, 1866-05-28

will likewise fall of its object, as far as the
immediate consolidation OF, and reduction of
Interest on the debt bearing interest In
currency, Is pretended to be practicable
The total debt, bearing interest In curren.
CT, according to the last Treasury exhibit,
was 81, 1,lss, ,544. Of this amount, The
eeven-thlrtics represent no less than 1881, ,5lo,-
esd, nearly three fourths. These bonds
turity, every dolia1 Of them is payable in
lawful money, or. in the option of the holder,
convertible into per cent flve-tweuty bonds.
Every bond Of this denomination bears this
stipulation between the Government and It's
holder on its face, and It cannot he violated
without reputation. Now ask Is It reason
able Ia expect, as the advocates Of tho fund.
Ing bill confidently do, that the holder OF the
eevcp-thirties Will exchange thum for five
pcr cent bonds, no mattcr how long they will
hare to. run, before maturity, or TINT they
will not ralher convert them into six per
cent bonds, that become rcdeemablc By the
Government, only five years after their Issue,
and are payable, principal and interest, III
cnin, than into these five Per cents? And,
right here, It may be observed that the hold.
ers Of one class OF dve-tHenties. Of the Issues
Of 1862 Or 1s63, or thosc. to be obtained by
conyersf on Of the seven-thlrties will not run
the slightest risk Of losing any advantage,
on the one hand, and. on the other, gain one
| per cent per nnnum In interest by holding on
| to the lnst moment 10 their six per cents,
| instead Of changing them for long five per
| cents. For what can the Government do lor
! the redemption OF the six per cents after they
become redeemable, aud after 1t will be in d
| condition to redeem them: No one will pre-
| tend that it will pay the principal OF these
bonds In coin or lawful money after the lat
ter has become the equivalent Of the former.
1t will, Of course, take them up by issuing
new bonds in their .p1ace;; And what kind Of
t4E
funding bill? Why, none othels than the
very five per cent thirty year bonds, to he au.
ttorHed by it, for which we nre asked to be-
fevc By the advocates Of the measure the
boiders will eagerly exchange their six per
cent and sevcn~thirty bonds.
Deducting the amount of seyen-thirtjes
from the total of the debt bearing interest Ia
currency, we lind, a balance oil only $c26, 500,
SUI This was composed rs follows the 1st
inst:
six per cent. bonds. xI63Loa0ct q
Certificates Of 1ndcotedless. 49,. Gs,Gso,d ~ i
La>t two year five per ccnt. noics.. Co.'s. 800 d
THREE year compound interest notes. 161,112- L .W
From this balance must be deducted ths
amount OF cash IN coin and currency In ths
Treasury on the same date (s1c7 ,9S7, ,02S), b!
which this balance could bc reduced at AMI
time to about one hundred and ninety mill
ions, aud ne the interest on this reduced hal
tnce would be mostly less than i've per cen
would be an open question, whether It wou}t
be to the Immediate advantage Of the Govern
| ment to redeem this part OF the debt
having low interest In currency
AS stated farther above, no one at all con
yersant with the subject Of our public iuan
ces, will be disposed to dispute the souudnes
Of the proposition that It Is desirable to fint
the whole public debt into uniform class Q
securities, and 10 reduce, If possible, the hfsl
average rate OF interest now pail br the Gov
eminent. What l aimed at By the foregoing
was. EimIly to prove that the propose.
funding scheme will be utterly impfacticabl
until the resumption Of specie payments, an,
favor, based upon the superstition that by II
adoption the tax paying community will b
Immediately relieved Of q considerable por
tion Of the oppressive burden 1t Is now bear
n@. It Is easy, indeed, to demonstrate tila
the Government will effect large saving au
consequently bc able 10 reduce taxation, b
PAYING five per cent instead Of six per cen
ind more Interest on the largcst part Of til
public debt. But it cannot be demonstrate
That this end, so deroutly to be wished for. i
view Of the peculiar conditions nnder whic
the greater part Of the national obligation
have been Incurred, Is attainablc either at th
present time or IN tho immediate future b
the proposed measure.
Neither the Secretary Of the Treasury nc
any other Of the friends of tue Funding Hi
pretend 11at fet1ffu 10 specie Payments wi
be practicable much before the close OF III
Joilnton's administration. Is Il then, IL ma
we'll be asked, the part Of wisdom to commi
the Government 10 . line of financial polio,
the eventual adoption Of which unforesee
contingencies may prevent, years in advauc
! OF the time Mt which 1t will become practic:
bic. Mr. Sherman himself In his speech al
mittcd that he thought better plan for funl
ing the public debt could be devised, but Il
deemed Il best to yield to tho views and wisht
Of the Secretary Of The Treasury. nm il
| clined to doubt that the majority of the Sci
ate will be disposed to net upon this theor
ofthe infallibility Of the head of the Trcasur,
did not deem 1t necessary to allude
the argument that the exemption OF the pr
posed five per cent bonds from all Feder;
taxation, including the income tax, wonld ii
ducc tho holders Of six per cents and 1905 I
: exchange them for the former. Mr.. Sherma
himself argued, that the amount Of Fedcr
securities, now actually contributing to tt
revenue from the Income tnx was SO sma
that tho proposed total exemption woul
afford no good ground for opposition
that part Of the bill.