of
opinion was nearly the same. These facts
should not sway the Judgment if the bill
were safe or wise one IN itself. But the
strong partizan spirit which has been
openly invoked to aid this measure. and
which is shown in the action of members.
goes tar to deprive the Judgment of the
Senate or the House of the weight which
it otherwise might have. Nor will it es-
cape the notice OF the President or the
country that every malignant hater of the
public creditors. every embttered and
venemous representative of the disloyal
spirit, every shameless advocate of re-
pudiation. every known enemy of the pub
lie credit. voted tor this measure"
The Philadelphia Press says: The
foolishness of attempting to refund the
national debt at three per cent. is indicated
in very plain terms by the tone of the
Stock Exchange. Money is plenty just
now. it is true. but it could not be placed
in a three percent. loan. EVENT. the present
condition of the money market should con-
tinue. which is not at all probable. The
sudden tumble in the stock market yes-
ter,iay, when no one wanted to buy, and
every one was ready to sell. pointed out
very clearly the fear that if Congress in