New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-04-23
ORGY THE LAW.

When prudent business man, III the ordl-
nary course Of his affairs, finds himself with a
largo surplus in bank, not needed in his regu-
lar transactions, what does he do with It'll IL
he have notes not yet due, on which he is pay
ing heavy interest, is BIO likely to delay for an
hour an effort to use his surplus cash in dis
counting bis notes2
The United States owes twenty-one hundred
and eight millions OF dollars Oh which it has
heavy interest to pay in Gold. Meanwhile IL
has, unused and uDneeded, in its Treasury
eighty millions of Gold. That Secretary OF the
Treasury will best discharge the duties OF his
GREAT Office who so manages the money at his
disposal as to make it go the furthest in meet
ing the governments obligations. There Is
the enormous debt, on which he is paying high
interest. There is the. heavy surplus OF idle
Gold, which is earning nothing and paying
nothing. What will lie do with It'll -. ...-t
On this statement alone the case might rest.
But there is another fact to be taken INTO
the account Here in Wall-st., this debt
on which we pay heavy Gold interest, Is
selling Mt discount Of about fifteen dollars
on the hundred dollar bond. That is to
say, in spite of the recent sharp advance,
in the Treasury will buy an outstanding note
of ours which calls for hundred Cold dollars,
and which bears onerOus interest. Would not
any business man in Wall~st. who should ne
elect such an opportunity be thought unit to
manage his own affairs! tH.. .tI.lIf
But it is objected that the Secretary is TOR
hidden to take the Obvious course which plain
business principles would dictate by this I'M
fortunate clause, finally forced into the Public
Credit bill t. .-.
None ofs SAL, obligations not already due shall be
redeemed or psh maturity uhes such time Un'ei states
notes be convertible uo tho option Of the holder or aas''
bonds Of the United states bearings lover rate oil 'e'e'
than n. boad, to be be sold at m coin"
Wo deny the force of the objection. Here Is
n clause i'm the original Legal Tender act OF
February, 1862, not in conflict with the above
and not repealed:
AN dale. on Imported goods shall be paid coin And the
cain paid shah BE- AA; ssd faSd aud shall De apphea
so-s: paLrt coin Of Che interest on the bonds ana
notes eesnd ~ ~ PpreAGse or paymen@ 0'
p e oft> enffre o(> Ud States 10 beudds pAs zach
,al year e Fret day orJs 2 ~Ah q to Be set apart as
shaking Fund aud sbeh shall ike manner be applied
to the OF the Public Debt tho Secretary Of the
/ Trsasury shall frcr time " time direct
| We do not now ask that the bonds shall be
% redeemed or paul. In our Judgment that
would have been wise; but contrary counsels
lave prevailed, and the law has been made to
forbid it, What we do ask, and what the
above unrepealed law makes the absolute, i'm
perative duty of the Secretary. is that he use
his surplus Gold for the purchase of one pei
centum of the entire debt of the United
Estates, to be set apart as a Sinking Fund, the
interest of which shall in like manner be APP
piled to the purchase of the Public Debt
The centre debt of the United States" amounts
to twenty-sx hundred and thirty millions
| OF that amount tho law not only allows but
commands the Secretary to buy up In open
market twenty-six millions, to be set aside IL
the Treasury as Sinking Fund. We call upor
| Mr. Boutwell, to obey the law.