New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-12-12
THE NATIONAL FINANCES.

Mr. Boutwell, advertises that he will pay OIL
specified $4,000 900 of the outstanding Five
Twentes on the 18th Of March next-always ex-
cepting such part of that $20,00O,000 as shall
not have been already redeemed and Cancelled.
Judging from the result Of his last call, not
more than $1O,000, 900 remain subject to redemp-
ton under this call, while nearly Sixty-seven
Millions in gold, to say nothing of Nine Mil
lions in currency, lay dead in the single Sub
Treasury in this City on Saturday night Last.
The calling in of $1OO,OO0,OOO psremptOrily on
the 1st inst has hardly reduced this pile by 80
much as Thirty Millions and, in view of all
the facts, we are impelled to address the
Secretary of the Treasury in the Irish saluta-
ton, More power to your elbow!" Evidently,
the Secretary might have again called One
Hundred Millions with perfect safety.
But why await the slow process of three
months call If the law authorizing the loan
requires that 80 much notice be given, he
should obey it to the letter; but there can be
no legal obstacle to the purchase of bonds in
! open market at the lowest cash price. Call o
specified 800, 900, 900, and you may at once be-
| gin buying them up at the meresr fraction
over gold par.
Were Fifty Millions of dead gold thus
promptly exchanged for Five-Twentes, the
saving thereby of $3,OOoOOO per annum coin
interest would be very tangible benefit, but
by no means the only one. U. S. Bonds would
be rendered scarce and gold abundant in the
market-two conditions eminently favOring
the transmutatiOn of the Debt into bonds
bearing lower rate of interest. We are still
confident that the true policy is never to bOr-
row another dollar at higher rate than four
~ Der cent, even though q considerable dis
count must be allowed on the sale or negotia-
ton of bonds drawing this rate of interest
and redecmable at the pleasure of tho Gov
ernnent after thirty or forty years.
We have many concurring expressions in
favor of an unlimited offer to fund Greenbacks
at thc holders pleasure in bonds drawing inter-
est at the rate of 70 per annum and recOnvert-
lille into Greenbacks at the owners option.
These would differ from ordinary investments
in British COnsOls or other approved securi-
ties, in that whoever thus invests temporary
surplus may be obliged to sell at loss when
he wants to realize, whereas there could be no
loss at all on the 8 iSSos. Every $1,000 Of these
would earn for it's owner exactly ten cents per
day; each 800 ono cent; each $4,000 dollar
per day-never less, never more. There could
could never be above nor below par. He who
had on hand money which he might be
called on to pay over or wish to pay out
at an indefinite but not very remote
day, would as naturally invest it in these
bonds as he now deposits it in some good
bank honest judges would require trustees,
guardians, receivers, &C., &C., to do the like
where an early disbursement or distribution
| was probable funds sent home by Americans
abroad to await their uncertain arrival would
be thus invested savings banks, trust COM
panles, &C., would keep a considerable amount
in these bonds as they alone would combine
the earning of daily interest with the certainty
of conversion into legal tender without o frac-
ton Of loss; after time, misers and all frugal
people would like to have at least portion of
their means thus earning interest, yet ready
for instant use and they would thus gradually
absorb large fraction of the National Debt,
rendering the funding Of the residue in long
bond at four per cent. very easy achieve
ment.
These 3iSSsos would save us from the re-.
proach Of utteripg and maintaining q currency
based on q lie. "The United States will nav u
80 many dollars would thenceforth be q truth :
and, if our Greenbacks are REDUNDANT (Which
we doubt). their volume would be contracted
by thus funding the surplus; while, II this
process should at any time be overdone, the
need Of currency would speedily insure re-
conversion. 80 fust g. Greenbatks accumu.
lated in the Treasury beyond its daily necds.
they might be used to buy up and cancel our
Five-Twenties and other Six per cents. till
these were extinguished, when the Fives would
| be attacked in th,ir turn md mt out OF exist