, 1881-01-20
duties Of Secretary Of State than 1lo wond
be II lie hat slipped through some loose,
makc-bclIevo examination IN New York or
Cambridge lnw.school thirlv yenrs ago.


Cambridge lnw.sc1lool thirty yenrs ago.
@e.=A
THE REFUND1Na SCHEME IN THE HOUSE.
The Kefuntl1ng tilt, rs substantially ngreca
upon In tho 11ouse OF Representatives, re-.
tatns maily of tho Objectionable features
urged By tho, Democrats, ard, II passed by
tho Sc,,ato IN It's present stapr. will bc Mt thu
best of doubtful ISSUE when the attempt shall
Ia mnttc to ncgntIate at par tho class of secu-
rifles which It provides. ':.'.,
Sec. provides for MI Issue OF 800. .o00, 900
Of 5-f0 l>ontls. running tcn years, anil rctrenl-
ablu ut the pleasure Of tho Government after
five years, a,,d Treasury certificates to the
nmount of $500. .0o0,o00 l-i0notes, running ten
years, mud rcdcclnabic utter one ycar,-bot!l
forms Of securities beartng l,cr cent imter-
est. 1t statuts to reason tint these two classes
Of securities cannot hasc M equal value. II
tho certificates rnn short time, 80 as TO be
available as n call.loan Is upon Tho .iarket,
md the botids ra1i a lung term, IN order to
sccirc tho Investment of trust funds, both
might be placcll at tlle same rato Of interest,
-ai,d TINT the very lowest, whether the snini-
lnum be 3 or ~ per cent. but both sec.irf-
ties become specifically payable ut the enl OF
ten years; tho bond cantl0t run my longer
mud tho certificates may run ns long. Coll-
sequelitiy there Is 10 attraction for either
short Investment or tong Investment, ard II
It woru feasible 10 sell . por cent securities
the terms Imposed By this bill would seena to
be designed TO destroy sucl opportunity.
Tho failure to negotiate tho bonds under
snch n law would make 1t necessary for tlio
Government to continue tbs payment Of
anu q per cent tntcrcst on the bonds now out
standing. which It has tic privilege Of cali
Ing In during the year If 1t has the means to
pas them.
Even II tho terms Of this loan were snct, rs
to promise successful negotiation, thereof,
there Is aiiother provision III the first section
OF The bill which ought to defcat 1t, alMl
which, II passed, will menace the ,natnte-
nance Ok specie payments. 1t provides tint
the colt, hold IN the Treasury for redemption
purposes shall be reduced to Sc, goo Ill
gold BY paying ont NIL gold AMI silver III ex-
cess Of that sim for tho purchase of out
standing and per cent bonsls before any Of
tho new per cents shall be Issued. Tlis
seems 10 bo a blow ainlcd directly ut resu,np-
tloi, and intended to force suspension. The
most experienced Ananeers will agree TINT Il
circulation Of 1856, 900, 600 Of nOtes ca1lnUt be
reliably maintained ut par will, n coin re-
serve Of only SEQ, ,000, or about olle-scv-
enth Of the whole volume. Such weakness
will expose the Government at nil tines tonn
organized raid upon tito Treusury that
will compel 1t to suspend tho process Of re-
demptlon OH demn,ld, and witt, tint event tic
work Of resumption will faIl. Tho ou1y pro.
lection tho Treasury can seek III suci. case
10 ~, 4 s1nr
Resumption law OF 1870 which provides llsat
the Secretary Of tho Treasury tnay tissue,
sell, and dispose Ut, at not less tEnn par III
coin. either OF the descriptions Ut bonds OF
the United States described In the net OF
Congress approved July II, 1870. witt, like
qualities, privileges, MD exemptions, to tho
e1tcnt accessory to curry This tthc RcsuMp-
tlon1 act into full effect" The bonds thus
described arc ten-year bonds bearing per
cent interest, flttec,l-year bends beaflng ~
per cent Interest, md tllirty.ycar bontls bcar-
ing per cent Interest. Tire exercise OF such
authority under tile Resumption net, how
ever, after exlaustlng tue Treasury, of Its
necessary coin reserve, wouid practically
amount tu refuntltng at4 per cent at the low
est, instead. Of. Q per cent. Ti,o whole pro:
ceeltng would be illogical alld unprotitable,
as It Is tlelnogoglcat a1ld absurd. -
| The second seclEun Is aprarantty unobjcc-
| ttouNblc. 1t Is designed to guard against the
payinent OF double interest md fncllitnto tho
exchange Of tho new . per CENTS for tho and
per cents TINT may ba called Iii. 1t pro-
yidcs that tho Treasury lnuy Issue tho new
bonds In cxchanee for tlie old ones. and al-
low the difference Of Interest between 3 per
cent nlld 8 orb per cent to tic time when
tho latter becu,l,p payable, in addition to the
interest on the new bonds. Such provision
might, under favorable conditions llasteu tile
direct exchange OF tho new for tho old &C.
curltes without tho Intervention Of brokers
| and ngeists, Tho third section allows Is OF
l per cent rs expenses III negotiating tho
loan, which may be enough, and the fourth
section might also be admitted for tho pur-
nose Of facilitating tile exchange Of bonds,
II 1t were not for tic Terms Of tho first
section. III connection with tic first section,
however, It seems to be designed to strip tho
'FraaRttrv nf fltn 1nst Hottnr nf liz ontu ra.