New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-02-19
FINANCIAL /, PROBLEMS.
pEPnNnfNC THE NATIONAL DEBT.

aag AMENDED FUNDING ELL PASSED BY THE shN-
xTp-PoiNTs OF DIFFERENCE BETWEEN IhN
Two HoUsEs-No VETO PRoBABL"-CoM%hNlS
ON fHH MgAsURE-wHAT WAS SAID IN WALL
STREET.
The Funding bill was passed by the United
States Senate yesterday, amended IN seVefai
important particulars. The rate OF commission
to be paid for negotiating the new ponds IL
raised from one-quarter OF one per cent oc
one half of one per cent but 1t Is DeheVeu
that the House will concur in the amendments
and that the President wall permit 1t TO oe-
come a law. If is believed by Treasury OIL
cials that the new bonds cannot De success
fully negotiated, and that the effect OF the
law will be an extensive and disastrous con-
traction of the currency. In Wall Street the
measure was condemned by leading bankers.
By some it waz bronoupced an outrage on tho
National banks and breach Of public faith.
APHE FUTURE OF THE BILL.
PRoDABLE ACCEPTANCE BY THE HOUSE OF THE
SENATE AmENDMENTs-THE BILL LIKELY TO BE-
COME A Lrw-DARK B0REBoDNGa
lBY TBLsGRAPH TO TIE TRIpUNEl
WAsHINGruN Feb. 18.-Speaker Randall referring
10 the positon wblch the House would take with
regard to the senate amendments TO the Funding
bull said that he not prepared to say that the
change 10 the rate Of commission 70 be allowed for
negotiating the loan from One-quaiter to one-half
of per cent would be accepted without further
consideration and conference. 1t has been tho
expectation of the supporters of the three per cent
measure hat, inasmucb as the Senate has accepted
the bill of the House of Representatives IN all ITS
su ,stantial features, the House might waive its
decisiou upon the minor QUESTION of cOmmlssion
This feature of the bill, however. was under the
spcc,al charge of speaker Randall when it passed
the House, aid it Is mainly due to his efforts that
the rate was fixed at oue-quarter of l per cent.
Many Dem questioned the propriety OF so low
afgure. aud some doubted whether that rate per
cent woud DO sufficient TO pay for the paper and
cost of engraving, of adver lsDg and necessary
commissions.
The arguments presented to the Senate by the 8
per cent advocates strong that the ia Q was
increased to one half of per cent by large ma
jorty. The Senate Finance Committee. signally
defeated upon most of It's recommendations, was
able to maintain this feature of Its bill. There
additional reasons presented in tte-ehatc to show
that the increased commission s necessary. MIR.
Randall, however, wished to make great deal of
political CAPITAL out Of the hackueyed stsry OF the
sypdicates and was especially anxious that there
should be no opportunity given in this bill for what
he calls the bank grab" There have been some
changes of view in the House. however, upon this
suestiOn since the bill sent the Senate, aud
there is some reason to think that the House will
accept the Senate notifications. If this can be
dore there will probably be conference upon the
bil as the simple concurrence i'll the Senate amend
meuts would pass it.
10 Secretary Sherman referring to the statements
that it has be n suggested that a veto would he
possible. said tonight that there wond be no veto;
Al a. AN ianf fnr a afn
Secretary Shsrman SAID he was certain The Presi-
dent would not sttenOt to interfere with the de-
eis,on Of tie tWo Houses upon tnis question, aud ee
bill would be allowed to become law without rx-
ecutve interference IL it should fail, those who
passed it woul be responsible. Being asked if he
thought that 1t wOnld fail, Secretary Sherman said
that he did not wish to be regarded as saying 30.
He hoped that it would succeed. but 1t re-
mained vet TO be determined whether or not IT
could be successful. Other TrraSury officials, who
were not under any resi- srants from their position, d"
not hesitate to express the heopniOn that three per
cent bond cannot be successfully NEGOTIATED, and
they say that Secretary Shermans views are III en-
tire accord with their Own.
Some defects and inconsistencies have already
been discovered IN the bill. One section authorizes
the Secretary of the Treasury to exchange these
bonds for other outstanding houds drawing higher
rate Of interest. Thi emplates the continuance
OF tie existing ugements of au exchange by d.
rect dealings with the owners Of the outstanding
bonds; but another section of the bill provides that
no bouds shall be Issued except after pubic adver-
t,sement for proposals. These two sections at the
Treasury are ALREADY construed IA III CO hct. some
Of the Treasury OH cTs, however, are Of ;hc opinion
that the per cent loan Can be successfully Dego-
tlated, Uui those who hold thIs view are III small
minority. The majority Of chem fear the re'hl's OF
the operations of tue new act and anticipate ptoO
able CONTRACTION Ol the CURRENCY. hey say that a
portion Of the banks will not hud the Dr"h on "ir-
GdlatIOn sufficient TO warrant tfem ~ Dalntainlnc
Their circu ation; that they will sell then Der
cent bouds which they now b. Va as security for
circulation III order to real the large profits unOn
them, aud that before July Ghere will be- u sudden
and extensive aud disastrous contraction Of The cur
rency under the existing law which permits banks
to retire tneIr circulation upon presentation Of legal
tenders.