National Republican., 1877-12-04

from the public notice Of such subscriptions and
N such cities and upon such notice as The secre.
opening of the lists; and further to offer 70 the
subscrbers the option Of paying In installmens
tending through three months.
Under this contract. invitations having been
published, subscriptions to this loan were
opened on'the 10th Of June, 1877. Within the
periodof thirty days thereafter the subscrip-
tons had reached the sum of SIS 496, $50,
which were payable within ninety days from
the date of subscription, or on or before the
10th Of October. Every subscription to these
bonds has been paid, and of the proceeds $50,-
100000 have been applied To the redemption Of
residue has been applied to resumption pur-
poses, as hereafter stated. The annual reduc-
tion ofinterest on tho public debt thus made
By the E sale Of sis.oooooo four and one.
BY he r sale ' Of SSoooccc % four per cent ''N'
ponds............ ......................... 1WO.WO
Aegregating ....................... $3,775.0o0
In October last, aftcr tho payment Of the
popular subscriptions, arrangements were per-
fccted to open further subscriptions to the
four per cent. loan and q call was about 10
issue for ten millions Of siI per cent bonds,
but II was temporarily postponed by reason Of
the agitation Of the repeal Of the resumption
act and the remonetization Of silver, which
the associates believed would prevent further
sales Of these bonds. For this reason they de-
clined 10 offer them, and no further call Of six
per cont. bonds was therefore made.
On the 10Th Of June, pending tho subscrip-
tions, the Secretary informed the associates, In
an official letter, that, ms the Government ex-
acts in payment for these bonds their face
value in gold coin, II was not anticipated that
any future legislation Of Congress, or any ac-
tion of any Department Of the Government,
Al. n
the principal Of these bonds or the payment of
the interest thereon, in coin of less value than
the coin authorized by law at the time of their
issue-being gold coin. Tho general conf
dencc Of the public that so just q principle Of
good faith would be observed by the Govern
ment no doubt largely contributed to the sue
cess of the loan. Whatever policy the Gov
ernment may adopt, at any time, in Its system
of coinage, II should not reduce the value of
the coin in which II pays its obligations below
that IT demanded and received. The Secretary
earnestly urges Congress to give its sanction to
this assurance.
The high credit Of the United States, tho
faithful observance Of its public obligations,
the abundance of its wealth and resources, the
rapid reduction of Its debt, the great accumu-
lation of savings among tho people, the favor
able state of foreign trade-all contribute to
enable the United States 10 borrow both from
its own people and in foreign markets on the
most favorable terms. .
The Secretary does not doubt that, II no
questions had arisen disturbing the public
credit, the six per cent. bonds would be rapidly
paid of by the proceeds Of the four per cent.
bonds, sold at par In coin or its equivalent.
The highest public credit can be secured
only by constant observance Of every public
engagement, construed according to its letter
and spirit. Thus far this course has been
faithfully pursued by the United States.
Without it our ample resources and ability to
pay are Of no avail At time when we are
enjoying such credit, and rapidly securing the
benefit of 1t by the reduction Of the rate of
interest from six to four per cent, II would
seem to be q grievous error to raise question
about the coin in which the interest Is payable.
Self-interest alone, without respect to pride in
public credit would lead us to secure so great
a benefit as would be the saving of one-third
Of the interest Of the public debt.
OF the six per cent loans about $500, 900 900
are now redeemable at the pleasure Of the
United States, and Of the whole debt 81, ,452, :
100000 arc redeemable before or on the lst Of
May, 1881. By the reduction Of the interest,
from six to four per cent, on the public debt
now redcemable, there would be q saving Of
$40. 200, 600 annually. and by the reduction to
four per cent. of the interest on the total debt,
redeemable by the 1st Of May, 1881, there
would be saving of s22, 2,0O6, ,205.50 per an
mum.
Any measure that creates distrust or doubt
will arrest this process, and, by disabling the
United States from borrowing, will compel the
continued payment Of the high rate Of six
per cent.
II, therefore, the public interests demand
tho issue of silver dollars-a subject hereafter
discussed-itis respectfully submitted to Con-
gress that an express exception be made re-
quiring that gold coin alone shall be paid for
principal or interest ON bonds issued to public
creditors since February 12, 1873, the amount
of which Is $592, $780, 100. These bonds have
entered into the markets Of the world. II the
market value of the silver In the new coin Is
less than the gold dollar, forced payment in
new coin Is q Reputation Of u part of this
debt. The saving that would thus be made is
utterly Insignificant compared with the injury
done to the public credit.
And oven as to bonds issued prior to Febru-
ary 10, 1873, public policy and enlightened
self-interest require us to pay them in the coin
then in circulation and contemplated by both
parties as the medium of payment. Silver
dollars have not been In circulation In the
United States since 1887, and since 1853 frac-
tional silver coins have been In circulation and
q legal tender only for limited sums, and have
not been contemplated as the medium OF pay
ment since any considerable portion of the
outstanding bonds were issued. The silver
dollar was, in fact, more valuable than the
gold dollar 1t does not become nation like
ours to avail itself of the market depreciation
of silver to gain small saving by tho payment
Of silver dollars instead of the coin contem-
plated when the bonds were issued. A far
greater saving and higher public honor can be
secured by the sale Of four per cent. bonds un-
der the refunding net aud the payment of out
standing bonds in gold coin. An assurance
given by Congress OF such payment would at
once secure the complete success of the refund
ing process and greatly advance the present
high credit Of the United States.
Another practical impediment in the sale of
bonds was that, under the law, the Secretary
could receive coin alone In payment for them,
and the only existing coin that could bo re-
ceiyed, under the law, was gold coin. As this
was not IN general circulation ii was imprac-
ticable for the people to pay it into the Treas
ury for these bonds. Therefore it became
necessary to conduct all sales through third
parties, who could receive bank-bills, United
States notes, drefts, certificates, and other
forms of commercial paper, and convert them
into coin. The Secretary therefore recon-
mends that he be authorized to sell such bonds
either for coin or for its equivalent In United
States notes.
BY the resumption act approved January II,
1875, the Secretary Of the Treasury is required