New-York tribune., 1870-01-08
SHaLL WE FUND OUR DEBT ~ AN
AMERICAN CONS0Lf

AMERICAN COySOLf
Great Britain owes Four Thousand Millions
of Dollars; the United States but Twenty live
Hundred Millions. The annual interest Oh the
British Debt is $120,0O0,000; on ours, very
nearly the same. In other words, we are pay
ing as much interest on the Two Thousand
Millions of our Debt that bear interest as Great
Britain pays on double tho amount.
Ought we to let this mortifying contrast
continue indefinitely without making an ener-
getic effort to efface it
We cannot plead that those who contracted
the Debt placed it beyond our present reach.
On the contrary, they. though struggling
desperately for the life Of the Republic, and
spending Millions per day in most exhaust
ing Civil War, foresaw that Peace would soon
enable us to borrow at far lower rates than
we're then attainable. SO, when they borrowed
at $40 per cent, they borrowed for three
years only; and, when they borrowed at SIX
per cent, they borrowed for no more than five
years, though with a stipulation that they
might pay at any time thereafter within the
next fifteen years. The bulk of our Debt now
exists in the form of these "Five-Twenties," :"
drawing six per cent interest. much smaller
amount consists of "TenForties," drawing
five per cent The Five-Twenties are all
now within the Governments reach, having
been issued more than five years ago; the
"Ten- Forties" become so in 1872 or 1873.
We say that We ought to begin forthwith
the funding of the " veTwentes in Con-
sol or long bond, payable specifically in coin,
exempt from taxation, and (partly III conse-
quence) drawing interest of but 70 Az per
cent. We insist that, with good management
and good income, One Thousand Millions of
our present Debt may soon be funded in such
a Consol saving to the Treasury Fifteen to
Twenty Millions of interest per annum.
As we have already stated, the vital condi'
tion precedent of such conversion is present
Financial strength. If we are too poor to pay
our Debt if we would, we cannot borrow at
low interest the means wherewth to redeem
our bonds now drawing a rate too high for
thoroughly solvent nation, too low for one that
is insolvent If we are too dishonest to pay
If we could, we can hardly borrow at all. In
order to fund our Debt in the proposed Con-
sol, we must convince the capitalists OF either
hemisphere that we can and i0iU pay to the
uttermost farthing. And the best way to con-
vince them of this is to- keep paying.
All this we have urged again and again for
years. We urged it when the policy of paying
was nowise complicated with other questions.
We urged it before there was any President
Grant or Secretary Boutwell,, though we are
very glad that there are now President and
Finance Minister who also commend the policy
of proving our National sovency by paying.
We have quoted the Presidents late Message
and the Secretary's simultaneous Report, not at
all as authority, but because their positions
confirmed our own, and the considerations
whereby they We're maintained seemed to us
irresistible.
The y. Y. Times tells its readers that
"Fdnding the Debt at lower rate OF interest Ia an
o,eration for the future 1t IL lmpraccable With
our six per below par 1t were folly to think ser.
ously of floating four per cent security at that rate"
-Hoo much below par are odf ak per cents
And how much have they appreciated within
the ten months of Gen. Grants Administration
They certainly have risen more than halfway
to par within that brief term, during which
we have paid off some Eighty Millions Of our
Debt. Who doubts that they will be ADORE
par at the close of ten months moro of the
same sort9 Why not keep the road that we
have thus far travelled so successfully
-"But how will that enablo us to fund at
"A per centW
Possibly, not at all. But let it be settled
| and understood that never, never shall we stop
paying till our Debt is wiped out and every
one will know that our ConsOls must steadily
appreciate. And, while six per cent. that the
Treasury may call in tomorrow or next
year may range very little above par, a A or
At that has thirty years TO run, and which is
certain to grow scarcer with the lapse of each
| year, may command higher price. All de-
pends on our ability, reinforced by our determi-
nation t9 get ont Of debt
The adv6fsaries of the paying and funding
policy face dozen ways at once They clamor
| for Resumption and against Resumption; they
would have the cart before the horse or the
horse riding in the cart-any or every thing
that is impraeticabie Or irrelevant We must
resume before we fund; but ys must neither
restlfiS nor fund for several yeafs Yet. Gov.
Hoffman's Message is fair sample of their
captious querulousness and determination to
find fault any how His assertion that tho
Greenbacks are payable on demand, is fair
specimen of their missiles.
Now we want Specie Payment resumed, and
the National Debt funded in Conso bearing
low intercst-each Of them so soon as may
| be-and we do not desire that either DO post
poned to the other. Let us resolve to pay
Ten Millions per month of the principal of our
debt, and keep doing il, and both Resumption
and Funding will come about IA naturally as
March suns and rains insure tho disappear