The Sun.
London, England, 1868-04-02 00:00:00

argument that this man should now be in favour of
greenback redemption. The loan was advertized
with the appraval of the G worm-ilea as repayable in
gold, an I successive Treasury Ministers pronounced
the matter to be beyond controversy. The moral
right is so clear as to be almost indisputable, but
the real strength of the bondholders in opposition to
any tampering with the debt, lies in 012 consequences
likely to foll.)w. Let us balance the probable gain
with the probable losses to the nation of enforcing
such a bill as Senator SIJEIZMAN'S. One per cent.
would make an annual reduction in the interest of
two and a half millions a year, and that would be the
outside profit to the country. Now the question is,
at what price would this be purchased ? Credit is
the strength of a civilized nation ; in peace ,
enabling it to develope the national resources ;
and in war, to uphold the national interest,
honour, and independence. Although a mere name
—it is the most potent influence. Without it, a
civiliz nation sinks into bankruptcy; alike powerless
to foster industry, or to protect its citizens. Money
is the sinews of modern warfare. On it, is built
and maintained the only efficient fleets, and they
cannot be built and maintained by any other means.
By money, armies are equipped and supported in
the field, and although the material may be supplied
by patriotism, trained and effective forces can only
be obtained by money. Without it a country can
have no fleet, and her armies must degenerate into
lawless mobs. Credit alone can supply the Govern-
ment with money when needed ; there is no other
means except forced contributions, the poor and
desperate resort of a degraded despotism, which
commences a struggle, by making enemies of its
own people. An injury to credit, therefore, is the
most fatal a State can sustain, yet it is the injury
the greatest of all countries, proposes to inflict on
itself. This is the first strong point of the credi-
tors. The next hits more directly at the people.
Suppose the bondholders refused to accept the re-
duction, the alternative then is payment in green-
backs at par. The market price in the United
States is now 10 premium ; and the immediate
effect must be to strike that off, and, in common
with the Five-Twenties, to depreciate all Govern-
ment securities. A loss would immediately be
sustained sufficient to produce a violent panic, and
dislocate the whole trade of the nation, and that
would be followed by consequences the reverse of
what these agitators intended. Western produce
" hogs and brealstuffs," instead of rising to infla-
tion prices, would become a drug, and among the
heaviest sufferers would be the West. Nor could the
Government redeem the B )nds except by a fresh
is,aie of greenbacks, which would be adding fuel
to the fire of the crisis, as well as to the national dis-
credit. This is the second point iu favour of the
creditors. The United States is the greatest pro-
ducer of the precious metals. It is a palpable folly
for a producer systematically to depreciate his own
productions. Even were it possible to make the'world
believe that paper was better than coin, the great Re-
public is the last country to lead in such a revolution.
The heavy losses to the .United States from the
failure of Southern staples can alone be made good
by the increasing mining development of the Pacific
States. Having expended millions in destroying
the industries of the South, is the Republic simul-
taneously to impair its credit and lessen the value of
the exports, on which it must rely for repairing the
waste? If the citizens of the Atlantic and Middle
States insist on depreciating the products of those
of the Pacific, they will generate an indignant
opposition which will go far to create a split.
California adheres to specie payments, and has
steadily set her face against paper theories. This
is the third strong point of the creditors. The
fourth is even .more purely a domestic question.
Four-fifths of the Bonds being held in the
United States, almost the whole, weight of any
measure of Repudiation falls on its citizens. If the
Government is coerced into rubbing Hama- to give
Tom relief, it will merely rob the most industrious,
the mast patriotic of its people, who helped the
country in its time of trial, to aid those who did
not do so. It will reward loyalty with repudiation,
and a generous confidence with a barefaced robbery.
Why should the country do this.? A certain
portion of its citizens would be mulcted for the
benefit of another portion, the national gain
by the one class being exactly balanced (minus the
portion held abroad) by the national loss to the
other class ; that is, Uncle Smi will take the money
out of one pocket and put it into the other, and call
that a fine financial operation. Putting aside such
considerations as Uncle SAM being thought a
cheat, and losing a large amount of his power of
financing in the future, this would be the only result.
But people are not ruined or heavily mulcted with
impunity. The benefit to the others will be so slight
as to be scarcely felt ; the loss to the victims so
great and direct, as, when realized, to call forth a
loud cry of indignation and rage. Thus the bond-
holders being of the community, each man able to
make his neighbour feel, ought to lose no time in
doing so, that the neighbours, having a foretaste of
what they will get on repudiation, may know at least
one of its drawbacks before they are committed to
the measure. These are but the more obvious ob-
jections on which the bondholders may rely in
the struggle. If they gird up their loins in defence
they will soon see how strong is their position—one
only to be successfully carried, by a loss to the at-
tacking party, out of all proportion to his gain, and
an assault which no general in his senses would
make if he fully understood the sacrifices it would
entail. Therefore it is clearly the policy of the
bondholders to take every possible means of letting
the threatening force know that they will defend
their position to the last, and at a cost to the be-
siegers, too heavy to be incurred, if in their senses,
and with their eyes open.

The course of exchange at New York on London for bills
at 60 days' sight is about 1091 per cent. At this rate there
is no profit on the importation of gold from the United
States.

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