The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1881-03-10
Hayes Funding Bill Veto.

The three per cent. Funding bill
| passed the House on the evening of the
End inst, in the same shape that it had
previously passed the Senate, and was
sent to Hayes, who, obeying the be.
hests of the National Banks, returned
it the next day with his veto attached
| We publish in another column the
veto message of His Fraudulency, and
append the following comments there
on by the Pittsburg Post:
I" Mr.. Hayes veto of the three pei
cent. Funding bill is a very fliinsy ar
gument. His opposition is based on
The fifth section, which is as good an
excuse for doing the banks work as
any other. He falls into the error of
| arguing as if. Government bonds were
issued for the the convenience OF banks
| while the fact is the National banking
system was created as one way to mar
ket the bonds. He will find tins in Sec
retary Chase's reports. The idea that
the National banks will go 10 the dogs
or retire their circulation ifnew banks
or old ones increasing their circulation
are required to deposit three per cents.
instead of fourS, seems the extreme of
absurdity. The value of the different
oohNS ID SHdGlIZCu thC lioluSIlU lucN
are in the market. If the four's are
worth ia, the three's would be- about
par. There is no greater hardship In
compelling the banks to deposit three's
than fOur'S, and there is no loss.
Equally absurd is Hayes demagogue-
ISN'T is that pure aud simple-that
the note holder will be more secure if
his notes are backed by four per cent.
bonds than by threes. Under the law
notes are on iy issued to the extent of
ninety per cent. of the market val lue of
the bonds when such market value is
below par. If the note-holder is not
amply secured by three per cent.
bond the much lauded National bank
ing system is sham and delusion.
The banks are granted valuable fran
chise. In no other business under the
sun does the Government pay interest
on the active capital imployed in it. Ii
does to the National banks, and has
the right to require them to offer such
bonds as circulation security as The
public interests require. If the Gov
ernment has not this right, in law and
equity, it should abdicate its functions
and let the banks run the Government
as they seem inclined.
" The veto pOStponeS the funding of
the five and six per cent. bonds tor
year at least, and it may be many years
before there are such favorable none
tary conditions as at present. Mr..
Hayes says the people shall not have
an opportunity. OF showing their faith
in the government by subscribing for
II three per cent. bond, Even ii the
loan should fail the country would be
no worse off; but it would not have
failed, and this is the reason the Ma
tional Banks, speaking through the
De Fdet0, defeat the Funding bill,
- Let us see the cost TO the people OF
this little operation. According to
Secretary Sherman there are now out
standing, in round numbers, S470, ,000,
900 five per cent. bonds, and SLY ,000,-
coo skies, falling due this year, and
proposed to be refunded into three's by
the vetoed bill. The annual interest
account at the two rates is AS follows
$2l7 900, 900 at per cent. S13,020, 600
10000, 600 at per cent. %, 500, 900