Savannah morning news. [volume] (Savannah) 1868-1887, 1881-04-15
Secretary Window and the Maturing
WASHINGTON Post.


On the first proximo per cent bonds
to the amount of $463, 500, $50 will be
due. Two months thereafter, at the end
OF the fiscal year, two 6 per cent. loans,
aggregating $196, 37S. 900, will mature
Hence, we have total debt of almost
$500, ,000, 900, for which no provision has
been made, and in relation to which
there has been very serious blundering,
that is sure to cost the people many
millions before its effects are exhausted.
1t was this vast Indebtedness that oc-
cupied so much of the time of the last
session of Congress. The funding bin
which met its death at the hands of Mr..
Hayes, was intended to meet the emer-
gency which Mr. Secretary Window is
now facing. A majority of Congress,
after the most mature consideration of
the great question in all its aspects, and
after getting all the available infOrma.
tion as to the financial outlook were
satisfied that this obligation could be
fioated at 3 per cent, thus effecting
reduction of 2 to per cent. ON every
dollar. Nothing has occurred to shake
the solid pillars on which that confidence
rested. In fact, the situation to day
fully justifies the belief that, had the
funding bill been permitted TO stand il
would have been complete success.
When the Republicans of the last
House filibustered against the funding
bill till assured that it would be slain by
Mr.. Hayes, they perpetrated the greatest
political blunder that has been commit
ted by any party in this country for
years.
When Mr.. Hayes, following the lead
of his friends in Congress, and giving
ready ear to the threats of irate brokers,
vetoed the bill, he gave emphasis to that
fatal mistake, striking a blow at the in
terests of the people, as well as piling up
political capital for the party that had
supported the bill.
And when President Garfield decided
not to have the great blunder repaired by
an extra session of Congress. he in
augurated the financial policy of his ad
ministration by assuming an immense
and dangerous responsibility. The steps
Mr.. Window is now taking, with the
approval of the President, are fraught
with deal of veal or woe to the ad-
ministration. Failure in an honest effort
to carry out law of Congress would
bring no disgrace or just censure. But
failure in temporiZing expedients, after
declining to ask legislative direction, will
be very different thing.
Mr.. Window has made diligent search
for light to guide him in untrled paths,
and the result is proposition to the
holders of the 1896, 379, 600 of 6 per
cents. to have their bonds marked down
to 81 per cent. We do not undertake to
say that this is a palpable violation of
law. That might be going too far.
The good intentions of the Secretary
are not doubted But, if he can
change the rate of interest in one direc-
ton, why not in the other2 If he can
scale down when times are good and
interest rates rule low, why may he not
scale up if bonds mature in hard times
when money commands high rates?
Does not the right to change the rate of
interest on an outstanding obligation
imply the right to increase as well as re-
duce2
And what tremendous responsible
ity, what boundless discretion, what dan
gerous power is assumed, if a Secretary
of the Treasury may do all this ?
Where does the legislative sphere come
in if the executive orbit embraces so
much &?
Would it not have been much better
to have called Congress together and
thrown on the law-making department
the responsibilities thus boldly shoul-
dered7
1t is true that no wrong is done to the
bondholders. They can have their
money, if they want it. But it is ven.
turing on experimental ground for the
Secretary to do anything with a paya BILE
bond but to paw it,