, 1881-01-14
REFuNDINa AND TIE DEMOCRATIC DEM
Afi(1EI


and unbiased consideration Ut TINT question,
a,,d TINT, II nny practicable funding scheme
be agreed upon at tho present scsslu,a Of Con.
ercss, it will come throupl, rcluctalt assent
OF tic Iiousc to Scnate amendments rather
than risk public ccnsure BY failure 10 pess
my bill. The Democratic majority ca,a scarcc-
ly afford to yield TIP their power viii, moro
tlan so5o, 10000 bonds outstanding, which,
bear md /, pur cent Interest, anil Which may
be refunded at SO low n rnte MS to saye st4.-
100000 4 year. This feature Of the casc 1nay
finally induce Tho Democrats In the House IL
abandon their unreasonable md tteaclcrous
designs III connection with refundtnK; but
their cl,!pt purpose, MS developed In the dc-
bnte thus fur, mny hc stated as follows:
l. 70 mike war upon thu National banks,
ns II they were institutions Tint ought to be
broken down by fair means or foil.
2. 10 injurc the public credit by making
such conditions precedent to rcfnndlng rs
sIla' place the maintenance Of spec!e-pay-
,neMt In peril.
The Democratic leaders Of the House hive
insisted that an lron.buntitl ratc Of per cent
stlall bc adopted, tint the bonds shall be OF
the shortest term ever suggested allu tlat the
| National banks shall 10 "tlragoonetl," to use
Mr.. Frye's expressive term, Into subscribing
for 500 GOO COO Of these securities, or tho full
amount of bonds required rs deposit for tl.er
present outstanding circulation. at'd that no
wer-taxcs OIL the bauks shall DO repealed. This
matter OF "t1raEooning tic National banks
may not be so easy as immature Democratic
statesmen seetl to imnglne. In tho first
place, the Natlonal-bnnk securities already.
consist III large part of the recent Issues OF
41l nn1 ! per cent bonds, which are not yet
subject to call by tho Government, md there
Is 10 authority to compel the banks TO str-
render those bonds and subscribe for per
cents. IN tho. second place. tho National
banks have authority under tho law to re-
ducc their circulating notes TO $4,000 cacl,
and III this manner lnny reduce tho whole
volume to lees than one-thlrtl what It Is1low.
LII tie third place, ITO compulsory 1ncas'lre
has ever succeeded iii controlling tlle value
or rnto of money II. tho world. III tho fourth
place, there IL no sympathy OIL tho part Of tho
:. people ut large with any effort to cripple the
National banks by NJ. oppressive policy In asl-
tlItion to tho opprcss I've taxes they now ssls'
tain, md thus impair their great usefulness
to the business Of tho country.
} The proposition of tho Democrats Is to re-
: tuce tho coin.reservo Ut tne United States
) Treasury, which Is about 40 millions. down
, to onc.thir., or $5o,000.C0o. This Is even
moro menacing to tie financial interests Of
tho country. The pretended purpose Of sucll
! proceeding Is to provide for tise paynsento Of
n large part of the maturing bonds before
my refuntfng sllnll be undertaken. The
real PURPOSE, however, Ia to opeu ule way fol
= tIle abandonment OF specle.paymcits md q
return to tho former chaos of MI lrredeenl
ablr, iuctua,ing, and uncertain currency
:: Sucl, d result Is tlIteatened by any measure
whlcl, shall curtal the prudent coin resource!
;. Of tito Government Treasury, destroy pubilt
" confidence lit tie nbiltty to redeem all Un!tet
States notes upon demand, md furnish I'm ol'
portunlty tor mn organized Wall street rait
~ upon the Government Tor lis coln. T'llI
- would be the most severe blow tho Demo
~ ~ Gratis could possibly llnrl ut Goyeriinen
~ credit, low rates ut Interest, and busines
;. prosperity. Thu Government can much bcl
!, ter afford to continue tho payment OF ind
~ =. pcr cent interest on tho G10 millions Of n'a
=. =. turing bonds unnecessary and wastt
:, " full rs sucl, 4 coursu would be) thu
~ to risk the failure Of resumption now
~ at any ot,1cr time. ltisnotorious!y conccte
- by all factions, includnge even the lnreasonlni
- itllotic Grcenbarkcrs, that the new cra {
)" prosperity III this country dates from til
Tins resumption was assured. The Uniform
ity and stnbilItyof tho currency, and tho lara
-. addition 10 tho stock OF money, which WEI