New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-05-17

SECRETfRY WINDON'S PLtN
The sourcd and beaten parfiSln~ who were
prowling ut Secretary WINDOWS plan month
ago. and predicting that fcw b"ndh0ldrrs
would care to take Mr.. WINDOWS personal
aud unauthorized promises .mly examine
Washington dispatches with profit In view
of the wonderful success of that plan. possibly
they may feel for themselves "A little of the
hearty contempt which other people feel for
them and their financial nutiou~ Within THREE
DAYS notices for continuance of 80, 1850
of the five per cent bonds have been re-
ccivcd nj the Treasury. A. soon rs it l. known
that lpplicaiious are going forward 50 rapidly
80 that the $50. OOO. 600 of three and n half
per cents which remain to bc issucd may all
he taken quickly, and that the three aud a
bali per cents first issued will Ice the
last Ia bc redeemed under provisions of
the act of 1870. the movement will he
greatly arcrlrraicd. II is not unlikely that
nearly all The registered five per cents in this
country may Ice forwarded to the Treasury be-
fore the eud Of TIN, week. May, 1851, will long
rank in the financial history of the country a.
the month of the grandcst achievements, for
between 800. 200. 900 aud $500. OOO,Voo Of
five and AK per cent bonds will have been
converted in that one month into three and
one half per cents, at The desire al the holders
The enormous transactions of April. 1879, the
month in whirh about S2iO.OO0.OOO oi four
per cents were sold. will hrncctorth seem in
significant in comparison. For IT may bc as
sumed that substantially ali the three and a
half per cents which the Government proposes
10 issue will be applied for this month ana
nearly the whole of $l9j,0Oo,0oo Of AZ per
cents have already been converted since the
month bcgin
The remarkable ability Of Mr.. Windows
plan was heartily recognized. it seems. Nv The
LoaIon Economist of Saturday. This journal,
the highest financial authority of GrcJt Brit
ain. saw tie great merit of the plan, when it
vas first announced about mouth ago. but
did not anticipate that It's success would be- 80
coulUlctr. and supposed that the dy. per cents
would have to he left for future legislation II
j. greatly 10 Mr.. Windows credit that he has
devised means of turning t" ucilcul.Iblc adj
vantage the very Circumstance winch, ~ Soinr
imagined, might prove the chief obstacle To his
success. II WIS known that be had not at
command mean. enough to rrl~n all the FIVE
prl cents. if none should hr extended Bat by
announcing that 81, OOO. 900 Of them would in
any event bee redeemed, hc has made il to the
interest Of III holders to gct thrir bonds coutin
ned n early n possible, ~ that they may
not bc left 20 await final payment i'll August
Tie banks bold about Sl7j. 900 900 OF the five
per cents but the utmost amount which the
Secretary will consent 10 continue l. about
S31S. OOO,OOD. Outside of the banks. only
about So, 900 600 of registered and SIPS
OOO, 900 of coupon iivcs can be- continued, and
the demand for them is such that on Saturday
lO3io ras paid in the market, which IL cqulVa-
lent 10 the quarters interest 10 August ~
and > per cent premium beside. With such a
demand in the market. those who do not care to
hold the three and halt per cents themselves
will De pretty sure to sell their five per cents to
others who will get them extended.
THIS operation will rank -, the greatest and
most crcditable financial triumph in history
A. Secretary Window said at the recent ban
crct. the achievement reflects great credit
| mon the country. But the Nation would nci-
thrr have deserved such credit nor been able
TO escape bankruptcy and di-honor had It's
finances been left to the management of Demo
cratic politicians. What they would have done
10 bring about disaster and to dishunor public
obligations was shown by the attempted legis-
lation last winter. Tho memory of the Demo
cratic panic of February is still fresh, while
the $and is ringing with the bids of those
who make haste to loan the Government
$500, 000 900 ut 3l2 per cent year.
a particularly igno~nt Democrat observes
that the premium ii for tho three and n
half per cents show, that three per cent bonds
could have been sold. On the contrary, it
proves that three per cent bond would now
sell at about S7l2 cents on the dollar, if it
proves anything. At 102 the three and a
half per cents yield 3.43 per cent to the pur-
chaser, and tho four per cents at III return
about the same interest. There is no evidence
now, nor has there been any Mt any time, that
| bonds bearing only per cent interest could
have been negotiated mt par. 1t was the
duty Of Secretary Window, as it was
the duty OF Congress last winter, not
to fritter away grand opportunity by trying
| to do Just little more than was practicable,
but to get something done without risk OF
failure. The Democratic Congress was just
foolish enough, and just enough inclined to-
ward Reputation and bank plundering, to make
disgusting and costly failure. Secretary