The Manitowoc tribune. [volume] (Manitowoc, Wis.) 1866-1878, 1869-05-20

Reduction of notes. sec. 5S3, $50
The May statement of the debt by
Secretary Boutwell, shows that 1925, 460
of the outstanding compounds and S.
100000 Of the three per cents have been
redeemed and retired, making a total
contraction Of national notes up to May
LIST, of $27l, 7S0,SS7. A portion of the
vacuum thus created has been filed by
issues of National Bank notes.
The new Secretary has no authority to
call In any more of the greenbacks; but
the holders of the remaining compounds
and of the per cents may, if they see fit
present them for redemption. Such of
the compounds as are not lost will neces-
sarily come in, as they have ceased to
bear interest; but there is little probable
ity of the banks sending in the certificates
for redemption, since they are not only a
legal tender for the redemption of their
notes, but draw per cent currency inter-
est. Therefore, we need apprehend no
further contraction of the currency for
some time to come.
But new question now arises-W hat
shall be done with the useless coin in the
Treasury? 1t is increasing every day;
there is now not far from ninety millions
on hand after paying off the May inter
est on the debt. The amount required
for annual interest is about $l26, 900, 900
and the receipts of gold from duties ti1is
year will not be less than $3.50, 900, 900, or
more than $50 ZOO, 600 in ex cess of what
is needed. Secretary Boutwell, announces
his purpose to purchase 500 bonds to the
extent of million or more per week,
with this idle coin, and we are astonish-
ed to see some of the Posts of the press
oppose this wise and prudent policy
What would they have him do with his
rapidly increasing hoard of idle gold? IF
he sells it for greenbacks what IS he to do
with them except to buy bonds there
with? To retain the greenbacks would
cause contraction that might result In
disaster to the business of the country.
The purchase OF a million of $50 bonds
per week will reduce the debt by that
amount, and stop forever $50, 900 of gold
interest per annum. Bonds can now be
purchased at about IS per cent of their
face; in other words, $S50,O0O of idle
gold viii cancel 81 900, 600 of bonds, and
%
Boutwell, can safely spare sixty millions
of gold, which will purchase mere than
seventy millions of $40 bonds, and save
$4.20O,O 900 of annual intereston the debt.
This idle coin will be given back to COM
merce. 1t is now so much precious capt.
tai locked up, and as useless as the mis-
er's hoard.
The Secretary has not only ample au
thority to purchase and cancel bonds, but
the law makes it his bounden duty to ex-
pend the surplus coin in that way The
act of February 25, 1862, which provid-
ed for the sale of bonds expressly pledged
the duties on the United States, and for
the payment of the interest on the debt
of the United States, and for the re-
demption of the principal Here is the
law and we especially commend it to the
Posts and those whom their statements
have deceived:
'SEC. 5. 4nd be 1t further enacted,
That all duties on imported goods shall be
paid In coin, or in notes payable on de-
mand, therefore, authorized to be issued,
and by law receivable in payment of pub
lie dues; and the coin so paid shall be set
apart as a special fund, and shall be ap-
pied as follows;
First: To the payment N, coin of the
interest on the bonds and notes of the
United States.
Second To the purchase or payment
Of one per centuna Of the entire debt of
the United States, to be made witlineach
fiscal year after the first day of July,
eighteen hundred and sixty two which is
to be set part as sinking fund, and the
interest Of which shall in like manner be
applied to the purchase Or the payment
OF the public debt, as the Secretary of the
Treasury shall from time to time direct
Third: The residue thereof to be paid
into the Treasury Of the United States. -
For seven years 70 part of the coin de.
nved from duties has been applied in
purchasing bonds, made since the date Of
the act Some gold has been used in a
roundabout way to purchase notes of the
United States, but to what extent tbi
has been done We have no means at hant
Of knowing. Yet it is quite certain tina
at least one hundred millions of bond
may be purchased, just as fast as tn
Secretary pleases, without exceeding tn,