The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-09-29

dress on ~ sth OF March, lso5, ne stateu ceafiy
and forciriy the opinions winch ne entertained, and
he lai' down the policy winch would govern hts
adm .nistratlon. These are his words:-
great debt has been contracted securing
ercsi well the return 70 specie basis AS soon
prot honor dollar
%ss saa ssi1a 's Contract as ssF
!.s. M Be- pe place. sn viii ii 30 G az
,o,r 50, ,,bep,n credit Which onhi to be the 10
Y man ws now 70 the debt
TO his should e added faithful collection revenue
s s % ss every col
,ure N every department q soverr-a-n..
irwin be my cndeavcr g execute all laws in good faith 10
COLLECT ~ revenues assessed and to have Them properly
q my aby appoint to Office those only who will carry out
These explicit declarations on tine part OF the Pres
ident accepted as they were by the judgment OF
the country, put an end at least for the tme TO all
propositions for the payment OF the debt IN any
thing but coin. The first act OF Congress- after his
inauEuration, was the passage Of a pin entitled
Congress and the country were pledged TO
THE PAYMENT or THE FIvE-TwENTY BONDS IN CON-
earliest practicable tme The passages quoted from
the Presidents inaugural address, and the act Of Con-
% nocy inc me 1 S % %
TINS That policy Is, no doubt. rejection OF all
schemes for postponing. avoiding or repndiatng
the public debt. 1t accepts the sturdy fact
that the debt can only be paid by taxa
lion. ana thar the taxes must be drawn from the
by the English nation through long experience anu
stated N speech made In June last by Mr.. Lowe,
not pay itself, and that unless pay men OF debt
Is commenced 1t can never be completed. In &C.
cordauce with the Presidents recommendations the
nrst effort Oh The Treasury Department Was TO pro-
vide for
THR EFFICIENT COLLECTION OF THE REVENUES.
During the first year the revenue from customs
was increased fourteen millions OF dollars, and from
internal sources twenty seven millions more. while
MUM on bonds and payments on the principal OF
the pubic debt, were reduced twenty seven mil
decrease Of expenses enabled Congress at the ses
sion commencing December 1862 to abolish
internal ans o iHs OF NEARLY
the lakes imports nearly twenty rve millions,
about eighty millions In al. on the LIST Of Septem
Der, 1871, the net debt OF the United States nclu-
ing accrued interest," was PA 122 $50 49, showing
decrease from March 1, 1861 Of 1921 $40 600 90.
reduced from S126 800 to 1855 So about
a million and quarter per month. This reduction
only, II treated as u sinking fund,
WOULD PAY THE PUBLIC DEBT,
exclusive of United States notes and fractional
currency not bearing interest, in about thirty-slx
years. In his inaugural address President Grant
ticlpates the tlme when by
TIE IMPROVEMENT OF PUBLIC CREDIT.
IL VIII he practicable Tor the government to Issue
bonds bearing lower rate OF interest and to re-
deem outstanding bonds carrying higher rate OF
dentia contest was Just opening, and when there
was some uncertainty as to its result, the i've
crned interest, sold at seventynine one-half per
cent OF their par value. On the LIST OF January, 1862
advanced to elghty-0ne and half per cent: en- the
LIST Of March TO eighty seven and threequariers per
cent, and for the last ew months they have been
substantially at par with coin. This result Is due,
Irst, to the declaration OF the President the
policy of his administration, sustained by Congress;
and, secondly, TO the disposition and ability OF the
country to furnish revenue which enabled the
department. 70 make constant and eonsldera-
same influences the II bonds bearing SIX per tcent
interest, and having ten years TO run, have ad-
vanced IRON eighty per cent the price IN July, 1858,
TO lve per cent above par and the ten-fory bonds,
bearing interest at five per cent, have advanced dur
ing the same period from less than seventyfve per
same influences the paper currency OF the country
Is worth in com about elghtyseven cents to the
only seventy Nor can II with truth be said that
these changes lnure exclusively to the benefit Of the
Dondholders True the bonds are worth IN coin many
1862 and 10 that extent the bondholders have been
enriched eur BY tf E mPSS2yed Ireft e the country
nation has not been Increased by the Improvement
1n It's credit and the additions thus made to the value
o. inc bonds OUTSTANDING, put It remains precisely
our opponents, that the bonds themselves to be
paid in greenbaSks, and no provision made for the
If THE eREENBAcKs ARE TO BE PAID N COIN.
as one would suppose they ought TO be paid, then
nothing would ee gained oy compelling The public nc
their bonds, unless be the saving OF interest and
this seems poor compensation for the destruction
or public credit and the disgrace OF the country
The appreciation OF the value OF the currency, due
10 the IMPROVEMENT of the public credit, Is for the
benefit OF all those who held any part OF 1t al the
time the appreciation took place.
The Improvement Of the public credit IN the man.
ner and 10 The extent specified has not been advan.
tageous alone IN the particulars referred TO- but 1t
has enabled The government to carry out, although
TO only a limited extent as yer, the suggestion OF
the President that
NEW BONDS COULD BE ISSUED AT LOWER RATE
OF INTEREST
and the proceeds applied 10 the debt then outstand-
ing and bearing interest at the rate Of six per
cent. This suggestion OF the PRESIDENT was
as ~ re-
authority should be given for the Issue Of Jour hun
dred millions OF bonds bearing interest at five per
cent, four hundred millions at the rate OF four and
half per cent, and four hundred millions at the
rate OF four per cent payable respectively, in ten,
twenty and thirty years. bill in accordance with
this recommendation was passed by the Senate
early In the session. but was delayed in the House
that it did receive the approval OF the Presi
moment OF the declaration Of war by
against ed PRUSSIA an as made 9nr
placing the loan. In March last, however,
books were opened Tor subscriptions TO the I've per
a comparatively short time subscriptions were made
Tor about $50 0000 o. cheny by the national banks,
reached $4,000 600 Al that time, however, it be-
came eydent that renewed efforts would have to he
py sHaae Of
the Treasury, Thea IN London, from prominent bank
ers IN Europe, which, after some modification, was
accetped by the Treasury Department The act Of
July IA, 1870. for refundng the national debt. pro-
vded that the proceeds OF subs crlptlons should be
used for no other purpose than the redemption OF
outstanding five-twenty bonds, and also that three
months notice should be given TO the holders OF
such bonds and that after Its expiration interest
thereon should cease. This time was thought to be
and proper to enable the holders Ut the
bonds to present them at the Treasury Depart
ment and IL would have been manifesty UNI
just 10 stop the Interest upon less no.
tice than that given. These two provisions OF
involve necessarily loss OF interest TO the gov
eminent upon such subscriptions as might be made,
as The government would he Obliged to issue the
bonds upon payment Of the par value OF the same
in coin ana hold the money until the bonds called
should mature. To this, undoubtedly, there would
have been slight exceptions as some parties might
he disposed to present their bonds at earlier GATE
and accept payment and accrued Interest," but the
amount so presented would depend upon the state
of the money market and in ordinary times IL could
not be large, the holders Of the bonds, being sure
OF their co and interest at the rate per cent
at the expiration OF three months would not he Will
ing 10 accept earlier unless higher rates Of inter-
est with perfect security could be obtained IN the
market. The act establishing
THE NATIONAL BANKS
An horized tho Secret arv M the Treasury tn usa