The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-10-09

the extraordinary spectacle Of millions Of
armed men promptly laying down their arms
and returning to their peaceful occupations as
soon as the object of the war was accom-
piished. They have seen a country, after hav-
ing been torn to pieces and the fairest portions
OF it made desolate by q conflict Of which mod
ern history gives no parallel, quickly restored
to order, the people returning to their indus
trial pursuits, as if nothing had happened, with
renewed energy, and our resources multiply
ing as if there had been no war or its conse-
quences were forgotten. The recuperative
power, good sense and patriotism Of the re-
public have astonished them. To sum up the
whole, the people of Europe have learned that
in America we have with republican freedom
both the strongest government and the greatest
wealth of any nation on the globe. Then,
again, the enormous income of the Treasury,
at the rate Of hundred millions or so year
over and above the expenditures, shows that
the debt is mere bagatelle, and will be surely
paid. Such temporary disturbance in the
gold and stock market as we had lately
amounts to nothing, when we look at the
wealth. prosperity and future Of the country.
We perceive, then, the causes that are operat-
ing to inspire confidence abroad in American
securities.
Looking at the matter in every point Of view,
therefore, 1t is evident we are paying much too
high an interest on the debt, and much higher
than we need pay If our finances be properly
managed. Such high interest is disastrous
every way. 1t not only imposes very heavy
and an unnecessary burden upon the taxpay-
ers, but it absorbs the active capital Of the
country to great extent, paralyzes enterprise
and checks progress; for people will not trouble
themselves about other investments while they
can get on United States bonds six per cent in
gold or eight per cent in currency, and that
without their investments being taxed. The
value Of the bondholders' property is out Of all
proportion to that of other property. A loan
in long consols, or consols without date OF
redemption, could be made, we have no doubt, at
four per cent, and perhaps at less-say at three
sixty-fve, or at cent day on the dollar
The whole debt could be simplifed and put
in this form. The consolidation would not
prevent the redemption of the debt and its
final extinction. The government could have
a sinking fund and go into the market with its
surplus income to buy up the consols at any
time. Forty millions year or more could be
saved in interest and to the taxpayers for we
do not think much premium or any need be paid
in the transformation of the debt if proper laws
be passed for that purpose and our finances be
properly managed. It would be better for the
country, undoubtedly, if. we had aggregated
capital enough to take up such loan here and
to hold the debt at home, for then the interest
would be diffused among our own people and
would not leave the United States. But this
is not practicable at present; money is too
valuable for other purposes; and then large
portion of the debt is held already abroad.
Under all the circumstances the best thing to
do would be to accept loan covering the
whole or great portion Of the debt at the low
rate Of interest mentioned, if such loan be
offered or if not, to consolidate the debt here
upon the same basis. Have we the statesmen
at Washington to comprehend this great SUBJ
ject and to put the national finances on a solid
foundation2 That is the question.