, 1881-11-26

since the great snvtHG nf interest whIcl. 1t
was III the power 0f tho Da.nursAts IN cuhl-
Iass Inst winter i1s afnco baoi. achieved by
Secretary Window In manner salts
factnry to tho people mi! to tho MI
vantago Of tho Government. At the
snlle tfino tha Democrats atc always ready
10 ayEtate my fssud| which, promises discus
sion a,ld wnsto Ut time, eager 10 selze upoit
any pretctsn Of economy which dcllnEegs
call eInploy for tho ptlrruso Ut deception, a.lt
nnxlous 10 court tho cnfperatton ot tho
Grcenbackrrs, Or my individual nr clfGne
wl,osn tligrcsslons 1,lay p.,ssihy weaken tho
isopnb]tean party itcrcin is 10 be fuurtl the
funding measure will bo fnrcctl upon Tic
consideration Of Congress notwithstanding
tho uecaslon for suci, Legislation llas passed,
aid tn spito OF tllo Obvious fact that the busl.
ness tntcrests Of the country will be served
bust by avoiding all disturbance. Ut the pres
Gill status at Government finances.
Willie It will undoubtedly bo n hazardous
experiment, under my conditions. 10 ut
tempt tho snla of 8 per cent bonds at par, 1t
l1.ay well 10 doubted whether MI assured
SUCCESS Of such MT undertaking would war
rant the surrender OF tho advantages pos
scsscd By tho Government lit the tnlrlnit
extension TT the oil binds Mt tic rate of ~
tcr cent, Ut the old d alal Il per cent bontts
more tim StO9, 600 have been paid md
cnIicoled since they became subject to call n
few months back. and s5sl, ,ooO, ,000 have been
extended nj ~ per cent interest. There Is
NIL annual saving on the wl,olo transaction Of
nearly StU0o0. .0o0 in interest, which has been
made III spite OF the stubborn Democratic
policy Of saldl|ltg the o1t1 excessive rates Of
interest upon the Government except undor
M agreement 10 bully a1ll iarass tho M
tionnl banks. This tangible result Is Of much
greater consequence to the people than any
experiment for further reduction OF iuter-
est under terms which might result In
failure and would certainly impose Injustice
and hardship upon tho banks. hut tllfS
vlaw Of thu case does not comprehend tho
principal advantage wt,tcl, the Government
gained through Alr. Windonl's rcfundinR
scheme. The extended 3}1 per cent bonds
are subject to call at any time; thu payment
thereof cannot be demanded BY the holder ut
any specific date. The option Of payment
rests entirely will ta Government, and will
be controlled By the Governments convell-
ience and interest For Instance, tho Sccrc-
tary Of tile Treasury announces that lie has
the funds 10 redeem SGD,000.00D Of thesu
bonds. 1t Ia only necessary for him to call
In that amount alld announce the numbers ot
tic called bonds in order to stop Interest
thereon. It is not necessary t0 my my
premium to secure them. After sG0, ,0o0, 900
of these cxtofl,lcd bonds shall llaye hecn
paid of md ennceted, there will be nbout
5000. .000, GOO outstanding, and ono-tlird Of thu
entire bonded debt OF the United States will
be under the direct control OF tho Govern
nleut, It may bo paid off III any amount ns
surplus revenues accrue, md 1t lnay bo
allowed 10 run without limitation Mt 316 per
cent interest II such course shall suit tho
Government purpose.
1t will nut pay to abandon this rare .nnd
valuable privilege in order to save Il Of per
cent interest n year. II 1t, were possible to
sell 3 per CENTS at par running for the arhl-
trary term Of ten or tifteon years (and II Is
likely TINT the term would bo heightened out
to twenty or thirty years In order to assure
the negotiation OF par loan at TINT rate),
and 1t should subsequently prove that TIC
Government could have paid off tile $780,
000,000 within five years, then tie change
would bo great loss, for the reductions In
the principal made under the present system
are gradual and may snre interest from year
to year and from month to month. II, on
tho other hand, the Government revenues
should fall of by reason Of q reduction In
taxes, or IT there should be nh increase
OF expenses imposed by wnr or. some
unforeseen calamity, and the Government
were not prepared 10 pay oil the per cent
bonds ut maturity, 1t might DO compelled to
refund them at 4 much higher rate offnter-
est III ten. fifteen, 0r twenty years from now.
Such turn In affairs would involve even
more serious loss, for, as tho matter now
stands, tho extended bonds may be allowed
to run fifty or hundred years, md ITO more
tlan az per cent interest can be demanded
at any time. As a question Of economy
alone, the present loan at 81 per cent.
the option Of payment resting entirely with
tho Government Is more favorable than
would be 3 per cent bouls payable absolutely
Mt tho end Of certain term Of years, and not
payable in any, part nor at any time previous
to that dnto.
There are other considerations which rem.
der tho 81 per cent extondcd bonds more ue.
strabla than any otliors which could DO no.
gotiatcd now, There is an assurance TINT
they will always be about Mt par. Subject to
Government cnll. md liable to be paid of al
| amy time, they are not likely ever 10 com.
luutltl much premium; but the credit Of tue
Government protects them ultler all ordl
nary monetary conditions from going below
par III yaluc. Hence they will always be
| negotiable securities Ql,A readily convertible