New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-01-04
TILE EnNnING KLLL

Mr.. Wood expresses confidence that his three
per cent funding bin will pass. He is of hopeful
temperament, and, it will be remembered, was
equally confident of the passage OF his tariff
bill. which had its head cut OF so easily on
motion of General Garfield. His statement
that Secretary Sherman tavOrs the passage of
the three per cent bill directly conflicts with the
official report of the Secretary; and his Ie-
mark that there is not single member, who
ais not opposed to any refunding whatever,
"whO does not favor per cent" will I'M
dOubtedly be qualified or cOntradicted by more
than one member before the debate ends.
Secretary Sherman has officially advised the
passage of a very different bill from the one
proposed by Mr.. Wood. lie recommends in his
report bill differing in three essential points;
in maximum rate of interest to he allowed,
which the Secretary advised to make 1865 per
cent; in the grant of discretionary power to
the Secretary to place bonds at or below this
rate, which Mr.. Wood insists upon refusing;
and in the repeal of bank taxes, amounting last
wear to about $4,400,000, which the Secretary
advises, and the Committee also refuses. The
plan of Mr.. Sherman may not he in all respects
the best that has been suggested, but 1t GER
tanly would avoid the two serious dangers to
which the country would be exposed it Mr..
Woods bill should be passed Those dangers
it is especially important that Congress should
not overlook at this time. The country is en-
tering upon new year, with its resources con-
sderably strained by the expenditure OF over
$40 900 during the year 1880 in the
building of new railroads, by the unprecedented
speculation which has prevailed for two OF
and hxyf
of legitimate business. Any serious shock to
the public credit or disturbance in the money
markets, at this juncture, might do incalculable
harm.
There is, first, the danger that three per cent
bonds may be offered without success. At any
time, and under any form of law, this would be
q most unfortunate fascO, but the pending bill
is peculiarly calculated to turn mere mOrti6ca-
ton into grave disaster. The Government,
under that bill, would then be left absolutely
without any provision for the bond which be-
come redeemable this year. After t. passage
of tho bin 1t would become the duty OF the Sec
rotary to retain in the Treasury the surplus
revenue until July l, in order to pay bonds be-
coming Iedeemable ct that time, for the per
cent bonds could not be redeemed except after
ninety days notice, and it would hardly be
thought proper for the Treasury to pay any
premium for bonds before July which it could
redeem on that date without premium. In
consequence, the surplus revenue would accu-
mulate 10 the Treasury for several months, and
during the very season in which the resources
of the banks are liable to be greatly strained.
Al such time, blow to the public credit, toll
lowed by the lOcking-up OF many millions of
money. and period Of severe stringency,
would be apt to cause great trouble. But the
public credit would suffer for years, in any
event. Nor can 1t be considered in any degree
probable that three per cent bonds could be sold
at par, IL the Treasury should be compelled to
contract the circulation by accommodating money,