The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1853-10-11
Talk ON ,Change.

Flour closed dull yesterday for common brands OF Stat
at SO 49, Wheat and corn without material chang
Mess pork closed at SIT SIT H. and only 400 500 ba
OF cotton were sold, with dull and heavy market
what disposition would Congress make Of the surpl|
revenue This question mooted and discussed amoI
the merchants. 1t considered one of great impd
tance and gave rise to variety of opinions regarding
Some were in favor of having the government purch
its outstanding bonds at any price, while others
cdedly opposed to this policy II commended that
was unusual for government to redeem its liabilities
advance at such enormous premiums that it was a md
sure which, if not urged forward by the indirect inuen
Of foreign bond holders certainly operated very mat
rally in their favor. They hold much the lai
est amount of these bonds and would only fe
the government demand in q ratio to secure I
highest premiums the principal and interest of viii
they drew in specie If the bonds held by ctize
of the United States their redemption at a premium
though not Observation-Disclosures large, would exercise
beneficial influence the financial affairs of the count
The economy of individuals and governments should
conducted on similar principles What sane man wol
deem it sound policy to purchase his notes before they
came due, at premium of twenty one per cent?
For the sake of argument let it be assumed that d
bonds of the government amounted to 500 oOO at
per cent interest having average of eleven years to
and suppose the government in possession of surplus
sixty millions of dollars and that it could place it sae
or with ample guarantees in sinking fund.- at six 4
cent which would be the best to purchase the
as far as it would go, at twenty per cent premium
to place it that its interest would meet the inter
and the principal and finally the end of eleven veal
sink the principally In this way sixty millions of dol
could be made to pay sixty millions of debt at matur
whereas, the whole sixty millions to be redeemed
average premium of twenty lone per cent it would
quire the Of $72,6O 900 to pay titus losiA
SIC, 900 600 by the operation. The argument wo
hold good with greater less sums and for shorter
longer time to 1t was believed by that c.
gress should withdraw the discretion from the Secrets
of the Treasury to purchase bonds at such
NUNS Those who objected to the funding system !,
mainly on the ground that it could not be establish
SAFE solid and reliable basis. They said it would
do to loan the money to the Statesthat they would
pay it back-citing previous example in point 9th
considered that safe sinking fund could and ought to
organized State bonds might be pledged collateral
curty at half their value the face of them rar
bonds guaranteed by them-that was, on bonds of 1
thousand dollars loan five thousand might be obtained
six per cent interest," and whenever the interest sho
fail to be paid, the government should be empo
cred to sell the same. Or the States might, \
another case give liens on public property, with poy
to sell in of the failure Of the payment Of ntere
These, with other plans Of establishing sinking fund
sound basis were suggested. 1t was bad economy
keep thirty millions of dollars idle, and equally waste
to throw away large sums in the form Of premiums.
reserved or sinking fund.- desirable on many accour
foreign war, with stringent money market, might
far curta mportatons as to reduce the revenue bel
the amount necessary to carry on the government
thould the country by any casualty be drawn into
on its account, the current revenues would soon
found insufficient to meet the exigences of the case NJ
advocated the expenditure of the surplus in wastefu
perme in aid of private railroad building, or OF
projects The subject one of interest," and our sp
only allows to glance at the opinions enterts ined
commercial men in reference to it,
The news from California referred to. The state
the produce markets considered discouragng. FL
ruled low. 1t estimated by some that Calfor
would this year produce about barrels Of &c
Supplies Of other farm produce were also becoming alb
dant The mining news was consit cred good.