The daily gazette., 1879-04-23


twelve years, and As remarkable one
for the past two years. All the money |
that has been saved has been caught up |
by Mr.. Sherman's high bids; and this
will continue so long as the conversion
of bonds go on or until all the bonds
are absorbed into four per cents.
So long as this is the case real estate
and every other species Of inv stments
will have to give way before the higher
inducements of the government money
kings. 1t is useless for men to disguise
the fact. 1t is becoming more apparant
every day that the reign of high salaries
and high living in Washington will
be long. The tricks of the lswy ers, who
for the past decade have made all the
laws of Congress, have involved the plain
aud simple iorms of the old government
under Jackson, Polk, Van Buren, and
Buchanan into all the complexities Of the
bureau aristocracies of Europe. Who
would have supposed that men of sense
with due care for the interests of the
people would have allowed the mas, of
stuff called the "U. S. Statutes" to be
adopted in budget9 Yet this was done
| by honorable men-lawyers And among
these men at Washington has grown up
habit of saying such "a one is no law
yer" The government never was so
disgraced as it has been by the Congress-
men of the last ten or twelve years, COM
posed nearly wholly of lawyers-mostly
at home. But this does not help us. L.
only makes the matter worse since the
government is made the greater bor-
rover. The New York World says:
"Mr. Sherman has really no compel itor
as borrower because his promises
=" cannot be taxed. He pays per cent.
(which, when the New York taxes on
other property are taken into the &C
count, is equal to 55-l0O per cent.
If a man buys city bond or mortgage
" or promissory note paying him 9 or
." per cent, the law reduses his revenue
'by taxation, and money grows naturally
"'tight' for borrowers where the lender
" must pay tax on the loan. The effect
:" Of our modern business civilization is to
make New York the money-chest of
:" the country, from which money can be
" drawn and on which it can be deposited
Z" by checks or by telegraph. The keep
80 ers and managers of this money chest
" invest the money in Government 4 per
cents. Oh which they feel sure they CAN
always get money, even upon sudden
" call"
Following this idea up We find the
New York Herald Of the same day, in a
very conclusive article, proving TO the
London Times the ability of Secretary
Sherman to continue his oppei ations for
the conve sion of the bonds. 1t proves
conclusiyely tnat considering the heavy
taxes laid upon the labor and real estate
Of the country, the government bonds
are safer and yield higher rate of in
terest Than any other inyes ments for
capitalists. As the World SAYS New
York is the "money-chest," and It gath
ers there from all quarters, and the
National system of banking will con.
tinue its concentration until it results in
centralized government at Washing on
if the Republican policy of large armies
and high salaries is continued. What is
ths West and the South to do for money,
but to 60 without il under such a system.
Had we liberal money system as we
had before the war, we would be the
richest nation on earth. We quote from
the Herald Of yesterday:
The London Times expresses doubt
as TO whether til. United States will be
, equally successful in converting the six
, per cent. bonds of 1881. This doubt
prove. that the Times has not taken suit
able pains to unders and the American
: situation. The point which it has over
looked is the non-taxabil ty Of our gov
, ernment bonds. livery other species OF
property is subject to Stae aud munich
pal taxation, amounting TO about two per
Ctut. III our large Cllleo. bonus Wnlct
yield four per cent. without liability TO
, taxation are as valuable as six per reni
bonds taxable for State and municipal
purposes. OF course the holders of the
e 1851 skies will not surrender them ex.
e cept on compulsion, but 'as the govern.
g ment will then be at liberty to call them
III and pay them their holders will have
no choice If the goserI mennt can ther
g borrow at a lower rate of interest. Th,
t London Times argues tn II by lsol Ameri
A can business will have been revived. All,
that the high rate OF terest for none,
in this country will preclude further in
|. vestmeuts in four per cent. bonds Til,
Il vice OF this reas ming co ssts in its over
. looking the grea feature of the non
taXability of the fed al bond-. A fou
: per cent. bond which is not taxable i
Il equivalent TO a six p r cc' /. axable bond
q Besides exemption + ON tax ton GU
l. government bonds have great and maui
!" fest advantages. Like English consol
$ they can be sold without .os on an
II business day of the yea. They have az
Is cordingly all the advantage , f ash il
hand or cash deposited in bank 70
- ready use, with the rdditional advaItag
& that they steadi draw II tere /, VII o.
hat in,