The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-08-05

LOOH
ON AMERICAN BONDS IN EUROPE.

the New York Tribune an able and characte
istic letter relative to the credit in whic
American bonds are held in Europe.
Referring to the United States bonds know
as five-twenties, issued during or immed
ately after the late war, with the express ur
derstanding that they were to- be redeemed
principal and interesr, in coin, he espresso
the opinion that "the suppression of the re
bellion was attributable no less to the superio
financial strength than to the superior nu
merical strength Of the North, and that g;
victory must side with the heavies
bat!alions, it is money that keep
these battalions in the field" He thinks
therefore, that it may be truthfally said tina
the Union "was saved by faith" meaning
the faith reposed by the Northern people ant
by foreigners in the will, the intent, and thu
| capacity of the United States Government tx
fulfill the bonded obligations it had entered
into. He notes the fact that no foreign loar
was opened, but that the ability to take the
loan depended upon the estimate placed upon
the bonds by foreign capitalists, and espe-
cially by those of Germany aud Holland.
This foreign trust in the bonds was due to
the express stipu lation made by this govern
ment and inserted in the bonds that they
were to be paid in dollars, in hard coin,
principal and interest.
He refers to the act of 1869, which pledges
the faith of the Nation to pay all its bonds in
coin, and denies the right of Congress to
repeal that act To call in United States
bonds that become due or that are liable to be
called in after certain specified dates, and to
pay them in legal tender notes, would, in the
opinion of Mr.. McCulloch, be equivalent to
which he deems cowardly, re-
proachful and disastrous.
The intentions of the government in issu-
ing its bonds are discussed to show that it was
the purpose and promise of the United States
to redeem them in coin. This Mr.. McCul-
loch attempts to render apparent by the tenor
OF the debates in Congress at the time Of the
enactment Of the laws under which the bonds
and legal tender notes were issued. He con-
cludes his letter as follows:
And now, is it not the dictate of patriotism
that all citizens of the United States should
do what they can to improve the national
credit instead of depreciating it, so that the
burden of this national debt may be dimin-
shed not only by payments, but by reduc- |
ion OF the rate of interest which it bears2
have said what / have upon this subject |
not because there is any danger that the gov |
will ever violate its faith to its credi-
ors, but because such resolutions as were |
ldopted last year by q convention in Indiana,
md the unwise utterances of some Of our
ournals, are used by foreigners who are
hostile to the United States to depreciate our
rational credit, thus rendering it more diff
ult rapidly to fund our six per cent bonds
n bonds bearing lower rate of interest A
eduction in the late of interest in the United
states is greatly to be desired, and reduc-
ion of the rate which the government is
laying would tend directly to bring this
bout. Hence it is important, as we'll for the
minution of the burden of the public debt
s for the benefit of our people in their pri-
ate transactions, that the nation Il credit
hould be placed on the highest possible basis
AN there be any doubt, therefore, as to what
hould be the position of all good citizens
pom question of SO grea. Importance
We are not prepared to pour a flood of
ght on the subject Of the Hon. Ex-Secre-
lry's letter. We set 80 high value on the
ational credit that even in the case Of debt
curred by part of the nation in bad
luse where bonds in vast quantities were
Id for fifty cents on their par value, we !
ould be glad to see them redeemed equit-
'ly, in such manner and at such time as 7
II not damage the general interests Of the 7
untry or work injustice to other meritori- b
IS classes of creditors. When the for a
yners loaned their money to the Northern q
in war of doubtful issue they -
ew the risk they were running and bought P
cir United States bonds at such a dis. O
unit as would justify that risk. 1t was a
no spirit of generosity to the upper n
6 in the fight" that the Belgians, o
FLANDERS and Germans staked their money d
what they thought would be the winning v
q. If they had laid their wager on the IL
moderate side to liberal amount, say Il
DO, OOO,0 600 in gold. they might perhaps CT
We won in like manner, as Mr.. McCulloch O
nits when remarking: cit may be said OF
noup uolicSNAS lfOu1 tuo Shll duu gallant | =
OF the officers and soldiers of the Union
MES that the suppression Of nt
rebellion was attributable no less to the us
,erior financial strength than to the nu- OF
rical strength of the North" The nation OF
Is in war that commands the last dollar, and ia
ha plenty of German and Dutch dollars in tn
hange for Mr.. Memminger's Confederate >
ads, (bought at the rate of fifty or forty, or
n ten dollars in hundred, at the option y
the purchasers). the Richmond govern :,
Mt would have lasted much longer or have or
n in the end victor. If the Northern an
eminent had hired foreign mercenares on ta'
dit to fl ght the armies of Lee and Johnston, "a, a
Is probable that the statesmen who con.
tied the debt would feel under obligation an
Jay it. The same obligation, they think, on
s upon them to repay the golden help til
ch Europeans gave them in the bitter Lac
II of need. They had already as many
n as they wanted, but they needed money Ia Ia