National Republican., 1875-12-08


No appropriation Of money should be made
nue. to accrue within the year IN excess Of existing
obligations and liabilities.
THE SINKING yusD.
The NTH section of the act of February 25, 1852,
sets apart special fund all duties on imported
goods, and directs the application thereof-
First.-To the payment in coin OF the interest on
the bonds and notes Of the United States.
Second.-To the purchase or payment Of one per
centum Of the entire debt of the United States, to
be made within each fiscal year after the first day
Of July, 1862, which is TO be set apart sinking
fund, and the interest of which SHALL in Ike man
ner, be applied to the purchase or payment Of the
public debt as the Secretary Of the Treasury shall
from time to time direct.
Thrd.-The residue thereof to be paid into the
treasury of the United States.
Section six of the act of July Il. 1870, directs
that the bonds heretofore purchased, and then
held in the Treasury in accordance with the pro-
visions Of the act aforesaid, and all other bonds
which had been purchased by the Secretary of
and any bonds thereafter applied to said sinking
fund, with all others thereafter redeemed or paid
snail be recorded, cancelled and destroyed, and
that the amount of the bonds of each class so can
eeled and destroyed shall be deducted respective
ly from the amount of each class of the outstand-
ing debt of the United States The last-named
act also provides that in addition to other amounts
to be appropriated to the redemption or payment
of the public debt, amount equal to the interest
fund shall be applied as the Secretary Of the
Treasury shall from time to time direct, to the
payment Of the public debt, provided for in Sec
uon i've of the act first above named, and appro-,
PIRATES from the receipts for duties imports the
amount so to be applied.
These acts are regarded by the Secretary as i'm
of the sinking fund, as therein directed, out of the
coin received from duties on imports. This re-
interest on the public debt 1t takes precedence
OF all other appropriations, as, by the very terms
Of Of the Legislation, only the residue of receipts
from customs, after deductng interest on the pub
lie debt and providing for the sinking fund, goes
into the Treasury.
The statute imposes upon the Secretary a duty
to be performed annually, the requirement being
that the purchase or payment for and on account
Of the sinking fund shall be made within each
During the past fiscal year It was not practicable
to purchase the amount of United States bonds
required for the sinking fund, for the that
such bonds could not be bought at par and tho
Secretary was forbidden by law to pay more. But
the eleventh section Of the act Of March 3, 1875,
authorizes the Secretary, for the purpose of OBJ
tanning bonds for the sinking fund, to give notice
that he will redeem, in coin at par any bonds of
the United States bearing interest at the rate of
six per centum, of the kind known as fve-twen-
ties; and further provides that interest on such
bonds shall cease at three months from the date
The amount required for the sinking fund Cor
the fiscal year ending June 30, 1875, s3l, ,093,
545. OF this amount g, ,Ge5 So six per cent. FIVE
S99.S7L for each hundred dollars in bonds; and on
the llth day of March, 1876, call mado for
SO, 100000 of the same class of bonds. This call
matured on the 1lth day of June. 1875, which, be-
ing so near the end of the fiscal year part Of the
bonds named in the notice were not presented for
called only s2i 800 were presented for payment
before the, goth day Of June. Therefore, the
amount which appears upon the books of the
Treasury as actually applied to the sinking fund
within the past fiscal year is s25, ,lOO
For the current fiscal year it is estimated that
sS2, l4o, ,si4 must be applied to the fund To meet
this requirement a call was made on the 1st day
of September for $So00,0O0 six per cent. FIVE
twenty bonds, and on the 18th day of November
further call for s. 900 bonds Of the same class
The balance necessary to complete the total
amount for this year will be called from time to
time in such manner as to cause the least dis
tnrpanee OF the market, and 1t Is hoped that the
whole amount VIII be presented for payment
within the year.
RrFrNDrNG THE NATIONAL DEBT
Since the Secretary's last report to Congress the
refunding of the national debt authorized by the
sS1s 1a sh r. S sna 5snI5y 70 @ s been
July Is, ls74 and which Is fully set forth and exl
planned In the last annual report, was renewed
Messrs. August Belmont & Co.. OF New York on
behalf Of Messrs. N. NJ. Rothschild Sons, of
London, Eng; Messrs. Drexel, Morgan & Co., of
New York, on behalf Of Messrs ]. s. Morgan &
Co., Of London, Eng; and Messrs. ]. & W. Selg-
man Co., Of New York, on behalf of Seligman
Brothers brothers London, Eng. The conditions of tho
parties being allowed One-half of one per cent
commission, and binding themselves to defray all
expenses incurred in transporting five per cent.
bonds to London, and six per cent. bonds, United
States coin coupons and gold COIN from London to
Washington; besides the expenses Of preparing
Under this agreement the contracting parties
have subscribed for sl22, ,6SS, $50 the balance of
new hyes" then remaining unnegotiated; and the
Secretary now has the pleasure OF announcing to
Congress that the funding of the five hundred
million OF six per cent. bonds into those bearing
hve per cent. interest has been accomplished,
thereby saving an annual interest to the Govern
ment Of five million dollars.
