Evening star. [volume] (Washington, D.C.) 1854-1972, 1881-02-26
The Funding Bill.

CoNTRoLLA KNoxs POSITION STATED.
The position OF Controller Knox as regards
the funding bill may be misunderstood. The
following statements, made by him, show how
he stands On that question:
section OF the funding act of 1851 de-
IL not only prevents the banks from increasing
and reducing their circulation at pleasure out
provides In effect by the re enactment of sec-
uons sl5s and 5l60 OF the Revised Statutes for
permanent deposit of bonds, amounting 10
one third Of the capital OF each bank It a,so
virtually provides that If bank has too much
en- llal1on II shall keep 1t; If 1t has too little
1t shall not increase 1t unless it snail den 1sit
bonds which are almost certain to be worth
less than par. 1t subjects the banks TO an al.
most certain loss, and requires them to con-
tinue to submit to the loss when thew might at
times retrieve or diminish 1t by depositing la W
iul money In the Treasury and again coming
into possession OF their own bonds If the mar.
ket price should be sufficient to justify a sale.
The repeal Of the government taxes on
capital and deposits would give some relief and
would induce all classes Of banks and bankers.
amounting 10 more than 800. to favOrably con.
slder the new loan. The reduction of one half
the lax on circulation issued on the new bonds
Only would have directly favorable effect on
tn sale CT bonds, and, as l have already said.
would, La my opinion, furnish market OF 360
millions O. bonds bearing interest say. at 40
al OF which bonds would be permanently held
py the oahks as security for Circulating notes.
THE WAYS AND MEANS COMMITTEES
alter sesSk n OF three hours to-day Instructed
representative Tucker to call up from the
Speakers table, the funding bill, and as chair
man OF the committee to move concurrence in
the senate amendments. together with the
amendments agreed to by the committee at
their last meeting (wtth one exceptionl and an
amendment adopted by them to-day. The
lalter is an amendment proposed by Represen-
tative Mckinley. to add the following at the
ED OF section five OF tn. ::oill: Provided that
nothing In this act shall be construed to re.
peal or In any manner affect or modify
sections 6220. 1922, 1928. and 1924 OF the
Revised Statutes Of the United States" Tue
amendment adopted at the last meeting ex.
tending the date mentioned in the nth section
from July lst to September 1st, was to-day
stricken out. Representative Conger offered
On amendment TO- day to strike out OF section
5 the words 'and provided further that section
4 of the act OF June goth, 1874, entitled, an act
fixing the amount OF United states notes pro
v1d1ng for a redistribution OF the National blpk
currency and for other purposes be- aud che
same Is hereby repealed The amendment
was not agreed to, but Representative Co1ger
was authorized by the committee to offer his
amendment fn the House be the calling OF
Ine previous question. Representative Mills
s,s az aiSo autnorized to offer q amendment 20
sne OIL before the previous question ia called
,.n nne anlenoment la regard to the date which
pSS slIiaen out hy the committee to-day.
,nIp opIesehlatlFe Tucker was instructed to go TO
ro, enO 9peahers desk and the question OF eonsid-
aati2h upon the 1undllg blll will therefore be
posed OF. '' wa "'