New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-12-18

BY TELEGRAPH TO IBE TRIBUNE.
WASHINGTON Dec 1.-THE following is sub
stantialy the important report made by the Senate FL
nance Committee to-day the financial situation and in
explanation and support Of Its bill to fund the debt Of the
Government:
The Committee on Fl nance 10 whom was referred so
much OF the Presidents Message relates to the public
debt and the report Of the Secretary Of the Treasury
the OF the finances is called TO report upon three
important subjects necessarily connected with each other
First The funding Public Debt and incident
to it the redemption of the bonds commonly known
the vetwenty bonds; Second The taxation, state
and national OF public securities; and Third: The re-
dempon and conversion of United States notes or legal
tender currency Questions presented in regard to
each Of these solution of which ought not to be de-
ayed These are TO the mode of the payment OF the
public debt seriously affecting the public credit. There
is widespread complaint to the exemption OF public
securities from taxation, and the evils of deprecated
and uucontrovertibe currency manifest both in
public and private business, that the early atten-
ton OF Congress is properly called to them
by the Executive authority. IL should be
the effort Of Congress merely declare and obey the
existing law but to adopt comprehensive policy that
will preserve the public faith restore confidence to the
people stability business interests, and yet will
appeal the of Justice OF our constituents II II is
unhappiy drawn into the of party politics. Fnan
cia ought not TO be IN any partisan, but
they may become So unless Congress adopt policy
meeting all the requisites named. The contest on these
delicate and difficult questions may be transferred
to the hastings where the heat of party strife may lead
to dangerous results.
Before examining the several provisions Of the bill,
your Committee beg leave to state the present condition
of the public debt Il consists Of numerous forms OF pub
lie securities neary all OF which grew out of the urgent
necessities OF the late The calls for money to main
tain the army and navy imperative that many
different forms OF loans resorted to, and as mt ans
to enable the Government to reach the Of the
people, currency imprOysed. This currency now
part Of the public debt and, being legaLtender
in the payment of debts the nature OF compulsory
loan without interest 1t has proved SO convenient cur
rency that, aside from the advantage the Government
derives from by the saving OF interest 1t has been and
no il Of great importance in promoting enterprise and
the exchange Of domestic products IL only remains,
creasin S value 70 the standard of gold to make it
NOT only the most favorable form of loan. but the
best currency devised. During the war the debt
could only bc contracted at high rate Of Interest," but
the necessity of funding the public debt as soon as the
closed into loan at ms low rate of interest as pos
sble has been conceded Now mat tue compound lneI-
est and evenThrty bonds have been converted
convertible, two chief difficulties that were PIE
mry be dismissed from view. The bonds commonly
known the long bonds of 1881 $23GGG00 were nego-
uated ON the gOd OASIS ana are s l nU
payable until 1881. The IenFOrty bonds, Slgs5ioJ aso
are neither PAYABLE nor redeemabe until ls ana both
principal aud interest are payaoe III Sodi ;, iU ]
items of debt, amounting 20 Sll1OOOO Will De para IRON
dismissed from our consideration This leaves
the bonds. including with them the 1908 m the az
ders and fractional currency amounting to s3sI2A5',
comprises the body Of the Public Debt Of the United
States large portion of this debt is now redeemabe
the pleasure Of the United States and the whole OF
ittee are OF the opinion that is the time to provide
the redemption ~ these bonds, as they become re-
dcemable by new loan favorable terms To the
United states and 10 the holder Of the
United States notes soon practicable their tu value
in gold. such currency, convertible INTO god' WIN
pubc debt hearing as low rate Of interest pracu-
cable with the right again TO redeem the lrlnclpsi
when favorable terms can be had, with moderate
provision TO diminish the PnPe @r%a d @
