The national Republican. [volume] (Washington City [D.C.]) 1866-1870, 1870-01-13


bonds should DO liberated. there will DO au
instant demand for them At par by new banks
arising to secure the relinqulshed circulation.
ALLOW me here 10 lnterpoae brief word on
the difference In value between long bond
aud short bond. Obviously the short bond
will b llquidated At an early daY, 90 fhat
ny prtnlum, whiIe increatlhg ne cap|lal
nfeste1 leaaens nc porcenlage 81 inc6me.
tfns 400 In alx POE cthf. bond, Win a
lIAnlnm Or tweut1 per cont, I'll cbaf
VI 300, with an income Of alfty doliaru only,
or i've per cent, aud the bond, II paid At
par, would Involve a loss OF the premium.
But the same u, 200 invested In hyes, will
be represented by 81 200 in bonds, yielding
annually sixty dollars, or I've per eept, With
tbs coustapi ladtantage, that When paid At
par the Investor would fnd his original cap
iiai Intact. Therefore, II cannot be expected
whom tho hves ere brought 70 par thai the
short sixes soon 70 b paid at par viii have
value proportional to their higher Interest.
Il will DO with them A. with other things 10
this world where value Is dinlnIshed BY the
brevlty OF existence.
The extension Of bank notes from three
70 i've hundred millions, which propose,
will extend the banking system where Il Is
now needed. This alone 10 much. How
long the Senate debated this questlon at the
last aesslon without any practical result
cannot bs forgotten. That debate certlnes
10 the necessity OF thiA extension. The
proposition offer shows how u may be &c.
compllshed and made especially benefcent.
The requirement rom all the banks or new
four per cont bonds at the rate Of one hun.
drod dollars for eighty dollars Of notes issued
and TO DO Issued would absorb air hundred
and twenty Five MILLIONS ofthe national debt
Into four per cent? while the withdrawal OF
one dollar In greenbacksfore each additional
dollar Of notcs will 70 far to extluEulsh
the outstanding ETosnbacks, thus quietly
and without any appreclable contraction 70.
moving an impediment 10 specie payments.
Naturally, as BY q process OF gestatlon, will
this birth DO accomplished. II will come,
and nobody can prevent IL. 5r.r LA -asr
In presenting this series OF measures ] am
penetrated BY TIE conviction that, ifadopted,
thoy cannot fall 10 bring all the national OBJ
legations 10 a par with coin, and then specie
Payments win be resumed Without effort.
Our honda will be among the most popular
In the market. No longer below par, they
VIII continue 10 advance, while the national
credit llfts lie head unimpcached, unimpeach-
able. Under this influence the remainder Of
our outstanding debt may be refunded In Ar.
teen-nftles at four aud half per cont, II
not In twontyslxtios at four per cont. There
will then DO sixteen hundred and twonty i've
llAAAA1hb AoAuhhoh ~ ~ NNNAhk9 VI Agaa NaAu
four and . half por cent, and the whole debt,
including tho irredeemhblo siIes Of 1881, at
an average Of less than i've per cont, while
all will DO within our control Eve years
earlier than ID the maximum period pro-
posed BY the Secretary OF the Treasury.
This rate ls lower than that Of any European
Government, unless we except England and
Switzerland. The latter Power has obtained
q loan Of two and q half millions recently At
four and a half per cent. The recent French
Rente, which found such favor At three per
cent nomlnally was uttered at priccs vary
ing from slXty-hve TO slKty.olght, 90 that
one thousand millions Of obligation repro
scented slx hundred and my or six hundred
and eighty millions OF money actually paid,
making the annual cost TO the Government
more than ave per cent. II would DO easy
to show how other governments have paid
much more. Well may we yet little longer
yield to England, where wealth Il 90 sur
passing, and 10 Switzerland, where economy
hand when the wealth OF England and the
economy Of Switzerland will be less CON-
maudlng than the UNREASONABLE resources
Of our country.
One Immediate consequence OF these
measures would be the relief OF tho people
from eighty 70 one hundred millions OF tax
alton, while there would remain surplus
revenue oftWo millions q month applicable
TO the reduction OF the debt, belng more than
enough to liquidate the whole prior TO the
maturity OF the new obligations, II Il were
thought advisable 10 complete the liquida-
ton at 90 early 4 day. The country will
breathe frcer, business viii DO more elastic,
life will DO easier, as the Assurance goes
forth that no heavy taxation shall be con-
tlnued In order TO pay the debt In eleven
years, as Is now proposed, nor In ffteen
years, nor In twenty years. By the present