Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1880-01-23


16l, 200, upon which we pay 81, :iSl, e9S-"o
interest annually F.; but if funded at ! per
cent the annual charge would he only so,
9lo, 46S, and the yearly saving elected
would he SO 410, $50. 30. That portion OF
debt due within one year must he paid Inc
remainder it is true, is ut our option, amt
may he paid if We provide the means, or re-
newrd and exchanged, provided the holders
accept of the terms offered. We can pay
our debts, but we cannot pay them with ~
per cent bonds, unless the party Of the second
part will accept them.
Mr. Morrill, dwct at length upon the
changed condition of business and industry
In the country. which will have marked
influence upon the rates OF interest. ne
greater demand for money for Il thousand re
viving enterprises will increase the rate OF
interest rendering the selling of 4 per cent
bonds more difficult. lie also refers to the
rapid development of the new country.
which will absorb much capital, as an addl-
tional reason why it will be impossible to sell
a 81 per cent bond.
THE PROPORTIONS OF TIE TASK.
The task before us of paying or refundng
S19l ,121 200. even, with the financial ilde
all in our favor, is one OF colossal proper
tons, requiring great tact and diligence ON
the part of the Treasury Department by
which, not only to achieve success, but to
avoid any disturbance of foreign exchange
or stringcncy in the supply of money in
financial centres. ANY considerable delay
may bring change of circumstances, dis
location of trade, or of the money market,
or of danger signals Of a war III Europe,
which would interrupt the whole plan. All
of our present surroundings URGE us to act
promptly.
A Government loan even at per cent Is
most certainly lower than any other in our
whole history since the Declaration of In
dependence. Have our people become so
suddenly holders of such large masses OF
wealth that we may rely upon the ABSORB
ton of whatever loans and at whatever price
we may throw upon the market: So late as
1878 nobody would have vcnturcd to suggest
that a loan could he floated at anything less
than per cent The fall in the rate of in
tcrest was because the industries OF the
world had little use for money. 1t has been
A drug. Since that time it will not he
seriously maintained that capital has made
any large accretions. Almost the only saw
ings which were made for five years must be
credited to the strict economy which was
brought home to every family of an almost
universal curtailment of expenditures.
Workingmen during many seasons had moi
full employment. Dividends of railroads,
banks, furnaces, and manufactures were not
earned, and if not earned they are not here
to be permanently absorbed in 4 per cent
loan The year 1879 was year of prospect
ty, but the assumption that we have made
such prodigious strides in the accumulation
of wealth as to be able to carry our public
debt at less than twothirds of the cost We
have been paying | fear is wholly unwar-
ranted
TIE RATES rAID By OTHER NATIONS.
Upon an examination of the National loans
negotiated within the last twenty years by
foreign governments, few, if any, will be
found bearing less rate than per cent,
many are higher, and they have often been
issued at less than par or facilitated by large
and handsome commissions. Many per
cent securities now sell in open market for
less than par. Those Of Italy bring only 70
cents on the dollar, but they are subject to
the deduction of tax. Those Of Hungary
sell at so. Austrian per cent gold rentcs
sell at 20; Brazilian 5 per cents sell al
95: Massachusetts, five per cents payable
1888, bring 1O9; French ) per cent rentcs. in
perpetuity their most popular security, sell
at ia. which would yield to investors at
that price, over A per cent interest, or near
ly Al per cent; Canadian six per cents. pay
BILE 1884, sell at los; and none of the Cana
dian four per 'ents bring par unless guaran-
teed by the imperial government RusSia
recently Offered 5 per cent loan at % cents
on the dollar, but it was not taken; and
previous per cent loan brings only - cents
on the dollar, which would yield g. per cent
interest to investors.
A FOUR Per- CENT LOAN AT HOME MORE De
sIRABLI THAN A LOWER RATE ABEoAD-
Even if il were certain that the remainder OF
our debt could be refunded abroad at hall
per cent less than ut home, as it cannot be
unless we take in payment something beside
gold, the policy of accepting such terms Is
open to serious dispute. The drain upon
the resources Of the country for large sums
of money 10 be annually sent and spent out
of the country, is surely far greater than II
would he on the same amount dishurSed III
home. 1t is the old question presented 10y
absentee landlords, it is the grievance OF Ire
land, and ii will scarcely he denied that large
expenditures of land rent abroad Will impoVtr-
ish any people. 1t not only deprlves the
land of the benefit of that fertility bestowed
hy some modified return OF its productions
but it largely contributes to adverse eN
changes, and constantly drains the country
of its hard cash. Very obviously there is :;
..~--.a"-.hie difference in favor of holding
our National debt at f~.,,.. and .liii.-4..'....
though not mathematically computable, quite
worthy of the attention of Congress. Sub
nit the question to our own people, and dc
not doubt they would almost unanimous,
agree that we should better consult their IN
tcrests to place our debt ut home at pei
cent rather than at half per cent or even
per cent less abroad
The only reason have to offer for bring
ing this subject to the attention of the Sen
ate at this time is, that in my judgment time
is of great importance. Something can be
done now. and it may be that by waiting less
can be done. 1t is possible that loan bearing
interest at a rate between - and per cent
interest might find favor, but it would in
volve risk and delay, and at last nothing less
than absolute success would vindicatc IT.
merits. Others may have better reasons tc
give for different conclusions and, il they
should have, they will receive careful con
sidcraton, as, more than anything else, my
desire is to promote such measures only a'
will surely best serve the great interests Of
our country.