New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-02-20

Consequences Will lOllON Ill IuC OlL 10 oAhASN'
President Hayes is busy studying the
bill and the speeches that have been
made upon it. The President, it is said,
believes that the nomination of Stanley
Matthews will be confirmed. The representa-
tives of the sugar importers of New-York,
Boston, Philadelphia and Baltimore stated
their grievance, against the Treasury Depart
ment yesterday. The Rev. j. Hyatt Smith
will act with the Republicans in the organi-
zatiOn of the House. Mr.. HiscOck is prOmi-
nent candidate for the Speakership.
A FINANCIAL EXPERIMENT.
VITO FROM THE PRESIDENT NOT EXPECTED
SECRETARY SHERMAN HOPEFUL FEARS OF
WESTERN BANKERS
lBY TELEGRAPH TO THE TRIBUNEl
WASHINGTON, Feb 19.-The drift Of opinion in
Washington is decidedly against the probability
that President Hayes will veto the Finding BILL No
Democrat in either branch of Congress believes 1t
even remotely probable that the bill will be vetoed.
Tn this belief almost all Republicans concur. In
conversation with a TRIBUNE correspondent this
evening Secretary Sherman said: II have no expec-
tatlon that tho President will veto the bill, although
| have had no conversation with him on
that subject. l do not see any grounds
upon which Lo coud base O veto. IL ls
merely matter Of opinion as to whether tne Dill
is practicable one or not and nobody can tell un-
ill il has been tried or course have an opinion
ON that subject but l not willing to express II
because it might embarrqss my successor, VINO Will
doubtless make a strong and determined effort to
carry ont the law. remember, too. that our iour
per cent bonds sold rapidly although when the ar
raneements were made to put them on the market
nearly everybody said the attempt would end IN
failure"
.'Do you anticipate egeat and sudden contrac-
tion of the currency by the retirement Of crcula-
ton By the National banks in proportion to the
amount of five and six per cent bonds deposited by
them r asked the correspondent.
"No doubt there will be q considerable rotirement
of circulation by the National banks on account Oh
thepassaee of this law; but do not appreheld dls-
astrous consequences from it," was the Secretary
reply.
In conversation on the same subject with TRIB-
TINE correspondent this evening, Representative
CIafin, of Massachusetts, said II do not believe
President Hayes will veto the measure, ana can"
not think of any reason that would justify him IN 30
doing. or course we want to borrow money as
cbeaply as we can. and nobody can tell until II has
beeu tried that three per cent bond VIII not sell
at par"
what do Won think is the prospect 7" asked the
correspondent
"Well. Twill tell yon. think the Secretary OF
the Treasury will be able TO put out somehow,
$50 600 600 Of the certificates. The banks can man
ace these for onefourh of per cent which will prac-
tirlft make tho interest 3 per cent on the certh-
cates for the first year. because the Secretarywln be
allowed One-half Of per cent for expenses on tnem'
tho same as on the bonds. Then l think the Ma
tionaI banks will take about $1O0OOO.OOO to re-
pace that amount of five and six Der cents now de-
posie,l to secure circulation The Secretary Will be
authorized TO use money in the Treasury to the ex-
tent of $5O,000000 to buy bonds sub
,.ct 70 redemption, and the Sinking Fund
will absorb about $6O,O0OOOO more. In these
v,ovs nbont $3.50, ,OOO. 600 of the redeema6e bonds
probably will have been provided for before Con-
grcss assemblies next December, or before the au-
tumn demand for currency creates strlngency III
the money market. Probably $400,00O.0OO OF the
rcdeemablo bonds will still remain Outstanding, and
the next Congress will he compelled to raise the rate
of interest in order TO call them in"
"Do YOU apprchend disastrous contraction of
the currency as q consequence OF the enactment into
law of the present billI' , ,.
well | presume there will be something OF
coptractIOnsay one-half the amount OF the clrcna-
ton which is based upon rrdeemaDle Donus. lhs
will doubtless cause some strlnRcncy III lhe money
market and will probably produce sOmethlng OF
commercial panic. l think 1t VIII no doubt depresS
the prices of stocks generallyi Ont there couid
hardly be a better time than the present 70 try
financial experiment If one must be trled Inc
country Is very prosperous aud the money markets
of the world are very easy" ,, AT. ......;..-
Representative 1Owusenu receNeu thls eFenlug
the following dispatch:
CLEVELAND OHIO Feb. l0.-In our Judgment the
Funding passed BY the Senate VIII be Iata 70 tue
National Banking sysel1 K1d must 1Orce tDe panKs 10
retire circulation, and res disaSrousy 10 al pancDes
OF business
This dispatch was signed by Daniel ?, Eels, presi-
dent Commercial National Bank j. ii. wade, pres
gaV hank. A, IL. X. spencer, president
First National Bank >. l.: Everett, presi9ent
second National Bank; John McClynens. president dent
chants National Bank; Amasa Stone, ana by the
cashiers of nearly all the banks in Cleveland. II
| ~ understood that many other members OF the
1ouse of RepresentatiYes have received dispatches
Of similar import from bankers in their respective
districts. -
qaring the time when the proscriptlve features OF
| the proposed law will take effect. Many seem 10
think that banks will be able to retire ther clrcna
ion under existing law at any time prior TO the ISL
of next Jny. THIS Is error, The provision IN the
hill TO repeal the present lUw, winch permits tne
| hanks To depOslt lawful money aud withdraw Their
bonds will take effect soon as the law Is appIoVeu.
After that bank cannot reduce It's cIIculatLon i
below one-third OF its capital stock ana TO re1uce
it even this much IL Will be compelleu 10 colScC
IT'S own notes. aud present them at the treasury Oe-
partment A., t1so ara vary r,ucb
disappointed by the action OF the senate upou tuI
Funding bill and most OF them regret that they VIII
not be afforded M opportunity 10 Vote healnsV lV'
The vote III the House VIII OL Couiso 10 ~ 81
cnrrence in the Senate amendments, and these the
Repubhcans will feel Obll4ed 70 suPpoIC ooCAueo
thav voted for al of them when the bill was under
Consideration m the House month ago.
THE QUESTION OF THE SPEAhEkoflF'
THE REV. J. HYATT SMITH TO ACT WITH lhE hH-
PupLIcANs-MR. msCocK's STRENGTH.
lBr TELEGRAPH TO THE TRtDUNE'l
WASHINGTON. Feb. 10-There has been con-
adorable speculation regarding the future political
ofalIatlon of Reprtsentative-elect j. Hyatt Smith,
Of Brooklyn. Some of the Democratic newspapers
have claimed that Mr. Smith will vote with the
| Democrats in the organization Of the next House
Of Representatives, while the Greenbackers have ex
NJ hnr rr1ll with them.