New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-04-12
SFcpETARy WIyDOMS Plan

In all essential respects the course when
Secretary Window has decided to pursue was
foreshadowed correctly in an editorial OF He
Tp1RrSF ON Wednesday last. The Secretary
calls and announces his readiness to pay tne
sir ner cent bonds which become redeemaOie
after June 80. But he announces that'
If onv holders of these bonds desire to have
them remain unpaid at lower rate OF inter
est--three and one-haIf per cent-they can do
so nv complying with simple regulations Tor
tho protection of the Treasury and of possible
purcbasers. If many see fit to take that course
the larger part of the means available ior Int
payment of the six per cents Will remain u,
the command of the Secretary, ana ne VIII
then proceed TO call five per cent bonus VIII
a similar announcement.
Persons interested in speculation IN bonds
have been quite anxious to believe TINS course
omen to some technical objection. ne ques-
tion of its legality, however, Is SAID 10 nave
been carefully considered by the law officers OF
the Government, and it is stated that no legal
objection is discovered. 1t is difficult to see
what reasonable objection could be made TO an
arrangement which is desired both by the creditor
and the debtor. If Jones holds note against
Smith, which he prefers not to collect ana ue-
sires to have the money remain where u Is at
3lo ner cent interest, rather than to receive
poyment in full and if Smith also finds that
arrangement desirable it is not easy to see
what business anybody else has to object or
course il is puerie TO say that the Govern
ment asks delay in payment when 1t gives
formal notice of its readiness to pay IN iuh'
Neither is it important for the Secretary OF
the Treasury to state at what time. or III what
amounts, he will sell four per cent bonds IN
order TO provide means OF payment. lie mas
in hand, placed at his disposal by special
enactment, IA large amount OF money already E
With this he can anticipate the surplus reVe-
nue. for the rest of the year, or anY part oil H.
I'm this way SO, OOO, 900 or $s0, 100000 OF the
six per cents can be paid rs early "a July l. II
the Secretary plcases aud If 80 many are offered
without any sale whatever OF the four per
cents until later. Hence he has ample power
to consult the convenience Of the Government,
and TO consider the probable course OF the
market, i'm Offering new bonds for sale. rs II
il possible that the sale Of the entire amount
authorized may not be- found necessary. the
Secretary may with reason choose to oxerrl~'
his discretion in regard To placing them upon
been employcd. With the sale Of the
entire amount of four Per cents authorized
the Treasury would probably have over
$500. 900, 900 10 be- applied 10 the payment OF
debt before January |. and it is possible that
the amount Of six and FIVE per cent bonds on
which payment will bc desired may not bee ~
large a. this. In that ca.e, the Secretary would
probably prefer 10 sell less than the full
amount authorized of the new bonds, because
they cannot be redeemed for a long time. II u
evident that the Secretary intends 50 to en-
ploy his resources AS to keep the money mar
kct easy aud undisturbed, during the spHnc
and summer, and the tendency of his opera
tons will necessarily be toward low rate OF
interest Mt commercial centres. II may be
added that his prudence and caution in matur-
ing his plans are evidence that his steps vii
b taken with care and wise conservatism.