The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-01-13

dull at the beginning Of the week but II subsequently
became heavy under diminished demand for bills and
| increased supply, about million and n quarter
dollars having been drawn London against shipments
OF fve-twenues aud other securities Al the close
prime bankers sterling bills at sixty days were quoted
on tho street At 1907. and generally droop
Ing Bankers bills on England at sixty days
quoted on Saturday a. lo9x no; a; three days.
llO1 10Y; commercial bills los lo96.
Bills on Paris at sixty days, 5l4s. 5l2H, at
three days, six 6l0S. On Bern-Bankersi, y
72%i commercial, 7l1s 7lsi. On Bremen Bankers,
7oH 1871; commercial 7sa 10 On Frankfort
BANKERS, AZ a4l4 commercial, t0k ao4 On Am
sierdam-Bankers' Az az; commercial, 404
4oH On Hamburg-Bankers' 36,4 a 369s; CONNER
cia, s5jl SO. On Aniwerp-Bankers', 5i4T 5l34;
Commercial, 5l655 SICK.
The following suggestions for the Consolidation OF the
public de- from the pen 0, Wall street banker are
interesting at the present juncuro financial anairs:
II Is impossible not to respect the motive which
prompts the prevailing eagerness tc liQudae rapidly
the national debt Ii Is open 70 question, however,
whether desire wise as IL is plausible To pay
of debt OF two thousand millions within twenty or
forty years is no light undertaking. and those who
maeine that the people would submit TO an onerous
q very hattenng estimate OF the public patience.
Il cannot be conducive to public content s and
10 burden Of fty millions TO ono hundred millions
year for the purpose OF paying Oft obligations which
est Nor could such course be consistent with the
commercial prosperity Of the country. Few observers
the continuance such policy If undertaken; and
few statesmen would deem II prudent TO put out an
immense issue Of obligations requiring to be provided
tor stated period. Nations cannot forecast their
vicsstudcs and they should therefore, be cautious In
contracting their obligations. The government s under
no necessity to pay It's debt within any given period
On the contrary holders or national securities would
a rule, prefer inteSmnable loan. They require tho
interest," not the principal; when they do the
sale OF their securities Investors too, are apt 70 have
more confidence in an intermiaable loan than 10 one
maturing at q deante period, especially when
the debt is very large. inasmuch as the
government has much less difficulty in providing the in
terest than in paying the principal Tho United States
government has It's choice between issuing bonds pay
able gwen date. and putting out consolidated
form would not exclude the possibility OF reducing the
debt; but It would have the vital advantage OF leaving
the convenience Of the government The takers Of
such loan could have no question about the ability Of
the government 70 redeem for no redemption would
whether the loan would be payable in coin or in
money; and they could Dequeath their interest in such
investment TO their descendants without liability 70
moestation OF the principal which would render the |
loan especially desirable 70 An important class Of in
vestors.
Upon these considerations II docs appear that the
way OF settling the vexed question OF consolidating
the public debt 10 to authorize the conversion all out
able i've cent stock corresponding 70 the consos OF
the British government, tho interest 70 DO made payable
entirely obvate the doubts beseting the fvs-twenty
bonds that there be little question that foreign bond
holders would promptly make the exchange, and largo
proportion OF home holders might be expected to give
the new loan the preference The especial esteem In
which this Of investments s held Is apparent from
the high price which consols have always ranged;
and noted that their high standing due not
merely to the sound credit OF the British government,
but more the fact that It's credit Is not unduly
taxed By engagements to pay principal which
II might prove unable to fulAl The con-
soldation OF the whole debt into this form
would entail upon the country permanent interest
payment of 500 600 per annum and il is impos.
sibe to SEQ how, with rapidly accommodating re-
sources such loan could fall TO command degree Of
which would enable the Treasury TO negotiate
It fully at par. At the same time would be desirable to
the loan with every possible guarantee For
this purpose the public lands should be made available
The government lands steadily increasing 10 value,
and as the country becomes fully developed they
may be made an Important Of revenue, especially
II they are no longer permitted TO DO given away 10
corporations An act authorizing loan OF the character
should therefore, include provision forbid.
ling any donations OF the public domain and re-
qurng proceeds of sales OF lands to be reserved for
the purchase OF SO much OF the public loan.
HENRY CLEWS.
The amount of United States second mortgagel bonds
issued to each Pacific railways In process Of
structon 10 officially stated as follows