The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-11-10

The London press seems particularly anxious
about American credit abroad, and In sort
of patronizing manner gives us o great deal
of gratuitous advice with regard to it. John
Bull is nothing if not egotistical and patroniz-
ing in his manner. Englishmen, and English
journalists in particular, think that all the
financial knowledge of the world is concen-
trated in their little island. Specializing on
the debt of the United States and the rumored
project of the Treasury Department to raise
loan for the purpose of reorganizing the
debt at lower rate of interest, the London
Times reads us lecture on national credit
and honor. II wants gold payments for our
five-twenty bonds, and makes labored argu-
ment to show that this would DO to our advan-
tage The secret of this pretended anxiety
about American credit lies in the fact that q
large amount of the five-twenties are held in
England, and that the certainty of the United
States paying them in gold would send their
value up on the market from eighty-two or
eighty-three to hundred or over that. "A
bargain is bargain" this leading London
journal exclaims That is sef-evident propo-
stion, and the bargain we have made ought
to be carried out-the bond ought to be
paid, even if, like Shylock's, the demand
be usurious. Yet in paying it to the last cent
according to the bond we should be doing
what England or any other great nation of
Europe has not done with its public debt.
But the question arises here, what was the
bargain made and how are we bound to pay
the five-twenties? Many Of the members of
Congress who passed the law creating that
debt, and notably among them the late Thad
deus Stevens and other foremost men of the
country, assert that it was not intended that
the principal should be paid in gold unless the
government chose to so pay it. And the fact
that it was not so expressed on the face of the
bonds, while on another class Of securities
gold payment Of the principal was promised,
shows the intention of Congress to pay the
fve-twenties in currency IL the government
chose to do so. This, we think, is conclusive.
| At least the question was left an open one,
and there Is no reason why the law should be
strained to favor the bondholders, who got the
bonds for little more than half their par value
in currency, and who have been well paid
already. If the bonds 60 up to par in gold in
the ordinary course Of things, oil very well +;
but there is no reason why the government
should unnecessarily increase the weight OF
the debt and the burden Of the taxpayers for
the special benefit Of the bondholders.
II Is said the credit Of the United States
would be raised and loan for consolidating
the debt at lower interest could be made
on better terms IL the five-twenties were
officially declared payable in gold. This is
fallacy. II Congress were to make
such o declaration the bonds would
go up Immediately ten or more per cent on
this side the Atlantic, and higher still, proba-
bly,, in Europe. Then what would be the
effect in making loan to rcorganzo the debt
at lower INTEREST," Would the holders of six
per cent bonds, which might be at par or over
| in tho market. surrender them without pre-