The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1881-04-15
TEE BONDS.
Doubts as TO the Legality Of
Wfad0Islss Action.


New York, a. Worlds Washington
The fine scheme OF Window for dis
pensing gith Congress and running th'
finances of the United States on tbs
Mime otA proprietary interest basis hai
gone wrong at the etart. The circular o
the department calling in the 6s OF 81
and inviting requests for the conJinuancs
Of the bonds Of 81 per cent. interest was
given 70 the Associated. Press here, with
much ceremony and mystery, late on
Monday afternoon for trai smission
throughout the country by tel graph,
Yesterday moFniLg copies OF the same
circular were duly forwarded through
the mails to the sub treasury st New
| York for distribution TO banks and other
financial agencies. To-day, before the
| distribution could be made, orders were
sent front city To New York to sup
press the circulars, and tits understood
here ton eht that but one copy got out OF
| the hands of the sub treasurer before the
order of suppression reached New York.
Inquiries ia the proper direction lend me
to the belief that this sudden check has
been administered to the secretary,s
plsrs by Attorney General McVeaeh
who has begun to be alarmed about the
opinion he hastily expressed as 70 the
legality of the secretAry's operation. 1t
is the conviction OF the Ablest repub-
licAns here that Mr.. Window has made
serious and dangerous mistake. A
leading republican lawyer closely con-
nected with The late Administrator, sd .
mitted this evening In conversation that
the position taken by the World as to the
Illegally Of WinoOm's action was ''im
pregnable," AMI he added that be fore
saw great peril to banks in fuGurs from
this rash and inconsiderats proceeding"
HerGLd'S Warrington: As attempts
are making In some quarters to produce
the impression that the plan Of extending
maturing bonds at 81 per cent, until
Congress meets, violstes some law, it il
as we'll to say that this question, as we'll
as the whole bearing and effect of the
treasury offer to bondholders, was care
fully considered, first by the attorney
general and later by ex-Secre aryT Shsr-
man, Senators Bsyard ana Morrill, and
ex- Secretary Mccullough, who were
called into consultation, and Who, it is
understood, gave their entire approval to
the plan a. not in yiolztion Of Kny law.
not changing 10 any Way the character
of the contract Of government with the
holders of bonds. and not increasing the
liabilities OF government. The secretary
exercises no compulsion upon Dondhold-
ers, and the power of Congress to deal
with the bonds when it meets 10 Decem-
Der, will be under this plan precisely as
it was left by it last Congress, when it ad-
journed on the Sd of March.
The Public: The new Administration
begins admirably in financial matters.
Il deserves credit becsuse it does not fret
nor fuss nor hurry nor suffer to be pushed
into ill-Hat1red and hasty action, because
it keeps its own counsel and waits until
it has decided before explaining ITS inten-
ti,,ns. 1t believes the new plan will
prove exceedingly successful and popu-
Isr.- The democratic Congress talked tor
passed bill to make war on
banks, drove the rate ofinterest up to 400
per cent, contracted CURRENCY SIS, 900, 900
in week and demonstrated the utter abb
surdity of taking capital by the throat in
order to borrow money at low Tate Of
interest. A republican administration,
without the aid Of any new law, by the
mere application OF common justice and
sense TO the problem, will prob
ably succeed within very short time ia
the rate of interest on $3.50, 000,-
90 from 6 and to 81 per cent, aud
making the loan formidable at the plea
sure OF government.