Year: 1866

We trust the Finance Committee OF the Senate viii
lose no time in considering Mr. Shermln's bill for con
solidatng the debt and reporting it to Congress. The
country needs thorough financial plan, aud we
know of none tina, would be more generally accept
able than this. An objection is made 10 the fourth
section of the bill on the ground that il takes an un-
due advantage of holders OF scvcn-1hirtes, by CON-
pelling them to decide six months before maturity
whether they will accept another form Of loan or
national currency for their securities. We think it
bad policy for government TO take course which
by any means could be construed into attempt to
drive a sharp bargain But. at the same time the
Government must adopt a measure Of self pro-
lection. Time will b. necessary to provide
the means to meet these Seven.Thirty notes
as they mature. There ara over S-OO,OOO,OO
of Seven-Thrty notes to be redeemed
in some way, aud in a very short time. We cannot
raise this money by any system of direct taxation
without creating heavy burdens; and the necessity of
providing $500 900 in currency, and a, the same
time in Fve-Twenties, to be ready upon the day OF
the Seven Thres mature to be prepared for any
decision the holders may make, Is to place upon the
Treasury "A burden of enormous magnitude. The
money market cannot but suffer from the ignorance of
the Department and the indecison of Eoteholders.
If the money value of the Seyen-Thrty loan is
thrown upon the market in currency, we shall
have a period of imitation moro extended and,
in the end, more disastrous than at any time
of the war. II we conGne ourselves to Five
Twentes as the only loan to be taken by those
who returned Seven-Thirties, and hold abundance
of money, we merely assume six per cent gold
bearing loan for at least five years succeeding the ma
turty of the Scven-Thircs without taking advantage
of the increase in National prosperity the abundance
of money that National prosperity will bring and the
opportunity shall have of reducing the rate of in
terest and creating sinking fund for the payment of
the National debt.


BY the plan of Mr. Sherman, the Government, like
any prudent money dealer will know six months in
advance what il will be called upon TO dothe amount
Of money and Of bonds it will have TO provide. There
will be no chance to create panic or 10 demoralize
the business of the country. At the same time, this
fourth section is merely matter of convenience and
not an essential part of the BILL and we are not
anxious about its fate. We wish to see the Govern
mcnt reduce the rate of interest and thus save 63 of
the amount of the interest to be paid annually; and,
in the second place. apply the money thus saved to the
payment OF the National debt As awe showed yesterday,
by negotiating 81 OOO OOO 900 of five per cent loan,
and applying one per cent Of that amount with COM
pound interest for forty years we shall be able to pay
off 0O0 0OO 900 of the National debt about the end of
the present century For this reason willing
to accept thirty forty year loan Toprovde against
any contingencies however, and to make the job Of
paying our debt as easy possible to our children,
we should be willing to accept longer loan than that
provided by Mr.. Sherman's bl-ffty years. for in
stance The main points upon which We feel like in
sisting are:


l. That the six per cent and seven and threetenths
per cent loans shall be converted into five per cent
loans SO soon as the terms of their creation will per.
nit.


H. That the Government shall not pay more than
five per cent for money, when other countries with
out ehalf of our resources, obtain at it lower
rate.


Ill That the loan shall be for as brief period as
prudence will permit


". That sinking fund shall be created, to show
that we are sincerely anxious to pay our debt in
time and that as an earnest of faith, provide
the means for doing it.


The fear that we cannot negotiate this loan at five
per cent is unfounded If we could borrow $685.
9o4 900 at six per cent and s2il 100 at five per
cent in time of war, we can certainly reduce the rate
to five per cent in time of peace with the country
rapidly increasing in wealth. and fair plan of taxa
ton. Those who hold contrary opinion do injustice
to tho spirit OF the American people az the genius Of