New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-08-26
PUBLIC CREDIT MFdSTRED.

Certain Democratic and Greenback politicians
habitually complain that their opinions and
declarations are not treated with respect by the
press or by Republican spcal,Hrs. This COM
plant, it must be confessed, has some founda-
ton. The theories and assertions of the COM
plainants are not treated respectfully, and are
rarely treated seriously. If they wish to know
why, think they can readily be informed.
In the platforms adopted by Greenback Con-
ventions in NewYorll ard Massachusetts on
Wednesday, we find repeated the assertion that
the Republican party prevented the Govern
ment from borrowing money at as low a rate
of interest as its credit would admit by
defeating the three per cent funding bill, and
that this was done in obedience to the dicta-
ton of the National banks. This same asser-
ton has been made in Congress and in the
press by Democrats and they also persist to
this day in making it. Yet every intelligent
voter in the country has for months seen con-
elusive proof that this assertion is entirely
false. Democratic and Greenback journals and
speakers reterate it, as if they believed that
the voters of this country were completely
destitute of common sense and common infor-
nation, and yet they amazed to find that
| these voters do not treat their opinions and
| declarations with respect.
| There time when it was possible for
well-informed and reasonable men to believe
| that three per cent bonds could be sold at par
! That was before the subject had been seriously
| discussed. But there has been a practical test
of the credit of the Government since that time
| The condition of the money markets here and
abroad has been such to favor a phenom-
enally low rate of interest. British consols
have reached their highest price for half cen
| fury, and the bonds of the United States have
| l.. 4.
Yet the rate at which United States bonds
have been sold has never been so high that
| they would not return more than Is per
cent to the purchaser The four per cents sold at
ISL near the end of May and at that price
they returned 1919 per cent on the invest
ment. The six per cents, when most ur-
| gently demanded for continuance in May
sold at 1O6l2 with 2l2 per cent interest ac-
crued the price was, therefore, equivalent to
| 1O4 for the extended 3l2 per cents, and these
| bonds also sold subsequently at 1O4, but never
at higher price. AT 1O4 gig per cent bond
returns 1856 per cent upon the investment
After experience through all the phases of the
money market since April, when money has at
times been abundant beyond all expectations
bankers have not seen any class of United
| States bonds sell in single instance at such
| price as to return on the money invested less
than 1-3 per cent interest.
| This will not be conclusive evidence to the
| Greenback and Democratic politicians 1t is
| precisely because facts have no effect what
! ever upon their minds, and are not regarded
by them in any respect in their declarations
| and platforms, that the public is disposed to
treat them with contempt. They insult the
public when they go week after week, and
month after month, making assertions which
everyday experience fatty disprOves. Nor
can they wonder if the public considers
them dishonest rather than ignorant. For
| such ignorance as is needful to account for
persistent contradiction of obvious and undis-
puted facts seems well-nigh incredible Either
| these politicians are impudent and shameless
| knayes. or they are stupid and ignorant beyond
belief, and the public naturally declines to
give them credit for an ignorance so amazing
If the public credit has been such that bonds
have been sold at prices yielding only 1856
per cent interest, why could not the Treasury
sell bonds bearing 1-3 per cent instead of
3l2 per cent interest? This question has some
| times been asked, but by men who forget that
| Congress failed to authorize the Treasury to
sell bonds of any kind. All that the Secretary
could do was TO offer u continuance of the
five and six per cent bonds, at such lower
rate as the holders were willing to accept. 1t
was necessary to make a proposition which
! would not be rejected, in order to save the
credit of the Government. The result proves
| that Secretary Window judged with great ac-
curacy. For the dealings in the market show
that it has never been possible to borrow at