New-York tribune., 1880-02-16
cnrEPvnENT REFUNDLNG.

GOVERNHENT REFDNDINb'
Tbere 10 rAosop for hearty cOngratulatlon az
the prospect that Congress Will do soinethins
IN nrovide for refunding the outstanding hVe
and six per cent bonds, even though IL
may not do the best thing lhere "
not the slightest reason to lear thaV Vhe
Secretary of the Treasury VIII sell Dohus u,
q high rate of interest when he can sell
bonds at lower rate. Personal ana parrish"
interest, as we'll as patriotic 1eeiing anu
sense of duty, would impel him In such case
70 do the best ne could for the country. Ills
own reputation would he greatly enhanced ny
success in refunding at the lowest posslOie
rate His party would be materially aided oy
such success. All the business interests OF the
country would be promoted thereby, and
therefore incidentally all interests when
the Secretary and his friends may nave
in connection with any useful indus
try or legitimate investment. IL Is aDsufu
TO suppose that Mr.. Sherman, notWlthstahu-
ing all these considerations, and contrary 10
his sense of duty, would make dlsadVah-
tageous sale, knowing that he had power W
make better. Nor is there any other man.
or assemblage of men, who would be hhey
70 get better information as to such matter
than Mr.. Sherman has shown himself able 10
get in every ease of need.
The real reason for depriving the Treas
ury of that discretion which has heretofore
been given in respect to the precise Ia'e
! of interest of bonds to be sold, is a partisan
reason. Prominent Democrats are anxious 10
claim that they insisted upon " Donds Dear
ing a low rate, and so " save the people
some money. In order to do this they
must pretend a dstrust which they really
do not feel; must pretend 10 DeheVe
that Secretary Sherman, If lett TO hlmseil'
would nrefer to sell bonds at a high rate
rather than bonds at a low rate. These
demaOooues often insinuate that some set
of capitaIists may be benefited by such a
course. But plain common sense is enough
70 show man that Mr.. Sherman's greatest
interest Is TO make the best possible sale
for the country. and that all the permanent
interests of all classes of business men ana
canitolists would be served by the same course
Where a bond is offered openly, as has been
done thus far, If any set of capitalists think
they can make money by Offering higher
pnce than others have offered they lmmedi-
atejy submit their bid, and if any set OF capi-
talists should offer par for three and hali
ner cents it is very.certain that no Secretary
of the Treasury would thereafter dare to insist
upon selling four per cents only
The London Economist Of Saturday last, in n
naracrnpb which has been telegTaphed, says
"United States four per cent bonds have at
Gained pr1ce at which they yield to the III
"vestor only 3si per cent. Secretary of the
Treasury sherman ought, we should
"tbink. by this time, to be convinced
q" that his Government could readily place 3l2
"per cent perpetual stock at par" While the
National debt of Great Britain IS regarded as
a permanent fixture. and little effort Is eVei
made TO reduce it, the debt of the United
States has already been reduced from
SO. 1855, ,431 ,571 43 at its highest point, August
81. 1868. to $4,000, 1877. .240 % on the Isl
of February, 1880. or $75G, ,000,0 900 in fourteen
wears and five months At the same rate th'
entire debt would be extingmshed IN abou
forty wears and nine months more. In all dis
crssion of refundine measures. an import
ant consideration never forgotten Is that The
, sinking fund already provided by law will o
itself extinguish the entire debt within
about forty or forty-flye years.
, Whether the proposed three and hal
ner cent bonds can be sold at par or no
is not placed altogether beyond dOub
Inv tho fact that the four per cent
A now yield but little more to an investor
!. Nevertheless, Secretary Sherman is dis
o posed to regard the effort hopefully, ant
9 the Administration properly determines thl
y every endeavor shall be made, if the bill
a masses. to make it completely successful
n The circumstances are peculiarly favorabl
r. at this time, and there is possibility that tn
q favoring conditions may continue through hi
~. raor opd thp