New-York tribune., 1868-07-01
TAXING UNITED STATES BONDS.

The Government owes a debt of Twenty-Five
Hundred Millions of Dollars. Most OF this Debt
was very rapidly contracted in the midst of a
perilous Civil War of doubtful result, whereby
the National energies were taxed to the utmost.
The rate of interest payable thereon averages
nearly six per cent, which (now that we have
peace and Union) is very high. We ought to
be able greatly and rapidly to reduce 1t and
we have the clews in our hands. Our Debt
is mainly funded in FiveTwenties that is,
six per cent. bonds which we are at liberty to
redeem after they have run five years, but not
Obliged to redeem till they shall have run twenty
years. AS we began to borrow largely in 1923,
the option on some has already matured; so
that, if we were ready to call them i'll, we have
a right to do so. And we ought now to be able
to borrow at 8 per cent. on short (say ten-year)
bonds, at Al on longer (say 40 years. and at
on long (say 100 years.. The great capitals of
Europe are full of money seeking safe invest
ments so is this City. Short loans are made
here daily at B. 81, and per cent.
Why are we not calling in our Five-Twenties
that have already been five years running, and
replacing them by bonds at lower rates.
We answer, Because of well-grOunded appre-
tensions of National rascality The recon-
mendations of PendetOn, Stevens, Butler, and
Others, that we pay off the Five-Twenties in
Greenbacks, and the clamOr raised in several
States for taxing the Debt, in express defiance
Of its stipulatiOns, is costing us thousands per
day already, and will ultimately cost us mil
lions on millions. All knavery is foolish and
costly; but an EN- mbarrassed debtor who under
takes to be knavsh without declaring himself
absolutely bankrupt, is a supereminent fool.
The late Republican National Convention at
Chicago in enunciating the principles which
form the platform whereon Grant and COlfax
are to be supported and elected, evinced scarcely
less than inspired wisdom in proclaiming that
"V The National Debt contracted, 1t has been for
the preservation Of the Union for all time TO come should
be extended over fair period for redemption ana 1t s
thereon, whenever 1t can be honestly done. a.,
"VI That he best policy 10 diminish OiT burden Of debt
is so improve credit that capitalists H seek 10 loan us
money lOre rates Of interest hdn We noe PAN and must
continue pay long TepldtO pdTfdI or t0tdi open
or couert, is threatened or suspected"
In defiance of this wise and righteous propo-
sition, the House on Monday, by the vote of a
minority of the Republicans and all but one of
the Copperheads, on motion Of Mr. Cobb of
Illinois,
ResoIred That the Committee OF Ways and Means be
and are hereby instructed TO report without unnecessary
delay bill leyyng tax OF at least yen per cent On t9
and collected annually by the Secretary or the Treasury
and such Of his subOrdnates be charged with the
duty OF paying the bonded Indebtedness OF
the United States.
BY its terms, this proposition cOntemplates
taxation of the bonds held by foreigners as
well as those belonging to our own people. 1t
used to be an American principle that taxation
and representation go together Yet here are
people who never saw this country taxed several
millions per annum by the Congress OF the
United States. By what Iight2 ....
If we can tax our creditors, including for
eigners, ten per cent why not twenty, forty,
sixtyY Does Mr.. Cobb doubt that others will
be found to improve on his beginningf
1t is very doubtful that this proposition can
be driven through the Senate, so as to give it
practical operation. There is no doubt what
ever that it will render the conversion of our
Five-Twenties into new bonds bearing lower
rate of interest very difficult if not absolutely
impossible. The loss is instant, certain, palpa-
BILE; the gain prospective, remote, contingent.
We need to borrow at low rates to replace our
six per cents; SO we advertise the financial
world that our promise to pay so much per
annum is a delusion-that we claim the right
to abstract from the stipulated sum at our own
mere will.
When the freuch Government by decree