New-York tribune., 1879-12-30
REFUNDING THE GOVERNMENT DEBT.

VIEWS OF BANNERS AS To THE POSSIBILITY OF
NEGOTIATING gig PER CENT BONDS AT PAR.
The refunding of that part of the National dept
which will fall due within the next two years
nearly $500. 600. .OOO-is subject upon which there
are opposite opinions. Secretary Sherman Is
known to favor the further issue OF
per cent bonds. The bill introduced In
Congress by General Garfield, which is known
10 represent the views of the Treasury Department.
authorizes the issue of per cent bonds IN ex'
change for outstanding bonds bearing higher rate
of interest. But the chairman Of the Committee on
Ways and Means. Fernando Wood is confident that
the debt can be refunded at lower rate of interest,"
and is now preparing bill limiting the
rate to Gig per cent. MIR. Wood was
chairman of the same committee when the
original funding act was passed and then opposed
higher rate of interest than four per cent. After
much discussion compromise in the shape Of three
classes of bonds at 4. 4i2 and per cent was
adopted. Mr.. Wood now charges the Treasury De-
partment with opposing GIG per cent loan upon
the same grounds it then opposed one bearing
per cent.
Among bankers and fnanciers opposite opinions
expressed upon the ability of the Government
to negotiate 3i9 per cent bond. The presidents of
banks In this city, and of other institutions whose
business Is the lending of money say generally that
it would be impossible 10 refund, the debt
at rt rate tsv Of Ss tnan pr"s
perity of tho country has created a demand for
money that would make futile any effort to refund
the debt at low rate of interest as gig per cent
Several of the presidents of prominent banks yeser
day said that the present agitation OF the subject
designed for specul lative purposes. TO advance
the price of per cent bonds.
On the other hand bankers who deal largely III
Government securities said that 3l2 per cent bond
could easily be negotiated at par; that the crcdlt
of the country such that bond AT that rate OF
interest could be placed more readily than the
per cents were placed ut the beginning OF reiuna-
ing operations In support OF tins oPinion they sam
that at the present premium on the different classes
of Government bonds the holders OF them
realized now not over 3i2 per cent upon the invest
ment. In spite of this tact, and in face OF sirh
gent money market, they declared that the price,
of Government bonds We're advancing steadily. In
regard to the charge that the dealers IN bonds were
Mr. Fisk OF Fisk & Hatch, said yesterday thai .he
dealers had no considerable stock OF Govern
ment bonds ON hand. The affair S.d OF he the
settled and the bonds then taken had been
disposed Of The demand still continued large, lie
sad, and savings banks and the custodians OF trust
funds were buying daily large amounts OF a per
cent bonds. He said that IL Congress would re-
strict the rate OF interest TO Gig per cent there
would be 10 difficulty IN negotiating 9onis bearing
that rate OF interest The prosperity OF the country
which others thought an obstacle 10 refunding
at low rate. was, on the contrary, an argument IN
favor of II. The bonds OF the GoVeinnent could be
marketed IN any country of the world. The Treas
ury now had a large accumulation OF money, sew
eral times larger than at the time funding opera
tions were begun. Mr.. Fish SAID that not
withstandng the present high rates OF money
the deposits of the savings banks were increasing
steadily. certain class of capital would not seek
investment IN business under any circumstances.
and the confidence in the Government securities
great that 1t was unnecessary for the Treas
ury to pay higher rate than gig per cent.
This talk about lower rate than per cent Is
all bosh" said President Sherman. Of the Mechanics
National Bank. " 1t ali comes, think, from de
sire to raise the premium on per cent bonds The
members of the last syndicate still hold large
amounts of bonds winch they have heen Obliged 10
buy from time to time in order to support the price
/ suppose they wish To make a market for them. IL
would be impossible to negotiate bond bearing gig
per cent interest"