New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-11-09
HOW TO REDUCE THE INTEREST ON THE
NATIONAL DEBT.

NATIONAL DEBT.
Mr.. Boutwell's plan of funding tho National
Debt has had pretty fair trial True, the
times have been adverse; but we have gen.
orally found them 80 when we needed to bor-
row money. The sum and substance of the
Secretary's success is the funding of 500, OOO,-
900 at five per cent, on the payment OF o
bonus of II per cent. to the "syndicate" OF
foreign bankers who have agreed to take the
loan We would not disparage this achieve
ment, for we regard 1t as decidedly better than
nothing. Add to the interest ($3,OOOOOO ST.
600 900 more for the aggregate cost OF printing
the new bonds advertising, explaining and
commencing the loan, and the entire cost of
funding the 900, 900 at FIVE per cent. for
! ten years is $4,0OO,000. 1t seems to US that
| this does not justify hope that our 81 100000
| of instantly or presently redeemable Skies can
be promptly funded even at five per cent.
Having given to the Secretary's efforts q
hearty support throughout, we urge that a
radically different plan may next have as
fair trial Before we send another
bond abroad to BIO hawked from banking
house to banking house throughout Europe,
we AJAX the Government to try-iust earnestly
trp-to fund the bulk of our Debt at home
We could not have sold our bonds, during the
dark hours of our Civil War, to Europe at any
price, no matter how ruinous, if we had not
first shown our faith in them by taking humid
reds of millions of them ourselves So now,
having seen how reluctantly they take our
reissues at FIVE per cent. with discount, let
us show them that we stand ready to take q
larger amount at a lower rate of interest at
par. Here is the gst of our proposition.
| Let Congress make our Greenbacks fundable
at the pleasure of the holder in bonds of 800,
81 900, and $4,000, drawing interest at the rate
of one cent per day on each 800 (or 8 65-100
per annum) and erchdn0edble into Greenbdcks at
the pleasure of the holder. Now authorize the
Treasury to purchase and extinguish our out
standing bonds so fast as it is supplied with
the means of 30 doing by receipts for customs
or otherwise; and to issue new Greenbacks
whenever larger amounts shall be required
every one being fundable in sums of 800
s., 900, or $4,000, "a aforesaid, at the pleasure
of the holder, In bonds drawing an annual in
terest of 65-1O0 in coin per annum, and these
bonds exchangeable into Greenbacks whenever
holder shall desire it,
The benefits of this system would be these:
I. Our Greenbacks, which are now virtual
falsehoods, would be truths. The Government
could pay them on demand in bonds as afore-
said, which is in substantial accordance with
| the plan on which the Greenbacks were first
| authorized.
IT, Every person having Greenbacks for
which he had no present need would present
them at some Sub-Treasury and exchange
them at par for these bonds. Suppose he has
| $4,000 which he expects 10 use amonth hence:
he can make them earn him $50 meantime,
without mourning the smallest danger of loss
| by bank failure or otherwise, and with posi-
tive certainty that the money would be ready
for him whenever he chose to take 1t.
III. A merchant leaves New-York with
81, 900 900 which he purposes to invest in
Wheat at the West or in Cotton at the South.
He calls at our Sub Treasury, exchanges his
Greenbacks for these bonds, and takes or
sends these to Chicago, st. Paul, New Orleans,
or Galveston, to be exchanged for use when
needed After looking about for a month, he
buys half the produce ho originally intended,
converts half his bonds into greenbacks, receives
$50 per day, or $500 in all, as interest, and
makes his payments. After travelling and look
ing for another month, he invests the remainder
of his capital receives $1,000 as interest thereon
for the two months he has held the last Half
Million of bonds, and lays his course home
ward. His bonds may have lain nearly all
the time he owned them in the vaults Of
some bank; but they were earning money not
for that bank but for him.
". Our Greenbacks, no longer false, but con-
vertihle at pleasure into bonds bearing mod
crate gold interest and excbangeable as afore-
said. could not fail to appreciate steadily until
they nearly reached the level Of gold. Indeed,
they would, unless, issued too profusely, be
really better than gold. Drawing a higher
rate of interest than British Consols, and con-
vertible ut pleasure, rs these are not they