Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1881-04-12
ldncaster futelhgenrer.
TUESDAY EVENING. APRIL II. 1881.

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TUESDAY EVENING. APRIL II. 1881.
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Secretary WINDOWS Plaa.
The idea of offering to the holders of
the government bonds, presently falling
due, the option of leaving their money
with the government at reduced rate
of interest was an excellent one and we
can imagine no reasonable objection to
it. 1t is fair to the borrower and ad'
vantageous to the lender. It is very
cheap way of making new loan,
saving commissions to agents and
avoiding the steals that have dis
graced Mr.. Sherman 8 funding operations.
It is safe to say that il he was secretary
of the treasury now, such plain and
honest way of continuing the govern
ment loan would not have been adopted.
MIR. WINDOWS suggestion comes from
an honest officer if lie is a little slow.
Tie proposition to let the money be
where it now is, at reduced interest
charge, was 80 obviously the way out of
the embarrassment presented by the ad-
journment of Congress without passing
refunding bill, that very prompt and
self-reliant officer would have taken lit
tie time to decide upon it. The secre-
tary of the treasury has taken good
deal and has consulted widely which
shows at least that he is prudent Off
Ger. 1t seems to lis, however, that the
consideration he has given the matter
should have enabled him to make his
proposition still more simple and easy
of execution than it is. We do not see,
for instance, the necessity for the direc-
tion that the bonds shall be remitted to
Washington, assigned to the secretary
for renewal. 1t would have been very
desirable to avoid the cost, risk
and trouble of this arrangement ;
and a much larger part of the loan
would have been likely to have been con-
tinued, if the holders had not been re-
Quired to take this action with their
bonds. A great many bondholders are
timid, unused to business, and lethargic.
They would have let their bonds lie
rather than take the trouble and risk Of
renewing them but when they are re-
quired to send them to Washington for
payment or continuance, they may con-
slider that it is just as well for them to
get the money now as to wait for it prob
ably year only and get meanwhile but
three and half per cent. interest.
1t does not seem to he really necessary
that the bonds remaining out should he
stamped in any way with the new agree
mcnt between the holder and the gov
ernment. They would not draw any III
terest at all, ifthey were retained by the
holders after they were called in, unless
the government was willing to pay in
terest. The called bonds have never
drawn interest after the date fixed for
redemption. What then would be the
difficulty in the way of the government
promising TO pay thrse and a-half per
cent. interest upon such ca lied bonds as
were not presented for redemption, pro-
vided they were not presented for pay
ment, say, for a year after the call
And a stipulation for certain period of
notice, to lie given to the government
when the money was wanted, might also
have been made as we'll rs an agree
ment by the government to give a rea-
SOnable notice OF its intention to redeem
the bonds.
These bonds, under the secretary's ar
rangement, are redeemable ut the pleas
ure of the government. There is no
reason why, if Congress is satisfied with
the rate of interest, the government
pleasure may not run until its revenues
enable it to pay them off. There would
in this case De No need of new issue of
bonds. But this arrangement to be fair
to the holders should include an agree
ment that they should have three
months notice of the governments in
tention and if the secretary had made
this notice Il part of his offer it is likely
that it would have been of benefit in Sc
curing Il continuance of the loan. The
unnecessary difficulties and uncertain
ties attending the arrangement that is
offered will be likely to greatly retard its
success.
Blaine's Purpose.
Our Republican friends have very bad