New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-01-29

Per Cent ponds is TO- which makes the rate OF interest on
Investment Just eight and third per cent me G ,
In fact nearly and half Per cent besides whlc tne
Fvewenty Bonds are payable ~ Tess In IwSny yf
ee nv oy OF bonus addition OF more than third TO
Sf5e g si' This discrepancy Is at first sight not
ea s 3Rtegibe 1t must be acknowledged that there
prcyaIls a certain distrust OF the ndehty OF the
If is Wen that Americans themselves should know
the which excuse, II they DO not lusti-
power 20 remove them. Englishmen had almost learned
before the late 10 forget the bonds OF Alabama and
Mississippi and had again invested largely in state
tiles Tbs came and interest ceased TO be paid
in the South, I'm consequence OF force Glere OF which
no creditor could complain But the bOndhoders Of the
Northern States found that they did not escape nscathed
Congress passed an act authorizing the issue OF nconver
ibe paper and declared it to be legal tender Every
State in the North with the honorable exception OF MAS
sacusetts-fathfu it among the faithless foundayaed
preciated currency Thus the English creditor who
had lent $1,000 in gold TO the state Of New ork upon
an an annual annual payment of SEQ, received SEQ in
paper, the value OF which was az one ,t H1 o e
more than in cold and now " very niue mort
than $40 Worse than this II the bond became due ne
paid off with sum varying rom h 70 tT bS
thirds Of what he had lent Instead OF getng Sack ~
thousand gold dollars he received from soQ 70 SGO9 ~
true that protest was raised IN d rs ssGnc reb1Se
and we believe order was made 10 the stare OF New
York civ 10 lend whatever might be necessary 10
make up the difference between coin and paper upon re-
Of the war. Had II been a question OF Personai
honor, the offer would have been ssceeIdted, Ill H.
sary but the morality Of Legislature Is determined by
It's worst members. The offer declined, and every
creditor of NewYoIk, Of Pennsylvania OF illinois, or
Ohio and the rest muleted of his Just claims II the
total sum thus kept back from English creditors were
made up, It would make formidable item in any inter
national settlement The effect Of the conduct OF each
state the credit Of the Nation is however the point
to which would call attention. II every single
state withdraws from contract, what surety Is there
that the aggregation Of States will be faithful to their
promisel Tins is the thought which excites such
an ugly doubt to the terms on wlncn
the Fve-twenties may be ultimately redeemed
ed consists
of bonds bearing at $40 per cent, redemption OF
which is obligatory within very short period ~ 10
raise the funds TO provide for their payment that Mr.
McCuoch suggests the issue Of bonds specially adapted
to the European market by proyso that interest on
them shall be paid in London Such provision wOuld
doubtless be useful but expedients far more efectua
toward obtaining money on easy terms on TINS de OF te
Atlantic could be found in the removal or the causes
which infect American credit with suspicion The least
that should be done is to an act declaring the bo
bonds 10 redecnabe only in gold and public repud
alton Of the suggestion made by Mr. Hayes would not be
unadvisable.