New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-03-05
ZIP mnnmS ErNnLNG ELL.

Mr. Fernando Wood has explained, with
marked ability, the Funding bill, for which no
has secured the favorable recommendation OF
the Committee of Ways and Means. Those
who dissent from the measure, as well as those
who deem it the wiscst attaiuablo at this
time. viii agree that the arguments OF Mr..
Wood deserve consideration and enttle him
70 praise. The object of the measure, he
states. is to hqudate the existing public debt mt
tl!e earliest practicable period. and meanwhile
10 secure the lowest practicable rate OF inter-
est For this purpose IL is proposed to issue
BIO Per cent bonds, thereby ciiecting % saving
I'm interest Of $lA481.O43 per annum. The
hin also provides for The issue Of bonds re-
dcrrrable nt the expiration of twenty years
and Mr.. Wood argue. thar IL is highly deslr-
able 10 RETAIN tins power, in order that the
PAYMENT of Che debt within reasonable time
mn, 10. hc prevented by the unwilingucss OF
the holders of bonds TO sell them at fair
mice. II is also provided that the principal
of the debt shall BE- reduced by the utilization
of the surplus revenues, as far as the neces-
sorv expenditures of the Government Will
hermit. To this end notes amounting to
5000 O0O. 600 are 20 be issued in anticipation
of revenues. redccmable at the pleasure OF
tbe Goverpment after two years. and 1t IS
comuutcd from the recent receipts OF he Gov
eminent that more than forty millions per
wear corld be applied 10 tho payment OF these
notes. and tho gradual exfmg ui~hment OF the
National debr, 80 that tho notes Themselves
would disappear within five years.
Mr.. Wood considers az length, and with a
e,ronc array Of facts, the arguments Of those
who believe that no further reiuuding should
take place; or, second, that q 3 per cent
rou-terniuablc bond should be issued rescmb-
linz tho ENGLISH cousols or. third, that high
rot. of interest should he paid on very short
lived bond-i or, fourth that per cent
bo,d i, the best that tho Government can
rrobably sell at pari and that 30 present
change is desirable or practicable Mr.. Wood
reasons that a 3l2 per cent proposition pre-
..pts a iullciou, medium between these plans :
that the bonds BEARING that rate OF interest,
r. tc-minoblc within not less than twenty
,eors could be sold at pr, and that 1t Il not
vi to tie mp the people of the country by
an issue of bonds that are not redeemable,
oven though they may bear a lower rate OF
interest
II seems probable from the tone OF discus
sion at Washington that a serious effort VIII
ne made 10 modify tho bill in some important
respects. Perhaps the strongest eiIort Tor It's
amendment will be made by those who be-
Heye II desirable to issue permanent stock
IN Mace of rcdeemable bonds. 1t Is not
doubted that lower rate OF interest probably
as low AS 3 per cent, may thus be secured
nor j. il denied, even by those most aycrse to
tbis plan. that for some purposes OF invest
mcnt. especially for the security OF National
honl,jrg circulation, it is highly probable that
Como securities of this character will be
deemed necessary for long time. On the
other hand. it is urged by Mr.. Wood. and by
those who agree with him, that it Is by no
means wise at this time to commit the Gov
eminent to "A policy of retaining public debt,
and that hereafter, as heretofore all the efforts
of the Government should be directed to the
o,,,iro cxtlnguishment Of the public debt at
the earliest period consistent with public
welfare.