New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-11-05
OUR FINANCES.
FINDING THE NATIONAL DEBT.

SIR: / take pleasure in thanking you for
your generous and impartial editorial criticisms upon the
plans lately submitted by me.
Dsoussiop the most ample and open is Just what Is
wanted. The suppostlon that portion OF the commu'
nifty may be already enlightened on this wide and grave
subject should not be allowed 10 check or limit this dis
cusson No one can be fully enlightened and the wisest
are ia those who TO know more through Tree III
terchange OF ideas while the great bulk or the commu
nifty have been so muddled and mystihed by lengthy
speeches and longer treatses from either Ignorant
obliaue or interested points Of view that they give up
trying TO sound these questions and carelessy OF WI"
fully adopt the theories right OF their party
leaders No true leader Of public opinion desires tnS,
and no noer based upon the ignorance blind realty Oh
its supporters can long endure.
n THE BALANCES OF FOREIGN TRADE.
The sm, and rapidly dwindlng party in favor OF pay
or+ In recated currency eXtenuate IL as the enect OF
disease upon our body polite but justify and excuse
unon the ground that 1t cannot beremedied Whyf Be
cause the balances Of foreign trade are ana nave Deeh
against MS for eight years past and we have been paying
them with our bonds when, therefore, our Donds sa
nave ALI GONE abroad and have absorbed by these
debtor balances shall have nothing left to pay WITH
and must therefore, fail to pay an This is the first
and most plausible argument OF this party. 1t pre-
tends TO say that promising these trade debtOrbal-
ances TO continue undated and that our country will
stop or go back in its swift progression and develop
ment-hat present TO say nothing Of its future re
sources or assets deeply morgaged as ITO be not
only insufficient but exhausted and unable 70 bear fur
ther loans strain upon them. What consumnate FOOLS
those foreign bankers must be to DO Offering US u5t
millions by hundreds for any term at any per cent! put
above premises palpaby and utterly ase ana no
one knows this better than those shrewd fnances OF
Europe who mineral and agricultural wealth az
t gters through the meshes OF countless iron roas ana
telegraph wires glances from great staple heldsn
the reflected light OF rising power. Our extraVa-
gances but those or success and our lmporauOhs
mencemen in national fe naturally only to be supplied
fom foreign sources during or Just after our distaeng
and exhaustive Those trade balances VIII soon Ten
another story OF successful Improvement upon tho ideas
and resources OF predecessOr and that progressive
Improvement will not stop till the Pacific coast shall
swarm with the Of Het0er England and the
regeneration OF the East shall go on from It's Eastern con-
trolling points of trade and commerce
THE COLLATERAL BEARINGS OF REDUCED INTEREST
RATE.
In its editorial of the goth inst The Boston Daily Adj
reser remarks that the proposed saving but about
twenty millions per annum, and therefore, just 30
much less OF object" and asks later Ia IL wise 10
bid so eagerly for foreign capalf These views are not
only faacous the editor seems also 70 fall into the
OF considering only the government lher
ests so limited and temporary when compared 10 tue
Immense international monetary transactions affected
thereby and at this une only commencing OF Jus5 com
menced There sources OF capital that wond, per
haps have long remained sealed to US but ior the Tar
SO apty called the great teacher OF geography Inc
interior populations OF all the older countries with the
comparatively few exceptions OF some favored districts
enlightened by returned emlgraton have only begun to
know and justly appreciate the United states since that
The French Revolution changed the currents OF Eu
rope this American Revolution Is changing the cur
rent
food Of sympathy and support mat wiz gradually
hut surely people our wastes and I'LL 70 excess all our
channels OF communication financial with Others II Is
these considerations and the fact that the Government
interest rate affords heretofore explained gauge or
Indicator OF n credit whether Of an individual State,
or corpOratOn which should lmpel and govern our ae-
ton OF this critical time. And 1t is precisely these high
convictions from their nature scarcely attainable ut
home which, added TO the power Of viewing this coun
try distance necessary to and comprehend
abroad such answering confidence In its future THIS
confidence aud the citation II begets In absent ct
zens have been ridcued alike by cayng critics as the
excess OF blind patriotism IL is more than patriotis
II is Faith.
ITS BEARING on STATE AND OTHER OBLIGATIONS.
A an example the bearing Of Government funds
and their interest upon other securities, both
abroad and at home we have hut look at the Massa
chusetts State Sterling Bonded Debt. These five per
cent gold bonds before tho war when they were known
only IN great foreign money ceners were current at
above par, but the Government bonds so compete
with, overshadow and affect them, that Mr.. George
Walker the State envoy 70 Europe who had every sup
port and cooperation from the authorities could get no
offer for them than about - cent upon their
mon actual par, The MI success OF Mr. walkers mission
attributed To other causes which doubtless had
their influence, but they were really small as compared
with the above. Commenting upon all this The Spring
deld Republican says:
hardly be called failure perhaps, when t has brought
home sharply as has the lesson that We are tr
fling with credit and the unvelcOme fact that our
bonds longer command the supremacy in the foreign
markets which they 30 iong held among all American
Would you remedy this and give back TO our country
and 10 Massachusetts the world wide confidence Of ai
IL is not lost only oyershadowed To do this have
but fund the United States debt at w just rate Of four
per by the issue OF untaNed gold bonds and when
thus relieved OF their parentcompeng bonds OF ques
toned reputation, state bonds will not only back
10 their ante beipi price but exceed It in Just so much
as the number Of intelligent investors has
increased by and since triumph over the Rebel
ion and these IL seauent dicultes The case above
cited will be confirmed test by the late
perenoe Of all similar state, railroad, and other money
seeking enterprises OF the day No reflection Is
meant upon distinguished English bankers who have
for so many years protected the Massachusetts state
sufciently appreciated They help II the state
allows s credit 10 be- injured nor II 10 leaves them alone
Of others These Massachusetts five per cent SOyear
bonds compared with English three per cent Consos,
when az par are worth 1904 and should command at
least 100 gold. when reinstated and compared with
future four per cents at IT, then, the removal
should appreciate State corporation debt nearly 30
per cent though little time and patience should
now be necessary 70 recover this righful position,
who will attempt 10 estimate the saving in millions
upon all similar values at home and abroad or the
added impetus 10 power and progress which shall
ensue upon our release from such taxi The fact as
The Advertiser remarks, that money In England Is
plenty at % while through the United States IL
tive demand att 10 10 per cent" is itself proof OF
It's justice or permanence and moreover just what
should and will do utmost change The French
Government pays more than Mo English. by the lower
ruling price Of It's bonds but this is simply because the
doubt OF its permanence Is greatera doubt which does
attach On the contrary the feeling gain
Ing s1s wne we are s%sgG 6 safe from all our
and this feeling must soon tell in favor OF BONDS
and all other securities. when Government
credit shall be re-established.
CURRENCY QUESTIONS AND DIFFICULTIES.
1t not just 10 state, do The Advertiser and others
that TO resume "speeie payments, purchaser
OF bonds at prices would receive but about i've
per cent" The bondhoder would receive still nearly six
and half per cent gold upon present cost In gold.
affect this The one hundred and twenty dollars
currency promtses which were given In exchange for
onehundreddolar bond we're only worth ninety-threo
dollars ID gold AZ 70 facilitating credit lmportstons