New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-02-11
A PRACTICABLE FUNDING SCHEME.
CONFIDENCE FELT IN THE BILL AS REPORTED n
THE sRNATE FINANCE COMMITTEE.

CONFIDENCE FELT IN THE BILL AS REPORTED BY
THE SENATE FINANCE COMMITTEE.
lBY TELEGRAPH TO THE TRIBUNE.l
WASHINGTON, Feb. 10.-The Funding bill, as re-
ported by the Senate Finance Committee appears
to meet with general approval. The more carefully
its provisions studied the clearly it is seen
that the securities authorized are such can he
successfully put upon the market, and that the
scheme is adjusted with particular regard to the
necessities of the Government in economic
ally carrying out the Sinking Fund law.
1t is believed at the Treasury Department that
the notes authorized at rats mot TO exceed" 312
per cent will appeal successfully to the floating cap
ital of the country The notes will always be at or
above par and their capacity Tor earning fair rate
of interest for money which would otherwise De
nOn-productive, and the certainty of their being
readily negotiable at any timc will DO strongly in
their favor They seem likely to become u popular
and important element IN the money markets of the
country-a sort of national "call loan" The Sec
retary is not likely to let them go too cheapy and
il Is understood that he expects them to realize
about one per centum premium. in which case his
savings in commissions would rival those made In
placing the last three hundred millions of the
Der cents. Owing to the short option of redeema
bility of the new securities. and the certainty Of
regular annual redemptions TO meet the necessities
Of the Sinking Fund law. the manner OF deternin-
ing the particular bonds notes to be redeemed
from time to time is of vital importance to i'll
vestOrs.
The lottery feature was wisely abandoned by tho
House. but nothing suggested to take the place
of that unAmerican scheme. The Senate Committee
has adopted the mode prescribed for the bonds is
sued under the Act of 1870 and the bonds and
notes issued last and consequently bearing the
highest numbers, will be first redeemed.
and 50 on until the earliest dates ard
lowest numbers are reached. 1t follows OF
course that the first subscribers in each
class of securities will be able to keep their hold
ings longest. This has the advantage of letting
every investor know just how he stands az regards
mote early subscriptions to the securities. For the
holders Of the Icdcemable bonds who may wish to
quietly turn them over into the new securities the
provisions of the secOud section opens the door.
The Department under axes 10 make the exchanges
inst as soon as the bill is passed without the inter-
ventOn of bankers. brokers or any agents wlaevrr.
All that Will be necessary is to surrender
the old bonds prior to their ma
turity and the interest will be carefully
adjusted TO the date of the maturity Of the bonds,
aud q check for the same. together with the new
bonds, will be transmitted to the owner. This is
sure 10 be popular feature with National Banks
as well as private persons.
TO recapltu late, the measure agreed upon by the Sen
ate COMMITTEE makes rapid and ecnnOnllcal fund
ing of the redeemable bonds a certainty. II creates
two classes of securities that destined TO became
popular with investors and profitable to the Gov
ernent and it stops short of reckless interference
with the difficult and delicate problems connected
with tie currency for all of which tho business
men of the country will be profoundly thankful.