New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-02-23

Military Cemmltlee VI TUG So =
Inaugural Ceremonies has adopted pfo-
cramme of its own.
EXPERIMENTING IN FINANCE.
.srup TN THE SENATE FOR RELIEVING THE
n.vxs--aRowINo OPPOSITION TO THE FUNDING
nuY-prAsoNs WHY VETO WOULD BE JUsIl-
liable.
IpY TELEGRAPH TO THE TRIBUNEl
WASHINGTON. Feb 2Z.-No action was taken
onon the Funding bill to-day by the House OF hep-
raaeutatiyes This afternoon Chairman Iuoker' VI
tba Committee on Ways and Means, said that ne
thuueht motion would be made tomorrow 10 take
the hin from the Speakers table and concur IN the
Senate amendments without reference 10 inc ways
and Means COMMITTEE. Another member oi 'no
committee, however, remarked tnas an o.ol'
would be made to refer the bill 10 tne connii''oo
and that he understood Speaker Randall 10 % In
favor Of that course
Ilr,e. the bill shall be referred, there will be no
o,rortnnity to amend the bill or to do anything ex-
can't In conour or non-concur in the amendments OF
the Senate IL the bill Is really destined TO pecome
law. IL certainly should be first amended IN ~
least one particular, il more. AS IL now stahus,
the fifth section win virtually prevent any NaIoni
hank from winding mp Its business voluntarily ="
order to retire all its circulation Dank wiz 20
compelled to collect every ono OF its own hoVeS anu
uresen them all at the Treasury before IL can WIN
draw its bonds. Suppose that pank WHICH n"'
,,cen fifteen years in existence and has kept lts
.;rcuaton at 5000, 900 or moro during that PERIOD
shoula desire to retire its whole circulation and 90
ont of busiuess Every one who possesses any
tnnv,edge whateyer on the subject knows that
rorcentage of the notes of such bank, amounting
rrobabv 10 several thousand dollars. would at the
and of fifteen years be rretrcvaby lost TO the panK
s and ievond its power to reclaim. Many noves
would have been lost or burned and otherwise de-
stoved and Others would remain in circulation 1or
wears notwithstanding every effort the bank might
make to call them in.
In the meantime the bank would be prevented
from withdrawing Its bonds from the treasury
simply because it could not perform task which
eserybody of sense admits would be Impossible
ma hanb might even proffer gold coin to indemnify
the Treasury against the resduum OF It's circuia-
.,on but the Controller would have no authority
10 recaiye t and allow the bank to receive the resi-
dne of its bonds Practically the only way In which
bank can close up its business, If the pending OIL
shan become q law without amendment, VIII DO 70
violate some provision of the National Banking
law and thus have its affairs placed In the handS
OF a receiver Mr.. Chittonden to-day suggested the
difaculty which has been described above 10
member Of the Ways and Means COMMITTEE ana
IL ia understood that that member will propose an
do so ia afforded. This amendment will PROVIDE
that any bank which may desire to retire it's whole
circulation and wind up its affairs will be allowed
Tn withdraw ITS bonds upon depositing gold or legal
tender notes sufficient to redeem its outstanding
notes.
The action of the Senate to-day IN passing, with
out debate or division, bill repeating the tax on
hank deposits is generally regarded as very sig
nifcant admission by that body that the proposed
Funding law will not succeed unless the banks are
relieved of this onerous burden. Senator Bayard
paid visit to the House of Representatives imme-
datey after the action OF the Senate and impaired
the good news 10 Mr. Chittenden and others. The
friends in the House OF funding and of the public
foth and credit were much encouraged. In Response
to suggestion that the point might be raised agals
thus hill that as it was a measure affecting thu
revenne. the Senate had right to initiate 1t. Mr.
FIVE replied that he did not think that point would
be raised in the House. If a direct vote could b
had ON It, thee is every reason TO believe that /
would pass the House of Representatives.
Repubiican members of the House continue t.
receive an increasing volume Of letters and tele
grams from their constituents protesting against th
Funding bill as o blow aimed at the business In
terests and prosperity of the country. These com
municatons ara not from bankers alone, but ar
from leading men representing every variety o
cans. The writers Of many Of the communication
take occasion to say that they are Democrats. Tn
result of the pressure from business men everywher
Ia already perceptible and many Republican ReT
resentatiyes begin to believe that the Presiden
NAV feel it his duty to veto the bill. Others thin
that he may ALLOW 1t TO fail by omtting to approx
e The number of Republicans who do not see an
ground upon which the President could veto til
bin IA rapidly diminishing In answer TO a que'
ton by TRIBUNE correspondent to-day as to wha
reasons the President could offer in justification
ayeto to the Funding BILL Representative Fry
SAID:
sThere are plenty of reasons that would DO al
suficient. In the first place. Congress charteIe
the National banks and said to them: You ma
ssao circulating notes provided you will buy an
Of the United States registered bonds which bea
interest and deposit them in the Treasury as
security 10 the holders of your notes. The bank
accepted the conditions and have carried out the
part Of the agreement in good faith. Now Congre'
cannot without the consent of the banks, chang
the conditious Of that agreement. TO do so is
impair the obligations Of q contract; but that
exactly what the fifth sestion Of this bill propose
to do. Again, when Congress wanted to refund II
bonds IN securities bearing lower rate OF Interest
it held out inducements to National banks to bu
the new bonds and use them to hank upon. In thi
way the banks became possessed Of and they st
held, millions OF foui and feur aud half pet cen
bonds IN excess Of the amount thew reouired To ~
cure their circulating notes. One reason wbv the
pou&ht sucn iarRe amounts OF these bond