The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-05-16


tormlty OF interest at five per cent in gold Is
now before Congress- II is for the public to
encourage its early enactment, and on terms
which will be sure to render IL, when made the
law TOR the administration OF the Treasury a
complete success in its practical operation of
gradually absorbing two thousand millions of
various funded and fu ldable obligations, as they
can be brought within the control of the Secre-
tary OF the Treasury.
To tins total OF two thousand millions we
believe the surplus revenues OF the Government
are now In q fair way OF reducing our entire
interest bearing public debt by the close of an
other fiscal year. This circumstance. alone.
which would not have been believed at the
close of the war as possible, or within even
othirds of the permanent debt to which the
country was then likely to be subject on final
settlement, is no inconsiderabe argument in
favor OF five per cent consolidation. The
very success OF our excise and customs revenues,
and the readiness with which they are borne,
entitled the Government 20 borrow, or TO fund
and consolidate what has already been bor-
rowed, on the cheapest terms of the most
favored nations. And the people who pay these
taxes are doubly entitled to early relief from at
least a portion of the burden of interest, and
gradual and ultimate complete relief from the
entire burden OF principal and interest of the
public debt.
The application of two hundred millions of
collars per annum out of budget of not less
than three hundred and fifty millions per an
rum. first to the interest and then to the reduc-
tion of the principal of the public debt, would
pay of the entire two thousand millions interest
bearing and also retire five hundred millions of
greenback circulation and deposits (fdesirable),
long before the former would fall due on the
proposed thirty-years consolidated five per cent.
stock. This is the sum which Mr.. McCulloch would
IKE TO apply every year, not as a king, but a5
an eXtingushment fund. The bill of Mr.. Sher-
man would make certain at least thirty millions
a year for the principal of the consol lidated
stock alone, in addition to the interest, and this
also would insure its extinguishment before ma
turity. ....
1t may be further said that the full force and
pracClcal bearing, as well as economical point
OF the proposed reduction to five per cent, is
best illustrated by the fact that the saving of
one per cent. difference a year, without any
other addition to the sinking or extinguishment
fund, would pay of the principal in less than
thlrty-seven years. In other words, if the Gov
ernment should continue to pay six per cent q
year IN gold-which might have been justified
II the settlement of the war debt had taken the
permanent total of three thousand, in place of
two thousand millons-it will really pay the
entire principal twice over in single genera
tion, as compared with the cost of carving
and paying off five per cent. consolidated
debt.
The process is not to be forcing or compul-
sorry one on the public creditors. No one who
truly appreciates the honor and untarnished
faith, to say nothing of the wealth and resources
OF the Government, would suggest such a thing.
But when suggested-as, we are sorry to say, it
has been, IN certain journals, no doubt incon.
siderately-it is easily to be seen that compul-
sion on this vital point of the public credit
would defeat itself. 1t would utterly destroy
the first hope of success of consolidated five
per cent stock, to place it IN the remotest
degree upon the interference of the Government
with the pre-eXisting rights of the older six per
cent. stocks; and nothing Of the sort ever has
been, or ever will be dreamed of by the admin
lstration of the Treasury, or entertained by Con-
gress.
Yet we are far from believing that the Govern
ment will have to wait until the public securi-
ties in their present shape come within legal or
r1Phtul control of redemption or conversion,
before the largest share of consolidation is sue
cessfully accomplished. 1t will be the interest
as we'll as the ambition of the treasury to popu-
larize the consolidated stock from the very start
1t will be the interest of the Government, and
It's ruest economy, to get every existing obllga-
tion carrying over five per cent. into this rate
OF consolidation as early as possible; and we dare
say it will be the pride of the whole people, in
cuding especially the hel6ers OF the public
stocks to assist this good work to its consumma
ton. And whatever reasonable immediate in
ducements are necessary to be held out to make
the exchanges or conversions at once, should
be, as we doubt not they will be, presented both
by Congress and the Treasury. But in any event
the consolidation of Sl,700000000 out of the
S2,OOO,0OO,000 contemplated, will fall in due
course in control OF the Government, within the
next five or seven years. By good management,
more than half this sum can be consolidated the
first year after the proper authority is voted.
EurOpe-A New and More WarliIle Phase