New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-01-14

| tOriOus. As long as the people are no' u
| norant enough to be deceived by Z" tricks that
are vain" the defeat of party so conducted
will be as sure as it is well merited.
When MIR. Wood quotes British consols as
selling recently at 102, he is guilty either OF
ridiculous bunder or .wllful geceptlon'
The British three per cent? accrued interest," ue
ducted. have not sold for much as 100 III
| twenty-seven years, and then only tor week
or two at Il time. New pOhds must
be sold at par, er interest," a'
all and no class Of United States bonds mas
ever sold er interest at such rate as to yleid
only 3 per cent to the purchaser. But every
one who ia not absolutely destitute OF III
formation or of sense knows that a bond for
long term will sell at higher rate than one
for n short term. The British cOnsols run
virtually forever, and yet sell below par. The
United States four per cents yield more thah
8 per cent on their price, though 'hey nave
seventeen wears to run before they can be
disturbed For that very reason, they sell AZ
higher prices than the -four ana hall per CENTS
which can he disturbed i'll about tcn years.
and 10 per c, ut higher than the five or SIX per
cents. which can lie disturbed this wear Inc
bill, as amended yesterday i'll Committee OF the
Whole, looks to the issue OF securities part oil
which are TO become redecmable after one year,
and the remainder after five years. IN
1879. when the rapid sale of four per cents
mode il nos,lble that the sixes Of 1881 might
be redeemed i'll two years. their price er
interest dropped from 1863 In January to
1O4ls in July, although the price OF four per
cent bonds had advanced in that time 2"5 per
cent, and the price of f0ur and half
per cents over l per cent. And yet 1t
was only the possibility of their re-
demption in two years which depressed
tie price Of skies thus sharply, in spite of a
general advance of the public credit. If new
three per cents are offered now, redremable
one year hence, when prices demonstrate
that suCh bonds redeemabc seventeen years
hence could not he sold at par, will anybody
fail to understand that the Democratic party
intends to prevent refundngY
Ii il said that the banks will take the three
per cents. Mr.. Randall is quoted as saying
that the banks alone would take 800, 100000
of them without a change of taxation. 1t
seems Incredible that men Of ordinary intelll-
g"ncc can believe such a statement. It would
be much safer to predict, ii such a bill Is IS
proposed should pass. that the banks will i'm
meiiately begin buying five and six per cent
bonds, in the full belief that no consider
able redemption of them can occur this year
unless an extra session of Congress should be
held. Nor is il more reasonable to believe
that a large amount of slOrt-term bonds viii
he taken by the people who ordinarily keep
deposits IN savings banks. the people who
refused to transfer their savings from such
banks to five per cent bonds, when these were
offered. and again to four and a half per cents
and again to -four per cents, had reasons which
will be far more potent when the Government
bond offered bears no higher interest than the
banks ordinarily pay. \ small part of the
savings or surplus funds of the country
would mutually be invested, II Is trrc, in
slort-tcrm notes at thu Government such As
Secretary Sherman proposed; aud clcn # the
raIc Of interest should be only > per cent.
some notes ol that kind might be- sold. Bat
the number oi such buyers and ia" amount Of
their purchases would h. So small that the
great bulk Of the ones auIing hy" or * per
cents would remain uudi,turb"d, # thclc wei.
no other prospect of Obtaining funds for thcir
redemption.
In short the action of the majority m the
House thu, far show, fixed Diet, rmualion To-
auuhor:lr no i,,uc Of bond, lhlt can hc rcron-
ably expected 20 sell at uar. The country
sill ccfiHinl, hold the Democratic puty ice
~lnu-iblc if H. behavior III TIN, matter cIu,r-
Il heavy loss 10 the people.