The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-11-09
ENGLAND.

United states Treasury Finance and the Pub.
lie Debt.
The London Times OF the 27th OF October publishes
the following editorial the above subject, OF
which we have already had . brief notice by cable
teleeram:-
romantic views as TO the power OF the mere beauty
of honesty fascinating his fellow countrymen into
pleading for payment OF the United States public
debt IN coin, on the ground Of the injurY which any
other policy must do to the nation ITSELF The pub
lie creditor, he Is generous enough to acknowledge,
also has his rights but the whole force OF his argu
ment Is directed to proving how petty would be the
profit the public debtor would derive from violating
then. In Itself the TACT that argument for paying
debt should be necessary is not very reassuring TO
the creditor. TO hear that statesmen defending
the propriety OF paying national debts Is hardly
more agreeable than to be told by friend that he
has been defending ones reputation against certain
malicious scandals H. IN recover, an .nvr0ioQy for
national honesty has re 1ade the creditor II gen
crafty 50 egoustical to expect to Ind his right
%ore place a
1t. Unfortunately the question OF the obligation to
execute the contract between the state and
the public creditors according TO the sense
In which 1t understood by the latter
when they lent their money, has been raised
In the Union The obligation has been disputed so
loudly, and from such high places that 1t may be
mock modesty In an American politician TO affect to
ignore the doubt We think, however the Secretary
TO the Treasury might with advantage nave upheld
the positive title OF the creditors to repay ment apart
ultimately be for the debtors benefit. Possibly Mr..
boutwell, considered that when 1t becomes necessary
for finance minister to contend against repudia-
ton the time Is past Tor appealing to any but selfish
Instincts But II mere interest 10 TO be appealed to IL
Is scarcely worth while appealing 10 such tran
aid OF his argument. The politicians VINO are
ready to make political capital out oil schemes Tor
giving the creditors OF the United States something
less than what they bargained for, apprehend.
FAR beyond the power OF approaching such plea as
that Reputation would deoase the national charac,
opinion that for the United States to pay their debt
in anything but coin would develop IN the Amer
lcan people-not now alone, but IN the future-a
baneiul disregard OF right and Of the principles
underlying individual and public prosperity. The
inclination to treat public obligations binding
only 50 long the party benefits by them
mast, like name cut IN bark, spread and grow with
the growth OF the nation. Arguments OF this Kind,
however, raise o false issue, and have angerous
tendency to lead those Tor whose behoof they arc
used TO fancy that In not acting ike rogues they
will be doing something very heroic and magnanl-
nous. Provided that nation does keep LTD faith, 1t
may not matter very much that IL has gratined
easy for 1t to slide from the belief that particular
course would be simply chlvairous into pruden-
that the generous act for which credit taken may
be put of to better times. IL is not then, nom any
want OF sympathy Win Mr., NJ, Bou!welrs patri,
attempts shufe out OF the letter OF the compact
the pubic creditor that we are sorry he did not
put the plea he deduces from the high destnies OF
the great republic second, aud give the chief place
20 the prosaic claims OF "ths men who have taken
the peoples promises" But We think 1t cruel kind
ness in any American statesman TO tempt his cOun-
trymen into performing 30 ordinary duty as pay
ing their debts by telling them that tney VIII thereby
be earning the glory oil patriotism. The obligation
cannot DO put too simply and markedly. IL Is duty
which the American people owes primarily 70 the
creditor We Will not believe that the nation as
SUCH requires to have any other reason besides tne
creditor right pointed out 70 1t.
Arguments OF this sort are In iac OF force neither
with repudlaturs nor nonrepudlators Iae latter
would not need them aud the former would not un-
derstand them. Mr.. Boutwell, is more successful
when ne descends to lower levels, ana shows what
wastefulness Is involved IN hating between the two
courses. Something might be said Tor repudating
boldly and at once the entire debt Of nearly
ST. 500 900 000 The act would probably destroy the
whole trade and credit OF the country, but the
schemes which Mr.. Secretary Boutwell, properly
stigmatlzes as all alike snares and deius,ons bring
upon the Treasury all the penalties OF dishonesty
without any Of the possible profits; 1t does not
political gatherings, though never intended TO be
acled upon IL the favorite for the moment
whether that by which the amount OF interest
already received by the creditor Is TO be set OF
against his principal, aud thus the debt Ii TO be
whether the creditor is to be forced 10 accepI repay
ment In greenbacks. Under any OF these arrange.
ments he would receive less than was the stipulated
price for tile help he rendered the Union III its en-
barrassments, and ms security Is proportionately
appreciated. He is entitled TO his large interes. so
long us he remains unpaid. But II were AS certain
that the United states would not repu,
diate their public debt as mat EnKahu
or Holland will not repudae tneifs tne Aner. ran
at two or more per cent less interest than IL now
pays, aud with this fresh loan 1t might buy up anu
continued 1t natural that the American treasury
should be obliged to pay high Tor money borrowed.
The main reason now, however why IL Is sun pay ing
at OF not far from twice much interest as 10
PAID by governments with inferior natural sources
of wealth must be sought IN the wanton pr0pounu-
ing by American politicians OF schemes for breaking
faith with public creditors II high interest means
bad security IT s not less true that bad security
means high interest. The security OF the American
pubic iath is we believe, In reality excellent; but
liability TO nave the terms OF the contract with the
public creditor altered against his VIII would render
the best security bad.
Mr.. Boutweils arguments are meant for the
benent ana instruction OF that part OF the American
people which represents the debtors; but ali argu-
ments for paying public debts converge to the public
creditors advantage "a their common centre SO
long he receives his interest can recover his
principal he Will not analyze minutey the reasons
assigned for acting justly aud honestly by him, BuL
IL 10 OF importance II not for the present individual
creditors yet for the general interests both OF
America and OF Europe, That the American people
should settle down into franc OF mind
more consistent with the sanotty OF the
rights OF creditors than Mr.. Secretary Bout