New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-12-19
ntSr0Rr rs 10 REFENDING.

HISTORY rs TO REFUNDING.
The report of the Finance Committee OF the
Senate IN favor of Senator Shennan's BILL
with some amendments, will bring up the ques-
ton of refunding at an early day. Mr.. Sher-
man secures the ear Of the Senate for bis bill
before Mr.. Ran DAN can get his sent 10 COM
mittee but it seems to be assumed by many
that funding bill of some sort will of
course be passed. Yet it appears to us more
probable that the conflicting propositions will
mutually kill each other, and that the country
will thus be permitted season of financial
rest. which its business greatly needs.
Political considerations have caused these
bills to be presented, and will probably con-
troll the final disposition of them A glance at
the antecedent events viii show why these
bills were introduced and why both ought to
fail. The Administration of President Hayes,
being charged with responsibility as to the
public credit, asked repeatedly and earnestly
that provision he made in advance for refund
ing 500, 600 of bonds which became due
this year. 4 Democratic majority i'll Congress
repeatedly and most improperly refused The
wear 1881 came, with nothing done. The
Democrats, still in the majority, perceived
that they could not afford 10 take the respOn-
sibity of causing on act of National bank
ruptcv. Many of thcm-probably majority
of the Democratic members Of COngrcss-de
sired precisely that result. They wished to
see the public credit wrecked and the creditors
punished for helping to suppress "A rebellion.
But in 1850 an election was close at hand,
and they did not dare to do anything. In
"a hot for
an act of bankruptcy would be fatal to the
Democratic party, and an effort was made TO
throw that responsibility upon the Republicans.
A bill was cOntriyed, which almost every prac-
teal business man in the country knew
must completely fail to accomplish the
profossed end, and it was amended with
great pains iii Congress to make it as mis-
clievous as possible. The President vetoed it,
and thus saved the country from great caam-
tiles, and the public credit from ruin.
Yet the new Administration was left with
ont any means by recent law provided for
meeting vast and quickly maturing
indebtedness. IL this great emergency,
the ability and wisdom of Republican
leadcrshipwcre conspcuOusy manifested. Half
forgotten provisions Of old laws were carefully
studied. The condition Of the money market
was closely investigated A bold and brilliant
plan utilized all the resources and powers of
the Government in most unexpected man.
ner and brought the grandest triumph of
financial history, in place of great disaster and
dishOnOr.
The Democratic party had deliberately pre-
pared the disaster and dshOnOr. The Repub-
lican party had achieved the triumph. 1t is
natural that the Democrats cannot tolerate
this contrast. 1t has become an absolute ne
cessity for them to treat the refunding of last
summer as merely an unauthorized and tenn
porary makcshift; to ignore all its marvel
lous advantages; and to insist that three per
cent bonds might then have been, and can yet,
be sold as easily as three and half per cents.
To party caught in the very act of trying to
wreck the public credit, tins is a necessity.
But what conceivable occasion has Senator
Sherman to be in such company
Mr.. Randall publicly threatened, some
months ago, to bring up the old three
per cent bill again, and to press it to
a vote. He cOnceiyes, and i'll effect he de-
clared, that a three per cent bill would catch
the public favor, and put the Democratic
party in less defenccless position as respects
the public credit 1t would enable the Demo-
Gratis to cry, if the bill should work, that the
Republicans might have done just as well be-
FORE had they not desired to favor bOndhOld-
ers," while, if the bill should not work, the
Democrats could say that the Republicans
prevented or defeated it.
II Is Mr.. Sherman's failing as a public man
that he attaches far too much Importance to
the shallow tricks Of hostile demagogues. If
he would have more faith in the solid COM
nonsense and sturdy honesty of the people,
he would be very much stronger He proposes,
at present, to head-off" Mr.. Randall. If Mr..
Randall's three per cent scheme proves TO be
popular, Mr.. Sherman will appear as the author
and champion of a three per cent bill, and will
explain that he has opposed one hitherto be-
cause the circumstances were not such as TO
make refunding on those terms practicable,
On the other hand, if the scheme does not
prove popular, Mr.. Sherman's bill is good
weapon with which to defeat Mr.. Randalrs
This is shrewd strategy, but it is not sound
craftsmanship. The country does not need
nor desire any more refunding II needs and
wants financial rest. 1t comprehends, to