New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-04-02
THE rRI1SURY AND REFUNDTYG.

governed by the advice given him, he "oulu
have a very hard time of it. Even in regard
10 vital principles, the bankers OF New ork
are not always unanimous. Marvellous rs 1t
seems. there were some who thought that the
Carlisle three Der cent bill should not have
been vetoed, and there has hardly been an
unwise or dangerous measure proposed SINCE
the war began which some of the bankers OF
this city have not favored. But the Secretary
NAV doubtless gather very valuable intorma-
ton by conference with practical bankers, and
NAV thus be enabled to judge more correctly
with what degree Of favor different plans Will
be regarded by the bankers whose assistance
has often proved of great value to the Gov
eminent.
The Secretary probably wishes to determine
whether it Will be more advantageous 10
the Government to sell about Tlo4OOooOo
of four per cent OF Of fOur and one
half per cent bonds. Upon tho proceeds
of either. with the surplus revenues for the
rcsl of the year. he can retire all the SIX per
cent bonds outstanding, and 1t may be
Doubted whether he Will think IL eXpedIent
10 mike any effort TO disturb the greater part
o. the five per cent. until adequate means
for reiundmg have been provided by Con-
cress IL Is not in hs power to sell both
the four and onc-half and thc four per cents
10 the extent ot $lOOOoO.0OO OF each, even
II ne thought IT. dcsirlble. Whether D., -tll ban,
power to 3 sue temporary loan certificates, under
the act Of 1861. dor, NOT seem 90 have been
fullS decided, but the eXUedicncy of rc~ortlnr to
power 80 long disu-od. and granted for q diff
ferent purpose, might porhtps be- que toned
lev hm even d thc legal authority were un-
doubted. 10 may D. presumed that Joe Is c"u-
sid.un- whether to otl,r four pcr Gems OF ioDi
aud ono-half por cent bonds.
Tie iour per cent bonds would command
the higher price iu ihe market, having "
longer time to run. Il there we've no other
cor. ,d,rafi0n to hc regarded thIu one OF P,r~-
,nt pccunuIy advantage, lbC question m'-hi
be readily DECIDED. Bat 'hc Secretary
doubtless appreciates Che strong popular de-
sire for steady adherence 10 thc policy OF
T.. wing on thc mtcres, bearing debt. ihi,
desire !. neither frivolous nor unreasonable.
Its existence and power in ibis country a."
rec, zuized abroad %, strong proofs 0t the it-
nc,- of thc people for sclt-gotcmm'ut H'v-
ing IN view the Importance OF reducing lhc
debt. Secretary Window may hesitate % D. ue
the SO .OOO.OO of tour per cent bonds be-
cause these bonds 10 i-usd 10 all, cannot be-
redeemed until 1907. even /, they age dated
10 CON, -poud with others now oat.tsudinr.
or until 1911, If dli,d this year. J. bee ouly
WAY to lcj rad of tie dnat represented hv
these bonds, Iu ics5 ihn rF'uV--iN years. Dis
90 buy them up 40 ans prlo" which abe hold
ers MAY be- willing To- accept. Ions before
they mature thc four per cents will probably
hc tine ONLY Urit,d ~,ttcs bond. outstanding.
There aIe now only -1Js 600, 600 ct them, bu'
the National banking -y-irm, g % Is 10 c1rand
with the pfowh ud needs of the oCH"tiy'
vail require as security for circulation alone
large part OF this amount lu addition. there
VIII De am urgent demand for United States
bond. by insurance aud trust companc9, s1y-
ing, banks, officials charged with thc invest
mcnt and cJIc Of trust fund.-, and by o'hrr
persons to whom TIE rate OF Interest To be-
obtained Will be- OF less consequence Than ihc
highest possible security. Under such circum-
stances thc price which those bonds will COM
mand twelve OF fifteen years hence may lel
entirrly independent of ,he prevailing COM
mcrcial rate OF interest. IL effect. tIclc viii
bc a "corncrr IN four per ccni,. and holders
may demand a very high pGcc before consent
inc to- part with them.
II 10 i. deemed desirable 20 keep a7 mach %.
fine pulI.. d. bl os po4.l0'c within reach and
co,,,,,l ~, Govornmrrt. "a, short t.rl1 four
opd-,-Lalf r,r cent, may De con ..dcrcd more ad-
v3pttesou. for the present purpose. uulc., tho
rrob.nlc difference IA selling price should
be too great. II, for example, the
Government could get $l1AOOO,0o0 fer
800, 100000 OF four yer GEMS. md only
$40. 900 600 for the samc amount of
iouI-and-a-hlf per cents, there would
T. ,,..,, .f - 4D4 tDO 90 tt,.