New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-12-25
BONDs FOR THE PEoPLE.
4ur Plan oF ISSUING NON-rANABLE -FOUR FIR
cr>rs IN SMALL DENOMINATIONS FOR SAVINGS
INVESTMENTS.


crNrs ~ SMALL ORGANISATIONS FOR SAVINGS
INVESTMENTS.
ms TELEGRAPH To rur rEmrSrl
washington. Dec. 2f-Onc proposed amenumehl
a. the Funding Act. which viii receive the unanl-
mor. support # all advocates Of honest currency
and friends II the public credit no Congress VIII ne
that portion Boa regard 20 issuing per cent bonds
a., s,.au denominations. say of $40 and 50. IL
wa. this that the President had m his mind
when he wrote those sentences of ms annual mes
SAGE. in which me- said Il recommend that
suitable provision Boz made 20 enable the people
e,s,ly to convert their savings into Government Sc
curities a. tine best mode in which small savings
may be- well secured and yield a moderate interest
4 h. an object of public policy 20 retain among our
own people thc securities of the United states III
Tins way our country L. guarded against their sud
den return from foreign countries caused by war oI
other disturbances beyond our limits
The Secretary of the Treasury 10 bis annual re-
port when speaking Of savings banks, anu oil the
need of the organization Of some plan for the cocc
tior. saf, keeping and profitable employment OF
small deposits Pos the people. recommended that au-
thorfv be granted o. issue certificates for small de-
rosit, convertible into the per cent bonds now
authorized bv law the proceeds Co be used solely for
tho redemption of bonds bearing higher rate ol III
terr,t and now rcIeemabe al par
TIN. uIau which seems 90 have been suggested tothe
President of issuing bonds # small denominations
directly to the people n exchange for their savng'
has the merit of being the simpler of the two;
tioreh fhat proposed by Secretary sherman would
max, less work for the Treasury Department. II
H.. laf.r plan should bee adopted the actual number
oboad. would not Dee increased and the labor OF adj
justing tine interest, which would be very great II
1p4uyyrr small bonds were sold. would not bc aug
meut,d.
The arguments In favor Of the issu' of bonds oil
small denominations VIII suggest themselves TO any
ouevlo has watched the current of public opinion
duriIe the pas, l.w months. There are no subjects
in which public interest can Doe aroused So easily rs
thr.. which affect tine individual pockets of the
people. Thouguucs- people care little for the public
credit because. although they may accept the
theory that injury of 10 may cause general loss
ttey .yeractuaIly discover when or where their
share If 1t is contributed. II these same
p.op.. depended upon the maintenance OF
the public credit for part Of their IN
come no matter how small IL might be- they could
at once become conservative ON all financial Ques-
tons. and would be as earnestly opposed to any
LEGISLATION calculated 10 impair the public credit as
the millionnaires. In no way could the farmers and
mechanics Of the country be more thoroughly edu-
Gated i'm sound financial ideas than by inducing
them generally TO acquire personal fnan-
III
meat II is true that q large majority of
the very class of people who would purchase these
bonds of small denominations are now just much
interested in the preservation Of the public credit as
though they held United States securities. A con-
siderable portion Of the funds Of savings banks. in
width they have deposited their money, are invested
I'm this class Of securities but this interest is III
direct one not appreciated by majority OF the peo-
pie
There are other arguments In favor OF tins plan
which viii not be lost sight of when the subject
comes To- boz discussed in Congress.
The bonds on question would furnish the safest of
pos, bc investments for small savings, giving To the
holder of them security uncXcellod and to the
country home debt instead of a foreign one The
class OF men who indulge IN abuse of bOndholders,
calling them boatcd' and coupon clippers and
othertQual OpVrohriOus names, COudnOt consistent
Ii oppose an amendment If this kind Their griey
auce is that As they aegc Determinations are made
iu favor of those who rich enough 20 own United
States bonds. aud against those who are too poor
10 possess them. The enactment of a law like that
proposed would give TO the poor an opportunity to
Share with the rich the favor which the Government
extends To the holders of Its securities rs it is i'm
possible 20 deprive the rich hOudholders Of the priv
iIe.e If investing their capital m non-tlNahe bond,
surely none of these enthusiastic " friends OF the
people viii be found Directing to a measure that
VIII place poor people IN this respect on the same
llaue with the rich.