New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-06-15

the pace thirty or forty miIliOhs VIII 10 no
much as he can get rid of this year.
Another way of expediting refunding would
be this There are now fifty million dollars
in gold in tho Treasury, over and above oil
claims from the holders of certificates OF de-
post What possible objection can there DC
to using this money in aid OF the funding
operationi Why not call in at once for pay
ment fifty millions of the bonds OF 1852 !
Three months would be left in which to dis
pose of the new fives, the market price of
which is even now, after a considerable fail,
one and three-quarters per cent above par in
gold and accrued interest AS fast as the
new bonds were taken up fresh calls could be
made A price should be fixed for the new bonds
and adhered tO-we think par in gold would be
low enOugh-and the bonds should be deliv-
cred promptly in the order in which they
were applied for, the Treasury always keeping
forty or fifty millions ahead in its calls
for fve-twenties. OF course this would re-
quire change in the law. That the subject
has not even been mentioned in either house
of Congress is further proof of the incapa-
CITY of that body to deal with financial ques-
| tons.
| Still another way would be to call in at
once the entire amount of 1859 fve-twentles
now outstanding being less than two
hundred millions, leaving it at the option of
the holders to take gold or five per cent
| bonds. This is the mode which has usually
been adopted by the British Government. in
| 1880, $7GS, 100000 of four per cent debt was
called for conversion into three and half
per cents. or payment, it demanded. Only
S14, 400 900, equal to about two per cent, was
paid to "Dissents." (See McCullOch's Taxa
ton and Funding" page AIS, edition of 1862
The same author remarks that the OppO-
sition of Walpole in 1871 to the reduction
of the interest Occasioned a loss to the public
of $33, 1885, 900 in twelve years. In 1877, when
| the proposal was made to convert four per
cents into threes, and rejected by Walpole,
the price of tho three percent stock had
risen to 1O7 the highest elevation ever reached,
then or since In 1903 they fell to AZ, French
five per cent rentes being quoted the same
wear at less than seuon per cent April 2. 1884,
the French five per cents stood at 74fr. Soc,
and March 4, 1874, at 126fr. Doc. On the
9Th and 9th of April, 1S4S. they fell to
50. We mention these interesting facts
to show that there is no permanence
in the value of Government stocks over
that of other kinds of property, and that it is
madness to attempt to substitute five per cent
bonds in place of gold as the standard OF
value For two or three months our tves
have been above par in gold, and it behooves
Congress and the Treasury Department to
give some sign that they perceive the fact
and have the interests of the people at heart.
If we are to continue to pay one hundred
millions year for interest, when we should
pay but ninety, we, for our part, will try to
make it apparent where the blame rests.
Meanwhile there is one thing which the
Secretary can do at once. which needs no ad-
ditional legislation, and which concerns the
honor of the Government He can arrange to
retire that part of the forty-four million
reserve which was issued during and after
the panic. We know that the Administration
is in earnest in seeking to return to specie
payments; but the business of the country
needs some outward and visible sign like this
Now, while money is o drug in the market,
let MS be rid of this utterly needless and in
furious imitation.