New-York tribune., 1872-07-04

The Secretary of the Treasury adVertises
that he will sell this month S4,OOOOOO In gold,
and buy $5,OOO,0OO of five-twenties, provided
he can obtain them at less than par III gold.
On Tuesday his purchases of five-twenties
aggregated only $3OO,S5O, and, according to
present prospects and the experience OF last
month, it is highly improbable that
the Government will be able to obtain
in future the full quota of bonds. If
the Government sells gold and is unable to
buy bonds, one of two evil consequences
must follow either the currency in the
Treasury must rapidly increase, or the gold
sales must be discontinued. We are now
approaching that season of the year when the
business community is likely to require both
all the coin and all the currency that can be
obtained. At such a time if the Treasury
absOrbs $5,0O0,OOO, either in gold or currency,
the consequences are precisely the same as
though that amount were locked up by Wall-st.
Spectators. At such times Mr. Boutwell, has
frequently relieved the market by the
purchase of extra millions of bonds, or the sale
of extra millions of gold. If an emergency
should arrive when both gold and currency
were scarce, and bonds could not be had at
less than par, it is clear that Mr.. Boutwell,
would have no power to rescue the business
community from the claws of the Wall-st.
spectators. The Treasury should have the
power, and Mr.. Boutwell, should have asked
for and obtained authority from Congress, to
purchase bonds at a premium. The limit at
which he should be compelled to decline to
purchase should not be par, but two per cent
above par.
Suppose that during the present month. in
stead of buying S5000,0O0 of bonds, Mr. Bout
well is able to obtain only S1,OOO,OOO. After
the usual fuss and delay a call is issued in
August for the redemption of, say, SlO,COOOOO
of bonds The money which is TO redeem
them lies idle for four months in the Treas
ury, and the Government needlessly pays over
three months interest. Meanwhile business is
deranged more or less by the operation, and
the Government is no better off than if it had
bought the bonds in the first place at
premium of two per cent The history of
the S40,OOOOO0 of bonds which were called
last Autumn and Winter will abundantly bear
out what we have said. The effect of "call-
ingr the bonds was to bring down the pre-
MUM on gold to below nine per cent while
| the effect of paying for them was to raise it
again to fourteen per cent Moreover, the
holders of the bonds in distant parts of Ger
many failed in many cases to learn that in
terest had ceased on their investments until
their May coupons were presented for pay
ment, and, if we may credit the
| Debt statement of the 1st instant,
nearly SsOOO,OOO of the called bonds
have not yet been presented fOr payment.
! This, of course, has an unfayOrable effect on
the price of our securities abroad and helps
to render impracticable Mr. Boutwelps plans
for funding the debt at lower rate of in
terest. If Mr.. Boutwell, would consent to de-
vote another $2O,OC0,OO0 of his gold balance to
the extinction of the debt, and could offer to
pay, if necessary, 1O1 per cent for bonds upon
immediate presentation, the Governments
money might forthwith be put to some useful
purpose. Fortune does not always favor folly