New-York tribune., 1882-02-08
HoW TO SELL THREE PER CENTS.

| AS TO the probability of three per cent bonds
! beinp sold, in case the Senate bill should be-
come a law, there is wide difference OF opin-
ion. Ii is not commonly believed that the bill
in its present form will pass the House, but the
grave mistake OF those who allowed the Car
Isle bin to pass one House last year. in the full
belief that the other House would never be
foolish enough to pass it, warns Us TO put small
confidence in the intelligence of either branch
of Congress. The Democrats of the House,
under Mr. Randalrs lead, are likely to insist
upon IA very different measure, and yet their
course is governed so little by convictions and
so largely by calculations of partisan advan-
tage, that it is quite impossible to judge how
they may act when it becomes necessary to vote
either for or against the Senate bill. There is
at least a possibility that enough of them may
vote for it to insure its passage. 1t is great
misfortune for the country that there exists i'll
each House so large body OF members who
appear to care nothing for the public welfare
and to be governed entirely by shallow and
often mistaken notions as to the popular effect
of measures upon the fortunes of parties
With q large and strong Republican majority,
this danger would not exist
The bill offers new bonds in place of the eX
tended three and half per cents. The latter
are payable at the pleasure of the Govern
ment, and the new bonds would be also. But
there would be material difference, in conse-
quence of the amendment offered by Mr.. Davis,
of West Virginia, which provided that none OF
the new bonds should he called until all the
outstanding three and half per cents should
have been redeemed or called. Of the proposed
issue. 5000, ,OOO, 900 would be authorized, if
the bill should pass, leaving about $331 100000
of the three and half per cents outstanding.
At the present rate of taxation and expend-
tnre. the remainder of these bonds would be
cleared away in about three years. But Con-
gress might reduce taxation, or increase the ap-
preparations, or both. In either case the new
bonds would have longer life than three
years, even for those latest issued.
The bearing of this state of facts upon Con-
cressional action Is to be considered. Many
men, and many influential corporations, would
be strongly tempted to favor a reduction of
taxes, if thereby long life would be secured
for new bonds obtainable at Iar There is a
strong disposition among Democrats already to
insist upon large reduction of taxes, partcu-
larly on whiskey and tobacco. Many Republi-
cans believe that taxes on banks, and part of
the taxes on liquors and tobacco, may be re-
mitted, and some friends of the protective
system incline to favor such reductions, as a
means of preventing changes OF the tariff which
they believe would be disastrous. Thus there
Is IA possibility of a strong combination to re-
duce the taxes, though no evidence has yet
been given of a concentration of force to that
end. A large reduction of taxes, being equiva-
lent to reduction in payments on the public
debt, might give three per cent bonds a chance
of comparatively long life.
1t is the popular impression that the banks
will be obliged to take any proposed bonds, i'll
order to retain the advantages of circulation.
With present taxes on circulation and deposits,
the banks can find scarcely any advantage in a
circulation based on three per cent bonds. But
three and a half per cent bonds would un-
doubtedly be exchanged for three per cents in
considerable amount if the taxes on banking
should be removed, both because this would
give the proposed bonds a longer life, and be-
cause it would render circulation more profit
able.
1t was suggested by TIE TRIBUNE long ago