New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-04-06
rREAhURY POSSIBILITIES.

There is no justice In the criticism occasionally
heard about Wall Street because he does not
make known his plans before they have been fully
matured. Probably he VIII obtain the opinion
of the President and his other constitutional adj
vise-s. tefore acting in matter so important
No other matter with which She new Admins
trahon will probably have to deal is likely to
affect its reputation, its hold upon public conf
dcnce, or the welfare of the country so greatly
as the treatment of the public creditors whose
bonds become redeemabe this summer. A
mistake there wOald be serious. The Republic
can party owes its success, and the President
his election, in large measure to the public
confidence that the finances would 10y them be
wisely and honorably managed. The refusal OF
a Democratic Congress to make provision for
refunding though it vastly increases the dill
cultics to be overcome, gives the Administration
opportunity to gain far greater credit, and TO
establish itself impregnably in the confidence
of conservative and intelligent men, if 1t can
meet the difficulties with success and with
honor.
II is inferred, from inquiries made by Score
tary Wirdom and his associates at conferences
with business men OF this city, that he intends
per cent bonds, under the Act of 1870, and to
apply the proceeds and the surplus money IN
the Treasury to the work of reducing the debt
and the interest thereon. The bonds would
bring from 81 200, 900 to $4,000, 900, and
the available surplus this year Will probably he
from $50, OOO, 900 to $Sj,000,0O0. With
about $500, 900 900 in money, the Adninlstra-
ton can certainly retire all the per cent bonds,
and may be able to accomplish n great deal
more. 1t has been suggested that many
bankers and others who hold per ceut bonds
would be glad to have item stand unrcdeemcd'
bearing a rate Of interest corresponding to the
present market value of loans exempt from tax
ton. until Congress can make other provision.
Obviously, the United States cannot hOnOrably
do ANYTHING H. bring about such an arrange
ment unless upon the voluntary request Of the
holders of bonds. II they request 20 have pay
mcnt postponed, however no point oi hohor re-
strains thu Government from asserting, mol is
there known TO te any legal obstacle to It, as
sent.
Not many holders q bonds hearing 6 per
cent interest will bc disposed 10 request the
continuance of their bonds ~ 3 ol 80 per cent.
until the Government Las informed them that
II ia prepared to redeem then bonds. When
call has once been issued, however for The
whole or Part of the q per cents Whirh viii
become rcdccmablc July 1. the question viii
present itself To holders in the form: Can
better use be- made OF the money than to leave %
t1Nporariiy with the Government at q moderate
INTEREST," II the Government VIII consent 10
allow FOR the further use OF the money n much
rs IL would bung II invested DO per cent bonds
nj the present price, il j. certain that great
many bondholdets would prefer TO have 70 re-
main at interest there. Hence, upon Application
by nc lders of called bond. the Government can
properly state what interest II u wiling to
allow upon bonds which the holncis desire TO
retain uuredecmcd At the same time, il can
state what provision, by stamping such bonds
or othorsvis". il il willing g. Innlso Tor the bro
lection Of the holders and the Government undu
the new arrangement, and to secure neeOtla-
biity to the bonds III their new character.
In case such applications should bc made, the
Treasury could probably devise means 60 over
come all the technical difficulties, 10 that a
per cent bond, extended at tie request Of the
holder with lower rate Of interest, would be
readily negotiated in the market at such price
rs the new rate of interest would warrant But
if the new rate allowed should be materially
lower than can be realized by purchase of 1
per cents, the holders of the old bond, would
generally prefer to take their money. IL is OBJ
viOusly To the interest of the Government to
have as many as possible decline TO accept pay
ment at present. Hence it may be inferred that
the Administration would be- disposed to allow
rs much rs 3l2 per cent upon deferred bonds.
The per cents. at present prices, yield to a
purchaser about $50 per cent, and there is
reason 10 apprehcnd uat, At any lower rate,
smaller proportion of the holders than Is dc,ii-
able would request TO have payment deferred.
If as much n threc-quirtcrs Of the ont .tand-
ing 6 per cents should thus bo deferred al the
request of holders, the Secretary. alter paying
of the rest, would still have at his command
about $3.50, 900, 900 with which to call 10 per
cents. Az soon as these bonds had been called,
the holders would have before them the same
question Can better use be made Of the money
than 10 leave it where It Is at 3l2 per cent? 1t
is not improbable that large proportion of the
holders of Per cents would IN like manner
prefer To have payment deferred. Many cap
able bankers believe that 10y STEPS such ~ have
been described, the interest on al the aud
per cent bonds might I've reduced, upon the vol
untaiy request OF holders, to 3I2 per cent before
tue next session Of Congress, and without sell
ing all of the pei cent bonds ut tie disposal of
the Government.
Whether the Secretary will make any definite
proposal to accept requests to defer payment of
Dor DIS, and il so, Oh what terms, will doubtless
be determined before II Is announced what class
Of bonds is to be sold. There may he legal or
practical difficulties in the way of any arrange
ment Of the sort. But it would he n splendid
achievement for the Administration if, with
strict regard for the public honor, 1t could viz