New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-03-11
UATURI.yG BONDS.

By some means it rs the duty Of the new
Administration to raise nearly 5000, 100000
within four months. On the 3Oth of June all
the six per cent bonds become payable. The
amount outstanding, according to the last
debt settlement, was $500, 266,550, though
SIS, 1886 900 bonds purchased in this city on
the Friday ard Saturday before the month
ended were still included as outstanding.
| Most of these were per cents. Deductrng
these and the So. 600. 600 purchased on Wednes-
day, we have 1892, 100000 now outstanding
| Though nearly all OF these bonds are redeema-
bic at the pleasure of the United States I"
| after June 80 the custom of civilized nations,
and the fact that they bear no coupons be-
yond that date, justify the expectation that
they will be paid, while it is so greatly to the
interest of the people to get rid of this part
of the debt that an Administration would sub
iect itself to severe criticism il it should neg
lect any reasonable and proper means of pay
ing them.
There are two modes of providing money for
the payment of these bonds. One is to call an
extra session of Congress, that adequate legis-
lation may provide for these and other matur-
ing obligations The other is to borrow money
enough, by the issue of bonds or notes
already authorized by law. to pay off such
part Of the six per cent debt as may remain
after the surplus revenue has been applied to
that end. For it is an error to suppose that
the failure Of the late Congress to act left the
Government entirely without powers for
refunding. In his last annual report, Secretary
Sherman said:
Under existing law there is still available for this
purpose four per cent bonds authorized by the acts Of
July H. 1870 and January 90 1871, the amount of
S104 1852 200. These could now be sold at large pre-
MUM, and In the absence Of legislation It would be the
duty Of the Secretary when any bonds became redeem
able to sel the fOur per cents and apply the pro.
ceeds to the redemption Of such bOnds but the
Of four per authorized to the pufpo.e
stated. II. K, Report 1900
The four per cent bonds barely touched ia
February 10, with about half of one per cent in
terest accrued and they are now selling at 1l3,
with nearly fOur-ffths of one per cent accrued.
Probably they would sell still lower, if "a
large an amount as $10O,O00,O0O were now
offered for sale. But the Government could
doubtless sell them at 10, and thus
realize $115,000000. The surplus rev.
enue prIOr to June 80, it is now esti
mated by the Treasury Department will be
about $45, 100000. Thus 100000 600
would be provided for, and 1t is suggested
that the remaining $50, 600, 900 or SAC, 900. 600
could be borrowed as a temporary loan under
the act of June 80, 1864. The objections to
this method are: Q) The people do not
understand that sale of four per cent
thirty-year bonds at ITO is precisely equiva-
lent to borrowing money at 3.3 per cent. It
may easily be represented to them that some
wrong is done to taxpayers, if the amount of
four per cent debt is increased, even though
the bonds should be sold at so high a price
as to yield but 3 per cent to buyers, If it is
practicable to borrow money at 3l2 per cent
or less, any sale of four per cents will be
sharply assailed by the ill-informed multi
tude. But (2) the patch is not large enough
to fit the hole, because the six per cent bonds