New-York tribune., 1872-01-16
40 MORE SYNDICATE!


take all tho loans authorized by Congress now
outstanding is contrldictcd, and is likely to
prove groundloss. We profoundly trust that
such may be the case.
We do not ion in the crusade against Sec
rotary Boutwell, because Of the terms on which
ne has funded S200,OOOOGO in Five per cents
Admit that the cost of this transaction was
5000 900, instead of the $1,O0O,0OO which Con
ercss meant 10 authorize, and still we save
$;0O00O0 by the process in the long
run beside fairly initiating the opera
ton of funding. our great Debt at reduced
interest But we do not care to repeat the per
fOrmancc, because we want our Debt funded
in one American COrsol at u uniform rate OF
interest, 80 far as il shall be funded at ALL
That rate VIC fix at four per cent, payable
quarterly in any Of tho great cities of this
country or OF Europe, free from tax or deduc-
ton of any name or nature. llenc', we do
not want another dollar funded at A OF ut D
per cent
--" But we can't borrow money at foar per
" cent"
At par, probably not. We propose the liking
os single low rate of interest for our Consol,
and then converting all our Funded National
effect this, We propose the selling OF our
ConsO5 from time to time for The most they
will bring, and redecming our Skies and fiyes
with the proceeds. To give value to the Amer
lean C0nsOl, We propose a National pledge or
guaranty that not less than two per cent. OF these
bonds shall be bought up and cancelled within
each year of their existence, provided they
can be bought at or below par. Now adger-
fi,e nod sell Fifteen Hundred Millions of these
COnsOls to whOmSOCvcr viii give most for
them, allowing two or three years wherein
10 take and pay for them at prescribed rate
Der month Stpuato that the United States
will hereafter make no other than temporary
loan at u higher rate than four per cent. We
have not doubt that II responsible party will
take this loan, giving good security, at not
more than five per cent. discount from its
face, and would thea make handsome profit
on the transaction, since this Consoi w0uid
steadily rise 10 par
-" But this woald add ;,j,O0oOO0 to thc
" face Of The DEBIT
Yc, bat it would insure the steady rcdac-
ton and ultimate payment of the Debt. For
simplicity's sake. we will suppose that the
Debt Gucluding Grecnbacks to be presented
for redemption on our resuming Specie Pay
mnn) amounts TO Two Thousand Millions of
Dollars. which this process would swell by the
sum OF One Hundred Millions. The interest
on the entire Debt as swellcd by premium,
would now be Eighty-foUr MinlonS OF Dollars
nrr aunun to winch add two per cent. of the
principal to be bought in and Cancelled per
annum, Forty-two Millions, and we have a total
annual burden Of the Debt, One Hundred and
Twenty-sx Millions, which is just about the
average OfOur annual payments for interest alone
throughout the last seven years. That IL to
say: we could pay off the entire Debt within
! fifty years, provided it were so funded in a
| four per cent COnsOl, without paying 80
much per annum as we have hitherto paid
| for interest alone; or, if we should CON
! tinuo to pay One Hundred and Twenty
! six Millions per annum, thereby increasing
our purchases of principal IA the annual bur-
den of interest diminished, we might pay tho
entire Debt within forty years. though ap
prOprating thereto only what We have paid
| throughout the last seven years for interest
alone. This calculation assumes that We must
pay par for all our COnsOls that we bought for
redemption, though We should buy them
somewhat cheaper for the next three or four
| years
| Nor is this all. We ought still further to
tighten the burden of our Debt and give
steadiness to tho value of our Currency by
issuing to all who apply for them bonds draw
ing an interest of 1856 per aunum and recon
yertbc into Legal Tender Greenbacks at the
pleasure of tho holder. We need not repeat
| fulness of these always convertible bonds.
| FOIL baf dc
rapidly absorb all the Greenbacks. thus com
! pcling us to pay interest our Currency
This cayi is grounded in ignorance of the
nature and office of Currency. No one has
proposed the issue of any convertible bond for
less than 800, and if there DO any serious
fear of this hobgObin, LET us have but the two
denominations of 81 900 and $4,000. Who ia
! going TO market with roll Of $1,000 bonds
! wherefrom to pay for his dinner9 Who will
want $1,000 bond to pay for his newspaper
or magazne3 Such bonds might TO some ex-
tent, replace bank deposits, drafts and checks;
| they would never supplant bank bills or green
backs, because they could not perform their
functions. Ten cart loads of 81 900 and $4,000
| bonds could never supplant our 81, 50, s.,
| 80, 500. $50 and 300 grcenbachs and bank
notes rs Currency.
Yet such bonds would play IN important and
beDeGcent part in facilitating the resumption
and maintenance of Specie Payment by coun-
teractng the desire to possess and hoard
money. The veriest miser, though he might
clutch a bag of coin or roll of greenbacks
with frantic delight, would soon say, This
$4,000 that | am gloating over would earn mo
"S1 per day if invested in Convertible Bonds,
which ! could nevertheless reconvert into