The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-09


r. ,sss w9aia improved in Europe and son.sgasp.,
clare thai the principal well the interest OF these bon
q q we ae 4 se Te 4 ss
but the absence OF provision these acts thai The principal
such provision in the act uner which The tan
hat the vs@eaty bonds might be casd ID =. the sspaos
no, yssIs ana paid 10 United States notes z
s ussd 4 ssss q desirable tnat they should bs Of good
psr.aD. hs. =. points should DO
ssRiS eo ssSA'0n Of Congress that thee
without intending to criticise the inaction OF Con-
the Secretary docs not hesitate to saw that If his re-
coinmendations had been adopted the public debt
ton OF the rate Of interest would ere this have hee
In rapid progress. The Secretary does NOT think IL
opinions upon il are wen known to rspos nc ths
people. They were definitely presented In hls renorx
for 1861 and they remain unchanged. lie begs leave
fore, that alienation OF the burden OF Inc n~hsc
debt s to be obtained not in decra of the national
credit not In threats OF reputation, not in further
issue Of irredeemable notes. not In arguments al
dressed to the fears Of the bOndholders but In 4
clear and explicit declaration by Congress that the
national faith in letter and spirit shall be inyioiabiy
maintained; that the bonds OF the United States In
tended TO be negotiated abroad as well as at homo
In that currency which IS alone recognized as money
in the dealings Of nation with nation Let Congress-
say thls promptly and there can be but little doubt
that the credit OF the government will so advance
that within the next two years the interest on the
factory rate. He therefore earnestly recommends
that II be declared without delay, by JOINT resolu-
ton, that the principal OF all bonds OF the United
States Ia to be paid In coin.
It Il also recommended that the Secretary be au-
orzed to issue $500 900 OF bonds. $4,000 900 Of
which shall mature annuallythe first $50 600 10
be payable principal and ntsrest In lawful money,
the principal and interest OF the rest In coin-and
also such further amount OF bonds may be neces-
sary to take up the outstanding six per cents ana
the nonnerest bearing debt, payable in coin thirty
years after date, and redeemabie ut any time after
ten years ut the pleasure or the government, the in
teresI To be paid semannually In coin and In no
case to exceed the rate OF five per cent; provided
that the Secretary may in his discretion make the
principal and interest OF $500 600 900 OF these bonds
payable at such city or cities in Europe as he may
The fact that, according to the recommendation,
100000 600 of the bonds to be issued 10 become
duo eacn year for ten consecutive years at the ex.
piration of which time all OF the bonds would be
under the control OF the government, would insure
an annual reduction OF OF the public debt
ensure the negotiation OF them ON favorable TERMS
OF the expediency OF an issue OF bonds correspond
En Eur NJ interest and prncipa Of which, shall DO
paid In the countries where they are to be nego.
tiated-here can be but little doubt. On this poinS
the secretary used the following language in his re-
port of 1866
"The question now to be considered not how shall
Sas viii long
ss
method OF doing this at early day but BY substituting for
them bonds which, being payable principal and interest," IN
Europe will DO likely TO be returned when their return u
the least be desired Tho holders OF securities In
little expense collecting coupons; and II supposed
that cent perhaps four and half cent bonds
payable London Frankfort could be substituted for our
cents without other expense to the United states
than the tng commissions TO the agents through whom the
exchanges made The saving OF nteress to be thus
effected would be item and the advantage:
of having bonds In Europe pnced In the hands OF actual
investors, IL too important to be disregarded.
The Secretary has nothing further to say on this
point than that careful reflection has only strength
ened his convictions OF the correctness Of the Vows
expressed In the foregoing extract -
In recommending the issue OF bonds bearing
lower rute Of interest," to be exchanged for the
outstanding six per cents, the Secretary must n0b
be understood having changed his opinion In re-
gard to the expedency or the wisdom OF the recon-
mendati0n In his last report
the OF March 1885, be amended ~ 10 susAce
rxe the Secretary he Treasury to issue six per cent gold
TO be the consolidated debt OF The
United States having twenty years to rum and
changed and all other obligations Of the goy
ernment part the interest which, tn lieu OF a
other taxes each semannua payment shall DO rscrved
by the and paid over 70 the States accord
population.
He refers TO what he then said in advocacy OF thae
recommendation as an expression Of his we'll conSdA
cred opinions ut the present time, and he Is only
prevented from repeating the recommendation By
the fact that 1t met with little approval at the last
session. and has not grown into favor SINCE He sin.
cerely hopes that the future history OF the debt VIII
vlndcate the wisdom or those who are unable -
approve the proposition.
The following Ia statement OF the public debt on