New-York tribune., 1870-02-03
THE DEBT-THE CURRENCY.

We regret to see Congress SO ready to dis
cuSs the Currency, the Tariff, and almost
everything else, in preference to tho funding
of the National Debt, to which we had hoped
that precedence would be accorded. Should
the present Administration not succeed in
funding the Debt at q low rate of interest we
shall feel that it has incurred a virtual defeat
that it has not demonstrated the ability
which it possesses. We borrowed Millions at
six per cent. when just entering upon a
great Civil War on the result of which
our National existence was stalled why
should we not be able to borrow
at far lower rate, now that we have
peace based on unqualified victory9 We surely
expected this when we made the bulk of our
Debt redeemable at our own pleasure after
five and within twenty years what hinders
the realization of our hOpes9 1t seems to
us that the Republicans in Congress are not
adequately impressed with the Importance, alike
in a National and a political aspect, of fund
ing our Debt so as to reduce materially the
annual burden of interest. We are aware that
the task is not light one; and this is why we
would postpone questions affecting the Currcn-
cy and the Tariff TO its achievement What
Republican, what patriot, would not eXult in
our ability to say, in the canvass for the
future House next Autumn, owe have already
"reduced the interest on the Debt by not less
ethan Ten Millions of Dollars, and initiated q
"measure that will extend that reduction TO
Twenty if not twenty-five or Thirty
"MilliOnsP'
OF course those who are entitled to six per
cent interest will not volunteer to take less
IA, oil
forms of Reputation. But the bulk of our
great National Debt consists of the Five
Twenties, which we have now an unquestioned
right to redeem in coin, and which the holders
will inevitably exchange for any bond worth
fraction more than coin. If, for example, we
can place a new United States bond or cOnsol,
having thirty or forty years to run. draw
ing four per cent. interest, untaXable
by any authority or in any shape, so
that on every 100000 of these bonds
81 900 in coin or its equivalent shall be paid
from the Treasury quarterly, we can proceed
to convert rapidly the Five-Twenties into these
Consols, and thus save One-third of the inter
est now required by the Five-Twenties These
are nearly Fifteen Hundred Millions in amount;
so that their conversion into four per cent.
Consol as aforesaid would save the country
nearly Thirty Millions per annum-a sum which
would pay the entire principal of the Debt in
little more than thirty years. (Those who dis
pute this calculation forget that the interest on
the first Million saved would be compounded
throughout the thirty years; and so to the end.)
We insist that this reduction of interest on
our great Debt should rank first in the cata-
logue of noble ends to be wisely achieved and
that Tariff Revision and Currency Adjustment
should be subordinated thereto. It's difficulties
may be great, but they are not insuperable
The steps by which it may be reached seem to
us as follows:
l. Continue and accelerate the payment or
purchase of Government Bonds by devOting
the surplus in the Treasury to that use ;
2. Keep the Revenue up to high-water mark
and diminish the Expenditures to the utmost
g. Make National Banking (that is, the issuing
of National Bank notes. free to all. under
proper regulations, but without restriction as
to the amount of such issues
4. Grant that no bills shall henceforth be is
sued which are not based upon and secured by
an ample deposit (say four for tlree) of the
new Consol, and that, after the 1st day of
January next, all National Bank notes shall
this act, there would be created present and
pressing demand for at least S50O,OOO0 900 of the
Consols.
8. Print share of them in German and in
French, and make the interest payable in Lon
don, Frankfort, Paris or Amsterdam, at the
option of the holder.
6. Require that all moneys held by guardi-
ans executors, administrators, and other legal
custodans of others estates, shall be invested
in the new Consol and kept there till required
Cor paying over TO the rightful owners.
z. Pledge the faith Of the Union that not
less than Sj0,0O0000 of the Debt shall be
bought up or paid off and utterly extinguished
in each year of peace until the last dollar of
it shall have been thus wiped out.
Such are the bases of policy which, we
are confident, would reduce the interest on our
Debt by at least Ten Millions within the cur
rent year, and by not less than Twenty five
Millions before our next choice Of President.
Twenty five Millions Der annum saved in in