The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1881-04-19
From the N. Y. World. 18th inst.

From the N. Y. World. 18th inst.
Secretary Windows Usurpation.
The Tribune, which can generally be
trusted to take the most muddled view
possible Of any current question, treats
the question raised by Secretary Win.
dom's conditional call Of bonds as
private question between Window and
the bondholders. "If Jones holds
note against Smith," is the Tribune's
persuasive argument, switch he prefers
not to collect and desires 10 have the
money remain where it is at a lower rate
OF interest, and if Smith also finds that
arrangement desirable. it is not easy to
see what business anybody else has TO T;
object" The Jones of this parable is,
of course, the bondholder. The "Smith"
is now the United States and now Win
dom between whom the Tribune hob
bles. II instead of "Smith" the Trib.
une had said either Window or the Uni.
ted States the fallacy of its statement
would have been grotesquely apparent
even to its own intellect
The fact of course is that Window is
not the United States of America He
is an agent of the United States for GER
tain purposes which are carefully and
exactly defined in series of statutes by
which his powers are also granted and
limited. In what one Of them is the au-
thority found for his proposition to is
sue Of his own motion, and at such a
rate Of interest as ne thinks will secure
the marketing of his securities at par,
what is virtually new series Of Gov
eminent bonds2 The making such an
issue is clearly legislative Junction.
Congress, which alone has the power to
su,horize such an issue, has formally
declared that the proper rate at which
the bonds should he refunded is 3 per
cent. Window, in defiance of that dec
laration. offers 81. That the national
bankers who are compelled to keep 8
reserve Of Government bonds, and
whose bonds Window has now called,
should prefer 81 per cent to as the
rate Of interest on securities which they
are compelled TO hold is not surprising.
It Is even natural that they should pro-
claim the man who without authority
has off 4red them half Of one per cent
more than Congress with authority has
offered them to be patriotic and saga
cious fnancier But surely it's nothing
less than wonderful that any lawyer
should have advised or that any lawyer
should defend the course which Win
dom has pursued. Our news columns
show that General Swayne is the only
lawyer Of standing who even inclines to
an opinion that the action Of the Secre-
tary Of the Treasury may prove to be
lawful; and we are confident that Gen.
ieral Swavne will revise this opinion on
giving the question more careful ex.
animation.
II. Window has the power to refund
the maturing debt OF the United States
at 81 per cent. he has power to refund
it at any other rate. Congress, we re.
! peat, has pronounced per cent. to be
the proper rate of interest at which the
bonds should be refunded. Of his own
: motion Window adds one.half of one
. per cent. to that rate. What is to pre-.
J vent him from adding more, 80 as to
! make the rate or Al or 5 or 54-any
rate, in a word, less than that which tht
3 bonds are now drawings If he had
E offered any one of these rates everybod,
} would have pronounced him guilty of {
gross usurpation. He is guilty of I
. gross usurpation. The power to re'unt
at 81 per cent. involves the power to re
fund at 81 per cent and the latter would
be no more usurpation than is the for
] mer. Mr.. Window mas exceeded the
e self liable 10 impeachment.
!. 1t is, of course, expected by the pub
D lie generally that Congress will at it
r next session validate this act Of the Sec
e retary Of the Treasury, which, withou
e such valuation, can have no more lega
d effect than would proclamation BY
: Window of war against Great Britain
Congress NAV find it expedient to d.
this, but it Congress coniones Win
dom's usurpation Of power Congress
y will set most pernlcious precedent
8 Suppose, however, what is perfectly sup
Y posable, that Congress declines to vail
II date this action of the Treasury Who
!, recourse have the holders of the exten
/; ded bonds1 General Swayne says tha
c they will be entitled to collect interes
p at per cent. instead Of 81. Does nc
General Swayne overlook the fact tha
d the call of bonds is an act clearly With
81 Mr.. Windows powers and requires n
}, validation2 A call Of bonds is profft
of payment, and under the law stoE
10 page Of interest after the date at whic
It payment is proffered. II the holders {
= bonds are so unwise as to disregard tn
% proffer on the strength OF Mr.. VIII
y dom's personal aud unauthorized assu
q ance that their bonds will continue
t draw interest at the rate of 81 per cent, {
G at any other rate, how can their accep
1t ance Of that assurance constitute q Col
le tract between them and the Unite
q. Slates2 1t simply constitutes contra
st between them and Mr.. Window; al,
" Mr.. Olney seems TO US to be clearly
,h the right in saying that the only chant
Of the bondholders would have of cOllec
:" ing any interest at all after the date
q which the principal Of their bonds
ls rendered them would be by bringing gu
8, against Mr.. Window personally.
,e fact, the more Mr.. Windows brillial
9. financial scheme Is examined the mo-
at clearly it will be seen to be what Ii
is World yesterday described it as being
ID scheme by which the holders OF Co
y ernment securities to the amount
c. $195, 1000, 900, bearing interest at 6 p'
i. cent, are invited to exchange them Il
'g the personal obligations OF Mr.. Villa
to Window to the same amount, bearir
D. interest at the rate of 81 per cent, pay
I'd BILE out of the assets, whatever they ms
ir be, OF Mr.. Window.
TponNA md Tuu1a