The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-10-28
vysDuG The ssTwsu BEET.

NEW YORK Oct u. 1870.
10 TnE EDITOR or TaE HERALD:--
IT. generally understood In financial circles In
Wall street that Secretary Boutwell,, IN response 70
ms circular OF October 8, designating tue terms
npons which the new loans VIII be issued, has
ce,yed numerous discouraging letters fron banking
houses IN this city, Indeed, IL is even limited that he
has received but two favorable replies. Il is
matter or surprise that there are American
bankers who viii not only not assist The Secretary,
but try TO thwart his endeayors In funding the
debt at lower rates OF interest," especially in people
whose iiberallty and patriotism were so emlnentiy
distinguished during the late war.
It Is a well known fact that In England money Is
plenty and cheap, the one thing necessary Jor tile
lender TO know being that the security If entirely
safe. Registered bonds are held more desirable FOR
tie that they cannot be used for the purposes
OF speculation 10y trustees bankers hold
ing them for Others. Safety, then, n the one
great desidcratum. When that IL assured We
can borrow any amount OF money from England A
high rate OF interest implies upon its face doubt on
the part OF the borrower "a To his ability and
sciousness OF the necessity for some extraordinary
/ inducements TO persuade people TO invest as when
railroad company In the ar West about which
nothing is known ollers its bonds at perhaps ninety
| cents on the dollar and seven eight per cent IN.
terest 1t Is well enough securities OF this class
or for petty governments 90 offer high RATE, as
| borrower whose credit Is poor is compelled 10 do.
The credit OF the United States government no ".
ever, Is beyond reproach, aud products and
resources surpass all previous expectatio For In
stance the total excess OF receipts in the year
over 1869 was $780, ,2l5. There expended ON
account OF the Internal Revenue Department, the
Army the Treasury and Interior Departments in
1870 SEA s06 lis less than In s69an immense saving
to he government The reduction oil the public debt
under PRESIDENT Johnson's administration, from
September l. 1867, TO March 1 1869, was $1,3s3 49,
while from March, 1889, 10 September ], 1870,
$l69, 542 100 has been saved ana applied to the re-
duction OF the public debt. The amount 81 interest
( saved upon the debt actually paid Is Ss,s4J59d.
| There has also been gain Ia the decrease OF the
debt since March 1. OF this year, 10 August ana the
corresponding months OF last year. TO the eAtent OF
49, 900, $685. according 10 the statement OF tile Act
ing Secretary OF the Treasury, issued September s.
| This great reduction IN the amount OF the debt,
/ evuclng such tremendous resources when the reye-
4 nues are properly collected and honestly handled
/ VIII do more to assure the financial world OF the
| ability and determination OF the United States TO
honor its obligations tnan the assertions OF politi-
clans and have greater effect than the tempting of
| fers OF nigh rates OF interest
The French four ana hall per cents according TO
the HERALD Of the 26t In 1868 were quoted at IU2f.
25c., two and a hair per cent above par. Certainly
| France Is a rich country. but the imperial family
had not so secure foundation at that day as the
| United States government has at present.
| English consols are quoted to-day at 92l: these
| pay three per cent; IN comparison with which
United States four per cents should OF least &c
tioted nc par in England and In countries OF Europe
| where money Is plenty II not In this country; ard
there is doubt that English investors nave more
| faith In Us now than tIey had formerly. one Eng-
lleh firm oil bankers stated short time since over
their own signature that they could guarantee the
| successful placing in England or two hundred nul.
hons at five per cent and after graduation reduce
the rate 20 our, as England has gone from high
rate 10 low one. 80 - - 80 -, .rE
In conclusion let me say that some bankers urge
as argument against the new five pei cents that
when tenlorlies, paying five per cent aud having
five years more 10 run, can be purchased on the
market Tor 100, that investors VIII not pay par Tor
n poiD aG II
ten-lorties are only 3d. say in coin; but the live
per cents have ten years 10 run tue four and hQ IS
have fifteen and the Tour per cents have tAir y
years: besides, the hye-twenties which cousltute
The larger portion Of our debt over due ana nv
the circular OF Secretary boutwell, are liable 30 be
paid consequently holders have the option OF taxing
The coin Tor them ami receiving in exchange a sa
United states bond or OF iaEug the coin ana pyest-
ing IL in something else not SO secure. 4. Is. 4.