Delaware gazette. [volume] (Delaware, Ohio) 1855-1886, 1869-05-14
THE USE OF THE SURPLUS
ERTn-


It has been our octr5nefr the very
that the G~oxerEAnent should use ts
cold power. through the LAWSON 8Hbpy /
and demand to depress The premium On
gold as an articles fprivatespeculatioa.
For this purposs W6 haTesuggested the
anticipation of the interest on its bonds,
the object being to disgoree the Treasu-
" of its surplus, ~uanseded; and ids
Fd1dl and bring il into the maFketf and
fb8reby i6ersass The Officially OF speea-
Ia5ion. The Secretary Of the Treasury,
seeking to accomplish this END, has al
ready proposed the anticipation of the
Nav and July Interests and also offered
4 p8rtioh6 81 II sufpids gold fofpr1vate
sale. in sdn1s OF hot less than s., 000.-
This Is wells Indeed, RlMeaB ANYTHING
Il we'll that will set the gold to work,
and make it serve a useful purpose.
IF this hitherto lazy gold shall come
into the market by the process of sale,
what shall be done with United States
aotps given IN exchange fot itf Shall
thew be boarded just as the gold has
been or shall. they be. destroyed?
Neither of these courses would be wise.
Both would amount to q contraction OF
of the cuFrency-the one virtual, and
the other absolute; and for this result
experience shows that the people are
moi prepared The proper thing to be
done is to go into the market and buy
dveztweuty bonds at their market price,
and hold them in the Treasury as a
sinking fund. This would stop the in
terest-ands in effect, Ray so much of
the d5bt. Gold at its present premium
would give the Government the pos
session of these bonds at a price much
less than par.
Moreover, this would be carrying out
the spirit and intent of the unrepealed
law of 1862, which required 1.-THE pur-
chase or payment of one per centum of
the entire debt of the United States, to
be made in each fiscal year after the
first day. of July, 1S6z;I9 Ihis law IS
still on the statute-book of the nation,
and ought to ha4e been oBeyed. It is
not too late to begin now.
But it is suggested that b proviSory
clause of the Public Credit Bill forbids
this course. We think not. We think
1t to De a foolish clause; but we do not
Esee how it ties up the S~ecretary's hands
in respect to the purchase OF Govern
ment bonds In open market. lGslmpIy
forbids him to pay any of these bonds,
dollar for. dollar, before the period Of
their mat1rityi "unless, at such time
| United States notes shall be convert
ibIe into coin at the option ofthe holder
| or unless at such. time bonds of the
/ United States bearing a lower rate of
interest than the bonds to be redeemed
| can be sold at par in coin. This pro-
hibation is not at all inconsistent
with the law of 1862, which directs the
Secretary, after paying the interest on
the public debt, to use the surplus gold
in purchasing one per cent. of the en-
tire debt during each fiscal year, and
set apart as a sinking fund, the inter
est of which is directed to be applied to
the same purpose Topay a debt, dol
lar for dollar, in its maturity is certain
" one thing; and to go into marketzand
purchase a bond at its marketprice, and
set it apart as a sinking fund, is just as
certainly another thing. The former
except on conditions specified, is the
thing forbidden by the Public Credit
| Bill; and the latter is the thing required
by the law of 1852.
We express the hope that Secretary
Boutwell, viii, to the full extent of his
capacity, obey the law which his pre-
decessor in office forgot to obey. Wheth-
er he sells gold oruses it directly, we do
not care, provided he will make it pur-
chase per cent. of the entire debt,
and then set the purchased bonds apart
as a sinking-fund, as he is directed to
do by law. This will be a good trans
action for the Government, not only by
saving so much interest, but also by all
the difference between the par value OF
these bonds in gold and their currency
/ value in the market. 1t would also
contribute an important infue nee to
the reduction of the premium on gold.
N. J. Itdependent.