New-York tribune., 1876-05-06

said the Government is in position to dictate mini
OF interest and being able to do that 1t can
afford to make its bonds long enough to mpart to them
element that will compensate for the low rate OF In
terest. Mr. Hatch entered into computation to
show that at the market rate at which bonds
selling both in NewYOrk and in Europe. they yield only
about four per cent interest on the investment. .
In answer to the question what amount Of four per
cent bonds he thought his frm with the assistance OF
friends forming an American syndicate instead OF a
European one could negotiate within the next twelve
months he said that very difficult thing to esti
mate He thought probably large amount OF long
bonds could be negotiated at four per cent as of shorter
bonds at four and half cent, with this exception
perhaps that if Mr. Rohschild and his syndicate stand
ready and pay for $50 100000 to-day, might
not find American house syndicate ready to take
like amount Of four per cent bonds at Referring
to the Resumption act, Mr. Hatch said that he did not
think 1t had any practical effect upon the market value Of
United States bonds The Is that the resumption
act has not been much believed In.
The following interesting coloquy in regard to Mr..
Keeys 365 took place during
Mr. Hatchs examination:
Mr.. HiYou say that there is great demand for In
IN these oi un1ose Ie We
pass law authorizing the funding of the greenback cur
rency into 365 bonds, what effect would that hayef
Mr.. Hatch-The effect of it would be for the Govern
pay interest class of It's debt which the pub
Mr.. ffliICWould % it not T retire the currencyi
Mr. Hatch-Yes; retire it at murderous rate. II you
want TO wipe everything out, do that
Mr.. Kelley-Suppose these bonds were interconVert-
Mr.. Hatch-That is another thing.
Mr.. Hill-suppose they arc interconvtrtible at the
pleasure only OF the holder =, ....
Mr.. Hatch-That is what understand by interc H.
vertble
manent Investment far as the holder is willing to have
ii such1 . =, -.
MIR Hacl-Yes; but the objection to that il that ii
makes the Government mere sewer and convenience 10
pay interest money that it does not want and that
nobody else wants.
Mr. KciIey-Suppose the law that authorized that re-
Qured Secretary of the Treasury to avn bnscH or
funds first for the purpose oi supplying the Ifes
ury with OF currency appropriated 10y Congress
beyond the receipts from ihe ordinary sources OF cur cur
bonds Let me illustrate: In the month of August last
the Secretary bought in New-lo as much glcenDack
pose instead of buying these geenbcks he had re-
ceved them in exchange for inerconverbe bonds ana
had called Sj.O00.OOO of collaborating bondsf In The
month of September he also bought grcclDhcks 10 te
amount 900 900, TO meet the cXlgcnccs OF the d
propratious Suppose again, that hc had received these
rreubacks in exchange 36J bonds, and had called
~ 100 NON ~ nor cnnt hands In the ruoufb Of Oco-
Der he bought much greenback currency as louoOov
OF gold would buy Suppose again. that he had applied
that ~ gold TO calling bonds, taking the cur
rcncy from the dcpOsitors in exchange or 800 bonds,
would the Government have been ihe loser py tat oe
ationi - , ,..,. - .,.
would nave ISSUED lot Of iniercOnycrtle 800 nonds-
merely demand loauand If the money rs spent ana the
creditors demand H. the Government has NOT Hui IT,
Mr. Kelley-Is not that danger that Is hanging over
all banks that receive drroSisf
Mr. Hatch-Yes; but the business OF hank j. o bank.
and to guard all It's interests. Government cannot
Mr. Keiey-Would IT not be possible for the Govern
ment to guard against that contingency
Department land do no. say II is noU 10 be run as
bank Is