New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-12-27
TUF FTNDJNG BILL-

L Congress will consider the Funding bill
precisely as any practical man would consider
a question affecting his own business interests,
there will be little debate or delay. We have
debts amounting, according to the statement
OF December l, to $6S3, 172, 500, which must
be maid or may be reduced this year. There
is not the 81 ghtcst doubt that four per cent
bonds can be sold in sufficient number to re-
deem or pay these debts. That would save
SIS. 966,941 80 every year. But if it Is
possible to sell three and half per cent
bonds. that will save 81, $50, S0i 80 yearly.
And if it is possible to sell three per cent
bonds. that will save 1915, 79S. 667 80
yearly. A difference of only half of one per
cent IN the amount of interest to be paid on
the new bonds sold will save the country
S3.415. 800 each year. But failure to carry
out any plan undertaken would not only cost
the country at least $4,000, 600 the very first
year-f0r IT is certain that four per cent
bond can be sOld-but would probably so
inpar the credit and disorder the finances of
the Government that 1t might become imrOs-
sibie to sell even four per cent bonds in sutli-
cient amount.
Congress should not forget that there are
very powerful interests enlisted to bring about
the failure of refunding if possible. If money
ever has power, six hundred and eighty mill
ions cannot De considered powerless. Bank
ers, capitalists and corporations all over the
country, who hold the SIX and five per cent
bonds, would gain the sc, 600, 900 or more in
single year which the people would lose, if
refunding could be defeated. But these men are
too shrewd to openly oppose the measure viii.
they wish to defeat. That would only
call attention to their motives, and insure its
success Hence they choose indirect methods
Some of them are very zealonsly urging the
passage of a three per cent Funding bill, with
snch provisions that they think it will prove
empty and impracticable. II they can get
Congress TO authorize the Secretary to sell
only certain class OF bonds which they know
he cannot sell, refunding will be defeated for
at least one year, and bondholders will pocket
a profit of at least $9,O00,O00.
Every citizen who has no private interest to
serve would be glad to see the Government
authorized to issue three per cent bonds for
refunding, providing these bonds can be sold
at par. But every such citizen ought to be
earnest in opposing schemes calculated to de-
feat resumption, by authorizing only three per
cent bonds and refusing TO add provisions
necessary to make such bonds sell. Intelligent
men know that bond running for short
time only cannot be sold with as low a rate
of interest as a similar bond running for
long term. The men who insist upon
a three per cent bond and a short
term act precisely as if they meant
to defeat refunding altogether. For a British
three per cent consol, running virtually forever,
of tu III,
q brief period in 1852 and 1858. The con-
soils did not really sell at par November 3-5,
when the quotation was 100 or above for the
first time in twenty en- years, because at
that time they carried over l per cent accrued
interest. Again. from November 10 to De-
cember they were quoted at 100 to 1908,
but never reached Il price at which the bond
without accrued interest was worth more than
about 99ll. Nor has any bond OF the United
States ever sold, even for a single day, at a
price so high that it would yield as little as
3lo per cent on its cost. which, for four per
cent bond, would be about IA ex interest
A method has been pointed out by The
TRIBUNE which Will insure the sale of three per
cent bonds at par, If Congress chooses to
adopt it, ii Congress will provide that the
National banks winch deposit three per cent
bonds as security for circulation shall not be
taxed on the part Of their circulation thus Sc
cured. there can be no doubt that the three
per cents Will be quickly taken. The profits
on a circulation secured 10y four per cent bonds
IL has been shown, are so small that any
material reduction in the rate without .
tightening Of taxation would undoubtedly
cause Il general abandonment Of the National
system, and a violent contraction of the cur
rency. Wlth the four per cents Welding a