St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1871-02-17
u. =. The NcW Issue.

Congress has provided, with the APP
prevail Of the Secretary Of the Treasury,
for the issue of fifteen hundred million OF
new |. :. bonds, with interest at a rcduc-
ed rate from the present 5-20 bonds. The
intention is that these bonds be used for
retiring the & per cent. issue, and thus
lessen the rate OF interest upon the war
debt. A considerable portion of the 6
per cent. j. 20 bonds coud now be re-
dcemcd-iivc ycals having passed from
the date OF their i,sue-had the govern
ment the means ut hand for rcdeoming
them. While gold remains at 4 premium
it cannot judiciou-Iy be done; only in
part.
The capital Of the National Banks is
invested to large extent in these bonds
all in these and the ) per cent. and
81 bonds 1t is doubtless the intention
Of the government TO bring about an cx-
change with the banks of the new issue
for the 90 bonds. This will absorb
many millions, but how many we have
not the means Of know ing. /; is also
expected that Il large amount OF thcm
will be taken abroad, and SO the govern
ment will be provided with means for
calling in, at par, such of the go bonds
rs have run five years. In addition to
this, there are many large capitalists Of
our own country WHO will he satisfied 70
invest i'll long D per cent bonds. In the
future, when the national debt shall have
been substantially reduced, tlcy would
look for a premium, and with good rc;,-
son, upon / ! and > per cent, bonds, pay
able in coin, and exempt from local tax
alton.
The rate Of interest on the use Of mon
cy grows less as Il country crows older
In the older states of Europe i per cent
is accounted ample for leans. Such will
be the tendency in this country When
men become large capitalists they look
more TO the certainty Of the security than
to the amount of the annual income from
their Investments. Long paper, of IN
questionable soundnCss, is Just that which
they seek after. Such will be the new
issue of L. 5. bonds. Some few Years
before the rebellion came upon us there
were out, i'll the hands of cur citizens. n
few millions of 6 per cent. L. 5. bonds.
They were held at 80 per cert. above
par. 1t must be conceded that the Init
cd States are able, and that they will,
pay all their obligations, and will as sure
y pay twenty hundred millions of dol
lars as one hundred millions. Whv,
therefore, will not the new issue Of ) Der
scent bonds command premium, and
that too at no distant day We there.
fore conclude that Mr. Secretary Bout-
well will ultimately succeed in ,iyino suc-
:. 5'i'S SUI
cess to his most excellent financial scbo,,o
for reducing taxation 10y le>scninr ,ho
semi-annual payments Of interest upon
our large public debt. 81 far as lie sue.
ceeds he will contribute to the cuisines.
prosperity of the country.
1t is limited that the government is in
possession of very favorable assurances
from abroad in regard to the new bonds.
1t Is expected the call for them will be
extensive. We hope it may be, so tina,
the maturing 5-2O bonds NAV he redeem,
ed Sat the pleasure of the government. -
Then surely, the holders of these bonds
will not raise the cry Of population
On the 9th of March next, books will