The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1870-06-29

! sad to think that he who did so much to free
as from the evils of war should so soon
bring upon us these dark forebodings of
deeper ill.
THE FUNDING BILL TO BE PRESSED
FOR CONGRESSIONAL ACTION.
From the NJ Y. Herald
1t is understood that General Schenck, the
chairman of the Committee of Ways and
Means, will urge upon the House of Repre-
sentatives an early consideration of the Fund
ing bill. This is the House substitute for
Mr. Shermans Senate bill The main feature
of this measure is to convert a thousand mil
lion of the outstanding six per cent. bonds
into new bonds, or consols, bearing four per
cent. interest and having thirty years to run.
These new bonds are to be exchanged dollar
for dollar for the old securities, and are not
to be sold at less than par in gold. 1t is be-
lieved that the debt can be converted and
consolidated on these terms. That, how
ever, has to be seen. The Five-twenties are
now at about par with gold, but the skies
of 1881 are quoted nearly five per cent
higher-that is, the difference between the
market value of the Five-twenty six per
cent. bonds, which are now due or about to
fall due, and the bonds bearing the same in
terest, which have eleven years to run, is five
per cent. This shows clearly that bonds of
long date are more acceptable and much more
valuable. The longer time they have to run,
therefore, the greater the value. 1t is upon
this principle that Mr.. Schenck expects to
convert the six per cents into four per cents
at par. But, if thirty years four per cent
bond can be exchanged for the skies now due
or about to fall due, why could not a three
sixty-ive one, having forty or fifty years to
run, be exchanged on the same terms !? By
parity of reasoning this ought to be so.
The difference between four per cent in
terest and three sixty-ive would on the
whole debt amount to over eight millions a
year. This would make nice sum to be
applied to the sinking fund or to be taken
off the shoulders of the people through re-
duclng the taxes. Then, such bond or
consol would simplify the debt, and all the
operations of the Treasury bankers and
brokers. Bearing cent day interest the
exact value could be calculated instantly by
every person. The most ignorant even could
tell how many days the coupons had run
towards the yearly, half yearly, or quarterly
payment of interest, and to q cent what they
would be worth at any time. 1t would inau-
gurate simple and beautiful principle
in financial operations AS to the payment
of the debt, it would make no difference
whether the bonds had thirty or fifty
years to run. The Government can enter the
market at any time and buy up it's securities
just as individuals do. The sinking fund
can be applied to the liquidation of the debt
II
years to run. Whatever surplus funds the
Treasury may have for this purpose-ten
millions or hundred millions a year-they
can be used Just the same. Long bonds
would be no inconvenience to the Govern
ment, while they would, indeed be a great
saving through the reduced interest they
would bear. We advise Congress- therefore,
to consolidate the debt in three sixty-fve
security having forty or fifty years to rum if
ha Aa
bond of this long date, bearing three sixty
five interest, ought to be as good as a thirty
year bond bearing four per cent. interest. At
least there is no reason why the experiment.
should not be made.
There is one very obnoxious feature of the
Senate Funding bill which we hope the House
will not adopt. That is the proposition to
employ agencies abroad to manipulate the
debt and to pay the interest on it. There is
no necessity for any such agencies. 1t would
be simply job to put money into the Golfers
of foreign bankers and capitalists without
any benefit to the United States OF course
these men and their agents and correspon-
dents here are very anxious to get this Job,
and are using all the arguments possible to
that end. But we do not want any such out
side and fictitious aid to give character to our
national securities. Their value is we'll
known. There is scarcely village in Europe,
particularly in Germany and some other parts
of the Continent, where the high credit
of this republic is not appreciated. The
coupons on our bonds can be exchanged
almost everywhere, as Bank of England notes
are, for their face value in gold, and in some
places they are at premium. 1t would be
no advantage to have special agencies abroad
to pay the interest on the debt Besides, it
should be an object with the Government to
make all financial operations centre in the
United States and in New York, the great
commercial metropolis of the country. Con-
| gress should frown down any attempts to
transfer the financial business that can be
done here to Europe. The telegraph and
steam power make communication rapid
between all parts of the Old World and
America, and intermediate agencies are
things of the past The time is soon
coming when New York will be the monetary
and commercial centre of the world, as well
as of intelligence Our old fogy Congress
men are dreaming of the past when they
should be looking to the future. They do not
see that we are fast breaking away from the
leading strings of Europe. Funding the debt,
and the principles we may establish in doing
that, may facilitate or retard to some extent,
the controlling financial future of this coun-
try and of New York. Let us not throw away
our opportunities. Let us bring Europe to
us and our system rather than 60 over there
| for everything, a child goes to its guardian.
| We have reached the full stature of manhood
in financial as well as in political matters, and
should act independently.
RAILWAY ANNOYANCES.