New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-03-17
THE NEW L. S. LO1N.

This loan must be maze success. Possibly
il may be found cxpedicnt by n 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 tho markets OF the
United states and of Europe. AS the new bonds
will be free from local and national 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 Der cent bonds if subject to such taxa
ton. II the income tax, which is at present
less than onc-half Of one per cent of the in
terest, should be removed, yet the local taxa
ton, amounting TO not less than one and one
half per cent, will remain, and in that case
the five per cent untaxed loan viii pay the
same net interest TO the holder rs a six and
one-half per cent loan would pay if subject
only 10 local taxes. This rate OF interest Will
insure the ultimate absorption of these five
pcr cent bonds by banks insurance offices, ana
hy CAPITALISTS who seek secure and permanent
investment Of trust funds here and abroad.
That the United States are amply able to
nav the public debt, and have given TO the
world the most solemn pledge that it shall be
fully and faithfully paid, 10 one can doubt
who is acquainted with the state of public
opinion, or with the Constitution itself, which
! provides that the Obligations of the United
/ states slall 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 discOy-
| cred in the carly years Of the war, and has
/ been more fully developed by later expert
/ crce. Formerly it was the practice OF the
! Treasury Department to manufacture the
public securities at Washington by persons
/ employed in the Printing Bureau, and the
result Of this experiment was not sat
! isfactory to the Treasury Department to
/ Congress, or to those who were interested
| in Government issues. 1t was 80 obYi-
/ nlSly sulio"e 20 Sic't uDuHo that 1t was
| condemned by the Joint Investigating Com
mit,cc 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 q repetition Of the unfortunate
! Irregularities disclosed in tie Committee Report,
| he had adopted the plan which had been
/ also sanctioned by that Committee, 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 at one
| Bank Note Engraving Company, of unqucs
! toned responsibility; n second imprint to be
made by another of such cOmpanies-bOth of
which ehould be wholly disconnected with the
/ Treasury Department, and in different city
| and the last imprint to be made by the Print
! ing Bureau in the Treasury at Washington.
All paper to he used was to be manufactured
at still third aud distant point, to be delv-
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, aud the Printing Bureau n
guard over them. and thus all probable chances
of over-issucs, 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 ac-
quainteI with the subject, and has Justly
secured among capitalists feeling of conf
dence that there is now little danger
| Of ;heir waking up some years hence
70 1nd their vaults filled with false or
duplicate bonds, which might be repudiated 10y
the Government, though printed from genuine
plates and issued from its Printing Bureau.
Some rumors have been started Of late that
the Secretary purposes 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 it is
not probable that NJ. Boutwell, will act con-
trary 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 III the safety of his
bonds.
There is nothing about which one may write non.