New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-04-22
DISCUSSING THE TREASURY PL1N


Notifications already received at Washington
leave no room to doubt that the plan OF
Secretary Window Will succeed. Indeed, il is
now estimated that not more than 500, 100000
Of the six per cent bonds will he presented
for payment. The opinion of holders and of
capitalists generally appears to be entirely
favorable to the proposition made by the
Treasury
Nevertheless few journals still cr1tclSe II,
evidently misunderstanding its nature ard
effect. Thus one reasons that there Is no
middle ground for the Treasury, between pay
ment of the principal and payment OF per
cent interest 1t is true that the United STATES
has no power of its own motion, to take any
middle course. 1t has an absolute night To pay
off the bonds, or, if it prefers, to continue TO
nav interest according to the terms oi the
original loan. No one can dispute It's night L"
do either. Nor is the United States bound to
give any notice to the holders OF the SIX
per cent bonds. But it sees fit, rs matter
| of accommodation to them, to inform them
that. unless they wish their bonds eX-
| tended at a lower rate of interest, the princi-
nal will be paid on the LIST of July. The Gov
eminent has unqucstioned power to pay all or
any part of the six per cent bonds. Its inan-
cial resources for tho payment of the entire
amount outstanding are undoubtcd. II II
chooses to pay some, and to leave others out
standing to await the action OF Congress, II mas
absolute right to do that also.
The right to make proposition for reduc-
| ton of interest belongs 20 the CREDITOR ana to
him alone. If be prefers that his bonds should
not be paid, but should be part OF those left
| to await the action of Congress, he has an abso-
lute and unquestioned right to make that request.
| Also. if he has a just and valid claim for per
cent interest so long as the principal remains
unpaid. he has an absolute right to receive any
sum less than 6 per cent in full satisfaction of
his claim When the creditor proposes to be
satisfied with 3l2 per cent, if the United States
will permit his bonds to be classed with those
to remain unpaid, awaiting further action by
| Congress, it is perfectly clear that the Govern
ment has the right to pay those bonds or to
defer payment of them, as il may choose. And,
| choosing to defer payment, it has clear night
| TO accept his agreement to he satisfied with 3l2
per cent interest after June 30.
| small bubble is made by some who say
| that the Secretary of the Treasury is authorized
by law to pay per cent interest, but Is not
authorized TO pay 3l2 per cent. The power to
nav the whole necessarily includes the power
to pay a part, when the part is satisfaction
Of the claim. Any pretended law that flies in
the face of common sense may be safely set
| aside as not law at all.
Another mistaken bubble is made by some
who urge that the new registered bonds will
will he mere personal obligations of the Sec
rotary, having no legal authorization or valid
ity. But those who make this objection are
evidently ignorant of the mode of issuing and
transferring registered bonds. The newly
printed bond is in contemplation of law the
same as the bond in place of which it is issued
it is authorized by the same law, belongs to
the same loan, has the same provision made
by law for the payment of its interest, and il
in every legal respect the same obligation