The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1881-02-21
GRAVE DOUBTS As TO WHETHER
THEY CAN BE FLOATED.
How the:PaHsREe OF the Funding Bill
Ii Affecting Ihe stock Market
National Banks Withdrawing
Their CIFcuIaIIOn-0pInIOns
OF Leading bankers.

as securities Tor ClfCulation, lttneoplnlOnb
Of leading officers Of some OF the National
Banks are OF any consequence, the bank
ing interests OF the country will be almost
united in opposition to tho new loan, 1t
IL possible, however, that when the pro.
visions OF the bill come TO be better un-
derstood the banks will generally unite in
floating . part Of the bonds.
After the opening flourish stocks were
rallied by the Cliques, and q recovery on
Reading impaired frmer tone on the
whole list, bntthe buying was not very
confident, The majority Of the conserva-
tive stock operators on the street look Tor
q much stronger and higher market next
week, after the Funding bill and its provls-
ions are better understood. Msssrs. Van.
derbilt, D. D. Mills, Russell Sage, Jay
Gould and Sidney Dillon say that they be-
lieve the lOan.will' be floAted without dit-
iiGulty, The most experienced bankers
and bond brokers entertain similar views.
AS soon as the Government actually be-
gins to buy the $50,0O0,000 bonds; issues
5000, ,000, 900 certificates, 4 great further i'm
proYement may be looked for, because
the operation to great extent will prove
There 10 now very large short interest In
the general stock market.
The market was freely fed by Washing.
ton dispatches saying that leading Sena.
tors and Representatives believed that the
Funding bill, as It passed the Senate,
would work favorable wonders In values.
''Treasury officials" were credited with the
opinion that the bill would effect a deCid.
ed "inhation OF the circulation" and Mr..
Carlisle's proposed bill to repeal all taxes
on checks and deposits received wide cir.
AL. these different reports ex.
erted o temporary favorable influence up.
on prices. But these effects were not last
ing, and prices quickly retired after each
rally. The final closing, however, which
was made at figures generally nearly the
equal OF those Of the opening, had for its
the following latest dispatch.
efforts will be made TO pass bill be-
fore the adjournment OF CongreAs abolish.
ing the tax on bank circulation and de.
pOsits. There 10 reason to believe that the
efforts will be successful"
But while Senators and Representatives,
and perhapsTreasury officials, are theoriz.
ing over the effect of tie bill, practical
business men who are officers and direc.
tors OF National banks are taking the ne.
Cessary steps to prevent themselves from
being tied up by an impraCtiCable law.
Already since the passage of the bill by
tue Senate $2,537 600 in greenbacks and
gold has been deposited In the subtreasury
In this city, to retire that amount OF bank
note circulation. The sum deposited Is
equal to more than IA per cent Of the en-.
tire circulation OF the banks OF this city.
The transactions OF the day require no
special or detailed comment.
But little has been talked Of to-day ex.
cept the Funding bill. Here are some
opinions OF leading bankers and brokers:
Mr.. Hatch, OF the firm OF Fisk & Hatch,
who have promised, II 10 said, to take
S20O, 900 900 OF the three per cents, said:
II am glad that the bill has been favor
ably acted upon by the Senate. II Is good
thing for the people, although It may not
he admired by some OF the bank officials.
In my opinion the measure will be re-
garded In popular light by private in
vestors throughout the country. | know
that the people will be satisfied with three
per cents II they do not have 10 pay a pre-.
MUM when purchasing them. The three
per cents without premium are Just as
desirable as four per cents with o pre-
MUM. am confident that II had the
three per cents on my counter for sale to.
day, there would be plenty OF purchasers.
Then, there Ia another adpantage-and
that is, spectators will not be likely to
form a syndicate for the purchase OF the
a, .nn ans naKIa foH anaou1o Itva t1uKnnuaa
and thus deprive the people at large Of
the opportunity OF making q safe invest.
ment at par"
President Dowd, Of the Bank OF North
America, said: "'Ths passage Of the Fund.
ing Bill Ia an outrage on the banking in.
teresls OF the country. The bank men
have O Just cause for Indignation. The
banks will not have anything 10 do with
the funding outrage, unless II is sweetened
by some future action Of Congress-. The
removal OF the tax on bank deposits
might do the business"
President Palmer, OF the Leather Man
uiaCtuterB' Bank, thought the measure
would greatly embSrrass the banks. He
said: 1--WE think that we are very Unfair:
ly treated Ia this matter. The action of
Congress may have the effect OF driving
National banks into the adoption OF the
State banking system"
Mr.. d. b. Sherman, President OF the
Mechanics National Bank, remarked:
"This Funding Bill is sheer nonsense. II
will do q vast amount OF harm, II II does
any thing at all. My opinion is that the
banks and the people will not have much
to do with the three per cents. Investors
will not be satisfied with such low rate
OF interest, and they are not to he blamed
II they make other Use OF their noney."Se
Mr.. FatFri, OF Dfexel, Morgan 4 Co.,
bankers, thought Il was rather risky on
the part OF the Government TO throw three
per cents upon the market at this time.
He did not believe that they Would be
favorably regarded by investors. Certain.
" the National Banks would be injured TO
a great extent. There must be some re.
dress In the future.
Al George ". Ballou 4 Co.'s office the
opinion ives expressed that the action Of
the Senate would please no one, excepting
some OF the brokers who deal directly In
Government securities That class oi ex.
Ceptional bankers will hope 10 do some
business In three per cents for the people
who desire 10 invest In such low interest
securities. 900
Bake Bros. L Go. said: 1--WE have no
customers who are prepared 10 take the
new style OF Government security. II
seems as II the present Congress is A..
tempting 10 Coerce the banks. The matter
should be brought up In the next Con.
Vfess for tesCindRtofy action. 1tCeftainly
needs more sensible action than that Of
Yesterday In the Senate"
Nj. George q. williams, President Of the
Chemical National Bank, says: II do not
think that three per cent bonds for s6O0,.
100000 can be floated, and that amount is
yeotiifed 10 redeem the lives and skies ma.
t1flng in May and July. with the money
in he Treasury, the surplus receipts Of the
Government, and perhaps some sales ol
ihtee neF cent bonds, II is possible that the
sixes Of 1881 due In July may be paid; but
I would not suppose Il probabl lie that the
Government could sell enough three pei