The New York herald., 1876-10-31

credit l1ttle dependent tue strife OF
parties that Il scarcely huctuates under blows de-
lvered by the nrst law ocsr Of the present admins
tration.
Mr. Attorney General Taft is reported as saying that
under the administration OF President buchanan the
federal credit reduced that the six per cent
bonds OF our government were sold at eghtyeish
cents on the dollar, and peddled n Europe ~
twelve per cent discount and that these very same
bonds say the six per cent bonds due lSsl are now
seiiiog a. = premium or eighteen TO twentysix per
cent. Now these six per bonds, having twenty
years to run. created by act OF Cougress ON
o. sh rss
then raised was required by the national Treas
ury Tor the purpose OF paying outstanding liabilities
incurred by falling on in the caused by tho
financial crisis Of 1857 bus still by tho sad and
movement OF secession the part OF
tho slave power and by the dark shadow which the
awful coming events OF the next iour threw be-
fore them.
. i've per cent loan OF our government having ten
years 10 run was negotiated at 100 30-l00 IN gold
and this was done AT time when the value
OF money In the principal exchanges OF our coun-
try was never under per cent per annum,
nor IN England under four five per cent II was
done a. time when domestic and foreign investors IN
chusctts, New York. Pennsylvania and Ohio those of
South Carolina, North Carolina and Louisiana, well
those OF numerous cities and railroad companies 10
choose from, which paid their holders from six to
seven per cent interest II done before our ind
vidual credit and the credit OF States, corporations
and railroads shaken to its very foundations at
home and abroad as 1t has been during the last tnree
years by the suspicious failures and defacations
talists, bankers, trustees and guardians who.
before the war Invested State, municipal and rail
road bonds in preference TO government bonds, be-
those yielded higher rate OF interest," have lat
tery been compelled in selfpreservation, to be salts.
ned with that reduction In their income for the sake Of
safety Yet In 1869, under democratic administra-
ton. the government placed its five per cent bonds,
with ten years to at 3ol00 OF per cent above
par. while in 1871 the same bonds, having the same
number OF years run, sold par, less COM
mission OF one quarter 10 half per cent So much for
the five per cent bonds
Now in regard to the six per cent bonds Of which
Mr.. Taft speaks. which ae rays were sold, or
'peddlsd" as no calls II, In Europe at eighty-cight
per cent aud which he also asserts arc now selling
at premium OF eighteen to twenty.six per
cent Here, also have TO correct . lew mistakes.
twenty years 10 run. a. SIX per cent on the Sth Of
February 1861, and the 26th OF February, say six
days before the advent OF the republican party TO
power O00 0OO OF these bonds placed prices
averaging from 90j@ TO o. They were quoted in New
York the day srer the award ut 931 that the gov
ernmcnt at that time borrowed money at about 81
cent, and not IL per cent discount the honorable
Attorney General erroncousIy states. The present
value OF these SIX per cent bonds In our market Is
about 1884, bit this IS the price n currency; aud,
gold 10 at premium OF per cent, here we have
another discrepancy OF al least twelve per cent in this
portion OF MI Tairs statement
You have, therefore, Ia tement to the national
credit put forth by the highest law oicer Of the ad
tropolis of the coury discrepancy with the facts Of
over seventeen per cent
some radical papers, gambling with the credit
interest rate at which Treasury notes. having from
two TO six months to run. sold n the market
the last days oil Mr. Buchanans first months OF Mr.
Lincons administration This has nothing at all TO
do with the position taken In my letter; yet may say
that Treasury notes having but short time 10 run are
not and have never been salsblc In Europe.
Also, may be as well TO state that In July, 1861,
more than TOUR months after Mr. Lincons Inaugural
and Two months after the curtain had upon
that stupendous and bloody four years drama which
was then to be enacted IN once happy country,
Sy New YORK. and Bosson Ts banks s4sn ssd
bankers ~ par in gold II Mr. Tait who seems TO
have studied so prohtaby our financial history In the
leisure hours loft TO him after having transferred TO
the War Department the guardianship OF the cCnsttu
tional rights of States will look upon the rst report
OF Mr. Lncons great Secretary OF the Treasury 8. p
Chase he will find the correctness OF my abatement
What s more he will find among the subscribers 10 that
loan the nrm OF August Belmont Co.. while he, most
probably. will miss many names which have since be-
notorious In their short career Of radc0sln ad-
mlnistration patronage and bankruptcy.
TIM HIGH PRICE OF FEDERAL BONDS
Great stress is laid BY the republican managers upon
the high OF our federal bonus just now here aud
abroad. This they claim proof OF their admirable
financial administration. The facts prove no such
thlng The last eleven years have Witnessed In Eu-
rope events and revulsions well calculated TO shake
tho confidence Of capitalists and 10 induce them
place least q portion OF their fortunes away from
the danger OF European revolutions and risks
general First thore tho Austro Prussian then
by tho war Of the Commune which, for the lime Oeng
created among capitalists OF Europe universal DIS
times and to pieccs by the horrors OF civil
strife. Egypt and Turkey pushed In their Of
corruption ana exravagance I'll they became default
on their public debts. while the London market
had also been flooded by the bonds OF South American
States which have since become worthless. Where
could the capitalist, the banker. the trustee for
the widow and the orphan look Tor a safe place
to invest surplus anu eRrningsy Across the At
antic he this immense country, full OF enterprise
and wealth, and which had just risen like the Phmnix
from the fires Attracted by tho high interest prom
ised by large railroad enterprises ike the Northern
Pacific and kindred schemes, profered to him by hnan
cial agents recommended BY their relations 10 our
government he invested In them only to Ind himself
again the victim Of fraudulent debtors. Then
great Union; he remembered that under Gen
eral Jackson this nation paid on its public
dcbt he remembered that nine years after tho termi
Of the Mexican war, which had tho nation
500 900 OO0 quito what California and Nevada give
every year in the precious metals we had reduced
tho national debt 10 $29 O00, 000 Remembering all
this he placed his money la our national bonds OF
course the demand Tor them became large in proper
ruptcy of such enterprises the Northern Pacific
drove investors away from even the legitimate and
sound Undertakings OF similar kind. The federal
credit was enhanccd indeed but our individual enter
prise and credit were crI ped and that has been tho
GROWING triumph Of republican finance-that has been
the Achievement OF the republican party, for which
Mr.. laft may truthiuliy Claim the whole and the
peculiar glory
sToUGHrox g PATENT
am told that the brilliant lawyer OF Washington,
Mr.. Jere. Black, who doubtless measures keeny tho
qualities of brethren whom ho has 10
contend wtth recently said OF MI stoughton:-"He Is
q good patent lawyer and an honest man, but knows
little else OF the constitution than that under It
President appoints foreign Ministers" /"
| am NO Judge Of the merits Of this estimate, but
there Is enough novelty In some OF Mr.. Stoughions
theories about debt for patent them II
he can also prove thor utility.
There Is great novelty 10 tho idea that Great
Bra'n's national credit can be unaffected by The ior
tunes OF her political parties but tnat the credit OF
the United States is not also unaffected by such
phcmera conditions. Mr.. Stoughton has, am sure,
lately visited the Centennial Exposition at Phisdei
pha, 10 which assume men OF ali parties In the
United States have contributed. trust that the posi-
ton there asserted Tor us IN competition with tho
nations OF tho world may improve his opn on
Of our political capacity.
There Is great novelty In Mr. Soughton's idca run
ming all through his letter, that the democratic party