Daily union and American. [volume] (Nashville, Tenn.) 1865-1866, 1866-01-14


those who live by fluctuations to exaggerate the
| tendency and lower prices 10 such degree that
| there must be a rebound. By buying at the low
est point Of depression and selling again after the
reaction. profit may be realized. and even the
bulls find il for their interest TO favor the exaege
ration with ., view 20 the supssaaent REBOUND.
inasmuch as the returning pendulum does notstop
a the middle point but swings to the other
Those who hold government securities for other
than speculative purposes and are under no I'M
msalai AZ: necessity 2 SELL VIII nna no.hing IN ice
remark will apply to the holders OF other descrlp-
tons Of property.
There Is a very large amount OF pubic indeot-
edness which must be funded in long loans before
the finances can reach 4 settled and satisfactory
condition. Besides the greenbacks CERTIFICATES OF
Indebtedness, and interest bearing legal tender
notes, there's anenormous amount OF seven thirty
bonds which will soon begin to mature, and all Of
which willfall due within the ensuing three years;
Nobody supposes that aay considerable portion OF
this debt can he speedily paid, nor has anybody
suggested any other practicable mode OF meeting
II than by funding i IN long bonds II IS Eaatnr-
ing with such rapidity as to demand the adoption
Of immediate measures to this end.
The necessity of q measure similer IN substance
to that embodied in this bill is too manifest to be
disputed he only legitimate points Of ere rsia
OF interest is too high. the bonds have too long
TO run, or the Secretary is clothed with too much
es hon are fair topics Sc Of oS, Is
ground for difference of opinion. The proposed
rate Of interest is certainly high but, under the
circumstances, if the bin made it lever, it would.
as practical measure, be futile and imperative.
The amount of debt TO be funded is enormous;
and the Secretary Of the Treasury cannot expect
hundred millions Of bonds at as favorable rates rs
be could of a few hundred thousand.
The law Of supply and demand will prevail here
as in all other transactions. Since necessity ex-
lists for putting vast amounts Of bonds upon the
market within short period, they must be offer
ed at favorable rates or the market cannot absorb
them. The discretion permitted 70 the Secretary
can be exercised only on the safe side. Hecsnnot
offer more than six per cent, but 1t is in his
option to offer less. He cannot extend the bonds
shorter period. lie can make the interest on some
Of them payable in foreign countries, but In that
case the interest Is one per cent less.
The only power conferred on the Secretary
which is susceptible of abuse is the unlimited dis
erection proposed to be given to him as to the
amount Of bonds he may. put upon, the market at
than to tie him down to a fixed rule. He
must be in position to take advantage of favor
able turns in the market. The process of funding
uged with an unmanageable mass of overdue OBJ
legations. To say nothing of the certificates of in
debtedness, the maturing seyen.thirties will,
dation. Those not funded must be paid in cur
rency; and so far from there being danger that
funding will proceed with injurious rapidity, the
deem so large portion of the seven thirties in
greenbacks as to keep the currency at Its present
imitation. He can contract the currency only by |
the aid of enormous loans: and if he makes u |
prccipitate contraction he thwarts his own pur- |
poses by creating stringency in the money mar
ket which would render loans impossible. His |
discretion is, therefore, limited by laws of greater
efficiency than any which Congress can enact.
There is therefore. nothing in this bill which |
should cause apprehension or disturbance. or |
have any immediate effect on values. True, the /
Secretary aims at contraction; but the natural |
obstacles to contraction great that his |
cess must, for long time be moderate. |