The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1882-05-30
FINANCE AND COTTON.
FINANCIAL.

E1NANClAL.
-, allowing will be read with interest taken
iA,bs Chicago Times Of 4 recent date:
feni ~. suggestions have been MADE, In view
snticipated retirement of bank circula-
epe .n hands To be used in place of govern
NA IN securing circulation. one OF these is
nsaasss;ed In the senate refunding bill, which
a.ssl ;hst body early in February. and has
~ yiceon .holed In the penetralia of the ways
hfa NJ committee of the house ever since.
"a ~ srbodied in the provision for refunding
NssseenO of the bonds that have been con-
ga Al 8 IL per cent into per cents, the
.."Sition with respect 70 time being
ensir that the 3's shall not be called
snPmn after the 3l-2s not refunded
a. been called, and interest thereon has
NV This is obviously nothing more than
eso-arv expedient If the banks should be
t1an the first chance and take the ontre s20O-
MM0olSs, they might secure two years eN-
wsn,on from the liability to have their bonds
IVA hi and possibly three, but hardly more.
~ 'SsuestiOn Of security fpr circulation would
an retirn with greater urgency than ever,
w N all appearances, with even poorer pros
sssof satisfactory solution.
iinother suggestion is that the banks should
li,mnred TO make only small deposit Of
Tniipd States bonds in the treasury-just enough
| ~ aord reason or pretext for national super
a,nn-and secure the circulation by making IL
sr lien upon all the assets of the banks. This
| nrrest0n was thrown out in the house not long
,%6y Mr. Hewitt, but the sense Of the house
III respect TO il was not taken, and public
/ @Inon touching IL il, TO say the least unripc,
| Il third suggestion. which was made some
| ems $40 By the New York Tribune, aud which
Iiasalready been discussed 10 some extent in
. nose columns is that the United States should
I slopt state and municipal debts. The plan, as
| mas been elaborated pretty fully by the Trib-
me and the Public, is not at all to release states
mi municipalities from their several obliga-
sons bu, to shift their obligations from
| hilyiiuas az their creditors 70 the
United States MS their sole creditor, the
. hrpr assuming the obligation TO individuals
mdat the same time assuming the power to en-
| btce its own rights as n creditor upon the sew
f gal debtor communities, these communities
Ulnntarily cOnSentng To the arrangement. IL
| cn hardly be doubted that In this way there
wlld be provided an ample basis, uni
f Em and steady in value and sutfi-
dently lasting for the paper currency of
Ne country The low rate of interest at which
IA nation is able to borrow would probably be
sufficient inducement to most communities
| hst really intend to pay what they owe, unless
their credit is already such as to enable them to
krOw at about 3h per cent Thus fur the
@oplehaye not manifested avery lively interest
hthis suggestion and 1t is hare ly worth while
| 10 guess how it would be received if ii were
+ forced upon the attention of the public. II may
be dismissed for tho present as unlikely TO be
considered by congress during this session.
fourth suggestion is that an opportunity
should be offered TO convert 4 per cents into Us,
having twenty five years 20 run, at the rate, say,
Of ll6 or III for 100. A Washington correspon-
dent who has been Interviewing Representative
CnpO says that when the senate finance COM
miee comes to consider the bill for the extern
sion Of bank charters, 1t will he PROPOSED that
any holder of As may be allowed Il 3 per cent.
bond, the government paying little less than
iheequyalent of the premium on As; In other
words II bond that will bear per cent. for
twenty-five years, the government paying some
thing like lit or III, and per cent bonds for As
Apar" This proposition, 1t appears, unlike
either that make by Mr.. Hewett or that made by
The New York Tribune, will DO brought before
congress before the end of the present session as
an amendment TO the bank charter bill twill.
therefore,, becOnsidered ifnot adopted.
This Is not on tho face OF II, intended
70 provide moro permanent basis of bank
circulation, but this viii be understood to
DO its object when IL comes 10 be presented
10 connection with bill otherwise relating ex-
cnsiyely TO the banks. 1t Is to be expected.
therefore, that II will be vigorously opposed by
oil the chronic bank-hate-s In both houses, al.
though the new provision will be made 10 apply
equally to al per cent, bonds. whether they
are held by the banks, or by other corporations,
Gby individuals And there will be no difficult
y about finding plausible objections. The most
obvious OF these is that il would DO iinwiso for
The government to pay IL or 10 per cent. pre-
MUM for bonds when viii not be due for TWEEN
Niye years, so long as II has outstanding
SNOOOOO Of bonds which may be called
N at any time and redeemed at par, or
which may even he refunded at a lower
ne OF interest This objection may, In
deed be met by pointing out that after all the
continued bonds have been called in the IS will
mall probability bear much higher premium
man 10 or l6 percent, and that 1t would be sound
e0n2my 10 pay the lower premium now. But
SUI the director will possess the advantage of
nav ng The actual premium of the present to
pace against n possible higher premium In the
iulnre; he VIII have fact to put against coujec-
Mie Herein he will have great advantage es'
Rcially before popular audience, unless tho
probability OF higher premium on As flyo or
TX years hence can be made apparent to the
common understanding. II Is very doubtful,
therefore, whether the advocates of this last
mode OF providing an adequate basis for bank
circulation for the next twenty-five years will
succeed IN carrying their point
DALLAS EXCHANGE AND COIN.
\ n.y., y tx. hGxParSS St Louis }l@x ParCoG
SSa aslgso H@.Par@A n. o....H@I par@h
ssveston 4 Per@S Houston.,h Par@A
,,ssxchange, all points X tox discount. Sterling
MI 81 IS Francs, SOS 10 Marks %.
ts.de dollars. Scots. Mexican dollars. sect
aMican halves. ,4Octs. Mexican quarters l5c