Delaware tribune. [volume] (Wilmington, Del.) 1867-1877, 1870-01-20

hS iuuol hUOW lDhJ lIDTD new
er was bride who was particularly anxious
that her husband should depart for the wal
on the first day of their welded life. No
much. But the story is full of morals-s
little hard to find, perhaps but if you reat
1t over carefully ten or twenty times yor
will discover them. You will see the force
of those good old maxims, ssThe early bird
gathers no moss" "a rolling stone catches
the worm" etc.
The National Debt aud Banks.
HOW MIR. SUMMER ExPECTs TO RR-FUND-EF-
FRoT ON THE NATIONAL BANKS.
tExtracts from Senator Summers Speech on Wed.
nesday.l
The proposition with which begin is to
refund our six per cent. tive-twenties of
lSC2, amounting to upward of five hundred
milllons, into five per cent ten-forties. In
taking the term ten-foTties adopt tie de-
scription of a bond well known aud popular
at home and abroad, whose "payment in
com is expressly stipulated by the original
act authorizing the issue. The bond begins
with good name, which will commend it.
Tht interest which propose is larger than
would propose for any late bond. 1t is
important, il not necessary, in order to
counteract the suspicion which has been
allowed to fall upon our national credit.
Even our skies are now below par in Eu-
rope. But they will unquestionably share
the elevation OF the new tives substituted.
Our flrst attempt should be with the latter
Let these be carried to par and we shall have
par everywhere.
In this process the first stage is the con-
ylctlon that all our bonds will be paid in the
universal money OF the world. All bonds,
whether lives or skies, will then advance.
know no way in which this conviction can
be created so promptly and easily as by re-
deeming in gold some one of our six per
cent loans, and that most naturally selected
is the first, which is already so noted from
the discussion to which 1t has been subjected.
But this can be done only by offering to
holders the option OF coin or satisfactory
substitute bond. With new issue of five
per cent ten-foriies, limited in amount to
about the aggregate of the six per cent five
twentes OF lSG2-say five hundred millions
= cannot doubt that every foreign holder
OF such slxes will accept the iives in lieu of
coin, and SO much of that as is held at home
may be paid in coin, if preferred by the
holders, from the proceeds of an equal
amount OF lives placed in Europe at par for
coin.
Then will follow the advantage oflhis pos
tive policy. The National credit will be be-
yond question. Nobody will.doubt it. The
public faith will be vindicated The time will
have come, which is the condition prece-
dent named by the Secretary of the Treasu-
ry, when J." the want OF faith In the govern
ment" will be removed and the door will be
open to cheap loans. This will be of course.
IL cannot be otherwise If we only do our du-
ty. Our fves, being limited in amount, al
Ter being taken at pur in preference TO coin.
VIII advance in value, SO that the invest
ment will become popular. People will de-
sire more, but there will be no more, SO that
without difficulty OF delay we may hope TO
refund five hundred millions of our subse-
quent skies, or so much AS may be desirable
at four and half per cent. in fifteen-tiflies;
Il not, at four per cent, in twenty sixties. In
this operation the initial point is the nation
al credit. With this starting point all is easy
Our five will ut once ascend above par, while
market is opened for tour and half or four
per cents. The stigma of Reputation,
whether breathed in doubt or hurled in
taunt, will be silenced. There are other
helds OF glory than in war, and such tri-
umph will be among the most important in
the annals of finance. But to this end
there must be no hesitation. The offer must
be plain, "bonds or coin," giving the world
assurance of our determination. The an
swer Will be as prompt as the offer, "bonds
and not COIN"
In the process of financial Reconstruction we
cannot forget the national banks, which have
already done so much. The uniform curren-
cy which they supply throughout the coun-
try commends them TO our care. Accils-
toned to the facilities this currency sup
plies, It is difficult to understand how bust
ness was conducted under the old system,
when every bank had its separate currency,
taking its color, like the chameleon, from
wha was about it, so that there were as
many currencies, with as many colors, as
there were banks. Two things mnst be done
for the national banks first, the bonds de-
posted by them with the government must
be reduced in interest, and, secondly, the
system must be extended, so as to supply
the much-needed facilities, especially at the
West and South. doubt it the national
banks can expect TO receive in the future
more than four per cent from the bonds de-
posted by them with the government, and
the profits attributed to their
business, it may be that there would be
reluctant consent even to this allowance.
Here it must be observed that the whole |
system OF national banks is formed upon the |
bonds of the nation, so that at the rate of
liquidation now adopted for the national |
debt the system will he without support in |
the lapse of twelve or fifteen years. The |
stability of the banks, which is so vital alike |
to the national currency and to the pecuni-
ary interests involved in tine business, can |
be assured only by an issue Of bonds for q |
longer term. Of course, the longer the Pc |
riod the more valuable the bond. To reduce |
the interest arbitrarily on the existing short |
bonds of the banks without offering compen- |
sation in some form would be positively un- |
just, besides being an Infringement of the |
guarantees surrounding such bonds, and, |
therefore, violation of good faith A sub |
sttute twenty-sixty bond will be assurance |
Of stability for this length of time, while |
the additional life of the bond will be COM
for the reduction of interest AS |
It is not not proposed to issue such bonds |
except for banking pur-
poses they will not fall below par, and |
this par will be coin, which, need not say, |
the skies now held by the banks will not |
If through the failure or wind |
ing up of any bank, an amount of the sub |
stltuted bonds should be liberated there will |
be an instant demand for them at par by |
new banks arising to secure the relinqulshed |
circulation,