New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-12-17

OF these loans the first was authorized by
the act of February s, 1861; the second by
acts of July 4. 1870, and June 30. ISL; the
third by acts of July II and August 8, 1861
and the fourth by the act Of March 3, 1868.
| The amount Of maturing bond, j. 80 large that
the Treasury may be subjected to serious loss
OF difficulty, unless il has given 10 1t ut an
early day ample authority to re,ire these bonds
ms far as practicable. in advance OF the dates
OF maturity. Otherwise the Government may
be placed mt the mercy Of the money markets,
and Of the powerful dealers who manip-
ulate them. 1t may become necessary for
the Government to borrow largely, in
order to protect its credit, at time
when the condition of the money market may
not admit of the sale of bonds bearing low
rates al interest. Indeed it is doubtful. in
view of the great activity recently seen in
industrial and railroad enterprises, whether
the Government will be able 10 borrow at as
low q rate as per cent after the first part
of the coming year.
General Garfield has submitted a bill which
provides for immediate exchange of new four
per cent bonds for the SIX and five per cent
bonds which are TO mature. BY dealing directly
with the present holders, the Government Will
entirely avoid that disturbance OF the
money markets and bank reserves which
is incident to every large sale or redemption
under the old plan. Without doubt if this
bill should become a law. large proportion
of the bonds due i'm 1881 can be retired at an
early day, so that no disturbance or incon-
vcuirnce viii be possible at the maturity
of the remainder. This measure deserves
the prompt attention Of Congress- and it should
not bc forgotten that taxpayers VIII b. Gs-
posed 10 crticse members of Congress
strongly if, through their neglect or refusal
10 make proper provision, the Treasury
should be unable 10 save the country
over 81 100000 yearly, which can IN
ques,ionaby be saved in the rate of inter-
est on the public debt 10y prompt and ade-
cquate arrangements.
Ii Is equally certain that the Government
cannot now expect to sell three and a
half per cent bonds, such rs are contemplated
by TIE bill of Mr. Wood. The condition
Of the money market has entirely changed
within "A few months. Perhaps such bonds
might have been sold in July or August, before
the revival of industry in thousands of fac
tories, mills and mines, and the extension of
many railroads, had afforded profitable employ
ment for vast suns Of money But the rate
Of interest now presses closely upon the
legal limit. and there is every indica-
ton that, after period of comparative
ease early next year, the demand for money
will greatly exceed the supply. 1t would he
IN the last degree rash and foolish to give the
Government 10 power to dispose of any other
tnan three and a half per cent bonds for
the purpose Of rounding But, il the
I rn
sale Of such bonds or NEGOTIATIONS on
any ohcr more favorable terms than those
which now seem prGcucabe. the bill OF Mr..
Garfield gives the Treasury ample power to
rake advantage of that opportunity. This
question Is one which onght no. to be regarded
from partisan point Of view, nor can
anY patriotic citizen, whatever his opinions as
20 other financial questions, deny that ample
power should Immediately be given to the Gov
crnmcnt TO save Part of the interest on the
uublic debt.