The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-12-15
Funding tho Debt.

| There Is no subject that attracts the Atten-
ton Of public men and writer's more than that
of the national finances, yet there is none,
perhaps, OF which they are more ignorant.
| Ever since the war closed our Congressman
unproftably in discussing numerous crude
propositions relative to the currency and the
debt, and the HERALD office has been flooded
with pamphlets and communications Of q like
character generally on the same subject.
People love to write and talk about and are
more dogmatic upon that which they UNDER
stand the least or only imperfecty. During
the few days Congress has been in session we
have had renewal of several of the old
financial nostrums and the presentation of
some new ones. Among these there are few
for funding the debt. One of the last propo-
sitons is from Senator Corbett to fund thou
sand millions OF the maturing fve-twenty
bonds by the issue Of new bonds having thirty
five years to run, principal aud interest payable
in coin, and not taxable in any manner. These
proposed bonds are to bear six per cent inte-
rest for the first three years, five per cent for
cent for the succeeding six years, and four per
cent for the reu,aring twenty years.
Mr.. Corbett's idea seems to be that these
long bonds, beginning with the full six per
cent interest the fve-twenties now bear, and
graduating the interest to four per cent in the
end, would be accepted for the present five
twenty bonds at par This is not bad scheme,
though we think it doubtful whether the holders
Of five-twenties would voluntarily surrender
their six per cent bonds for others that, in
three years, would bear only five per cent, and
less interest than that as time advanced, with
out premium. AS far as the action Of Con-
gress goes the holders of five-twenties have
been promised the full value of their
bonds in coin, principal as well as interest;
and if the choice DO left to them they may
prefer taking payment rather than accept
bonds bearing less in exchange for their FIVE
twenties. In funding the debt in any form
compulsory legislation will be necessary, pro-
badly, and in that case it would be better to
adopt comprehensive measure at once
reducing the interest from the start and reliev-
ing our heavily taxed people, who have borne
the weight and brunt Of the war, from some of
their present burdens. Nor does it appear
necessary to pledge the payment of the debt
in coin. 1t will be so paid, probably; but we
cannot tell in these wonderfully progressive
times what system Of currency and what finan-
cial policy may be evolved. In ten or twenty
years the ideas of the world may be changed,
or this mighty country may see that it wonld
be the interest of the country to establish
system Of currency Of its own, different from
any that has been followed heretofore AT any
rate, Congress should keep in view q few
simple principles in whatever plan may be
considered for funding the debt-that is, the
plan ought to be both comprehensive and
simple, and having for its first object the imme-
diate reduction OF the rate Of interest, so as to
lessen the burden of the debt, to set capital
free for other purposes which is now locked
up in bonds, and to keep as much of the debt
as possible at home in the hands of our
own citizens