Lexington weekly intelligencer. (Lexington, Mo.) 1871-1887, 1881-09-17
THAT HALF PER GENT. aoUGE.

bank journals are beginning 10 iortiiy
themselves for resistance Il any effort
to reduce the Windows to 8 per cent.
1t has been clearly demonstrated since
congress adjourned that the whole
amount could have been refunded into
option bonds at that rate, but the
national banks said "no." and the weak
kneed Mr.. Hayes with fear and trem-
bling echoed their mo-" thus losing a
large sun to the taxpayers.
Since then Mr.. Window, without
warrant OF law, has continued expiring
bonds at the rate dictated by the nation
al banks, 8 1-2 per cent.
Their argument now is given in these
words:-"There remain only the 5 IL
per cents. Why should not the admins
tration oppose changing the character OF
these. the administration itself remain
ing the sameP 1t is responsible for
their present character, has been
literally praised for giving them
that character. and may DO pre-
sumed to be very we'll satisfied there
with. And what could be gained by
making any changer Not mor than
one or two of the most sangulne refund
ers of the last congress ventured to ex-
press the opinion that a 9 per cen
bond redeemabIe at any time. could be
placed at par, and the lowest allowance
anyone seriously proposed to make for
expenses and commissions was one
fourth of 1 per cent. 1t is more than
probable, therefore, that in %refunding
at 8 per cent. present redeemability
would have to be sacrificed, and In ad-
dltion to that not less than $1.400,0 900
for expenses and commissions, beside
double interest tor a month or more.
So long as we have a surplus revenue
of 500, OOO, 900 a year, present redeema-
bllity is too valuable a thing to be sac.
r,ficed in consideration Of . reduction OF
one-hslf per cent. in the rate of interest.
It is undoubtedly worth more than the
difference in interest, because it places
the treasury in a position where it is not
at the mercy Of the bondholders when it
has a surplus to apply to the
reduction of the deot. It certainly
would be very unwise to convert the
8 1-2 per cents into SIS irredeemable tor
u number OF years, and pay $l,4OO.O 900,
together with double interest tor. at least
one month, for effeoting the conversion.
One need not be q prophet or the son OF
a prophet. therefore, to say with a very
considerable degree of assurance that
the administration will probably OPP
pose disturbing the present condition OF
the bonded debt so far as the character
of the bonds is concerned"
The statement as made above fails es-
pecially in its premises. 1t is not true
that mot more than one or Two of the
most sanguine refunders OF the last
congress ventured to express the opin-
ION that a 8 per cent. bond redeemable
at any time could be placed at par.
Practically every man who voted to re-
iund at 8 per cent. said just the CONTRA
ry, and hundreds OF bankers and inan-
ciers outside OF congress believed as
they did. Since then France has placed
an immense loan at 8 per cent, and
Missouri has borrowed money on short
time bonds at that rate, and could have
borrowed many times more than she re-
quired.
But we believe no change will be
made in the sWindoms'-they have no
name in law and might as well be
known by their makers name-not be-
it is fair to the people to pay s1-2
per cent. when a half per cent. of that
sum might be saved, or because expen-
ses and double interest need brighten
anybody, for if Mr.. Window could with
out the help OF a syndicate place a debt
unauthorized by law. he certainly can
just as easily place one which is author
lied by law, and we do him the credit
OF Judging him too good a financier,
when the government has the matter in
its own hands. to permit double interest
to accrue.
These reasons will do as we'll as 9TH
ers to offer to the public. The real
reason is that the national banks desire
it, and the republican party is controlled
by the national banks. Unfortunately,
too, the lower house of congress is Ger.
tainly and the upper house is probably
republican. therefore, and tor no other
sound reason the national banks will
carry the point which they SO distinctly
emphasized last winter by the with.
drawal of their circulation.
Alter the first OF October the bonded
debt will consist of $40 600, 900. in
round numbers, of 4 per cent. bonds,
which still have twenty-six years to run;
$3.50, 600, 900 Of 1-2 per cents which
have 10 years to run, and $578, 600, 10C
| of 8 1-2 per cents. or Windows the
character OF which a be changed by
congress. No one can desire to attempt
to change the character of the first two
classes OF bonds, and if congress does
nothing with the 'Wlndoms,' and We
believe it will do nothing, certainly no
at the approaching session, the only
thing that we see that Val be done is tt
insist on the purchase and retirement o.
the highest interest bonds as fast as the
surplus in the treasury will per
nit. With all the facts in view
we submit that it is hardly the graceful
thing Tor national bank organs to rid.
Guile the idea OF congress desiring tc
legitimize the 'Windoms,' as the,
are now not the creatures OF con
gress, the law making power, but tn
creatures of a secretary of the treasury
who is not a law making power; and
very little such lmprudence or impu
dence as was practieed last winter nigh
jump Mr.. Belford and a few other re
publicans oVer to the democrats on thi
issue.
Missouri RepubIican:-''The captur
of the Glendale robbers will do a grea
deal to break the web of romance tha
has covered the James boys. We ca,
see now that these notorious desperadoe
are more than half fictitious. They hav