bY sfSlcil vi t'Acs ii,o th"so re tltr ole
ported goods luXnIies ana incomes Ieso are ,o l
meuts Of financial system which your committee seeh
Before examining the precise terms OF this debt and
the measure proposed by your committee 1t II proper 70
inouirc whether this comprises the whole OF the pubc
debt I sometimes asserted that an uniqud9ted aeDt
o "a vast and uncertain amount exists not included IN
the statement 81 the public debt. Upon this point the
me 1t, bnt i'm Europe Nothing can have o more in
iur0us effect upon the public credit than the supposed
~ .ive dnancal policy can be adOpiedl that
does not embrace every portion OF IT, Your committee
have therefore, sought TO ascertain the extent ana
amount ~ uuadusted claims likely 10 be
established against the Government. Inc amounts
laws and likely to he allowed by the proper accounting
officers than si0O0OOO and these viii be scattered
through several years and VIII De pld 4ut VI luuf
already hereafter 70 be apProprateu rom t ~
receipts This exclusive o.! bOunue under inc Hct OF
The 8st Congress the estimated amount or whlch YET 10
be paid is S50ND0 THESE arc esela,cu ~ i s ti,iies
OF the expenditures, thus swcllng the tSuaes
FOR the current and next fiscal year far beyond the sums
needed for Tho annual current eApehsts loi @ oo ooS
so since the war, large sums amounting 10 SIVVWVOOD
been paid from current receipts a. part OF he current
expenditure and tins sum should properly DE a4ded 70
the S2G OF the qudacd debt PAID since the hIHt
more detailed statement OF the unauidated debt will
be submitted the Senate at later period Of the session.
but for present purposes this debt may be regarded as
mart Of the current expenditure, and need not be
dered in any plan OF funding the public debt, aud viii
depend entirely upon the future action OF Congress ms
fact viii restrain Congress from adopting principles Whch
viii swell 10, amount. Every Bounty bill, every new
railroad subsidy, every new and unusual expena9ie Ior
internal Improvement, every new III ne
settlement Of claims growing out OF the war; VIII lhVove
new taxes or loans Therefore, as an incident to
every such measure there shOu pc taA VI
"a nev loan made. The vague and indefinite apprOpna-
penditures during the war longer be continued
without the destruction Of the national credit or
such OF our taxes as Will Drng 10 these mans
new faces and new IL is idle TO disguise the facts
that the O our extraordinary expenses ana inc
/ weight Of taxes. have alarmed the people. .,
Disnissng the unlqidatcd debt depending entirely
upon the future prudence Of Congress- we come to con
scr the present condition the Twenty loans As
all Of these Of the same legal character delng oy
i'm their dates ana lnie Oh Ieueendp{ ~ NJ U i3Snoi
necessary 20 examine the laws under when the olSha
bond, issued After ilfse aSIs loon enGci .e Fr
Twenty bonds we're ncg0taied Ihese 80
the contract under which they were Issued me subse
ent of the holder Of the bond aud contract must
he construed according 10 the intention OF the parties at
e time gathered from the words OF these laws ana rom
he nTeyous construction put by the Government upon
similar words. and from the authorized declara-
he bonds constituting this contract no pressure Oh
OF necessity should induce us to yi9ate any pto',s0ms
M IN even If its execution is dfncut or Is teInIs
hard The Government o. the United states nave a,Ways
and viii not sanction any violation OF tnein Dui
Justice 70 these people, who must from ther earnings anu
by taxes make good these promises demands that we
s6oud not impose burdens upon them not required ny
fair construction OF public engagements The question
now whether these FveTwenty bonds are redeem
able al the expiration OF five years from their date IN any
other money than the OF the United States ths
question rested solely upon the Act Of FEB q 1907 anu tns
bonds had been negotiated under that act alone ~ wop
be naufesty breach OF faith 10 redeem the bonus WIN
the present United states notes They are very dneFent
from the first legal notes, which, from the limited
amount authorized and the privilege to convert mem
into bonds could not have had less market Naue IMAM
me bonds But it found that with such restrictions
imam the the bonds could not be negotiated ana IL
D fC1,o limit