The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1868-07-02
SPIRIT OF THE PRESS.
EDITORIAL OPINIONS OF THE LEADING JOURNALS
UPON CURRENT ToPros-CoMPIIED EVERY
DAY FOR THB EVENING TELEGRAPH.
Taxing United States Bonds.
From The ". Y. Tribune

Taxing United States Bonds.
From The ~. Y. Tribune
The Government owes 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 aud rapidly to reduce it; and
we have the clews in our hands. Our debt
is mainly funded in "Five-twenties s'-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 in, we have right to do so. And we
ought now to be able to borrow at per cent.
on short (say ten Year, bonds at 4 J on longer
(say 40 years., and at 4 on long (say 100
years.. The great capitals of Europe are full
of money seeking safe investments; so is this
city. Short loans are made here daily at 3,
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 ap-
prehensons of National rascality. The recon-
mendations of Pendleton, Stevens, Butler, and
others, that we pay off the Five-twenties in
greenbacl1s, 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 embarrassed debtor who under
takes to be knavish without declaring himself
absolutely bankrupt, is a supereminent fool.
The late Republican National Convention at
Chicago, in enuncating the principles which
form the platform whereOn Grant and COlfaX
are to be supported and elected, evinced
scarcely less than inspired wisdom in pro-
claiming that
"V. The national debt, contracted, as it has
been, for the pTekeryatinn Of the Union for all
time to come, should be extended over a fair
period for redemption; and 10 is the duty of
Congress to reduce the rate of interest thereon,
whenever II can be h gnestly done.
"VI. That the best policy 20 diminish our
burden of debt is to so improve our credit that
capitalists viii seek TO loan us money at lower
continue to pay so long a reputation, partial
pected"
In defiance of this wise and righteous pro
position, the House on Monday, by the vote of
minority of the Republicans and all but one
of the Copperheads, on motion of Mr.. Cobb, of
Illinois,
ReSoLred That the Committee on Ways and
Means be and are hereby instructed to report
of at least ten per cent on ihe interest OF bonds
of the United ates, to be assessed and col
@ o % he M 0 6s @ Tfes
be charged with the duty of paying interest
on the bonded Indebtedness of the United
States.
by its terms, this proposition contem-
plates taxation of the bonds held by foreign
ers 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 coun-
try taxed several millions per annum by the
Congress of the United States. By what
rightH
II we can tax our creditors, including
foreigners, ten per cent, why not twenty,
forty, sixty? Does Mr.. Cobb doubt that
others will be found to improve on his be-
ginning
1t is very doubtful that this proposition can
be driven through the Senate, so as to give il
practical operation. There is no doubt what
ever that it will render the conversion OF ouI
Five.twenties into new bonds bearing lower
rate of interest very difficult if not absolutely
impossible. The loss is instant, certain, pal
pable; the gain prospective, remote, contin-
gent. We need to borrow at low rates to re
place our six per cents; so we advertise the
financial world that our promise to pay sC
much per annum is delusion-that we claim
the right to abstract from the stipulated sun
at our own mere will.
When the French Government by decree
reduced by one-half the value of shares in
Laws Mississippi scheme, it supposed that
they would decline further; but capitalists
said, "If the Government can take one-hal
today, it may take the other half to-mor.
row." and refused to touch them at any
price. What was meant for reduction proved
utter ruin.
1t is urged that other Governments have
dealt thus with their creditors. So they have
Villainy is not now patentable-it is very
old discovery. But has any Government evel
levied ten per cent. arbitrarily on its debt, anG
on that alone We reckon not.
We entreat Congress to pause and consider
There is right and a wrong way to secure 8
reduction of the interest on our national debt
The right way was traced out with finger o
light by the late Republican National Con
vention. The wrong way is that pioneered BY
Mr.. Cobb.