New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-05-18
ELrAnIAG TNNECESS1RY.

Mr.. Hewitt would be a great deal wiser, at
least in his utterances, if he were not chained
to the dead body of the so called Democratic
party. man of information, and capable OF
study, he is nevertheless forced 10y party ties to
saw things not to his credit. At present it Is
the policy of the Democratic party to clamor
for a three per cent funding bill, To see Mr.
Hewitt's intellect pressed into sthe advocacy
of such policy affects one with pain, as 1t
would to see blooded racer harnessed to
dirt-cart in Broadway.
We have left, not already called, about
$3.50, 600, 900 of three and half per cents.
At the present rate, $12S, 74S,213 in ten
months, the last of these bonds would be called
in thirty-iive months With especial pros
perity, the revenue would increase, and the
debt be paid more rapidly. With adversely on
the other hand, three per cent bonds could not be
placed at par, or, if sold, could not he safely
held by banks or custodians of trust funds,
because they would be likely to fall below par.
If the three and half per cents should be
called in and funded in three per cents having
a fixed period to run, the Government would
surrender the power to reduce its debt at It's
pleasure, and would have no means OF prevent
ing a fatal accumulation OF its surplus revenue
in the Treasury, except by buying bonds and
having the premium demanded by holders.
On the other hand, if the revenue should be
reduced. and bad times should come, the Gov
er1,ment would still be under obligation to pay
of the three per cents at the expiration OF the
time, though it might Ice very inconvenent
and costly to do so. AS 1t stands, the
$3.50, 600 900 can be retired ut the pleasure OF
the Government, or, if necessary, can with full
right and perfect propriety be lett outstanding
for a century. Is it conceivable that it would be
for the advantage of the Government to refund
the debt under such circumstances
All the old arguments for this course have
been disposed of ef1ectually by the events of
the past year. The enormous advantage of re-
tanning the double option, to pay or not to pay
according to the convenience of the Govern
ment, Is now generally appreciated Hence a
new argument is needed and Mr.. Hewitt finds
it in the embarrassment of the banks, in cOnse-
quence of the rapid retirement of three
and half per cents. lie declares
that there will be great trouble unless
something is done. No doubt. And if it were
not for the mulishness and malignity of Nh
Hewitt's party in Congress, an adequate
remedy would have been applied long ago.
The repeal of the tax on circulation, which Re
publicans have favored for years. and Demo
cratic bank-haters have prevented, would put
the National banks in the same position, buying
four per cents as basis for circulation even at
a higher price than is now paid, that they gladly
took when they subscribed for those bonds at
par, with the tax. The repeal of the tax Oh
deposits, measure required by the public in
terest irrespective of the interests of the banks,
would place them in a still more advantageous
position. If Mr.. HeNitts party will get out of
the way, and cease to obstruct the public bust
ness by endless scbeming and wrangling for the
sake of party, the Republicans will end all
difficulty by removing these taxes in few
hours.
Even if this remedy were not available, there
would not be the slightest need of refunding
In order to avoid contraction of bank circula-
ton. 1t is not necessary to pay of debt at the
rate of So, 900, 900 per month We have nine
years in which no debt excepting the three and
half per cents can be paid without buying
bonds at premium. At $50, 200, 900 yearly,
the bonds still uncaled would require nine
years for their redemption, and it would be
four or five years before the amount outstand-
ing would be less than the amount now ON de-