Year: 1869

10 the Editor Of The Tribune


SIR: You can see as plainly through the silly and
unprincpled sophisms of The Ne,C- York Times Post
and Chicago Tribune 1, but there are some facts
which it may be well 70 bring before your notice.


1t is quite true that IN seizing the earliest praci-
cable day TO put in force the provision of law for
Sinking Fund Secretary Boutwell, Glanced to begin
at the time Of year when we were most in debt TO
Europe and when the premium on gold has had a
temporary rise from the natural operation of trade
laws We have not the same amounts Of cotton
breads,ufs or provisions to export as at other sea-
sons, and consequently must send either bonds or
specie Bonds have been going since March Is in the
same volume as before-say about two or three mil
lions week but there several causes for the
cent rise in gold which though coincdent with the
policy OF the Treasury is not necessarily caused
thereby Some Of these are transient, others acci
dental. They are


/. The hoard of about eighty millions in the Treas
ury vaults.


Q Tho imports for the past ten fiscal months foot
up about $2SOOO0OOO gold tsworn values onlyl
while the exports were sl47OoOOoo mainly currency


2. The high rate Of the discounts by Bank of En-
gland.


4. The large amounts of capital employed in carry
ing commodities and real estate speculation, (god
includedl making prices artifcally high and, there



.. Rumors Of trouble from Alabama claims, Span
ish broils, and san Domingo acquistions-all Of
which are made the most Of by gold gamblers.


G. Existence Of a large short interest in gold.


OF course You see The Chicago Tribune wants tho
bonds destroyed as soon as bought so 20 obviatc
the need of investing the interest also for Sinking
Fund purposes. This is TO reduce the tariff as the
interest must Of course be taken ont Of the current
revenue receipts.


The Sinking Fund is not an exploded idea, but it is
in use by most of the railroads, as an assurance 10
creditors for the better payment Of their funded debt
Besides. the Sinking Fund was part Of the con
tract with the original purchasers Of tho bonds. and
cannot Beigp0yod ciilot mpariHg tho contract and
pledge that the taxes Will be kept mp high enough 10
cancel some part Of the principal Of the debt as well
as the current interest.


II is not demonsirable that the gold premium
would have been higher than now il the Sinking
Fund policy had not been carried out but 1t is quite
probable and the contrary is quite as far beyond
proof


To those who complain that the Treasury notes
should have been first paid it is sufficient to say that
tho Government could not equitably redeem any OF
them until it could redeem them all.


The credit Of any debtor must surely be helped II
he nses bis spare means IN paying any part of his in
debtednes and as he cannot pay the Treasury notes
why not pay OF buy up the lowest rates the bonds
bearing the higher rates Of INTEREST,"


understand the Secretary 20 be well grounded in
his present policy and it only needs tho steady en-
forcement Of his plan to bring down the premium on
cold as soon as the foregoing disturbances shall be
overcome. WALL oLHhLI'


Hee. York. May ls, 1909.