New-York tribune., 1876-02-16
TILE III NnLNG IORIOISE.

The process of reducing the interest on The
six per cent Five-twcnty bonds of the United
States ia, for the present, at an end. lhe last
call of six per cent bonds for redemption
under the contract with the Syndicate "a'
made three months ago. and yesterday the
Syndicate men made their final payments 10
the Treasury Secretary Bristow has no
authority to sell any more five per cent bonds
for the purpose of retiring Five-twcntics. He
can almost-almost but not quite-scll the four
and half per cent; authorized by the Fund
ing act of 1870. As we see no good reason
for paving six per cent interest on about seven
hundred millions of Five-twentics, when we can
easily borrow at five per cent and save the
difference, we hope Congress VIII no longer
delay action III this matter These aro The
times in which the bonds of all honest and
solvent nations command the highest
prices. We should not suffer them to 90
by without providing for paying oil all the SIX
per cent bonds that are within reach OF the
Government Nearly three hundred millions oi
these are not redecmable until 1851, but ev-
ery bond of the class known as fivc-twcniics
can now be paid Oft at par i'll gold without IN
Justice to any one. The original F,.idng act
was passed nearly six years ago. Are we To
keep on for six, perhaps sixteen, years more
having six per cent when five per cent bonds
can be sold at a prcmiumY Nothing could be
more satisfactory to the present bondholdcrs.
The more stupid and slow the present Demo
cratic House of Representatives shows itself to
be. the better it will be for the bOndholdcr
and the worse for the taxpayer.
We are well aware that the funding buSi-
ness, az thus far conducted has been OF a
deep and mysterious character-so much so
that Senator Boutwell,, Judge Richardson, and
Secretary Bristow have all failed in clearly cx-
planning to Congress and the people just why
funding should be done as it has been done.
The original Funding act was passed nearly
six years ago, and it has taken u5 all that
time to sell $500, 900 of iiyeper cent bonds.
There are still left nearly 81, 0O0,00O,OO0
of bonds drawing six per cent interest III gold.
If we follow the plan thus far pursued the
United States Treasury will be mixed up with
Syndcates of foreign bankers for twenty years
to come. If we sell four and half per cents
at the rate we have been selling fiyes the con-
version of our six per cent debt will occupy
ten years more. After 1881 it will probably
be practicable to change all the five per cents
into bonds bearing some lower rate of inter
est, so that if progress is as slow "a 1t has
been Syndicate will always have to be kept
in operation.
We should be sorry to be understood as
finding fault with Secretary BristOw or with
the Syndicate. The defects arc in the law.
During the process Of placing the new bonds
the gentlemen who conduct the Syndicate
operations have no slight advantages over the
rest of thes financial community, inasmuch rs
they cannot AVOID anticipating disturbances OF
the gold premium, bond quotations, and for
eign exchanges, which are hidden from other
people We desire no more than this-that
the process of funding be expedited. Let this
waste of the resources of the Government, in
paying one-ffth more interest on the
larger share of its funded debt than there is
any necessity for, not continue indefinitely,
and, if possible, let the capitalists OF the
United States have the privilege OF dealing
directly with their own Government.
When man has a large stock of certain
commodity to dispose of quickly, common
sense dictates that he offer his goods rather
below than above the market rates. Had Con-
gress acted on this plan instead of the opposite
one, the funded loan would not have dragged
as it has done or be at stand-still now We
do not see any satisfactory reasons for believ-
ing that the United States can borrow any
large amount at four or four and half per
cent. 1t is now nearly six years since the
oGer of four ard four and half per
cent bonds for par in gold was held out
to the money kings of Europe, but
not dollar has yet been obtained
of them on those terms. During that
interval what momentous series Of events
has taken place in FraDce-war loans, indem-
nifty loans, vast preparations for resumption,
and the nation threatened with general
bankruptcy aud ruin" Meanwhile We have