New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-03-04
THE FUNDING BILL VETOED

DELIGHTED-AN UNANswERABLE ARGUMENT
AGAINST THE FIFTH sECTIoN-GREAT CHANGE
IN REPUBLICAN SENTIMENT.
IBr TELEGRAPH TO THE TRTBUSf.l
WASHINGTON, March 3.-Yesterday the Demo
cratic members of the House of Representatives
congratulated themselves and the country because
they had passed so-called Funding bill i; to-day
they have been congratulating themselves because
President Hayes has vetoed their pet measure.
This act, they declare fills the cup of Republican
wickedness to the very brim, and will bring down
upon the Republican party the avengng wrath Of
the American people. The wicked Republicans are
also happy; but their joy springs from different
source. They had reason TO expect the veto mes
sage to-day but the Democrats generally were taken
by surprise.
About IL o'clock. and soon after the House oi
Representatives had reassembled, Colonel W. X.
Rogers, the private secretary of President HAYES,
entered bearing an Executive communicate w,ich
everybody at once realized must be veto message.
The document was received aud allowed to lie un-
opened for some time upon the Speakers table Soon
after midday Chairman Tucker, of Il Ways and
Means Committee. interrupted the proc ee lungs and
asked that the message be read. During the read
ing the members of the House of both parties gen.
orally listened with unusual attention. There was
no demonstration when the Clerk had concluded,
of the subject be postponed. Mr. Conger and Mr..
Robson moved immediate consideration. By
party vote, Mr.. fuckers motion was adopted.
What further action, if any, will be taken by the
House of Representatives at this session in regard to
refundng remains to be seen Prominent Demo-
Gratis said to-day that the matter would be allowed
to drop. and that the people would hold the Repub-
can party responsible for the failure to refund the
public debt. Republican leaders in the House ex-
press very different opinion. They say that tho
Democrats cannot afford to take the position all
nounced to-day, so long rs the Republican members
of both branches of Congress are ready to vote for
and Republican President IS willing to sign,
Funding bill fixing the rate Of interest at 8 per
cent provided the bill shall otherwise contain no
vicious legislation.
When the House took recess this afternoon to
meet at o'clock tonight. Mr.. Conger said to
TRIBUNE correspondent that in his opinion an effort
will be made before tomorrow morning to suspend
the rules and pass the Funding bill which wai
vetoed to-day leaving out the obnoxious Fifth Sec
tion Ii the Democrats refuse to vote for ch
bl they will prove to the country that their pro-
fessed desire to refund the National debt has been
false preence from the beginning to the end, and
that their only real anxiety has been to strike down
the National banking system even at the cost OIL the
prostratOn of every business interest IN the untry:
A curious illustration OF the complete G. Se Oh
sentiment which Republican congressman AVE e1-
perenced within the last fortnight. IS found III the
qualification with which ,ney received inc 1 Se'o
TO-DAY. They declare it to be unanswerabie and
complete justification OF the Presidents refusal 10
approve the bill Less than two weeks ago the
same gentlemen almost unanimously declared that
the President would not be justified in vetoing the
bill and that no satisfactory reasons coula oe gwen
for such action. Secretary Sherman himself frankiy
expressed the same opinion and he mas been 1rceIy
nnOted within the last two three days to that
erect Only the day before yesterday story was
circulated in the House. and by many hepuonea5s % Ie
bill as 1T then stood.
EFFECTS OF THE VETO IN THIS CITY.
GENERAL SATISFACTION IN WALL srREET-THE RB
DEPOSIT OF BONDS wITHDRAwN IN RETIRING
BANK NOTE CIRCULATION DISCUSSED
The news of the veto of the Funding bill was re.
ceyed in Wall Street with general satisfaction but
with littefnterest. The opinion had become nearly
general that the bill would not become a law and
private dispatches received early yesterday morning
plainly indicated the Presidents action. The effect
of the announcement on the stock market was not
great therefore, and it was completely obscured by
the rumors that gig per cent bill would be passed
Immediately by both houses Of Congress. still
greater influence was exerted by the early
publication at the Sub-Ireasury OF an
order received in the morning mail from
Secretary Sherman, authorizing the Assistant
Treasurer to receive bids next Wednesday for
So 900 900 in bonds 5s or 6s of 1881 either called
or uncalled. This order caused no little comment in
the Street, and by many persons it was considered
strange that the Secretary should have issued the
order ON the last day of his term of Office. especially
in view of the fact that only small part OF the
called 5s and of the bonds which lie had previously
authorized the Assstant-Ireasurer to purchase had
been received
t,a oh nf 0t
Congress and the character of future legislation on
refunding and the probable action OF the Treasury
Department in allowing the redepos of bonds with
drawn in retiring bank note circulation formed the
principal topics Of conversation. Deposits amount
ing to 1897 800. which were made at the Sub-Ireas
ury early yesterday morning. were withdrawn aftef
the announcement of the veto of the bill. In these
cases the retirement of circulation and withdrawal
of bonds had not been completed. In reply to an
inquiry by President Thompson. OF tie Shase Ia Ia
tlonal Bank. as TO the reported ruling OF tine Dc
partmcnt the Controller OF the Currency has writ
ten letter in which he says that he understands
that the Treasurer will return grsenbacks TO those
persons who have deposited them provided the
bonds which secured their circulation still remain on
depost and none Of the circulation of tho bank has
been redeemed from the deposit he declines how.
ever to surrender greenbacks upon redcposlt OF
bonds, ana If per cent bonds are again deposited
new certificates must be issued.
I'm the discussion OF this subject yesterday, a
banker referred to the Thames National Bank,
of Norwich, Comp, which was one Of the
first to retire its circulation S ion after ssDsts sh:
r. ia Known that the check of the Treasurer for the
exact amount deposited by this bank passed through
the Clearing House Wednesday, and I'll that Ut the bank @
ner cent bonds OF the bonds released by its deposit
the bank sold about $500 900 in u.s. and 1t is under
stood to retain the remainder, which was in os.
Ii was remarked that apparently the facts IN the
case of that bank did not fall within tho ruling
which Controller Kuox understood to have been
made by the Treasurer
Mr. Fisk. of Fisk & Hatch said last evening that
he hoped that there would be no extra session OF
Congress- and that when the next regular session
came round the country would be prepared for 9