New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-09-08
FINDING QUE DIET.

Mr. Chas. s. p Bowles, an American banker
now in Europe, writes from Geneva 10 oecie-
tary Boutwell, letter on our National DcOt
and the Financial policy of our Governments
which is valuable as the testimony OF an intel
Gceut observer to the steady growth ana
present strength of our credit III Europe ana
of which we, hence, reprint several para
graphs With regard to the rate OF interest at
which our prospective ConsOl is to be offered
we are Glad to find Mr.. BOwles speaking as
follows:
..For us to offer four.andahaf per centor one-half
as much again as Engiand-would be TO admit weakness,
and to underrate strength IL would Do OHeo,
those half which some timd people 80 fond
OF adeptiDg TO have an air OF compromise hout
nyr credit II appears 10 solicit credit instead of com
handing it, which we have the right and the power to do
p UH to our own investors and that
this reduced rate, cannot count upon INC P'eseH'
amount of foreign investments.
Exemption from taxation would place these bonds on
footing MA Se a SsS mSe eo%mon
loaned low rates oryng idle In our banks insurance
| aud trust companies, would gradually DO absorbed
These long four per cent untaxed bonds would al
ways be demand for settlements estates ana trusts Oh
| eli kinds, which Investments as our country grows
| richer are steadily increasing 49,, ...r.o, ,,, ,ho
| high rate Of interest to invest in our bonds 49,. ,oo,
made m The face Of supposed risk and by the more dar
ing and less conservative class OF nvetos very Ige
ness houses for the employment of balances 1t Is closely
questioned whether any large perconage VI Ot o at
capitalists and moneyed institutions. .. II,
1.-The very uncertain term Of the bond itself would
But, while the high rate has been the inducement
thus far it is equally unq9esonable ,hat tot very IS nc
bankers paper offered ia the street at seven and eight
tSreS and four per cent what does signify And who
! buys it but sharpers and venturersf
ut is firmly believed that four per cent U g. I'M
taxed gold bond would today or soon command tho at
tenton OF another and far more serious class OF Gus
toners, viz the bona hde capitalists and investigating
| agents Of conservative Europe.
ave should also remember that we rate ourselves and
rated OF the Great Powers OF the World; why
then should we pay greater rate OF interest imam our
" In to this question, We can properly reply
that per cent Is greater rate Of Interest for
orr country than three per cent is Tor Others
appreciated in this old world, while scarce or unde
With time and the creation Of proper channels they
will all be equaliIed and rates OF interest," as they jan
S4nd Iostr per cent could seem 10 be the mean rate
AS regards the term OF the loan we should remember
that forty years long time in these days OF progress
Forty years there was not steamship railroad OF
Mo, then, shall say what the coming forty years will
"a thirty years bond would DO long enough, or, II
thought essential then let the option OF redemption in
not thirty, than forty e as now,
with the Government Thirty years from the lst OF Jan
Young nsPI IKE & 6 l grow n TG dH TO
this debt sensbly reduced before tho dawnnE VI tho
| twentieth century"
Mr.. Bowles further states that Spain has
| adopted the French franc as the monetary unit,
| and that it has thus become that of France, Bel
| gum Italy, Rome Switzerland and Spain, con-
tanning nearly One Hundred Millions OF PEG.
pie; while Prussia and Austria are ready to
follow and Great Britain, through her Chancel-
| lOr of the Exchequer, proposes to asSlBllate
| her pound sterling to twenty-five French
| francs from which it differs very slightly. If,
now, the United States should reduce the
! amount of silver in their dollar a very little,
| S. as to conform it to the French fvef franc
/ piece, we might practically have uniform
| currency for ChristendOm We hope this may
| b. done before we launch the new COnsOl, and
| that the amounts named therein, whether in
the bonds or the coupons, may be expressed
in francs as well rs dollars, so as to be every
where comprehended without translation.
| Then let us make the interest and principal
of our bonds, or, at least Of definite portions
of them, payable at London, Paris, Amster-
dam, Berlin or Frankfort at the pleasure of
| the holder and we can float a four per cent.
untaxable ConsOl very nearly if not absolutely
at par, and SO save Forty Millions that we
are now paying annually as interest on our
| Debt. We do not say that this can be begun
and completed in a month or year; we
do hope and trust, that, if we keep steadily
reducing the volume of our Debt, it may DO
effected before the close of Gen. Grants
Administration.
AS to the smart idea Of paying off our Debt
! by taxing our foreign creditors, Mr.. Bowles
forcibly says:
at seems incredible that anything so fallacous and
mlScheyOuS could gain hearing IL l. only by thus
atng doubts OF good faith that National progress
can be checked To find In country mon OF high post
ton proposing 10 partially nmy an honest Obligation
would alarm any one WHO lid Not understand tue dema