New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-02-24
his duty to speak those words, the better for
the country.
TIE FUNDING BILL DISCUSSION

called. and the possibility OF veto, are lnah-
ino certain grave mistakes. That IS natural
The hill itself is the most foolish mistake ever
made by civilized Government. Naturally
its advocates blunder in defending It, Ihey
say H.. ,or
I "Tbe President ought to give three per
cent bonds trial.n Yes, but that IS not the
ouestion. The question is whether tne Alo'
ident shall clothe with the powers Oh III" INC
dishonest and dangerous provisions Vi .no
fifth section. If he could veto tnat sect'on
of the Funding bill and let the resi- 20 n,'o
effect the case would be different. mus ue-
nrived of its fangs, the bill wouid DC naIlii-
less. Re it wise or unwise, success OF a
fo;Iure nobody then would urge that IL oughV
20 no vetoed. No shudder of apprehension as
20 ;to consequences would run through tne
Iond The President cannot sign the Dill
,,,;tbout signing that section. The question
for him and for the country, is whether ne
ohol turn this bill loose Wih its deadly tangs'
II ,GTbe banks ought to be satisfied with
:. tbroo oer cent bonds, because they will pay
"better at par than four per cents at III
That is not true, and if it were, 1t does
not make it right or safe 10 ROD
tbe banks of anything that righttully
belongs to them. On $lOO,OOO tour per
cents there is now profit OF $l3,OOO, ana
may be more on three per cents, since they
are likely to sell below par in times OF close
money, there may be n loss. But the man
fact is that more money can he made when a
bank has power to surrender any part OF its
circulation that it cannot keep in use, than
can be made when it is forced to keep its
whole circulation, whether used or not. To
deprive the banks. without warning or oppor-
tunity to change theirs arrangements, OF this
valuable power to adjust their circulation TO
the needs OF the country is neither honest nor
safe. So important a change, if desirable at
all, can be safely and honestly made only with
ample notice.
III. but the banks have no business to
care about this restriction if Congress thinks
"it for the public good" Nevertheless the
banks do care. They have perfect right
TO withdraw from the business OF circulating
notes, OF from the National system, II they
think it profitable. They are doing so because
they do think it profitable. Moreover they
know full we'll that the fifth section was added
with deliberate intent to cOerce and rob them !;
10 force them to take low rate bonds with less
chance than they now have to make circua-
ton pay. The attempt to fleece them Is justly
regarded as a warning that they had better
get out of the clutches and beyond the reach
of Government so conducted.
w. at ia right and safe to require the
"banks to gather up and surrender their own
notes, because that was the law originally"
On the contrary, it is not right, because the
banks originally held 6 per cent bonds, when
they consented to be 50 chained TO the system
that they could never GIT out of 1t until they
could gather up their own notes. Then they
were willing, because they had faith IN the
Government, and were sure that its per
cent bonds would be worth above par. But
presently Government wanted TO refund It's
debt Without the aid of the banks, II was
nowerless. 1t asked them to take bonds bear
ing q lower rate. To induce them to do so.
and to stay in the National system. the Gov
eminent granted them freedom to adjust their
circulation to the needs of business, and
knocked off their chains, so that they could
withdraw from the system at pleasure. They
appreciated the greater freedom, and helped
the Government heartily. BY their aid, it has
cut down its yearly interest 10y many millions
Having gained enormously by their willing
helm. it now turns round to plumber them
! The cn1lllS WHICH IL tbph WA ~ INV
threatens 10 put on again, without no
tice or compensation. 1t proposes to loci
| the banks up so that they cannot get out OF
the system, in order to force them to take anC
keep bonds of lower rate than they would
voluntarily buy Is that the sort of measure
which President Hayes will consent To sign
V. "But the banks would make one per cen
"proGt OH circulation even with three pc
cent bonds, and that is all they have RICH
to ASK What business man il there in al
this land who will take the risk and the trOu
BILE of conducting an important and dltiicui
business for the sake of getting, If he succeeds
barely one dollar on one hundred more than
he could get with perfect safety and absolute
ease by lending his money There is a very
remarkable congregation Of dolts about tn,
Capitol at Washington. But among them al
there is not one foolish enough to do such
thing. A merchant or manufacturer faces tn,
risks and tolls OF business because. if he sue
ceeds, he can double his capital in three or fen
years. A miner will rlsk all that he has be-
cause, if he succeeds, he can multiply his cap
ital in single year. Even the farmer, whC
puts a few Thousand dollars into new farm
at the West, has faith that his skill and effOr
will return him the cost of his farm in one year O
two, if the seasons favor. To do a good bust
ness as n banker requires not less skill not
less energy and hard work, and involves
great risk and a constant wearing anxiety
But men are expected to go into that business
and to stay IN it, Tisking their money ant
spending their skill and care-for WHAT
they succeed. for One-twcntieth, One-tiftieth
or One-hundredth part of the reward of thu
merchant, manufacturer, miner or farmer TO
o pitiful l per cent more than they coul(
make by living at ease, riskIng nothing, anC
toiling not at all, but simply lending the
| money