The National tribune., 1888-12-27
ss6s.SI5.6oO

cents cue sept. 1891
. July l, 1907..............-. 6s1, 2Ss, $50
s86s,815.eoo
He had in the Treasury net surplus of
cash. over and above all liabilities, of $780,
23461O.
Can any man give a good sound business
reason why this money, and all the revenues
of the Government, over and above its ac-
tual running expenses, should not be deyot-
ed to paying of the bonds?
1t viii not do to answer that any attempt
to redeem the bonds before they are due viii
result in the holders running the price up.
There is limit to this running up of the
price. For example, the A per cent. bonds,
which are due Sept 1, 1891, have but two
years and eight months to run. The entire
amount of interest which their holders viii
receive, consequently, viii be only - cents
on the dollar. 1t is quite clear that the
price cannot be run up beyond SLIP, for the
reason that anyone paying more would lose
just as much as he paid over and above that
price
It viii not be run up to that figure, nor
anywheres near it, for the ample reason that
with the present demand for money the
bondhoIders could make good return out
of their capital within the next 80 months
if it was returned to them now, and they
would be willing to throw off some part of
the total payment to get it. The quotations
for a per cents. last week averaged 81,
which means that the holders would rather
take S10825 for every 500 bond than to
hold it two years and eight months longer
and get in the aggregate SIP. The per
cents. sold at 1911, which in like manner
means that an owner of 800 bond, bearing
4 per cent interest, and due July 1, 1907,
would rather take $127.25 for it now than
hold it until due-171 years from to-day,
and get altogether, in principal and interest,
$40 for it. That is, the holder Of a per
cent bond is willing to give up 1915 on
every 500 for the sake of having his money
now, and the holder of a per cent bond is
willing to give up 1925.
But even if the Government had to pay
the entire amount of interest it would be
much better than boarding the money in the
Treasury.
Secretary Fairchild, who has been adverse
to taking up the bonds, and does not conceal
his opposition to the policy of paying the
debt in advance, still has to admit that the
results of the purchases since last May haYe
been a saving of two per cent. upon the in
terest that would otherwise have been paid.
This being the case, the policy, if pursued
under no more willing administrators than
the present Secretary of the Treasury, will
in the end save the taxpayers of the country
very many millions of dollars.
But this saving of interest is only a very
small part Of the benefit that win accrue
from this policy.
At the present, as we have shown above
we have $868. 315, 900 of money lying locked
up in these bonds. It is virtually idle
making nothing, helping nothing along, do
ing no good TO anybody, except to the own,
ers Of the bonds, who receive about So, 600,
900 a year interest.
If the bonds were paid off this immens,
amount of idle capital would become a
once transformed from idle to active money
seeking investment, and be set to work build
ing railroads and factories, opening mines
and doing all manner of things of which
everybody would receive some benefit. TIL
money that is now CONCEALED in them can
not lie idle any more than man can. ]
must be employed, making something 70
its owners. If set to work, the result vii
be thousands of miles Of much-needed rail
roads, which VIII improve the value {
farms, build up towns, and develop the re
sources Of the country. 1t will double &
treble the amount of employment, increas
the markets, and benefit the country incor
ceivably.
Then why should the good work of deb
paying be arrested as it has been? VIII
shall it not go on as rapidly as it did a fe,
years after the war, until every dollar
our Indebtedness is paid off and we can han
: an unmortgaged Nation over to our succe
f sorsP When the war closed the debt aggr,
gated the enormous amount of 81, 844, 649, 90
| The interest charge on this was $429 pt