The weekly miner. [volume] (Butte, Mont.) 1878-1881, 1881-03-08
THE FUNDING BILL.

The recent unusual action Of the New
York city bankers in endeavoring to precipi-
tate a panic in the financial circles in Wall
street. has invested this bill with more than
ordinary interest. The bill as it passed the
house of representatives, authorizes the lssu-
ance by the secretary of the treasury, i'll the
redemption of the 5 and 6 per cent. outstand-
ing bonds. of $500, 600, 900 in bonds bearing
interest at the late OF per cent, per annum
aud certificates amounting to 800, 10000
per cents in tens, twenties and ~tifties, register
ed or coupons. The bill also provides that
the public debt shall not be increased, and
before any of these bonds or certificates are
issued the secretary of the treasury shall pay
on the bonds accruing during the year 1881,
over and above $50, 200, goo now held in the
treasury for redemption purposes.
The secretary is also authorized to eX-
change the 3 per cent. ponds forany outstand-
ing and uncalled tor 5 and 6 per cents. and
TO allow in bonds so redeemed the difference
between the interest Oh such bonds from the
date Of exchange to maturity. and interest
for the same period on bonds or certificates
issued. The provisions of the act do not ap-
ply to the redemption or exchange of Pacific
abroad bonds.
The secretary may, if he deem it necessary,
use $50, 100000 of standard gold and silver
coin IN the redemption of the 5s and G's, and
may, at any time, apply the surplus in the
treasury to the purchase or redemption of
bonds or certificates for cancellation. After
May 1st the 3 per cents shall be tie only
bonds receivable as security for national bank
circulation, except when such bonds are called
in, and then the banks may substitute other
United States bonds.
Some few amendments to the bill were
made in the senate before it passed that body.
These amendments extend the time for the
bonds to run, but the rate of Interest remains
in the bill as it passed the house. The
banks objected to the low rate of interest
which the new bonds We're to bear. They
disliked the idea of exchanging their 6 per
cent. bonds deposited as security for their
circulation. for the 8 per cents, though the
interest to the time of the maturity of the
bonds. Many of the banks gave notice of
their intention to withdraw their circulation.
This was all right enough. They can issue
notes or not as they please. But they didn't
stop at the threat to Withdraw their circula-
ton. They locked up their vaults and re-
fused to loan money, though an offer of one
pcr cent. per diem was make for its Use.
Stocks fell, and a feeling bordering on panic
ensued. Ruin stared thousands of the best
men in the city in the face. AT this %junctulc
Secretary Sherman came forward and threw
over 100000 900 upon the market by purChaS-
ing uncalled bonds. Montreal and London
responded with more money. Confidence
was restored, stocks rose, the market became
easy and quiet. and the banks concluded to
continue their circulation, But the banks
effected their object. They frightened Con-
gress, and it is doubtful whether the bill will
become a law. Should it pass the house it will
be in an amended form, or the president will
veto it.
Tins little play, made by the banking in
terests of the east will build up and strength
en- the %greenback party beyond calculation.
The banks themselves have given the very
best evidence to the country that they are a
dangerous power in the land. This is just
what The greenbackers have always claimed,
and hence have advocated that the "right to
make and issue money is a sovereign power
to be maintained by the people for the COM
non benefit and that the "deiegation OF
this right to corporations is d surrender of the
central attribute of sovereignty, void of con.
stitutIonal sanction, comforting upon a sub.
ordinate irresponsible power absolute do.
minion over industry and commerce."
The banks have placed a powerful weapon
in the hands of Weaver and his party. They
have convinced the people that the currency
of the country should be issued and con,
trolled by the government, to the end that
"subordinate irresponsible power" should
not have "absolute dominion oyer industry
and commerce." The end is not yet.