The Idaho world. [volume] (Idaho City, Idaho Territory) 1864-1918, 1866-05-19
TELECRAPHIC.


terest payable in coin aud bearing interes
not exceeding Ave per cent. not exceeding
thirty years and disposed Of at not less thar
par. the proceeds to be used exclusively in
reducinpthe obligations of the United States
except United States notes.
Section two provides that the bonds issued
under this act shall be known as the consol-
idated debt of the United States and shall be
exempt from taxation in any form by or un-
der State, municipal or local authority, and
in consideration of the reduced rate of inter-
est shall also be exempt from the tax on in
come derived therefrom.
Section three provides that the amount OF
interest saved to the Government shall be
applied to the payment of the principal, ard
that for the purpose of insuring payment
thereof and in lieu of the sinking fund con-
templated by the act of 18th February, 1862,
the sam of at least thirty millions, including
the saving of interest as said, shall be an
nually applied to the redemption of the debt.
Section four requires holders of7-30 trea-
surY notes to inform the Secretary at least
six months before the maturity of such notes
whether they desire $40 bonds in lieu there
of, and failure to give such notice shall be
deemed conclusive that the said 730's shall
be paid in lawful money.
Sherman, in offering the bill, said it con-
tained two propositions likely to excite OPP
position, viz exemption from tax and the
option of the holder of 7-50's. He said a
strong feeling grows out of the exemption
from State taxation of so large an amount of
property, and while the United States bonds
bear interest equa. to that paid in most States
an notes and securities subject to taxation,
this feeling of inequality will continue to in
crease. These bonds are now subject, but
owing to the $500 exemption proposed to be
increased to ST., 900; also owing to the large
amounts held abroad, which cannot be reach
ed, and the readiness with which the tax is
avoided, 1t comes to produce less than one
tenth of one per cent. on the aggregate debt.
This bill reducing the rate of interest will
save one-sixth per cent. of the interest which
is found to be but trifing loss on the in
come. sssf
Sherman intimated that the saving thus
made with further sum equal to three cents
on the dollar will in thirty-fve years wipe
out the whole debt, thus in effect paying the
debt by saving OF interest.
The second proposition likely to excite OPP
position is that which gives option to holders
of zoos. This option compels the Secretary
of the Treasury to accumulate vast sums for
any contingency that may happen, and pla-
ces him at the mercy of any sudden combi-
nation when the notes mature. To avoid
this the bill requires the common custom of
law ofgiving reasonable notice ofno option
being taken, then it will be held to be a
choice of money, and the Secretary will have
six months to prepare for it.
Sherman said the bill was approved by the
Secretary and had been partially considered
by the finance committee. 1t will be expect
ed that the holders of present bonds will not
convert them, but fortunately nearly all our
securities will soon be within reach by ma
turity, and it is q confident belief that this
reducing the rate of interest Will
be so far an adjustment between the conflict
ing interests of the bond-holder and tax
pa yer, that it will be accepted by both, and
thus consolidate the debtofthe United States.
All the advantage proposed by the bill will
be more fully considered when it is reported |
10 the Senate. In the meantime it is but
right to submit to the impartial test of the |
public Judgment of every one who pays taxes
or hold national securities. The bill was al |
80 referred to the committee on finance.
The New York Times of Thursday says, this
measure was most favorably received yester-
day in financial circles, and it is understood
as having been shaped to meet the careful
consideration and views ofSecretary McCul-
loch. That the measure will be accomplish
ed and favorably acted upon in the national
Legislature, we have no reason to doubt.
That the bonds for the issue of which it pro-
vides, can be negotiated at par, we feel assur-
ed. In the present temper of the money
market with the enormous accommodations If
idle capital in the great business centeIs, and
in view of prevailing law, the feasibility OF
placing the consolidated FIVE per cent. long
date coin bearing national securities at not
less than par, cannot be questioned. This
security is especially designed not to increase,
but to fund the public debt and prepare for
its steady liquidation. AS such and with the
mmunities and privileges accorded to it, 1t
cannot fail to find as eager subscriptions now
when peace and union are restored Al ma
iOnal credit be greatly resusitated as dld the
i've twenty bonds in the miost of civil war
and the direct, fears of reputation.
WAsHINGToN, May 5.-The Senate yesterday
confirmed Lewis D. Campbell, Minister to the
Republic of Mexico, also the following Brevet
Major Generals of the regular army Nc
Dowell, Pope, Howard, Hooker, Hancock,
SchOfeld, Terry, Ord, Candy, Fry, Townsend, |
Holt, Delafeld, Hardee, Ketchum, Heintzle-
man and Emery.
Beth houses have passed the resolution ex-
tending the time for the completion of the
first hundred miles of the eastern division of
the United States Pacific Railroad, and ex-
ending for two years the time for the North |
Srn Pacific Railroad on all its sections.
The Committee of Conference having agreed