The Portland daily press., 1881-03-04
FOR MAYOR,
WILLIAM SENTER,
The Veto MESSAGE.

from May to July, and the notes must be
met and paid. Secretary Sherman recon-
mended an issue of three-and- half per
cent. bonds, the proceeds from the sale of
which could be used to pay the maturing
debt. That recommendation did not meet
with the approval OF Congress. The chair
man of the House Ways and Means Com
mittee introduce bill which, with some
amendments made in the Senate, has passed
both branches and has been vetoed by the
President. The text of the amended bill,
as it went to the President, is as follows:
BE IT ENACTED by the Senate and House of
Representatives of the United States of Ameri-
| ca, in Congress assembled, That all existing
provisions of law authorizing the refunding OF
the National debt shall apply to any bonds of
the United States bearing higher rate of in
| terest than a per centum per annum, which
| may hereafter become redeemable; provided,
| that in lieu of the bonds authorized to be is
sned by the Act of July IA. 1870, entitled "An
| Act to authorize the refunding of the National
| debt" and the acts amendatory thereto, and
the certificates authorized by the Act of Feb
| ruary 26, 1879, entitled, IAN Act to authorize
the issue of certificates of deposit in aid of the
| refunding OF the public debt" the Secretary of
| the Treasury is hereby authorized to issue
| 900 OF denominations of $50 or some multiple
OF that sum, which shall bear interest at the
| rate OF 3 per centum per annum payable semi
annually, redeemable at the pleasure of the
United States after five years and payable
| twenty years from date of issue; and also
Treasury notes to an amount not exceeding
| S3OO ,OOO in denominations of $40 or some
| multiple OF that sum not exceeding 81 900,
either registered or coupon, bearing interest at
rate not exceeding 3per centum, payable
rnAnA
| the United States after one year. and payable
in ten years from the date of issue and no
| Treasury note of a less denomination than
! 500 shall be registered. The bonds and
treasury notes shall be in all other respects, of
! like character and subject to the same pro-
| visions as the bonds authorized to be issued by
the Act of July IA, 1870, entitled "An Act to
authorize the refunding of the National debt"
and acts amendatOry thereto; provided that
nothing in this act shall be SO construed as to
| authorize an increase of the public debt; pro-
| vided further, that interest upon the six per
| cent. bonds hereby authorized to be refunded
| shall cease at the expiration of thirty days
| after publication of notice that the same have
| been designated by the Secretary of the Treas
ury for redemption. 1t shall be the duty of
| the Secretary of the Treasury, under such
rules and regulations as he may prescribe, to
authorize public subscriptions at not less than
par to be received at all repositories of the
| United States and at all National banks
for the bonds and for the Treasury notes
herein provided for, for thirty days before
he shall contract for, Or award any por-
ton OF said bonds or Treasury notes to any sym
dicate OF individuals or bankers, or otherwise
than under such public subscriptions; and if it
shall happen that more than the entire amount
OF said bonds and Treasury notes, or of either
OF them has been subscribed within said thirty
days, he shall award the full amount sub
| scribed to all persons who shall have made bona
tG6 SuhScrlntlOnS for the m Of 80 000 Or los
at rates most advantageous to the United States
and the residue ratably among the subscribers
in proportion to the amount by them respect
lively subscribed, at rates most advantageous TO
| the United States
Sec. 2. The Secretary of the Treasury is
hereby authorized, in the process of refunding
| the National debt,to exchange at not less than
| par any of the bonds or Treasury notes herein
authorized for any OF the bonds of the United
States outstanding and uncalled bearing a
higher rate OF interest than a per centum per
| annum; and on the bonds so redeemed the Sec
retary OF the Treasury may allow 10 the hold
| ers the difference between the interest on such
| bonds from the date of exchange TO the time
| of their maturity and the interest for a like
| period on the bonds or treasury notes issued
| and the bonds so received and exchanged in
pursuance of the provisions of this act shall be
| cancelled and destroyed. But none of the
| provisions of this act shall apply to the re-
demption or exchange of any of the bonds is
| sued to the Pacific Railway companies. #.