The success which has attended the refunding
M ha ms nj Haht dfxr rhaI IasF
sixteen months, with the steady improvement of
the national credit induces the belief that the
mainder Of the six per cent bonds can be refunded
within reasonable time in accordance with the
provisions ofthe acts before mentioned. The at
tention of Congress is however, called to the fact
that, by the terms of the authorizing act, the
bonds to be issued at the rate OF four and one half
per cent. are redeemable at any time after the ex-
pration Of fifteen years from the date Of their is
sue. Bonds most easily placed on tho market,
which are most sought for by investors, and con-
sidered In all respects the most valuable are those
having long period to run. Taking into consid-
Grafton the fact that but little indueement Is of
fered in the amount allowed as commissions for
placing the United States loans, compared with
that paid by other Governments, 1t is thought i'm
portant to give these bonds all the elements of
popularity that may be possible; and the Secre-
tary, therefore. recommends that an amendment
be made to the act Of July Il, 1870, which shall
extend the time Of redemption Of such bonds to
thirty years from the date of their issue.
RESUMPTION OF SPECIE PAYMENT.
The depression of business and general con-
lTuCllOu OF NAlues WHICH followed the nQancial
panic of 1878 have continued to a greater or iess
degree in all parts of the country. Similar
financial commissions have occurred in other
countries, and their effects are being felt TO a
degree as great, perhaps, as in this country.
These disastrous disturbances have been brought
about in our own country by oyer-tradinQ over
character, stimulated by too great abundance Of
promises TO pay, existing in the form Of cur
actual money Of the world and Of the Constitl-
ton, gold and silver. Other commercial coun-
tries which have suffered, and are now suffering
from financial depression, have felt the influence
Of like causes, while in some Of them the tempta-
tion to carry prosperous times to excess has, as
has often happened before, led to oyer-produetion
and that superhuity Of trade and credit which
must inevitably, sooner or later, be followed by
collapse and corresponding period of depres-
sion. ID
Although there are gratifying indications of in
creased activity In certain branches of business in
the United States, II must be admitted that con-
necessary TO bring about q general revival or to
put the trade and industries Of the country upon
basis Of activity and permanent prosperity. Nor
is it reasonable to expect that this viii be done
until there shall be nearer approach 60 resump-
tion Of specie payments, and consequent improve
ment in the character of the currency. The con-
stant disturbance of exchange and fuctuation of |
values, the uncertainties Of business the want of
confidence between individuals, corporations and |
communities, which all experience proves to be |
the Inevitable result Of the use Of medium Of eX-
change possessing no intrinsic value representing
no considerable amount Of labor in its production
and not convertible into that which is recognized
as money throughout the commercial world, are |
considerations which should claim the attention 1
of every thoughtful representative OF the people
However rapid may be our increase In population,
wealth and material strength, we cannot take the /
rank as o commercial or business people to which
we are entitled by superior natural adyantages
and the productive energies Of our population, or |
attract to US the surplus capital Of the world,
long as we have huctuating standards Of value, 4
and such uncertainty in our fiscal legislation as
makes the assembling of Congress and our fire. |
quent elections occasions OF anxiety and appre-
henson not only with the holders of our securities
abroad, but with business men at home.
4 Great Britain has kept the yalue of her pound /
sterling substantially unva-ying for two hundred |
years, and, in consequence of this steadiness, 1t
has become the basis Of the transactions not orly
of British commerce and trade, but of all the /
world. In all civilized countries Government ne
gotiations with foreign money-lenders are made /
upon this basis; and, as general rule, the only /
foreign bills current all over the world are those
which are expressed In pound sterling payable in i
London, which city thus becomes the great centre /
where q true measure Of property and debts can |
be found; and hence, the commerce of the world L
revolves around 1t, and pays tribute to its COM
mercial standard. With an undsteady and vary
ing currency, having fixed relation to the /
money of the world, but always much below its /
par value, we can never attain that commercial |
Independence to which our great resources and |
ectiye population entitle US. .-Er |
Every branch Of industry and all classes ofpeo-
pie are alike interested in the restoration Of
sound and stable circulating medium, the laborer
and the producer mo- less than the merchant, bond
holder and banker. I.r....-s. . |
The present unequal and huctuating currency