The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1880-01-20
wooD's nErUNDING NIL.
Tho Drin of Sentiment Against u Fifty
Year Bond.

WASHINGTON, January 1S.-A special
meeting OF the Committee on Ways and
Means, for the consideration OF Mr..
Woods funding bill, has been called for
tomorrow. The fate Of the bill is no lon.
ger uncertain, as the fact that fifty year
three and half per cent loan would be
more costly than any the government had
ever negotiated can be demonstrated
automatically.
Judge Kelly insists upon the point that
no loan should be made which does not
give the government the right 10 redeem
after period OF not more than fifty years.
Speaking on the subject tonight Judge
Kelly said: "lt is owing to the right to
redeem the 5.20J after five years, and the
l0.40s after ten years, that We have been
able TO reduce our rates to 4 and 4! per
cent. Had Mr.. Chase issued twenty and
forty year bonds without reserving these
options, We must have continued to pay
the old rates ofinterest until the maturity
OF the bonds or have entered tho market
aud competed with syndicate that held
them for the purchase at such premiums
as they would have consented 10 take.
A fifty year bond, II our country continues
prosperous enough TO make annual pay
ments on account OF its debt,
might, and probably would, go to
premium OF 80 per cent. But,
apart from the value Of the optional right
to redeem, 8! per cent loan with fifty
years to run would cost in interest alone
nearly twice the amount Of the principal.
The total amount OF the debt maturing in
this year and next Is less than $500 000,-
900. and calculations which have caused
TO be made show that on fifty years 81
per cent loan OF $500, 100000 the interest
would be 81 400, 100000, while on n thirty
years loan al per cent Ii would amount
10 but S059, 100000, SO that in interest
alone, Mr.. Woods project would make n
greater drain on the resources OF the coun-
try than that Of Secretary Sherman. Again,
1t is found that a twenty years 4 per cent
loan would require but SGi0, 1000, 900 inter-
est, and fifteen years 4 per cent but
S4S0,000,0OO
Judge Kelly insists upon II that bond
rcdeemable after five years, and without
fixed date OF payment, could be placed at
A per cent, and that the steady annual
calling in oi such bonds Tor the sinking
fund, after the expiration OF five years,
would bring It's cost down 10 that OF a
twenty year bond, and possibly 10 that OF
fifteen year bond, or 10 SiS0,O00, 600 OF in
terest, as against 81 400 900, 900.
He will not attempt TO engrait the pos
tai savings bank feature upon Mr.. Wood's
bill, but introduce 1t as separate meas.
ure. He thinks that three per cent should
be allowed on postal deposits, and believes
that II the system be established in this
country, as It has been in England and
elsewhere, 1t will enable us to put what.
ever balance may remain OF the loan issu.
ed for the redemption OF the bonds oi
1881, in the hands Of our own people, at
8 per cent. Insisting upon the mainte,
nance OF an option, he stands upon the
doctrine OF Secretary Chase, 30 often pro
claimed, that he regarded an carly option
TO pay or convert Us more important than
tho rate of interest