The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1871-03-18
sPrRxx or zHz PRuss.
Editorial Opinions the Leading JCurnaIs
upon Current Toplos-cempiIed Every
Day for the Evening Telegraph.
THE NEW UNITED STATES LOAN.


it may be found expedient by future act of
Congress to raise the rate of interest to five
per cent. upon the entire amount. This can
be determined only by testing the markets
of the United States and of Europe. AS the
new bonds will be free from local and ma
Eonal taxation, which, taken together, will
not in most of our cities amount to less than
two per cent, the interest derived from the
five per cent. bonds will be equivalent to
that which is derived from seven per cent
bonds if subject to such taxation. If the
income tax, which is at present less
than one-haf of one per cent. of the in
terest, should be removed, yet the local taxa
tion, amounting to not less than one and
one-half per cent, will remain, and in that
case the five per cent. untaxed loan will pay
the same net interest to the holder as six
and one-half per cent. loan wonld pay if sub
ject only to local taxes. This rate of interest
will insure the ultimate absorption of these
five per cent. bonds by banks, insurance
Offices and by capitalists who seek secure
and permanent Investment of trust funds
here and abroad.
That the United States are amply able to
pay the public debt, and have given to the
world the most solemn pledge that it shall be
fully and faithfully paid, no one can doubt
who is acquainted with the state of public OPT
nion, or with the Constitution itself, which
provides that the obligations of the United
States shall not be impaired, while on the
other hand the debt incurred in maintaining
the Rebellion shall not be assumed or paid,
either by the States individually or by the
nation.
There is but one danger to which the public
was formerly exposed. 1t was discovered in
the early years of the war, and has been more
fully developed by later experience. Formerly
it was the practice of the Treasury Depart
ment to manufacture the public securities at
Washington by persons employed in the
Printing Bureau, and the result of this ex-
pertinent was not satisfactory to the Trea-
sury Department., to Congress, or to those
who were interested in Government issues.
It was so obviously subject to great abuse
investigating committee of the
House and Senate, in their ample
report of March 3, 1869, and by the report
of the Hon. George S. Boutwell,, Secretary
of the Treasury, who stated, in substance,
that for the purpose of giving the highest
degree of security against repetition of the
unfortunate Irregularities disclosed in the
committee report he had adopted the plan
which had been also sanctioned by that COM
mittee, namely, to have all the Treasury
securities SO prepared as to require at least
three imprints upon every piece of paper;
one to be made by one bank note engrav-
ing company, of unquestioned RESPONSE
bility; second imprint to be made by
another of such companies-both of which
should be wholly disconnected with the
Treasury Department, and in different city;
and the last imprint to be made by the Pint
ing Bureau in the Treasury at Washington.
All paper to be used was to be manufactured
at still third and distant point, to be deliv-
cred under special safeguards, and to be of a
peculiar character. The paper manufacturer
and the two companies thus became guards
upon each other and upon the employees in the
Printing Bureau, and the Printing Bureau a
guard over them, and thus all probable chances
of over-issues Implications, or other fraud
seemed avoided. This plan of manufacturing
the Government securities, which, as stated
in his official report, has been adopted by the
Secretary of the Treasury, has met with the
appreciation of all financial men who are &C
quainted with the subject, and has Justly
secured among capitalists feeling of conf
dence that there is now little danger of their
waking up some years hence to find their
vaults filed with false or duplicate bonds,
which might be repudiated by the Govern
ment, though printed from genuine plates
and issued from its Printing Bureau. Some
rumors have been started of late that the
Secretary proposes to abandon this plan of
manufacturing the new bonds, and to return
to the scheme which experience has proved
so disastrous. We do not credit them, for
is not probable that Mr. Boutwell, will act
contrary to the assurances he has given to the
public in his report, or that he will, for any
cause, endanger the success of his new loan
by diminishing confidence in the safety of his
bonds