The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1881-09-08

had the bill received the Presidents
signature ?"
| am thoroughly satisfied that threa
per cent. bond issued upon the terms
prescribed in that bill could have been
sold by the Government at par, and the
indications are that such bond would
to-day command small premium in the
market"
What do you think of SeCle ary
WINDOWS patent plan for reducing the
interest on the public debtW
"Well," replied Mr.. Carlisle, "in the
first place there was no authority Of law
whatever for it, and it Is always danger
Gus to allow an executive fficer to exer.
else authority not conferred upon him by
statute. The most that can be said in
his favor on this point is that there is no
statute expressly forbiddiDg him to enter
into such an arrangement, but, of course,
everybody knows that is not sufficient
defense. The proceeding amounts vir.
tuallY to an issue of new bonds by the
Government, and it is evident if he can
change the terms Of the contract in one
partiCular-as the rate of interest, for
instarce-he can change them in any
other partiCular, and thus make entirely
new contracts with the p blic creditors
whenever he may choose to do 30. Al.
though it has operated benefcially to
the Government in this instance, it is a
dangerous precedent; and ought to be
condemned by the people and their rep
resentatives.
"If, however, the Secretary was deter.
mined TO make new arrangement with
the public creditors without authority of
law, he ought to have made the best
terms for the people that it was possible
to obtain. The facts show that he could
have extended these bones at 3 per cent.
just as easily and rapidly at at 81 per
cent"
Why 90 you think 30 ?"
Because before Mr.. Window issued
his proposition for the extension of the
fVes at 81 per cent. the extended skies
were selling in the market at a price
which would not yield the investor 8 per
cent. unless they should remain out.
standing for at least two years but the
inventor had no such guarantee. On the
contrary, the extension had been made
upon the express condition that the
Government might pay TIE bonds at any
time and stop the interest. Consequent
ly the purchasers of those bonds were
buying a mere chance to n AXE a per
cent. upon their investment. In view of
this fact it is difficult to perceive how
the Secretary can excuse imself for ex
tending the fives at 80 per cent.
THAT they could have been extended
at per cent. is also ConClusively shown
by the prices at which the extended
bonds are now selling in the market, as
shown by the daily reports in the news.
papers. For instance, according to re.
ports this morning they were selling yes.
terday at l0l3 and 1913,
Now, when a three and half per
cent bond sells at lO1,42 it must certain.
ly run three years in order to enable the
investor to make per cent, on his out.
lay, and if it sells at 101 65 it must Ger.
tainlv run three and half years to en-
able him to do so. As already said, the
purchasers of these bonds have no as.
suranCe that they will run even for a
year, or that any particular bond will
run for 80 much as month"
What do you think was the Secre.
tary's purpose in ixiI G the rate of the
extendtd d bonds at 81 per cent 2'
ut loo very much as if one of his
purposes was to forestall the action Of
Congress and prevent the refunding of
the public debt at 3per cent. Of course
it will be contended now that it will be
dangerous to disturb the existing ar.
rangement for fear that per cent. loan
might not be negotiated, and this argu
ment will doubtless have it's influence
upon some members, and must embar,
rass Congress in its dealing with the
question hereafter"