, 1881-12-15
THE REFuND1Na PROJECTS tn CONGRESS.

IdE HEEuNUlH9 PHpIEuIH IN QQNGRE3S.
1t seems to be almost Impossible>f for Con-
gress to let tlle National finances alone. Tie
debt nlltl the currency arc both IN sucl. a.l-
tntrablo shape that II would be difficult to
conceive my Improvement except in abso-
l,Ite freedom. frnm debt; yet there are ale
ready dozen schemes for unnecessary and
hazardous experiments. Tile Administration
would llayo silver and Rrecnbncks tcnone-
ttzetl mud t,te silver certificates wltlldr avn.
Somo llnrctlGcttng inen III Congress want
silver certificates issued III denominations Of
st aud 81, when tlero are pIynty Of small
notes liDw. Two bills tAve been introduced
for refnn'ing the oxteildcd W per cents into
u per ccnts-ono by Dir. Sherman In the Su,l-
ate and onu by Mr.. Randall In tic House.
hut Mr.. Randall is not content with disturb
Ing tho present option which the t'oyerll.
mont llas to redeem the outstanding
311 per ccnts at any ttlnB md fn
any amount 1t chooses; llo would also
make Ills lsefundIng bill vehicle for
attacking resumption, and its very first SER
tlon provides that tho sperle reserve shall be
reduced to 60 per cent, under tbs pretext
that tho 10 per cent additional, which Inns
been sacrelly kept ever since resumption
WIS achieved, shall be used lii the redemp.
tlon Of outstanding 3;1 lor cent bottts.
Senator 6hertnRll's bill In unnecessary, mid
Mr.. 1tandall's positively mlsci,levous. Sher+
man proposes that $500, ,000, COO of u per cents
shall bo offered ut par to run five ycars, after
which they sllall be redesn,abe ut tho
pleasnre Of the Government. There ls no
objection to such MI offer Of bonds III itself,
but 1t may be doubted whether tho proposed
change would pay. Considerable expense
attends t4e issue Of a new loan, us Mr.. Sl,or-
lnp must know FROM his experience In tile
Treasury Department. II Slerman's bill
should pass. und tho pur cunt loan were
placed. tho Government would be colll-
nllted to tho payment OF interest
OH S300, ,000,000 Of binds during n
period Of five ycars--thnt Is, S45, ,0O0, COO
IN Interest during tho term. There would 10
Il gnin 1t onel,aEf Of per cent, which, tt 1t DO
admitted tlat the sanlo amount OF Optional
bonds would remain outstanding larlng the
6alllo period, would amount to $4,000 900.
hit It 1t Should prove that only S50.U00, Coo
Of these buItla could bo rcsleet,,ett ont OF
the surplus reve,tlo within thu lirst scar, the
Interest TINT would hnyo been saycl in that
wny would amolnt to tho estimated saving
OF 0'te-IlaEf OF per cent during live years,
anu the apparent gain from .refulNtlng tho NJ
l,nt cents Into U per cents would reaiIy result
III loss equal to tho cost Ut making tho now
issuo. Meanwhile tho accumulation uf SIR
plus o,,t Of which tho bonds could llayo bcen
redeemed II tho u0yernnent Ind not been
deprived Ut Its option woua bo II constant
temptation to substdy-hllntLnE and Congress
sional uxtrasaganee. lsaMlalis bill, which
proposes tho salne term for y per cent boluls
bnt u0cs not limit tho nN,oI,l,t wllIc, slnll bo
issued, Ia opcn to tho sa1no criticism; but 1t
also contains the Vicious raid upon tho spepIe
reserve In Tho Treasury, which should dunn
It even II lts refundlng clnuse were tIeslra-
bic.
1t Is statcd that Secretary Folger will up
Eear hot0so thu Senate Financial Committee
to oppose tlla refundlng prolpet: iirst, be-
caa1Ro ho does not believe that q aper cent
loan can DO negotiated at par except the
bonds 10 made irredcelnalle for. long
p0rloli aud. secondly. becuuse ho thinks the
privilege VI inylng these bonds ut pleasuru
IL more valuable to tho Government tllal, the
saslng Ut one.half OF por cunt Interest. ills
to Do hoped tho Wow held by tho Secretary uf
tic Treasury In this instance shall prevail,
Ihefe is juht ono course TINT might ba
adopted. with a chanco Of success and
possible advantage to the Government.
Now bonds beartng = por cont Interest
a'Id 'llade irretleenabio for a, torn of
years n'!g't ho offered lii exchange Tor
outstanding ''N por een!s. 1t Ia posslble that
tl'e hunks holding " per cents now subject
10 ca!' Ut Any t!'ae would rather take 5 per