New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-02-15
NECESSITY OF PEFUNDING.

| extra session be thereby rendered necessary
| Some Republican leaders think that it would.
| Others, whose Judgment is usually entitled TO
high respect, think differently. 1t is not strange
| that there is some difference of opinion on the
| subject. But those who are most familiar with
| the business interests of the country, and who
realize how much the general prosperity may
| he retarded ard the public credit endangered by
failure to act promptly in the matter, will prob
ably see greater reason day by day foI the con-
cluslOn that the passage of good retunding bill
| is an urgent public duty, which, if shirked by
the Democrats, cannot properly be postponed by
| the Republicans. 1t will rest with the Pres-
| dent, of course, to decide whether an extra ses-
sion shall be called. ln his decision, no doubt,
/ Republicans e differing opinions will cheertully
| acquiesce. But some discussion of the subject
| is pertinent, because the action of members
uron the bill now pending may in some degree
| be influenced by their information as to the
| probability of an extra session.
1t Will not be forgotten, we hope, that the
rate of interest is now unusually low at the
| principal monetary centres. Though the Bank
of France Is losing gold rapidly, it has not ven
tured to raise its rate of discount, because the
supply of unemployed capital is so large. The
| Banks OF England and Germany rapidly restore
| their gold reserves, although their rate of in
| terest is much lower than that which has pre-.
| viously been found necessary for that purpose.
The truth is that the condition of industries and
commerce, in most of the European countries, is
not vet such as TO afford full employment for the
accumulated capital The surplus funds of Eu-
rope are pouring into tins country, and keep the
rate of interest much lower here than usual in
time OF prosperity. But it would he exceedingly
UNIV Use to calculate that this state OF things will
continue. The course of events every week, is
toward the absorption in growing industries and
reviving commerce of the funds now unem-
plOyed. At no very distant day, 1t is safe to
predict the growth of business, and the transfer
of capital from floating to fixed forms by the
building of railroads and the opening of mines
and farms, will use up the surplus of lOanable
funds, and then general advance in the rate
of interest will take place.
If the United States should postpone until
next winter or until the year 1882, the offer of
new low.rate bonds, it is exceedingly probable
that it will then be obliged to pay higher rate
of interest. This season, with every crcum-
stance favoring, the Government may be able to
borrow $3.50, 100000 at gig per cent. Next
year, if the revival Of industries and the gIOwth
of business continue, it is not unlikely that the
Government may be compelled to pay 4l2 or
even per cent, in order to secure q sum large
enough to make refunding success. 4 dilieI
ence of per cent III the rate o. interest for ten
years more, Will cost the people 100000 OO
aud that would be n very high price to pay for
the luxury Of avoiding an extra session Of Con-
gIcss.
But there are other contingencies which should
not be overlooked. We have hid many success
slve years Of extraordinary crops. Nature does
not so favor any country forever There is not a
slrewd farmer in the country who is not hold
ing back a little more of his last years crop
than he usually reserves in the feeling tLat Il
partial failure of crops must now be counted
among the probabilities But the remarkable
al, aucc in the public credit has unquestonaby
been due in part to the bountliul yield of ngri-
culture in this country, and the unusual demand
for agricultural products abroad If the tables
turn, it scanty crops i'll this country cut off a
large proportion of our exports, there will
assuredly come quick change in our financial
position, and the borrowing of money at low
rates of interest will not then he easy. If re-
funding should not be accomplished this
season, when everything fIvors SO greatly, it is
quite possible that the state of our foreign trade
after September next may be such as to compel
an indefinite pOstponement, or payment of
much higher tate.
While these two considerations render it most
unwise, aud may make it exceedingly costly, to
postpone refunding, it Is also true that certain
and absolute loss of about 81 100000 each
month will he caused by delay. At this time,
there is no doubt that refunding can be effected
at GIG per cent. The difference between that
rate of interest and the rate now paid on the
and per cent bonds is more than 81 900 900
monthly, but the higher rates must I've paid until
February next, at least, unless a refuIding bill
can be passed before Congress meets in Deem
Der. At the very least, the loss by delay will
be at the tate of 1l2 per cent on tie fyes, which
become redeemable June 1, for eight months,
and at the rate of per cent for the SKIES, which
become redeemablo July 1, for seven months
In brief, the direct and certain loss by post
onement Of Iefunding would be more than
81. 100000. We do not think Republican
will be disposed TO throw away |
sum so large. Hence, ii the present Demo |
cratic Congress will not consent to pass re-
funding bill that Is entirely safe and sure to |
succeed, Republican members ought TO insist |
upon their convictions, in the confidence that |
tie President. unless grave reasons not now ap- |
parent prevail, will consider it well orth while |
to call an extra session III order to prevent cer-
tain loss Of S57OOO,O00, at least, and possible |
loss of many times as N uch.
FERN ANDO FOOD.
A busy career is ended-a namo familiar |