New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-03-01
THE FrNDING or THE DEBr

IiIE RI NIINb or mr. DEDf
The books will open on Monday next for
subscriptions 10 the new loans whereby our
Government seeks to obtain the means of
PAVING OFT lis Fiye-Twcntics already subject
to redemption at It's plcasme--itS aim being to
substitute for bonds drawing six per cent. in
tcrest others drawing but ), A., and 4 per cent.
Should II be- able to borrow One Thousand
Millions even at five per cCnt., the annual
interest payable on our National Debt Will be
diminished by the sum of Ten Millions OF
Dollars.
We believe Mr.. boutwell, has assurances that
liberal subscriptions win be made in Europe
and we hope these will be parIlleled on oar
side of the water. Bear in mind that no addi-
ton will bc made to the volume Of outstand-
ing bonds by the success of this loan-that
should the entire Fifteen Hundred Millions be
taken exactly rs offered, the proceeds would
replace, retire, and cancel, a like sun in Gov
crBmcnt bonds (uainly FIyc-Twcnt!cS) now
outstanding. 80 that no glut of the bond mar
Lct can possibly result from this loan.
Whether it be wholly, partially, or not mt all
taken. the United States means to have less
and less Debt outstanding at thc close Of each
successive month.
There ought to be no doubt rs to the com
ulete success Of this loan. Should it fail, the
blame will justly fall that short-sishtcd
popular impotence of taxation largely stimu-
lated by. the journals and un~iScly tTIckIcd TO
bv Congress, which led to y remission of
Eighty Millions OF taxes per annum at the
former session of the present Congress. Had
that remission been deferred till the Debt were
funded our Taxpayers would have saved
thereby many times the amount of such rCms-
sion We should have held on to every penny
Of revenue ill this great end had been
achieved.
The complement Of this error is that 90 tllc
Secretary Of the Treasury in keeping on hand
a large surplus which should have been as
siduously applied TO the extinction Of Debt
His One Hundred Millions in the Treasury
would have saved at lcast Ten Millions Of III
tcrcst had they been promptly and vigorously
applied by him 10 the extinction of bonds.
Besides, such a vast accumulation OF treasure
tcmpts the cupdity of burglars, lobbyists and
other despcradOcS, while il tends to Ovcrbcar
the more frugal instincts of Congress. The
average Member votes for liberal Appropriations
heartily wish Mr.. Boutwell, had run down this
surplus to Five Millions in the course of his
first quarter, and held it there ever since.
Even if tins had constrained him to borrow,
for ten, twenty or thirty days, part Of the coin
required TO pay quarters interest, the bank,
would have lent it cheaply and counted his
short due-bills as practically gold.
Mr.. Boutwell, proposes to sell Seven Millions
OF Gold and buy Ten Millions of Bonds dur
inc the month of March. Had hc done as
much every month since he took charge of
the Treasury, his loans would now have been
placed without difficulty. Tie H0aH not
unreasonably says:
OF the obstacles in the way not the least which WIFI
he encountered il the discrepancy between The price Of
the six per cents and The price Of gold. Last night the
1865, whrh the earliest Of the FiveTwenty issues.
closed at 1925 In Wall-,t Dcducnc the accrued interest,
which about two and quarter per cent the bonds
worth llOi with gold ~ ma In other words, six per
cents can be- bought in the open market for no. when
Mr. Boutwell, offers five per cents for 1Ib and cannot
sell them al less OF course, there difference in the
permanently Of The Investment hut enough 10 make
80 great a superiority In the five per cents As 10 render
them universally preferable even desirable II this
be the ease with the five per cents what il Ia happen
with the four and Il hall aud four per cent, 70
Now il seems clear to our mind that. had
Mr. Boutwell, converted all his surplus into
bonds so fast as it accrued, our Skies of 1862
would have been two to four per cent dLore
the par Of gold ere this, while Grecnbacks
would have ruled but three 20 six per cent
below gold, and that the placing Of his new
Elves would have been the work of single
day. As things are, the eleven per cent. pre-
MUM on gold is a serious impeachment to the
success of the new Loan-0no that should not
have been permitted to exist.
However we viii hope and work for the
best If the new Elves should not be taken
a. oacc, wc pray the Secretary 10 uy lle