The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1881-01-18
The New Funding Bill.

The New Funding Bill.
The debates In the House OF Representa-
tives on the new Democratic funding bill
coa.snue TO be iu,erestingas wei as 'nsitnc'
ave. We call II Democratic measure be-
cAise The Republican members seem to DC
asu,oss = unit, II not entirely SO, In declaring
ms, the redcemsble debt cannot be success
fusly fundcd--at least, In short bonds--a' so
low rate as per cent. The Democrats,
however, show no disposition to surrender
their belief that there will be no difficulty
Ia Gnding capitalists who will be glad TO
purchase even. this immense sum OF seven
hundred millions OF dollars at what would
appear to the uniniormed to be remarka'
bis low rate of Interest.
In :he course of the debate II has been
affirmed by Republicans that British conso's
l3 per cents) have been at par only once or
twice In many years. IL has also been ai'
firmed, on the other hand. that but ior the
Irish troubles England would now DC
placing a portion OF her debt at q per cent?
or at least trying TO do 30.
r.
cSass and proved himself to be still, as nc
was before he was elected Speaker, great
leader. Both Mr.. FERNANDO WOOD aud
Mr.. Ran. TUcKER-,be one tho chair
msn OF the Committee OF Ways ana
Mems. and the other 4 member OF that
committee-h have been thrown into the shade
by Mr.. RANDALL. who has commanded the
attention OF the House fer his speeches aud
itsyoies for his amendments. lie claims mat
fh. national banks can be constrained by
proper legislation to take several hundred
millions OF the new bonds. He has quoted
the testimony OF experts TO show that The out
standing 4 per cent. bonds, bought at Inc
prlce at which they are now selling, Yield
only 3I-5 per cent. There is, therefore,
only one fifth OF one per cent. difference
between the rate OF the new bonds
and the price which they would apparently
sell for now il upon the market. The maln
question is complicated, however, lay the
question OF time: Will bonds having only
ten years TO run before they are redeema.
bic sell as high relatively as the per
cents. This Is question which 1t Is
difficult to answer, and which it is sup
posed The Senate Will answer in the
negative by placing the period OF re-
deemability at the end OF twenty Years.
Ii is not unreasonable, however, by any
means 10 assume that il the seven hundred
millions OF and 6 per cent. bonds redeem
able this year be called in, and no Govern
ment bonds bearing higher rate of interest
.han 3 per cent. be put upon the market.
these latter Will sell at par. Ii those D and
6 per cent. bonds be all called in, The per
cents which now sell so high that they pay
osly 3 is per cent. interest, will surely ad-
vance TO that point a; which they will yield
only per cent. and whenever they reach
tina. point. the per cents must reach par.
This is the view of Mr.. WOOD, Dir. RANDALL,
Mr.. Tucker, and the Democrats generally.
As the bill stood last Saturday. when the
House adjourned, it contained the follow
ing proviso;
"ProUided further, That before any of
The bonds Or certificates authorized by tbIs
act are Issued II shall be The duty Of the
Secretary OF the Treasury TO paw Oh the
bonds accruing during the year 1881 all the
silver dollars OF 4l25 grains, and all The
gold over and above S50,000,000 now held
in The Treasury for redemption purposes"
We take ii for granted that this provlso
will he stricken out. 1t will hardly be
allowed to go over TO the Senate. Ii the
bill should pass with such feature in it,
its operation would put into circulation
between fifty and a hundred millions OF
dollars, aud give a "boOst" to other bonds
aud other property. 1t would BIZ Il sort OF
imitation. But it would be apt to damage
the credit OF The Government to compel IFS
creditors to take silver dollars which out
side Of this county are not worth "a much
each as a gold dollar.
The moDeyed men OF the country are
watching with interest the proceedings OF
Congress on the new funding bill. They
have their agents in the lobby in Washing
ton and not few friends among the mem-
bers. We are inclined, therefore, to the
belief that no bill can DE passed except
such one ss they will be willing 10 aid in
making a success.