New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1865-08-31
OUR FINANCES.

!
different Federal loans falling due before loo''
urging that it is most desirable that ''ieSo ~
funded, as they can, in one great American WI"
SOL drawing 4. or. at the utmost, D per ccHi
which will be impossible, if the current elor' u
subject them to State and iocai ''A"'''''
prevail. On this, The Commerce" says
"Tur TRpuyrs proposal would DC wen e9V , Soh
it practicable. or the uniunueu, which at maturity
$50 loo 600 is in Sevenhiry notes wnieh a! ,a To
g -, 10 ia either in cash. or converted INTO rive
,ontv hdnds at the option OF the holder Inns portion
Of the debt is clearly no 10 soscrs Of seven
h; nrofar cash for their notes to flyetwentics IL
,nIJ he ony because they could make better use OF II
,bon investing it in six per cent godbearing Donu' III
which ease il would be clearly impossible for the lreas
my o raise the for retiring the notes upon iour
ny 1--WE per cent bond except by disposng OF them AZ
heavy discount from par Equally doubtful Il the prsc'
t;cabfy of converting the remaining portion. consist
inc of Certificates of Indebtedness temporary loan
and demand notes, into four or hive per CEN oonu
THE TRIBUNE supposes that tins process wou w ~
ciatcd with the resumption of specie payments, ~,
which ease these Sc1I ~ $50 Of short obligations Nouu
be worth about so much gold. .,
THE question is. what sort OF security wouiu ,Ie
public be willing TO accept in exchange for these eNl'
dences of debt According TO the present S'uInS VI
the public credit six per cent gold interest oohu -
worth about Il and in the same ratio gui pr oSm
gold bond ought TO be worth about o. mat rcason
has TIT TRIBUNE to suppose that the Uo'erh'non'
credit will far appreciate rs TO render, one Ut IVA
years hence security sala1e at par, wnlch mou,'
now bring only - Our contemporary mus assign sa.
sgctorv reasons for such an assumption before ~ can
conelude that holders OF Certificates, Demand
&c would accept ipercen bond ior u.es, ei''1n, ,
mon the Treasury. II may I've THE TRIB MES own
oninion that tie Government ought 10 DO able 10 DOT
row nj idj per cent bnt il Is very clear thal 'he
public are not willing 10 accept treasury "og ="
less than from d- per cent. interest; ana Whe IL
is highly probable that the permanent funding OF ne
whole debt will be likely to improve the puDle cIc"'
vet il is difficult conceive how 1t should improve W
The extent required by THE TEIBu NEs views. .
/ .Tur rnu;INr Yesterday quoted the low interest
upon the British debt in favor of its views overlooking
the fact that money is usually gas per cent on
England than In the United States OWING 10 Tue ia'se
earnings Of capital in this country
RemarLs.-It is a fact whereof The CONNER
cial should not be ignorant, that time is an ele'
ment of the value of loan or bond, and tina. a
public creditor will often gladly exchange a
bond at high interest but maturing at a short
date. for one at lower interest which has many
years to run. IT, for example, British loan OF
so, 900 900 sterling drawing per cent were
to mature on the first of January, 1867, its hold
ers would gladly exchange it for per cent
having hundred years to run. And this prn
ciple applies to our own Debt.
The Commercial asks why we think Govern
mcnt credit will so appreciate within a fe"
years that our bonds will be worth far more
than they now are. We answer-Because We
trust our Government will meantime scrupu
lously keep faith with It's creditors, and will soor
be reducing its debt instead of rapidly and
enormously increasing it. Our bonds nave
hitherto ruled low, Ist, because they were
thrown on the market faster than 1t coul'
absorb them; IDLY, because our Government
was involved in great and terrible war, who's
end could not be ioresecn; hence there was
, hazard of non-payment, which we trust is
hazard no longer.
, We don't agree that 1.-THE larger earning
of capital" afiord the sole reason for hghe
rate of interest The Turkish cultivators an
=. Hindu ryots pay heavy interest, yet by
% means because of "the larger earnings OF cap
;. tai in their countries than elsewhere; and "
r know people hereabout who promise very hig
e rates of interest whenever they can borrow, yo
are nowise eminent for thrift. And we hay
> known higher rates paid by our merchant
l. when they were growing poorer daily tina
S when they were amassing riches. The CONNER
cial bolts its theories with too little consdera
0 ton