The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-08-05
FINANCIAL AND COMMERCIAL.


WEDNESDAY, August 4-6 p. NJ
In the absence OF matter Of more pressing mo-
ment or OF more exciting nature the public debt
statement OF Secretary Boutwell, last issued has pro-
voked more comment than previous ones, and the
feeling very general that the omission OF the Pa
ciac Railroad bonds from the general summary OF
the government liabilities s both puerile and unwise
Oh the part OF the Secretary. In referring TO the
matter here yesterday, and urging the equal ooliga
ton which these bonds impose upon the
government with other issues, they were
spoken OF in the terms which, allowing
the greatest freedom Of discrimination be-
tween the two classes OF securities, they could
at the worst only be regarded by Mr.. Boutwell, the
object being to exhibit IN the strongest light the
really inslgnihcant character OF the distinction.
But the fact is this difference Is In reality no difer
ence ut all, and has no existence except In our own
hopeful antcipations. The Pacific Railroad bonds
are to all lntents and purposes government bonds,
as much as the hvetwenties ten-fores or any other
issue, and bear upon their face the promise of the
government to pay at maturity with interest In the
interim, without any reservation or equiv0cation
whatever, IN the same full ana complete language
"a other bonds. They were so REGARDED by all former
Secretaries and by them included In all statements
OF the public debt, and the distinction raised
by che present Secretary while not regarded as OF
suf1ctent moment to affect their status In the mar
ket. yet 1t 10 looked upon by many a. to certain
extent unjust to very large number OF the cred.
ftors Of the government-viz the holders OF these
bonds. HIS refusal to accept them as security for
the national bank issue has had o more damaging
effect In many quarters, this discrimination against
a currency bond being looked upon as indicating
the Secretary to be at the same time bulionst and
possessed OF but little faith In the prospect OF an
early resumption Of specie payments.
Assistant Treasurer Butterneld to-day inaugurated
the programme Of August purchases by buying on
account OF the government the 1rst two
millions OF fve.twenty bonds, to be held
subject to the future order or Congress.
The aggregate amount offered was s4,2l2,soo. being
only about one.haf that rendered on former ooca
sions thus indicating the rapid reduction of the
amount In the market. There Is q future source OF
trouble In this depletion Of the street In the matter
of governments that 10 not apparently sufficiently
regarded IN these days Of easy money. At present
these securities form the principal collateral upon
which loans of large sums are readily obtainabe
call. or course numerous transactions occur in
stocks but they have never been regarded with the
same favor. In the event Of any sudden pinch In
tho money market or severe disturbance Of values
on the Stock Exchange, with short supply OF gov-
ernments, very many houses would find 1t difficult
to make up their balances readily, and much incon.
venence, with perhaps some loss. would result. The
following were the proposals accepted by the AS.
cu.tas rroo