, 1873-01-28

The Secretary OF tho treasury mas let out to
the new Syndicate the task Of negotiating An ex-
change Of three hundred millions OF 5 per cent
bonds for an equal amount OF per cents. The
terms arc tho same as were granted to the old
Syndicate. The programme will, therefore, bo
somewhat as follows: The Secretary will give
notice, On or before the LIST Of April, that in
ninety days thereafter that is to say on the 1Bt Of
July, he will pay, on presentation at the Treasury
Department, certain per cent bonds, the num-
bers, dates, and denominations being set forth
by him, amounting in the aggregate to $780, ,ooo,-
600, and that tho interest on said bonds will
cease after tho 11t Of July. On the LIST of April,
the Syndicate wi1l deliver to the Secretary their
checks for that amount Of money, which
checks the Secretary will deposit With
the members of tho Syndicate for safe
keeping. In return for these checks
he will issue to the bankers composing the Syn
dicate new bonds bearing interest ut 5per cent
from the earno dato- Tho proclamation OF the
redemption Of the per cent bonds will, Of course,
have the immediate effect OF reducing them to
par in gold at which they will at once be dis
posed OF by the holders to the agents OF the Syn
dicate. On the 1st of July the Syndicate will
deliver to the Secretary the 0o,ooo,ooo Of
per cent bonds, and their several checks will be
cancelled, and the transaction will be complete.
The cost Of this operation is very easily COM
puted. During the three months from April l
to June 80, there will be outstanding s600, 0,000,-
600 Of bonds, representing $500, 900 OF debt.
The public debt win be Increased for that term
$500. .O00, 900, without any consideration. On the
1at of July, the United States will pay to the
Syndicate, for interest On the 930o,o00,0o0 OF
debt, the following sums:
Interest On 600 three months, ut nm ,,,
Interest Ter On 500 three months, At
PEI cent. o'oooN
Total interest On $500 ooo, 600 for three
months. .eos<ooooo
This is at the rate Of II per cent per annum-
One Of the conditions Of tho contract is, that no
person shall be allowed to make an exchange Of
bonds on these terms except the members OF the
Syndicate. In other words, the Secretary is to
pay these gentlemen ss75o,ooo, or "a, soc, 900 in
gold, for making An exchange Of bonds which
tho holders and the owners Of the bonds are pro-
hibited from making themselves.
It is true there is law which prohibits al in
crease OF the public debt, or any duplication Of
the bonds, under any circumstances, but the
Secretary Of the Treasury and the Committees
Of Congress have reported that such is the pow
erty Of thought and research among American
statesmen th1t this exchange cannot be effected
in any other mode. So strongly stamped upon
the minds of men is tho thought OF subsidy,
that the Secretary Of the Treasury cannot COM
prohend how John Smith, who holds per cont
bond upon which interest has been stopped, will
surrender tho same unless somebody else is paid
something for taking the bond out Of tho hands
Of Smith and mailing it to the Treasury Depart
ment. The idea Of bounty is 80 ever present
in the minds Of these men that they actually
prohibit any pcrson sharing the luxury Of IL ppr
cent interest in geld for three months, except
the particular few who have esked it. Like in
the case Of the ta1 On quinine, the Secretary
thinks it honor enough for the people at large to
pay tho extraordinary levy to enable ono or two
friends Of tho Government to pocket, for no Ser
vice, IN enormous bounty.