The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1881-04-12
s THE UNITED STATES ADO UT TO DE-
FAULT.

and on the 30!b Of June, the end of the fiscal
year two SIX per cent bonds sggregsting
$l96. 1868, 600 will DO due, making a grand
total of $3.50, 1863, 450 that must be paid, else
the government defaults. What would be tho
effect upon the financial and business
Interests of the country It the government
should default in the payment of these bonds?
Would not panic fellow, with cessation
of trade and a stagnation that is appalling to
contemplate! The last congress tried
earnestly and conscientiou,y to prepare for
the meeting of this Great debt by the careful
preparation and consideration of the funding
bill, which Mr.. Hayes, among the very latest
acts of his administration, vetoed, just rs
congress adjourned, so that if the government
should default in the payment Of its debts
due, Mr.. Hayes will be responsible tor all the
evils that may result. the whole matter is
now with the treasury department, and it
must get on as best il can, with an exceeding
slender basis for operations. Mr.. Secretary
Window with Mr.. Knox, comptroller, who is
Of the national banking inter-
ests Of the country, and with Attorney
General MacVeigh as his legal adviser, has
been in New York recently seeing what no
can do and consulting as to how best no can
use the little authority that is vested in him,
under existing laws. In 1879 law WIS
passed by congress authorizing the secretary
Of the treasury to apply tho provisions of all
existing funding acts to the redemption of
outstanding bonds, and under this act he will
operate as eilectually rs he possibly can.
This statute had for its real and only purpose
the helping of the refunding of the
ten-sorties, but rs it happens it was not 80
artistically and closely drawn but what it
can be stretched to cover the present pressing
emergency. The secretary can under it, sell
the bonds authorized by the funding act of
1870, not deposed of, which doubtless will
enable him TO meet tho demands that will
come upon him in May and June. These
1870 funding bonds not disposed Of amount
to $lO4. 100000 and they may either DO at
four or four and half per cent. Being IN
the strait that he is wo can readily sec that
the secretary will be forced TO put
them at four and half per
cenh to float them at all. This
being 80, is II not apparent
that Mr.. Hayes by vetoing the three per
cent. funding bill passed by the democratic
congress just adjourned, has enabled the
banks and capitalists of the country to chisel
he people out of one and ono half per cent,
Or nearly Sl0i 1000, 0OOof bonds, or 81, $4,000
per annum? This is what u republican
president did for the country, and the repub.
Iican party must answer for this great
wrong. But Sl0i 900, 900 is about drop in
the bucket towards paying of debt of
and the balance must come
from the surplus money in the treasury. This
could not DO used for that purpose had it
not been for the forethought of Sen.
stor Bsyard, who caused to DO placed
in tho sundry civil bill clause which gives
Tho secretary of the treasury the power TO
use tho surplus money in the treasury TO pur-
chase bonds, beyond what is necessary for
The sinking fund. Had it not been for this
motion OF Senator Bayard, tho secretary of
Tho treasury could have done nothing TO pro.
vent tho government from defaulIng except
% the extent OF tho Sl0i 100000 of 1870
unused funding bonds. Tho fact IL, the
whole thing boiled down and put into II nut.
'hell, Mr.. Hayes did tho country grievous
wrong when he vetoed the funding bill. He
,ither suffered himself hoodwinked by
few national banks in the blus-
er, or else ho connived at an
niQuitous scheme on thor part.
President Garfield made mistake, too, when
40 decided not 10 call an extra session of
congress TO provide tho necessary legislation
% meet this maturing debt. The bes, in
ormed tnanciers and statesmen of the coun.
Try all agree that funding bond at three and
half per cent. ut the outside could DO
loalcd easily at par. and perhaps ut u pre-
MUM, and three and half per cent. is
much better than four or four and u half, So
hat we SEQ that all this foolishness will cost
The country millions and millions of money.
The democrats can 20 before the country
with clean hands and Faithfully say, ave
'srove to our utmost 10 save you from
his wrong and injustice, bu, n
republican president and his republican
advisers defeated our efforts. All these
means tina. the secretary OF tho treasury will
isc to meet tho debt are by forced and strained
constructions of tho law, and host arc but
miserable mskeshif,s, unbecoming n grca,
country like ours, so able TO meet all i,s obi.
cations when wise counsals prevail to enable
/ TO do so.
our Future Home.
Thu ala.a,t t,ns 81 kr,,t. al ~