The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-07-24


from the proceeds of ten-doIlar refunding certif-
Gates or the direct exchange OF bonds. Pending the
! preparation or this offer 1t was greatly doubted
| whether the department justified in demanding
| premium, but these the last bonds that
premium could besecured. and would have demanded
higher rate but that the law required the refund
ing certificates to be exchanged at par for lawful
money. These refunding certificates were designed
to furnish an easy opportunity tor persons OF lin
tied means to invest their savings in small sums.
and of great importance not only for the
venience OF all classes of people, but interest
them in the advantages and stability of the public
debt. Within two days the whole $3.50 900 900 bonds
were sold upon the terms stated and offers
made for the whole OF the refundiug certificates.
which offers declined, and the certificates were
! sold by postal money order Offices throughout the
United States. and were eagerly taken in sums OF
thorized by law for there no other bonds that
can now be redeemed. except by purchase in tho
open market ut their market value.
The annual saving in the interest charge effected
by these refundng operations since the LIST of jan
nary last is sSSlOl6s. and since the 1st of March.
| 1877 to the present time. S14. 297 IT.
Sometimes complaint has been made that. during
this process OF refunding. the amount OF interest
bearing debt was temporarily increased, and that
interest was paid ON two sets OF bonds ut the
time. This, from the nature of things, unavoid
able under the provisions of the Refunding act of
1870. By that act, before any bond can be redeemed
notice must be given for the period OF three months.
and the money either collected secured. and this
process necessarily involves the payment Of interest
for three onths not only upon the bonds Sold but
upon those to be redeemed. Advantage taken of
this fact to unjusuy arraign the department for
matter beyond its control A constant cutlery
made that the interest bearing debt was being in
creased. The debt statement would necessarily show
that during the three months two sets of bonds
outstanding. but it would show also that the money
in the Treasury, and this being deducted would
leave balance OF the debt before. Thus. you
owe thousand dollars, with the right to pay it ut
your pleasure. and borrow money that purpose,
you will have two notes outstanding the same
time until you apply the borro wed money to the
payment OF the first note.
This is precisely the condition the United States
in when borrowing money to pay outstanding
n., nsaff otnfa ItIixt Ichp
OF the public debt the whole OF the tenforty bonds
and also the whole OF the bonds issued for their pay
meat but also shows the money in the Treasury to
pay them In the next debt statement the en-fortes
will disappear. such unpaid will appear
among the debt bearing interest. Tho cash in the
Treasury will also decrease accordingly. thought
notice required by the law entirely too long,
and in my annual report to Congress-democratic in
both branches-earnest!y urged shortening of the
period to thirty days less in order to this
double interest; but the recommendation was de-
cined or ignored. II any one is to be
held responsible for the double interest it
should be Congress. In justice to the Depart
it is but fair state that all the loans nego-
tiated for the last two years have been ia
vorable terms than any loans ever made by the
United States. They wore generally made by popu-
lar subscriptions by the people directly. The saving
from the amount allowed for the expense of ncgoti
exacted AZ and per cent bonds amounts to
$1.49694S %. can say, without fear OF contradic
tion that no nation ever negotiated its loans at
less cost favorable terms. The sales of the
famous per cert consols OF England, when made,
far less advantageous terms than the United
sumption
The resumption of specie payments has had the
beneficial effect upon the business of private
citizens. The reduction OF interest on the public
debt has made it possible to reduce the rate all
debts, whether State corporation or private Moth
ing is more certain than that irredeemable money
necessarily leads to the increase OF the rate of inter-
The first effect Of it's issue is to reduce the rate
OF interest and to advance prices Ii not redcemable
in it deprecates in value. and more OF it Is
cessary to conduct business 1t causes over-tradng
and speculation, not only the prices OF COM
shown in the advance of the rate OF interest and
what is called q scarcity of money. This general
anu Thomas Tooke. and Is fully verified by the rate
of interest before the panic and since resumption.
Private debts are now being rapidly reduced from
~ to and even to per cent.
The State of New York has. by law. reduced the
rate of interest in that State from to per cent.
The city Of Providence sold AZ per cent bonds ut
above par The State of Pennsylvania sold s2OOO,OOO
per cent bonds at above par The city of New York
sold s per cent bridge bonds at 1876 Five million
dollars of Denver and Rio Grande Railway Company
per cent bonds were subscribed in two hours-the
first tine for that money has been pledged
building railroad. All securities have advanced
since January a the average rate OF Mort
Cages at from to ~ per cent daily being reduced
to from to per cent. Capital is again seeking in
vestment in any safe securities that offer.
With the first decided preparations for resumption
there came slowly revival OF business: with tho
OF resumption that revival is marked in
nearly every branch OF industry
do not propose to weary you with of sta
tistcs but will only state the general results with
regard to few leading branches OF American indus
try.
The increase Of our exports of domestic merchan-
disc since period of the panic is without example
amount Of our exports WAS In the year
ending June /, 1879 the amount OF exports was
s69s.6ls.sss In the hye years preceding the panic
five years they were $2.999 1877 $50.
The imports of merchandise decreased from
1924 727 during the year 1873 to S422 S95 034 in
1875 30 per cent whereas the value OF exports
OF merchandise. representing mainly our agrcultu-
raj and manufacturing products. increased from
.439 100. 1873. IS per
ceut.
of the country shows gradual increase of
traffic 1878, the improvement during the last
year having been more rapid than during any pre-
ceding year since 1873. The tonnage OF the great
railroads the East to the West-the most i'm
portant highways OF commerce in this country
shows increase since 1873 OF 371a per cent. The
production OF wheat and corn, the two leading
cereal products Of the country which constitute the
principal part of bur exports or breadstus indicates
during the last year large increase over the pro-
ducuon of 1873 The production of corn in 1873 was
g32 OOO 900 bushels in 1878 about l36O 1000;
wheat 1878. PSI 900; in 1875 about
425.O0O,000
The cotton crop of the United States during the
year 1873 was larger than any previous crop in the
history of the country. Our exports Of cotton in
creased from 1.2oO.OOoOoO pounds in 1873 to
1G0S, 000.0OU pounds Ill 1873.
The quantity OF wool produced increased from
1853 UO0UO0 pounds in 1873 to 207 100000 in 1878.
The total amount which went into consumption. In
GLIDING donlesti: production and imports. repre-
senting the manufacture OF wooen goods in the
United States. increased from 236OOo.OOO pounds in
1873 to 249, 100000 in 1878.
Even shipping interests engaged in foreign
trade-the industry most depressed-show some
signs or hopefulness. Ships anu barks the
of sailing vessels principally employed in for
egn trade. The average number OF vessels Of these
two classes built during cach OF the years 18i7 to
1858 inclusive PAS, but during the year 1871 tho
number only 40 IN 1872 only 10 and in 1873 only
-. Since that tine however. there has been u
siderable improvement, the average number built
during each OF the last five years being little
than 50.
The total tonnage OF American vessels engaged in
foreign traffic. which. as have already stated fell
from 1879 396 tons IN 1860 to lJ7s533 tons in 1873.
has since that time increased to 3S tons in 1873.
Another indication of increased business is de-
rived from u statement Of the exchanges ut the
twenty-five clearing houses in the chief cities the
Union, from which 1t appears that for the first hvo
months OF the year ending June 80 1875 tho amount
of exchanges i'll those cities was gil 1851 274 and
for the period of 1879 IL $1435O 49,. 22Y.
showing an increase of 20.2 per cent tins year.
might extend this statistical information to al
most every department OF industry business. but
L. Inn IL