New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-07-05
EIN1NCIAL LEGISLATION.

The action of Congress thus far on the
ouest;ons of banking and taxation is encour-
aging but there is still possibility that the
measures pending may be improved For the
sake of the country and the Republican party
the Republicans in both Houses ought to make
especial efforts to secure the best possible
legislation on these subjects 1t is already
apparent that the Democrats, having no other
issue which they can present with hope, are
greatly tempted TO make their main effort this
fall upon the financial questions. There are
upright and patriotic men among them who
will refuse 10 do evil for the sake of putting
the Republicans i'll a false position, but the
narty in power can expect little help
from the minority as q body, and must look
for constant embarrassment. Happily the
bank charters and taxation bills are now III
such shape that the Republicans will have the
best of any discussion that may be raised,
whether these bills pass as they stand or are
4 ,leatcd by Democratic votes But it may be
nossible TO make them still better.
The conference of the two Houses has dis
agreed ON two sections Cf the Bank Char
tiers bill, and happily upon the very sec
tons which contain the most foolish
and useless provisions. The section that
provides for the issue of gold certificates is not
worth the vicious amendments which the
Senate fastened upon 1t, and, though 1t has
some merit, might better be dropped altogether
if it must pass in its present form or not at
all. Practically the clause prohibiting banks
from acting in Clearing House associations that
refuse silver certificates III payment of bal
ances would be as empty as last years birds
nest. The associations can protect themselves
in dozen ways, and very etfectually, without
disregarding such an enactment. 1t would be
no violation of law, for example, If the assocl-
alton should eject from its membership and
privileges any bank that receives silver Ger
tifcates, except as Il special deposit payable
in that kind of money only. Neither
would the provision that silver certificates may
be counted in balances be of any practical
effect. These clauses are purely ebullltoDs Of
impotent spite. Legislators who have tried in
vain to repeal the laws of trade are very angry
because they cannot, but their wrath is
merely ridiculous. Much temporary disturb
ance or irritation might be caused by
these provisions, if they should go into
effect, and for that reason it would be
sensible to omit them, particularly as they can
do no good to anybody. But commercial and
and control the action of financial institutions
and business men, with as much indifference
to acts of Congress as old ocean showed for
Mrs. PartiDgton's mop.
The prohibition of GENERALIZATION, how
ever easily it might be justified in morals or
in theory, is Objectionable on the ground that
legislation which it is impossible to enforce
always brings the lawmaking power into con-
TEMPT. II ia to be feared that the business
community has not too much respect for Con-
gress, as matters now stand. When a pas
| sionate parent threatens to cut off his boys
ears If he once thinks of playing cards, the ex-
| cellence Of his motive does not shield him
from the boys contempt, and Congress is too
much in danger of destroying. by similar folly,
whatever respect for law there is
The pas sage of two per cent funding bill
was q piece Of absurdity. Whatever commit
tees may be told, "New-York bankers" are
not going to buy two per cent bonds
at par 80 long as they can buy
three and half per cent bonds having
at the least within a year or two as long life,
at a mere triAe more than par. If taken by
banks, in exchange for bonds about to be called,
the two per cent would be liable to fall below
par 80 that additional deposits for the security
of circulation would be required, and this
probability will make sensible bankers
glow to prefer bonds of that sort to other
three and half per cents which can DO pur-
chased in the market, or to four per cents.
From remarks of Judge Kelley and Secretary
Folger it might be inferred that the bill was
passed with an idea that, though useless, it
would he harmless. But no measure is harm
less that teaches people to suppose their rulers
lacking in common sense.
The i.ill In ra1nca ia aficn will be assailGd