New-York tribune., 1885-01-15

TILE RINK OILNIION.

Having appointed day for the consideration
of measures designed to prevent the destruction
of the National banking system, the House
ought to take care so to decide that It's !eglsla-
ton may not miss the desired end. When the
Mcpherson bill was pending during tie last
session. there being no time then to secure the
passage of any other, it was by many urgently
recommended that this measure, inadequate
though it clearly was, should be passed rather
than none at all. But the House is Low IN
different position. 1t has opportunity to decide
upon bill which will be of permanent service,
and to urge that bill upon the attention of the
Senate. The sound objection 90 the Mcpherson
bill. as is stated in the report recently adopted
bv the Chamber of Commerce in this city, is
that it would not serve to make note issue
profitable to the National banks of the West
and South, OF at any point where current rates
of money exceed seven per cent. The computa-
tions showing this will doubtless be placed be-
fore Congress. 1t is at the West ana SOUTH
and not in New England or New lork, that the
continuance of the banking system is most
needed.
The Potter bill, which the Chamber OF Com
merce has strongly recommended, proposes no
sacrifice whatever by the Government, no IN
crease of debt or expenditure, no benefit to
holders of outstanding bonds beyond that to
which they have already become entitled. But
il would insure the maintenance OF the Ma
tonal banking system for many years TO come.
II should not be cOnfounded with "A previous
bill. in which an issue of per cent bonds was
proposed. 1t provides that 2l2 per cent bonds
NAV be issued at the option OF holders In place
of outstanding A and AZ per cent bonds, TO
mature at the same dates as the bonds ior
which they are substituted. The difference IN
present worth of the aggregate obligation for
interest from which the United States is re-
leased, and the new obligation which 1t
creates is to be paid to the holders in cash, but
only when there are on hand surplus revenues
which may be applied to that object. Thus, at
the expiration of the term of the bonds now
| outstanding, the expenditure by the United
States on account of them will have been just
the same, whether the proposed bonds be issued
| or not, and the advantage to bondholners just
the same, excepting that the issue OF circulating
| notes upon bonds deposited may be rendered
profitable in all parts of the country, whereas,
| in many portions of the country it is now un-
| profitable, and, under the Mcpherson bill, must
continue to be.
This measure has from the first been received
with more favor by the Republican members OF
Congress than any other. for the good reason
that it would secure practical benefit to the
people of the Western States, where the cur
rent rate of interest is high, and where the need
of larger circulation is most frequently felt.
| At the Eastern monetary centres less need of
legislation is felt, and the deep interest taken
| in the matter by cOmpetcut bankers is mainly
due to II conviction that the National system
must soon break down unless bonds bearing a
lower rate of interest can be substituted as a
basis for circulation In connection with this
bank question Senator McPhersons views on
standards of value, printed on the fifth page OF
this issue, will be read with interest