New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-02-22
RFFEcTs OF THE MEASURE.


KSox AND REPRESENTATIVES, CARLISLE
icy TELEGRAPH TO THE TRIBUNEl
yytsyfINGToN Feb. 21.-" Suppose that IN antlcl-
nation of the approval of the Funding bill the Ma
tional banks should, within the next ten days, de-
nosit $50. 600 900 of legal-tenders and withdraw
the same amount of bonds deposited to secure cir
culation how could the Treasury relieve the money
market77 asked tribune correspondent In the
course of conversation with Controller Knox tnlS
evening. ann.
Alter some consideration Mr. Knox replied "The
Secretary of the Treasury could use whatever sur
nlus he has--say ten or twelve million dollars-to
nurcbase bonds for the sinking fund.- Then the Dill
authorzes him to use $5OO00 900 of the coin in the
Treasury to buy called bonds"
"But he could not do this in less than thlrty
daysir remarked the correspondent
s'Tbot is true. neither could he get the Treasury
certificates into circulation sooner than that.
No, do not see how the treasury
could help the money market lm
mediately except TO the extent OF the surplus on
hand. It is sometimes held" continued the Con-
troler that the Treasury certificates to be lssned
will be used as a circulating medium. If they are
designed for that purpose or if they will be SO used
cannot conceive of any better reason that would be
needed 10 induce the President to veto the BILL Not
that there is no other reason by which veto could
he iustfed / consider the bill in its present
form as bad aud mischievOus as any bill
which has passed Congress since the first ega-ten-
der currency legislation was proposed. Bills that
were rot so bad as this have been voted, and the
eountry has sustained the President for exercising
the power This Funding bill in one of its sections,
semi-repudiation measure, plainly devised to ex-
tort forced loan from the National banks. Its
eject is likely to be disastrous to the business inter-
ests of the country and have no doubt that the
country will sustain the President if he vetoesit
Suppose that Congress should repeal the tax on
bank depos,ts-would that make the law practical
bic r asked the correspondent
Perhaps; but this bill is bad in principle. and
ought not to become law at ALL" was the reply
Representative Carlisle who was afterward seen
nv the correspondent, takes an entirely different
view of tho matter. He admitted that the only i'm
mediate relief which the Treasury would be able to
afford the country, in the event Of a sadden con-
traction ofe the currency TO the extent of
$4,000, ,000 would be to purchase five and six per
cent, bonds. with the $12.C00.000 Ourplus now IN
hand F" But" exclaimed Mr. Carlisle with energy.
"let the National banks undertake to do the thing
yor have suggested and they will arouse storm OF
Indignation which will drive them out of existence
lyon admit, however, that it will be within their
power to dol tp
'.Yes but they will not dare TO do it. The truth
is. all this commo.iou raised by the National banks
is lie most unreasonable thing in the world Why,
can demonstrate by figures that three per cent
bond at par is more profitable for them to bank upon
than Is 4 four psr cent bond at 112 or III T."
Bat the bilrsstrcts them to three per cents after
the 1st Of July"
"well. if they don't like that they can go out of
business"
Does not the bill practically prevent them from
winding up their own affairs Z"
l1,nf, .ofro rtiofso
VIII they be able to collect their own notes and
present them within the thirty days allowed by the
billl"
"rhey will have sixty days"
.weli. can they do it III sixty days! And will not
their inability do it throw them into the hands of
receiyer!"
'Of course if they keep deposit after the LIST Of
Jnly, for more than sixty days, any bonds upon
wiach interest has ceased they will be liable under
the Isw,a repHed Mr.. Carlise but do not believe
the law will practically work hardship"
How will the provision which authorizes the
Secretary of the Treasury to.pay ont $4,000, 600
CT thecoin in the Treasury affect ibespece reserve ~
asked the correspondent.
"It will not make any difference There is no
need of keeping so much gold the Treasury. That
has no.h hing to do with maintaining specie reSump-
tOn"
'Bnt suppose that the SecretarSshould take a diff
fereut view of bis duty, and should decline TO paw
out so much gOldP
Then he could pay out the standard silver dol
lars in purchase of five or six per cent bonds"
Would not the bondholders object to taking
ihose coins for such payments p asked the CORE
ssOndent.
"it would make no difference whether they OBJ
eeted or not They agreed TO take coin OF standard
salue 10 payment for their bonds They hold us to
hal 49, hnl6
70 the same terms"
DO You think the bill repeating the tax Oh bank
deposits viii pass Congress at this session. asked
the correspondent
swell perhaps SC" replied Mr. Carlisle in adoubt
yeg tone and manner.
ar. Carlisles doubt In regard 10 this was prob
ao1 INSPIRED by the same information which the
soFespondent had obtained In the course of the day.
"Al's There Is probably majority in the House in
Al - s"e pii 70 repeal the tax ON bank deposits,
sng st'ong minority composed of Democrats
.'. az opssssu 70 snch measure. Any PROPOSE
~'s.,e'-.~ -. - haslonhl banks inspires these
gentlemen with the same feelipps which move a
mad bull when scarlet Tag Il waved hefore him
There Is the best reason FOR savico +ht th,rt, or
iorty OF the most bitter enemies Of Che Notional
nave agreed tceether that they will ,hnster
70 any extent to prevent vote az tls sessio ,oo,
the measure above mentioned. Az th;s h;m stapda
lSe ssly ioot OF The calendar, thirty members 90
osposeo can easily prevent its copsideration. Tor
some time and can probably defeat II altovetnar
opeahet hanoai was asked to-day what he
tnOuen1 OF 'ne prospects Of passing such bin he
iore adlonrnmenk HIS unsatisfactory. but nroba.
py s'fnncan1 reply was : studiously avoid civ.
ing an opinion on that subjsct.p
Opinion regarding the probability Of 49, :,
abe Funding BID has undergone some chsrns =, =,
Washington since last Saturdav r,L ~ =, IN