The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1870-01-10


the next fifteen years The bulk of our debt
now exists in the form of these "ive-twen
ties drawing six per cent interest. much
smaller amount consists of ''ten-forties,
drawing five per cent. The "hve-twenties'
are all now within the Governments reach,
having been issued more than five years ago;
the 'ten-forties' become so in 1872 or 1878.
We say that we ought to begin forthwith
the funding of the five-twentiesin a consol or
long bond, payable specifcallyin coin, exempt
from taxation, and (partly in consequence
drawing an interest of but to 4I per cent.
We insist that, with good management and
good income one thousand millions of
our present debt may soon bo funded
in such q consol; saving to the Trea-
sury 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 wherewith to re-
deem our bonds now drawing a rate too high
for q thoroughly solvent nation, too low for
one that isinsolvent. If we are too dishonest
to pay if we could, we can hardly borrow at
all. In order to fund our debt in the pro-
posed consol, we must convince the capital
lists of either hemisphere that we can and 1oW
pay to the uttermost farthing And the best
way to convince them of this is to keep pay
ing.
All this we have urged again and again for
years. We urged it when the policy OF pay
ing was nowise complicated with other ques-
tions. 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
solvency by paying. We have quoted the
Presidents late message and the Secretarys
simultaneous report, not at all as authority, but
because their positions confirmed our own,
and the considerations whereby they were
maintained seemed to us irresistible.
The N. Y. Times tells its readers that
'Funding the debt at lower rate of interest is an
operation Tor the future. 1t is impracticable now.
With our six per cents below par, it were folly to
think seriously of ioating four per cent security
at that rate"
How much below par are our six per
cents? And how much have they appreciated
within the ten months of General 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 above par at the close of ten
months more of the same sort? Why not keep
the road that we have thus far travelled 50 sue
cessfully?
-'But how will that enable us to fund at
four per cent?
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 to-
morrow or next year may range very little
above par, / or 4I that has thirty years to
run, and which is certain to grow scarcer with
the lapse of each year, may command higher
price. All depends on our ability, reinforced
by our determination to get out of debt.
The adversaries 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 impracticable or irrelevant. We must
| resume before we fund; but we must neither
resume nor fund for several years yet. Gov
| ernor Hoffman's message is fair sample of
their captious querulousness and determina-
ton to find fault any how. His assertion
that the greenbacks are payable on demand is
| q fair specimen of their missiles.
Now we want specie payment resumed,
and the national debt funded in a consol
bearing low interest-each of them so soon
as may be-and we do not desire that either
| be postponed to the other. Let us resolve to
pay ten millions per month of the principal
of our debt, and keep doing it, and both re
sumption and funding will come about as
naturally as March suns and rains insure n,
disappearance of winter SHOWS. Rssump
ton and funding are twins, and cannot bt
made antagonists. Hasten their welcome
riumph!