New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-01-28

market. A largo crop here and large crOp'
in Europe concurfing, would cause such 8
| fall in prices OF grain and other product:
hat the money market may be subjected to q
very severe strain. Speculation during the
Summer might push prices to such point
that reverses in the Fall, the season
when the money market is ordinarily
pressed would be inevitable. An immense ex-
tension of railroads is in progress. Within
the year bonds amounting TO many millions
1T is impossible to say how many-will be
offered in the market to absorb that surplus
capital to which the Government might at
present appeal for the sale of new bonds at
low rate Thus there is no certainty, indeed
there is not a strong probability, that the sale
Of such bonds would be possible after Deem
her next, even if Congress should then make
provision for such sale.
In that case refunding Of the public debt
upon advantageous terms will become impoS-
sible The bonds begin TO mature January 1,
and large amounts mature IN May and June.
If 10 provision should be made prior TO jan
uary 1 all capitalists will know that they
have the Government ut their mercy. It will
be impossible then for the Government to
sell bonds at low rate, simply because
all capitalists will know it is compelled
TO sell at some rate, and will demand
the highest they can get. Within four months,
mt the utmost, it will become necessary for
the Treasury to act. Capitalists who know
that they can command 5 or 6 per cent bonds
by waiting will not be in hurry to take or
go or per cent bonds.
If refIndmg fails entirely, the position of
the Government will be one of extraordinary
difficulty. 1t has bonds amounting to
$782, 100000 to meet. 1t has on hand for the
protection of its outstanding demand notes only
about 40 per cent of the amount of those
nOtes-a reserve scarcely more than enough to
maintain them at par. Actual bankruptcy would
be not far distant if the session commencing
in December next should fail TO make prompt
provision for refunding at terms largely in the
discretion of the Secretary. Even then the
Government will probably have to sell bonds
at terms less favorable than can now be OBJ
tanned. Thus the Government will probably
lose heavily in any case. In case OF
failure to act promptly, which, consider
ing the present temper of the House, is
probable enough, the loss would be enOr-
nous and the dishonor irretrevible.
The Democratic party now stands response
bic for most extraordinary financial errors.
Its wisest statesmen know that it is gravely
distrusted, because men of capital doubt its
fidelity TO the public honor When to all
these causes of distrust there is added a GER
taiuty that the Government must lose very
largely, and may be involved in actual dis
honor, through the refusal of the Democratic
majority in Congress to act upon recon-
mondatons of tho Secretary of the Treasury.
the argument against that party will be
pressed home in the next campaign with ire
mendOus effect. Indeed, it may be doubted
whether any other error Of financial charac-
ter which the party has yet committed will
cost 1t so heavily "a this 1t is not the part
of Republicans to give warning with sneCial
regard 10 the success of Democrats. 1t is their
duty 10 do all that in them lies to save the
country from loss or dshOnOr In that spirit
we warn the Democratic party that the fail
ure 20 mature and pass working refunding
BILL upon which it shall be found practicable
to sell this Summer bonds required for refund
ing, will cost it more votes than its statesmen
at Washington dare to lose. They hesitate,
and fail to act, solely because they have no
comprehension of the risk they run.