New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-10-18
MR.. BowLEs ON FUNDING OUR DERr

PARKER HOUSE, Boston. Oct 49, 1850
To The Editor Of The Eep. York Erening Post
DEAR SIR: In reply to your remarks of yester-
days date upon the plan for funding the National Debt
submitted In my letter to Mr. Boutwell, must object de-
cdedy to your partial quotations and wrong construc
lions Of my meaning In discussing grave matter it
would have been better had you placed my letter in ts
entirety before your readers las did THE TRIBUNE Of
yesterday instead OF attacking its bases in its absence
from your columns.
will reply to remarks categoricaly and as con-
cisely as possible.
First: neither advised nor asked for" any Bank.
ing Trust departments Of the Government. but under
the heading of Other Suggestions" submitted certain
current ideas for which precedens exist AS doing
ga banking business" 1t is hard to tho difference
between doing it directly and doing It indirectly by
guaranteeing the National Bank circulation except that
in the the profit goes to the Government and
the other to the Banks.
Second only do not stipuate for the payment Of
the coupons in New.York, London and Paris" but one
distinctive feature OF the plan submitted is that any and
all specified places Of payment are puposey avoided,
tending to make apparently tributary to other nations
or money markets.
Third: You say that assume that such
ment would Immediately raise the value Of 52s to par
in god and you quote them at 90 when the issue Of 1882
which is the standard in Europe has been at
about % In gold for three months past.
must again deny having made any such assumption.
The plain words Of the letter are "They 1.-THE 1929
current at 80 in gold, but the first official payment
in gold at par Of no matter how small portion would
raise the whole of the outstanding bonds to par in gold
and finally settle all adverse questions" simply re-
affirm these statements Our 1862 bonds but per
cent below par and payment Of any series OF that or
other issues at par In gold would set this
question OF currency payment and all similar doubts
at rest This doubt finally dispelled by an actual
even though partial coin payment their relative price as
compared with English per cent consos at par would
be about las. But they cannot rise above because
they are due and payable at par today IL Government
Wills SO will be the lOOs in about five years. This is
another why they 80 low; short overdue
bonds Offering inducements to capitalists for invest
men but only for speculation for the employment OF
balances.
Herein lies the explanation Of the seeming stupidity OF
Secretary Boutwell, and the bankers the simple secret OF
"the magical power by which the minds of men are 10
be so transformed that they will eagerly give more for
four dollars year,than they will for six"
They will give par for long term per cent gold bond
when thoy will give par overdue per cent
while doubts remain as to Its coin payment.
Fourth: When you quoted what say upon stimulating
subscriptions II you had added It's following and
plfyIng paragraph which gives precedent the three
fold success Of loan similarly handled by the French
Government your criticism would have lost Its point
In styling this sentiment" and saying that the Nation
al pride and faith OF have rarely filed treasures
and diminished public debts your first statement
finds ample refutaton In the public and private subscrp
ton OF our times and Others. while your second
point only good because ours Is the only great public
debt that has ever been diminished Mt all
FIN: As to a return to specie payments, which ap
pear to you to sight Of would suggest that although
this may not DO visible from standpoint 1t may be
from others The number Of us Is daily increasing
who believe with Secretary Boutwell, that the frs. way
10 reduce taxation ia TO reduce tho expense OF interest
that creates IT, and again that the appreciation OF our
National credit to It's Just value will DO certain
sooner or later TO carry the currency debt to
par with 1t. whence specie payments will ensue.
However unduestionaby right 10 Ia 10 reduce the IN
1ation we doubt the wisdom OF policy which would
Just contract the currency and By the consequent
commissions ruin one half OF community, thereby
also disabling them from the payment OF taxes. whon
with patience tue appreciation OF the National credit
under the seadast policy OF our Secretary, Will gradu
ally but surely accomplish the same end.
BY inserting this letter In your paper You VIII give
these corrections the publicity which your criticism
has already enjoyed. and obigc your obedont servant,
CHAs. s. L. BowLEs.