The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1870-06-07
FUNDING THE DEBT.
From the N. Y. Times.

FTOUL HP W. IL 1tHIeb'
The Committee of Ways and Means have
done the next best thing to totally rejecting
the funding proposition, which the Senate
sanctioned in a most Objectionable shape, by
discarding the idea Of compulsory CONVEX
sion as against the national banks. They
have also refused to sanction the objected
system of foreign agencies, and have limited
the new Issue OF bonds to single rate-four
per cent. This is perhaps the nearest practi-
cable approach, considering the persistency
with which Mr.. Boutwell, has pushed his
favorite scheme, to acquiescence in the
course which the Times has from the first
maintained. For it cannot be supposed that
a four per cent. bond, Notwithstanding its
exemption from taxation, has at present the
remotest chance of success in the market.
No holder of the present six per cents which
are equally free from taxes, will voluntarily
surrender them in exchange for a security
yielding two per cent. less. And neither
branch Of Congress has given the slightest
sanction to coercion as means to be en-
ployed for the advancement of the funding
process. In this respect, a scrupulous re-
gard has been shown for everything affecting
the inviolability of the public credit
The desirableness of funding the debt, at
the proper time, is undeniable. The conve-
nience of the Government and the interests
of the taxpayers would both be consulted by
the issue of single class of securities at a
rate of interest lower than the present. Upon
this point there is no difference of opinion.
The debatable question is as to the time and
order of the change. Those who favor it as
an immediate change are the opponents of
reduced taxation. They would keep the bur-
dens of the people up to the high h-pressure
mark, in order that the margin available for
the payment of unmatured obligations may
be as large as possible This view exacts
above all other things, a continual diminu-
tion of debt not yet due, and the discharge
of which is not asked by single class of
creditors. On the other hand, those who
share the opinions of the Times, urge that
funding can wait, without detriment to the
public interest; that the relief to be gained
by il is not worth the cost which its advocates
! are prepared to pay for it; that the best pre-
liminary to its enactment is tho adoption of a
policy which shall promote the prosperity
and contentment of the people; and that no
other method will SO signally contribute to
this result as the largest possible reduction
of taxation. ''Down with the taxes" is the
cry first in order; in due time thereafter we
| shall certainly fund the debt.
The tardiness with which the Ways and
Means Committee have travelled towards this
| conclusion has provoked not little grum-
| bling. Their slowness is, however, in some
degree atoned for by the result. They have
made good beginning in the work of re-
ducing the taxes, and they have so shaped
the Funding bill that we may reasonably
hope for still further reduction before Mr..
Boutwell, enters upon his cherished task.
The plea that this country should be able
to float securities in Europe, yielding no
higher rate of interest than is paid by Euro
pean countries, is manifestly untenable. The
borrowing power of a Government is regu-
lated as to rate by the rates which prevail
among its own citizens. A nation whose own
people are content with three or four pei
cent. interest on their spare capital, may
expect TO obtain what it wants at those rates
But in the United States money is worth
much more, aud the authorities at Washing.
ton must regulate their plans accordingly
The credit they may look for abroad will be
measured by the credit they command al
home; and the strongest of our fnanciers
have not yet dreamed of issuing or accepting
a four per cent. bond. The fact indicates the
hopelessness of any effort at present to funt
the debt at the rate named, and should recon
cile the Treasury to bill in other particular
differing from the policy urged by the Secre
tary. The wisest course would now be Il
drop the subject Tor the session.