Daily press and Dakotaian. [volume] (Yankton, Dakota Territory [S.D.]) 1875-1880, 1879-04-29
snEeMANs FuNp,Na scnEME. :
Tho London TiMss Expresses itself Upon
he Great Achievement.
Nav, vnrk uorald

Tho London Times Expressos Itself Upon
Great Achievement.
New York Herald.
The London Times of yesterday recognize
q the brilliant success of Secretary Sher-
man in converting the ten. forty five per cent
bonds into -four per cents and tenders con-
Rratulations. The leading journal Of Europe
could do no less. The financial achieve
ments of the American secretary of the
treasury deserve to be ranked among the
most extraordinary financial successes OF
modern times. there being nothing compar..
able with them with the single exception OF
the prompt placing of the German war in
demnity Of five milliards by the government
of President Theirs. The leading journal
of Europe could not ignore so important an
event. but the brief summary Of it's editor.
ial article; sent by cable j1stifes . doubt
whether Il appreciates the great fiscal
strength of the American government.
The London Times expresses a doubt as
to whether the United States will be equally
successful in converting the six per cent
bonds of 1881. This doubt proves that the
Times has not taken suitable pains to under.
stand the American situation. The point
which it has overlooked is the non-taxabili-
ty of our government bonds. Every other
species of property is subject to state and
municipal taxation, amounting to about two
per cent in our large cities. Bonds which
yield four per cent without liability to
taxation are as valuable Is six per cent
bonds taxable for state and municipal
OF course the holders of the
1881 sixes will not surrender them ex-
cent on compuleion, but as the govern
ment will then be at liberty to call them in
and pay them their holders will have no /.
choice If the government can then borrow |
a lower rate of interest. The London q
Times argues that by 1881 American busi- q
ness will have been revived, and that the q
high rate of interest for money in this coun- .
~ will preclude further investme nts In four o
yer cent. bonds. The vice Of this reasoning u
in its overlooking the great feature
# the non.taxability of the federal bonds.
. four per cent. bond which Is not taxable
8 equivalent to a six per cent. taxable bond.
Besides exemption from taxation our gov q
bonds have great and manifest adj q
,antaees. Like English consols they can 9
70 sold on any business day of the year. !;
They nave accordingly all the advantages q
# cash IN hand or cash deposited in a bank G
or ready use, with the additional advantage \
hat they steadily draw interest, which !
money in hand or money deposited int bank
Ices not. No other form Of property is SO
Before the skies of 1881 become T
edeemable the entire bulk of the present .
our per cent. loans will have been placed
Is permanent Investments, and there will
,e an ever charging field for this most de-
form Of property. With the con.
Of the skies Of 1881 the door will
be shut against this mode Of investment,
which will be eagerly sought when the last {
chance is on the point Of slipping away. I
We cannot doubt that four pei. cent. bonds
Tor converting the SKIES Of 1881 will be
promptly taken as soon as the treasury puts
them on the market. British consols yield
only three per cent. The credit Of our gov
eminent is so we'll established that there
will never hereafter be any difficulty in dis
posing of bonds on which the interest is
one per cent. higher. All trust funds, of
which the amount will always 60 on increas.
ing, must necessarily seek this form of in
vestment. There will be no difficulty in
converting the 1881 skies into four per cents
in view of the fact that that will be the last
opportunity to procure bonds which are on
many accounts 80 desirable.