The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1868-07-28
TUESDAY, JULY %, 1868.
Congress takes a Recess.

frmed number of appointments and the
House had passed the Funding bill, "took a
recess until Monday, the 21st day of Septem-
ber, at IL O'Clock, noon." So wide diifer-
ence of opinion existed in the two
branches in regard to the proper mode
of providing for funding the debt that the bill
finally passed may be regarded as compro-
mise measure with but few decided features.
It was framed rather to avoid objections than
to embody the pet theories of any of the
statesmen who have sgitsied this subject, and
IL is doubtful whether it will prove
of any great practical Importance at
present, as it is scarcely probable that there
will be many conversions of the existing five
twenty bonds bearing per cent. interest into
new bonds bearing lower rate 1t is never
theless an important step in the right direo-
tion, as it provides for the reduction OF the
interest to A per cent. for forty-year bonds,
and 45 per cent. for thirtyyear bondS-the
new issue to be exempt from all State, muai-
cipal, or national taxation, except such as is
derivable from the income tax, and to be re-
deemable in coin. In view of the agitation of
repudation projects for redeeming the debt in
greenbacks, and for imposing heavy taxes
upon the five-twenty bonds, it may be re-
lief to some bondholders to know that at
the worst they can exchange their
bonds for new issues of the description desig-
mated, but it seems scarcely probable that Mr..
McCulIoch will speedily be called upou for
any large amounts Of the new boHds Count
ing the premium in gold at forty-four, the
interest on the forty year bonds is equivalent
to 5.76 in currency, and the interest on the
thirty year bonds is equivalent to GAS in cur
repcy, and bondholders have at present but
little reason to incur the loss in interest which
would be involved in exchanging Five-twenty
bonds bearing interest at six per cent in gold,
or S.64 in currency, for the new Issues.
The general principle, however, is cor
rect, that the nation should seek
relief in red rate of interest on the debt,
and although obstacles may be encountered at
the outset, yet eventually we do not doubt
that the debt will bs consolidated at a rate of
Interest much lower than that now prevailing.
The greatest obstacle to all these plans is to
be found in the advocacy of reputation
schemes by prominent public men. High
rates of interest naturally accompany doubt
full credit, as large profits are inevitably
sought as compensation for the risks run, and
low rates of interest are only obtained by
those who can offer undoubted security, and
whose ability and disposition to redeem their
obligations are above suspicion. We see it
announced in special telegram that the
Funding bill will not Immediately become a
law, because the President failed to sign it
before the hour of adjournment arrived, but
even if this statement is correct, sufficient evil
dence has been given OF the disposition oi
Congress to perfect such measure to
ensure its final adoption at no distant period.
The action of Congress in taking recess
until the first Monday of September, instead
of adjourning until the period at which the
second session usually commences, has deep
significance. 1t is evident that the necessity
of keeping stern watch over the President ia
clearly recognized. There are indications that,
if he was entirely free from the constraint i'm
posed by the presence of the Representatives
of the people, he would not hesitate to
attempt to overthrow the newly RECONSTRUCTED
State Governments. When Johnson, soon after
his installation in the White House, yielding tC
the seductive influence of the Rebel leaders
who had denounced and despised him while hi
faithfully sustained the Union cause, but wht
fattered and fooled him after he became
President commenced the work of restoring
civil order in the South, he gave the key-not
OF his policy when he declared that the worC
Reconstruction should not be used in con
nection with the Rebel States-that they wer
only to be "reorganized" on their old basi
(with slavery prOhibited), but in no sense t.
be reconstructed. He has adhered to this ide
ever since in spite of the opposition of Con
gress and of the people, cOntending through
out that the Provisional Governments he esta
blished are the only legal political organiza
tions in the South. 1t is not necessary t
expose the fallacy of his assumption, for
moments reflection will satisfy any reasonin
mind that Congress, as the custodian of th
entire legislative power of the country, is eS
clusively entrusted with the duty of defnin
the position of States and Territories to tn
nation, this right being under the control q
the President so far as it can be affected b
his vetoes, but becoming supreme when hi
vetoes are overruled. Nevertheless, a
every step Andrew Johnson has proteste
against the illegality of the Congressiont
policy, and the aim of the Rebels and thei
Democratic allies at the present time is I
ind.1ca him IN ua1yapi1a tho Trnuiaional rnr