Year: 1870

| Funding bill come TO us from Washington, and


it is now said the President disapproves of
some Of the features. There is no doubt that


considerable opposition will be made to 1t in
! tho House. II will be remembered that there
| was sharp contest between the Chairman of


the Committee Of Ways and Means, Mr..
Schenck, and the Chairman of the Committee


on Banking and Currency, Mr. Garfield, as to


which should take charge of the Senate bill.


1t was given to tho Ways and Means Commit


tee; but teegraphic despatch says the Bank


ing and Currency Committee will report bill
covering the banking clauses in the Senate
bill, and that it is considering the pro-
entire measure. This looks like independent
action, and shows the contest that is likely to
take place in the House. But the most


curious thing connected with this question is,


that while the Secretary Of the Treasury


approves of the Funding bill as it passed the
Senate, the President does not. II is said


General Grant prefers to fund the bonds bear
ing high rate of interest into those of q less


rate, but is opposed to converting the nom


interest bearing legal tenders into bonds which


require the payment of interest.


| Though the President does not pretend to


much knowledge upon subjects Of national
| finance, he shows good common sense on this
as on most other matters that come before
him. We pointed out the other day the in


consistency of those who advocate the Funding
fha hat vyil1 tha h,,r


dea of the people by reduction of interest,
while the interest bearing debt is to be in
creased to an amount that will require


the same payment of interest annually.
We showed, in fact, that there would
be no saving but that, on the other
country Of the amount of taxation now imposed
| on the interest of bonds, which the Funding
| bill proposes to exempt, besides the loss Of six
| millions or more which it would cost to trans
form the debt The President it seems, has


had the good sense to view the matter in the
same practical manner.


Let us see how the account will stand with
regard 10 the burdens of the people as between


the debt as 1t now stands and as it would be


under the Funding bill. 1t is proposed to save
in interest eighteen millions year by chang
ing twelve hundred millions of six per cent
bonds into three classes of four hundred mil
lions bearing severally FIVE per cent, four and
a half per cent and four per cent interest. 1t
is provided at the same time that the four hum
dred millions of outstanding non-interest bear
ing legal tenders shall be converted into in
terest bearing bonds, by which CONVEX
sion eighteen millions year would be
added to the burden of the debt. In
other words, the amount saved by the reduc-
tion of interest and the amount added by con-
verting the greenbacks into the bonded debt


would just balance each other and nothing
would be gained But that is not all. The
new bonds and the interest upon them are to


be exemntt forever from al taxati9n-federai,
State or municipal. The government at pres
ent derives revenue of several millions o


year from the incomes on United States securi-
the government in case Of war or other diff
culties be compelled to raise large revenue
the bondholders would be free from taxation,
while all the rest of the community might have
to bear extraordinary taxation. The Funding
bill, therefore, will bring an annual loss to the
people instead Of gain. Worse still, we are
to pay six millions at least to agents for nego-
tiating the new bonds. Mr.. Boutwell, wants
about double that amount to pay for the job.


The probability is that with the cost OF
printing, paper, labor, advertising, percent
age to agents and all the other expenses,
the amount would swell up to fifteen or twenty


millions. Thus we see from this profit and


loss account the government and people would


lose large sum annually besides the millions
that would be directly squandered on the job


Such is the economy proposed by our legisla-
tors at Washington. The Funding bill ought


to be called bill of false pretences'


The country ought to understand too, that


a main feature of the bill is to enlarge aud con-


time the national bank monopoly. 1t is to
extend the national bank currency from three
hundred millions to about seven hundred mil


lions; to make free gift of all the profits Of
national circulation, amounting to thirty or


forty millions year, to these private corpora
tions and to perpetuate moneyed power over


this country that can control the government


itself. The blow which Chief Justice Chase


gave to the legal tenders in his late decision in


the Supreme Court seems to be part of a
general programme, in connection with Mr..
Sherman's Funding bill, to make the national


banks the controlling political power Of the
| country. The Father of the Greenbacks and


now the destroyer Of them may be the national


bank candidate for the Presidency But why


this Funding bill just now? The country is


approaching specie basis, the debt is being


liquidated at the rate of hundred millions


year, and both the Treasury and the country


would continue in prosperous condition if