Mexico weekly ledger., 1880-02-26
REEUNDING.

REMINDING.
In his report to congress, the Sec
rotary of the Treasury called atten-
ton to the necessity of providing for
the five and six per cent. bond, ma
turing in 1880 and 1881. These
amount to some seven hundred and
eighty-two millions. The Secretary,
while informing congress that the six
per cents. becoming due in 1880
could be paid out of surplus revenue,
suggested that authority might be
given to issue four per cent. bonds to
meet those of 1881. Since then, sew
eral refunding propositions have been
submitted, and the Committee on
Ways and Means, of which Mr.. Wood
is chairman, has reported a bill for the
issue of five hundred million o~ftwenty-
forty, three and a half per cent. bonds,
and two hundred million of two-ten,
three and a half treasury notes This
bill has been made the order Of the
day for the first Tuesday in March,
and after that, will take precedence
of all business in committee Of the
whole, except appropriation bills.
In all probability, the discussion OF
this measure will bring congress face
to face with the propriety of PROVED
ing for a speedy liquidation of a very
considerable portion of the public
debt. Should that turn up, the whole
financial discussion may be renewed,
sectionalism may be intensified, and
great opposition manifested to lessen
ing the amount of the national bonds.
In that event, we must expect to
hear that only the longest bonds com.
mands the lowest interest. We shall
be told too, that the duration of the
bonds ought to turn on %comprehen'
sive political and economic considera-
tons, among which is the n that
the present generation ought not to
be taxed to pay a debt contracted to
benefit all ages: that u national in
terwoyen with business, and that is
unsafe to take decisive action III re-
gard to it that there can be no doubt
with proper legislation all the bonds
matured in 1881 can be refunded at
three per cent. 3; that such is the
thought and purpose Of %tar-seeing
men, who are looking forward to and
preparing for such results by arrang-
ing for the investment of State, and
other trust funds in them; that when
the country was younger and less de-
veloped, there might have existed
good reasons for paying the public
debt, but that there was nothing to
indicate the present propriety of such
a course 4; that the United States is
the best country in the world in
which to float a public debt, and that
the constant increase that is taking
place in corporate and trust funds
place beyond a paradventure the abili-
" Ct th es-esaa2sry to absorb and carry
the bonded debt.
But it can be we'll replied~.ha'
there is nothing in such s~tatements,-
admitting them to be true, that re
lleves the country from the necessity
that bears upon it of reducing the
national Indebtedness. Owing to
Republican policies, the nation is
suffering from the operation of an
excessively high protective tariff and
a damaging internal revenue system,
for the continuance of which there
will be patriotic incentive so long as
our debt is unproyided for. But with
that debt paid, or even materially re-
duced, mediate relief might be i'm
parted to agriculture. With reduced
duties, would come reduced prices.
With adjustment or even change of
the excise system, a stronyer and
more competitive home market would
spring up for grain and tobacco.
Long bonds may command low
rates of interest, but they have to be
paid finally as we'll as others, and
when their long interest is met, the
debt is twice paid. Three per cent.
offers no inducement. If a three per
cent. bond will sell at Par, a four per
cent. bond will command a premium.
which applied to the principal of the
debt will reduce it. A four per cent.
500 bond sells for S1O4, and on
eight hundred millions this would be
a reduction Of thirty-two millions.
As little weight attaches to any other
part of the argument. The present
generation a make more money by
extinguishing the interest of the na
tional debt, than by transmitting it as
a legacy to these that are to come at.
ter it, and the last thing this country
has need of, Is to replace its matur.
ing bonds with consolidated stock tt
be used as o basis for national banl
notes, and as d safe investment fol
Shylocks and ~defalcating fiduciary
agents.
Read, Heed or Not.
The editor of the Daily wonders
how we know what he publishes, and
cooma snrnrispd that We read hi