The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-12-31
FINANCIAL THEORIES.
Criticism Upon the Report Of the Secretary
Of tho Treasury and Senator shcrDan's
Rlua nclal Hill.

| Criticism Upon the Report Of she Secretary
Of tho Treasury and Senator ehcrDansn
Financial Bill.
| To The EDITOR on THE HHALD:-
observe in the report or the Secretary Of the Trea-
suy and the bill introduced the Senate by the senator
| from Ohio anxious desire In the minds Of these
funciionares to increase by legislative enactment the
| market value OF the fve-tweniy bonds now in the
hands OF persons In Wall street and Europe. Tut see
nothing that indicates knowledge Of the necessity now
existing provide plan to reduce the ipteret the
public debt What has the Secretary or senstor to do
with the increase decrease OF the value Of fve-
twenty bondsa They have authority TO sell such
bonds In our public market any other, and il Is not
advantageous TO country make sale Of our bonds
in Europe but would be well to inhbit such sale and
transfer Our American credit for all Legitimate pur-
poses as good II not better than any European credit
We did not get credit from England during the war
when our debt was being incurred, and why should We
now try to assist brokers and others 70 enable item 70
has nothing do with our bonds, unless be can devise
way to reduce the rate Of interest The only promi.
nent feature In the report and bill strong desire
promote the interest OF Jay Cooke and ustrous
Cews who are supposed to have made great sacrifices
10 their patriotic exertons to sell government bonos
Inese two distinguished gentlemen have spoken
through the press the public on this subject in Inc
most supercous manner, but how much more persua
sive Their words may have been 10 tho Secretary and
When the first bill to authorize the issue OF Ave-
twenty bonds was prepared by MI. Spauldng-t was
shown by him to the writer Of this paperand was then
80 altered as TO reserve the right TO the government
ss .sl ss years T. pay spee bonds this
Treasury avail Of any favorable change the price
money to reduce the interest on the public debt We
had seen the price OF acny year six per cent bonds OF
the United States, under former administrations sell for
premium Of wenty.ave per cent not for the benefit Of
the government but for the profit OF speculators and
we did not wish TO this occur again, without having
the pow er to benefit the taxpayer by reducing the
teres We knew that the rate Of interest vas always
nsn IN sme o. war, ana as invariably DECLINED when
more rksome in this country than in other country
II our finances are not skfully and honestly managed
And have In state santirentisu1" resoted
TO when ksome burden could not he removed in any
other way. This reserved right to pay the debt at the
pleasure Of the government was made to protect the
credit OF the government from all conngencles and
reduce the rate Of interest In legal and honorable man.
ner This right should not be yielded for day. The
government having reserved the right in all the Ave.
twenty issues should not ronqush BY the issue Of
new bonds We must remain free to pay these bonds at
rous Clews do not t in this light They see only
the interest OF the bondhoder and broker. Their
sandpon" ,s affords IN no , Other view These
and interests are apparently anae0nistic to the
people. We do not want our Treasury and the
taxpayers under the control OF men who make long
arguments against both and mpose burdens upon them
that they will not try 10 remove" The report from
the Secretary well tho letter written by Mr. Chase
and signed by Jay Cooke and the dsinterestcd letter
written by ews seek 10 persuade the taxpayers that thew
have no alternative and That they should bear without
murmur the burden Of debt bearing an interest
Including an exemption from taxaton) Of more than
t~cve per cent per annu This is undoubtedly for tho
benefit OF the customers and patrons OF Jay Cooke but
Is not only injurious payers but 1t is burden
and TO all business and other borrowers No
one s permitted to loan money any one but the gov
ernment or on government securities at OF inter.
est exceeding seven cent and therefore the weaker
party Is crushed TO the earth and business embarrassed
Tor the benefit OF lenders and owners Of government
bonds. There can be competition in such stale Of
things The banks. as well as other lenders, gv ,Ss
preferences ID United Slaei bonds and the me- .n ~,
-
bank. and must pay middle man secn rata of snavs
as inc favored broker may deT.and Bu,Iding is OBJ.
rate moro than seven per cent d tho loan n subject
20 taxation also. Thes ard .,ner evils flow from Tie
The nhl,c or cIimnav OF bad management Of
ssood nand NOR ey al three dollars ana sixty
,acn - per annu'n. .r cent per day interest on
hundred d dea 10 I'd 30 his ,s he form Of credit
can arise frog II. This viii be treated or In another
paper.
the benefit Of the great taxpaying public before the
coming year shah expire must be patent to every OBJ
server OF current eveats.
signs Of the times Alright there Is gathering storm that
long break with teri c force over TINS devoted
and msgoy erned land Wo arc even now informed OF
gatherings West In conventions Of business men,
who arc seeking some amehoranon OF the burden OF
This Is only the small cloud, mo larger than mans
hand" thar will soon daJxen tho whole armament.
Does not senator Sherman Soc Ia thisa distinct warning
and apply his ene<ges inteiligenty to avoid
their censure or oanaemDatiohf We shall -nake
no Constituent eyscpt Mr.. Chase, and he will
be satisfied long ke follows in the footsteps Of his
llustrious predecessor And now, ask or tho Secre-
tary and sona.ar> whether their craftsmanship, after
conference wkh tho constituents OF Mr. McCuoch can
not devise some legal aud honorable plan that will
reduce the interest," OF the pablo debtr Ths only taenl
hereto shown by our cnes Of the Treasury IL that
which HIS Distinguished spsndhrfts in all ages--the
ability TO Incur debts and they havo added TO tina.
laey tho profound arguments in faver OF the bond
holders aud against the reduction Of the interest tho
1 temen ina. tho talent TO incur debt, by the us,
| Of good credit and willing people at
price and rate Of interest TO please ia,
| Cooke 10 NOS evidence Of any great nnancIa
| ability. A wise statesman Will always seek 70 lurr
| every event even calamity, into public good. But
iaE. your measures have produced unmitIgatcd evil
hoavy burden will DO borne patiently II well adj
justed whereas light load, IL Ill adjusted, will pre-
duce restyeness aud disaster
How do you intend 10 readiust the public debt2 Thl
question will be asked every day by the people, an
they will demand satisfactory answer. You hav
answered question very distinctly. Tho people to
you that all their gold and silver coin has left or
leaving the country IN consequences Of demand iror
Europe, aud that therefore they will be wlthou
coin fo~ business purposss What remedy do you appi
Tor thsf Do stop coin from leaving the counr
| by any financial policy No. You say 10 then, 81 wi
retain tho Coin FOR currency, but will dcstro
your coined paper A. came. cure tina. affection
called In TO treat Of fever. On examining IN
symptoms said tho patient IL have rerned, IL
your fever, but viii yell you what ] can do ca
| tary has no science. He Is clearly quack and ha
| quacks for couDsellors, and N he Is retained as on
physician and does not know the remedy for our ccu
plant, win throw into ts, there be doub
Nous reyronS JONATHAN 0LDBUlK.
INTERNAL REVENUE MATTERS
Another Raid from Collector Woods Once, !
|