, 1869-12-07
MONETARY AND COMMERCIAL.
mon BTARY.

MONDAY RvzS1xo, Dec.d
Tteac who have Rad that part Of the PrezL
deui1 nessage re1er1iug 70 the funding OF the
debt Al ~ per cent inateao Of & viii Of coafso
b trteres,ed 10 know how % desirable
IN oe}ecs is to be effected. II u paAtn to
aoJ one, that LotwtthAand:ug new bond It
low rate Of Interest could BE- ilaued rndef new
net, which should 60 AecuSc It from any kind Of
repudnuor; and Bhcnld make both principal and
tntcre4t specifically payable In gold, that II would
b worth uose-in proportion 10 tic rats Of IN |
tetest It returned to tho lnTestoF-thAo our pres
EFT o-sos. But no one woold expect that *
Per cent bond would sell Tor the same p1eo in The
market II the present per cent? TIKI, however,
does no: prevent the re- fnadrug of tho debt II ~
PER cent IN the manner probably contemplated by
lhn rrea!tert, ~ can be shown BY the following
nsurea. For instance: our $50 per cant boads
OF 1865 told,, on which tho oye3year option has
nasurtd. arc now worth IN rne nArket-w1th gold
at tay 12sx-slE cents ,u Eolt- To the purchaser
Who buys tor gold II th,s ps1ce, the Investment
pays 6h per cent per Annum IN gold. II, there
fore, the new ~ per cent honda were offered In
e1cfc1 e, they 1oold, II ali other th!ng1 we1e
equa1, be taken at rate that would Ply The B2me
te&pIn on the Investment, VIZ. about stc
IN gold on tie dollar for thu face OF tho new
Louds. But IS the new bonds would embrace
SCH acAlutGA kQ2t WQN4u G1F6ClAAy S1A0Utl1A
rem 10 European csp.taltsts, taeJ might BE- cx-
II ctea to tell for possibly 50 cents On the dollar
expressed In their faee. At the latter pslce It
suulc teke 81, 80 in the nav ~ per cent hond. to
cxlugcish a s., 20 bond Of the PEI cents- Could
Tie new bonds Re eold n This rAle4 n sutlcleat
Amcnnt to take up AL the existing a0s, It Wouid
rtduce the actual rale Of [ntetest paid to btalo0
rer cent In gold. instead Of 6K per cent IN gold.
as RON. The populsz idea about reioodInz the
debt ~ lowtl ratc Of interest Ia that even the
new * per cent bonds were sold nj lower pr1ce
than the c per cehtA the difference Of IN per cent
per Annum IN tho interest would eooo make
up the difference In price; bat this Is fa1Aey.
because, ii WIN be seen ADORE, the aggregate
AMOUNT OF boudi Would be Increased tn the snme
proportion al the price wRl decreased 1t seems
that all the actual Reduction that csn be nAde Ia
the rate Of interest L by making bond that Will
be nore acceptable TO fofe:gu capttalstL Oar
IL % . per cents arc now worth 65c IN gold foF
the principal Of the bond, exclusive Of secruet
Interest. As,nis psice they pay the Investor
fraction over 04 per cent 10 gold The reaso1
that Iese bouds are thus accepted At * per ceus
instead OF the 5,aos. which pay ~ Per cent,
ID on account OF the longer tins they
have 10 run. and tho fact that they are
specifically payable IN gu1d, and It IL possible thA.
an upqoAllted 4gyear bone, NTH interest At ~
p. ce1t free from taxn!!on, specifically pAJAhis
III gold ut TIE ED Of thai ptr.ci and not before
k.s nnku1 " ~ 'ssse w ~. e. ~ ms,a
same t.Me a. as,,,ss IA - - -. ~.
noaH. =. 80. ~. =. -o,,,4 ~ n-ss,ts., .-s,a
tue 20 ,,no - oon - ~. :.
| dent, from Cs per cent (which 1. the actual raie
| Eox paid on tie 50 to tH Per cent At what
| ever rrtcc tie new bonds could be sold, htShn1
than the PRICES given sbove, It would. Of couIse,
IedIce TIC real rate OF tDteEes! IN proportion
nAs 4si y. - "s .Ne. e.s. :. -, - ~:
sa,,... xs,+. ~. .,.vs =, ~ .1u,r,s
eepna ~ "eps to..a . NV .'s"a y. Nv s4.n 1'.
tAoon ~ tesn4u " wv 4ue.4o4s "
osuN1t ".e !-...,s
seo"s tnas tiet1 - taoos uaao ~ ~ 49, -
Aefec'e tIs1uAiu v. sN.uee, a. pteHs.ua5 sset
to.pecse a.a sas =. ~ sasup
nutNt kNs. ~ ~ ...,..sas, ~. 80.
tne la1'cl 10 70 20 aeeoupusaeo- lao ue.sns :.
steoun'euosu ~ nv s.,a a.asan. 80 ~. ~
genera sue -a1ut - oa'e ase3ou' pseu Ao' 'o'a'e'
In tAh ihislHs, VIZ
ftea c11oo"' is onoAUs ~ .ae pu4pues " k.'1n
IN el1s!le entleosi' sns w .ue pe.poao y. uIa"
Ing In t1e ptNate 1aA A.ae ssp.ea' y. We eooJ
assume lne taAA " eetuAo4'A 'ne SA' st9~t9
begin specie 1eaenp pt'on' ..--,.-.
NetHement Q! tns 8leeuoaeAs u P1oPoiaou
the increase OF Natlona4 aatS uotes. 60 tast IN
gaVelEment mar ne feieSea iFom Inc necessary
, | @'eA IA->~4 - .,-s. - 80 ~
saf5 10 ftAA'n SO tss9e eateoaaou a' Pe1.
! The este6taon Of tae Sauensl baek'uS ps1s1eS
80 ss TO allow taakA In the soata aoo u eAuoiu
to htue Eo'es fe1eenaole ~ gn'a' " Aeepnz 1oe
eSIer cent feacIVe u COLE, aLo os Interesting ~
, amQuGt oI taelF oonoa ae!a 10 heculo cuealauo
Tne mode OF incFeaslhG tnls leeatlE5 ol oepesAe
! BONDS Is not specified by The Comptroller, b
would probably b tnAt me nafket saloe o. :.
| bonds ssonld h*ays Do elnA4 IN 9olo " u
: Amount OF ihelr gold notes In cfcataslon.
The ffnt Of these three measures Koula provo
9 Tor a Sufficient supply OF currency The secol
w5uld obltse sone peoEreaa toward specso hAs
!, and the third wousd call INTO existence an adt
o tional bank currency, at par with gold, Thll