Savannah morning news. [volume] (Savannah) 1868-1887, 1882-02-07
The sherman Funding Bill.

Sherman, of Ohio, which passed the
Senate on Friday last, provides that the
Secretary of the Treasury be authorized
to receive at the Treasury, and at the
Office of any assistant treasurer Of the
United States, and at any postal money
order Office, lawful money of the United
States to the amount of $50 or any
multiple of that sum, or any United States
bonds bearing 81 per cent. interest, and
to issue in exchange therefor 8 per cent.
bonds to the extent of $500. 900, 600
in denominations of from $50 to SO, 900.
These latter bonds are to be redeem
able only when there are no bonds bear
ing a higher rate of interest, subject
to call by the government, outstanding,
and should any national bank unwilling
to continue upon the basis of these B per
cents. desire to Withdraw its circulation,
it is to be required to give thirty days
notice of its purpose to the Comptroller
of the Currency before its intentions can
be carried into effect.
This bill will, il is generally anticipa-
ted, meet with considerable opposition in
the House, and viii be so amended there
as to prevent its being recognized by its
author. Whether this be so or not,
however, aud even if the bill finally
fails, the fact of its passage by the pres
ent Republican Senate by decided ma
iOrity, considered in connection with Mr..
WINDOWS recent course in extending ma
turing 3 and 6 per cent. bonds at 81 per
cent, is the highest possible vindication
OF the financial legislation of the Demo
Gratis in the Forty sixth Congress, and a
decided rebuke to Hayes for having IN
terpOsed his veto to the per cent bill
of that Congress. thereby putting the
country to millions of dollars of unne-
cessary expense.
1t will be remembered that during the
discussion of that per cent. funding
bill of the last Congress, the Republican
opponents of the measure were loud in
declaring that no per cent. bond could
be successfully f1oated at par, and when
the Carlisle amendment was offered and
adopted, requiring national banks to
take the per cents. as the basis of their
circulation, tie banks and their friends
raised such a hue and cry about their
inability to carry on business proftably
under such circumstances, and threat.
ened to produce such panic by imme-
diately Withdrawing their circulation,
that Mr.. Hayes came to their rescue and
vetoed the bill. Yet no sooner had Mr..
Window taken the treasury portfolio
than he, without any authority whatever,
took upon himself to issue 81 per cent.
bonds in lieu of the IS and 6s which ma
tured last May and June-to take the
places of which the Democrats provided
for the 8 per cents-and the holders of
the matured bonds gladly accepted the
proposition. Thus the people Of the
country were forced by Republican de
facto President to pay interest on nearly
$500, 900, 900 Of bonds at the rate of one
half of one per cent. per annum IN excess
of what would have been paid but for
Hayes veto, while now, at the very first
opportunity which offers, Republican
Senate passes a three per cent. bill in
which the principle of the Carlisle
amendment is fully recognized, since
while the banks are not forced to receive
the bonds as the basis Of their circuls-
ton, they cannot withdraw their notes
until after they have given thirty days
notice of their intention of so doing.
The wisdom of the Democrats in the last
Congress in passing their per cent re-
funding bill is therefore fully indicated
by the present Republican Senate, and
the effect must be. among all thinking
men, prejudicial to the Republican party,
and especially to Hayes administration.
It is clearly shown that the party OPP
posed the bill, and were willing to sad
die the country with an unnecessary
and enormous burden of taxation mere
ly because tie funding bill in question
was a Democratic measure, while Hayes,
actuated by the same motives, did fasten
heavy expense upon the people by the
arbitrary abuse of the veto power. So,
even if the Sherman bill is finally
passed in the House its passage
by the Senate is a tribute to
the Democratic party, while the history
of the financial legislation of the past
two Congresses is fresh and conclusive
evidence that the Republican party is
far more solicitous about party success
and far more anxious to prevent the
Democracy from gaining popularity
among the people than 1t is for the pub
lie welfare. We are glad that a majority
of the Democrats in the present Senate
showed, by voting for the Sherman bill,
that they are not actuated by any such
unpatriotic spirit