| SEC. 3. The Secretary of the Treasury is
hereby authorized and directed to make suita-
able rules and regulations to carry this
| act into effect; and the expense of
preparing, issuing, advertising and dis
posing of the bonds and Treasury notes au-
thorized to be issued shall not exceed one.half
of per centum. 3ar
Sec. 4, The Secretary of the Treasury is
hereby authorized, if in his opinion it shall be-
come necessary, to use temporarily not exceed
| ing S5OOOO,OOO of the standard gold and silver
coin in the Treasury in the redemption of the
five and six per cent. bonds of the United
States authorized to be refunded by the pro-
| visions OF this act, which shall from time to
time be repaid and replaced out of the pro-
| ceedS Of the sale of the bonds or Treasury
notes authorized by this act, and he may at
any time apply the suplus money in the Treas
ury not otherwise appropriated, or SO much
thereof as he may consider proper to the pur-
chase or redemption of United States bonds or
Treasury notes authorized by this act. Pro-
vided that the bonds and Treasury notes so
| purchased or redeemed shall constitute no part
| of the Sinking Fund, but shall be cancelled.
Sec 8. From and after the first day of July
| 1881, the three per centum bonds authorized
by the first section of this &C. shall be the only
bonds receivable as security for National bank
circulation, or as security for the safe keeping
and prompt payment of the public money de-
posted with such banks; but when any such
bonds deposited for the purposes aforesaid
| shall be designated for purchase or redemp-
tion by the Secretary of the Treasury, the
banking association depositing the same, shall
have the right to substitute other issues of the
bonds of the United States in lieu thereof: pro-
vided that no bonds upon which interest has
ceased shall be accepted, or shall be continued
on deposit as security for circulation, or for
the safe keeping of the public money; and in
case bonds so deposited shall 1t be Withdrawn,
as provided by law, within til ty days after III
terest has ceased thereon, the banking associa-
tlon depoSiting the same shall be subject to the
liabilities and proceedings on the part of the
Controller, provided for in section 1924 of the
Revised Statutes of the United States. And
provided further, that section of the Act of
June 20, 1874, entitled can Act fixing the
amount of United States notes providing for
a redistribution of the National bank curren-
cy, and for other purposes" be, and the same
is hereby repealed; and sections $3.50 and
5,16O of the Revised Statutes of the United
States be, and the same are hereby re-enacted.
Sec. 6. That the payment of any of the
bonds hereby authorized after the expiration
of five years shall be made in amounts to be
determined from time to time by the Secreta-
ry of the Treasury at his discretion, the bonds
so to be paid to be distinguished and described
by the dates and numbers, beginning for each
successive payment with the bonds of each
class last dated and numbered; of the time of
which intended payment or redemption the
Secretary of the Treasury shall give public no
tice, and the interest on the particular bonds
so selected at any time to be paid shall cease at
the expiration of thirty days from the publica-
tion of such notice.
Sec. 7. That this act shall be known as
"The Funding Act of 1881" and all acts and
parts Of acts inconsistent with this act are
hereby repealed.
By this bill the rate of interest on the
new bonds has been reduced to three pei
cent. There is serious doubt if any secur-
ity. government or personal, can be mar.
keted at par at that interest. The richest
nation in the world, and one with the mos
eminent and best-established credit-Eng
land-is unable to keep its three per cent
consols, at par. 1t is not evident that we
can do better. But the experiment would
doubtless have been tried-with the taci
consent of the President if not with his di
rect approval had not the bill passed by
the majority in Congress contained vexa
tious restrictions upon the operations o
the national banking system. These restric
tions seem to the President unwise end un
just. The objections he makes to them will
! be found in the report of his veto message