Year: 1871

To the Editor OF The Tribune.


SIR: No patriotic citizen has seen without
re gret that the to fund national debt on inc
terms and in the circumstances undertaken by Mr. Bout
well has proved abortive When the new consOls were
first offered subscriptions in at rate which, II it
coud have been maintained, would have absorbed the
five per cents in short space OF time but the effects OF
the FraneoGerman war superyenng, these SUBSCRIPTIONS
gradually diminished until they have altogether ceased
and the question il earnestly asked In financial
circles What will the Secretary do VIII he abandon
the scheme altogether, Or will he adopt means to make
it final SUGGEST win he confess himself failure ana
retire 10 private life will he make one more grand
effort The chief OF nOn-success are doubtless
first the Europe, which gives us a competitor Tor
money whose necessities much greater than ours
that he can overbid in the foreign markets; and,
second of the currency at home, which makes
impossible borrow Of people at satisfactory
rates


Now having failed abroad would not be well TO turn
our attention 10 our own country and what can he
done there The means of dsposing OF the I'VE per
cents to own people seem to us simple.


Let our currency be raised to par, not hy violent
process that shall suddenly deprcciote values and dis
tmb trade, but gradually commencing with the an
that hereafter the Treasury will avail OF ts
privilege to accept all bids for gold that shall be deemed
for the interest the Government and then, when the
bids are made let all but the lowest re accepted even
-nopid a'aorD sIoo"oooo or the Iro'S"fS so'
II seems 10 us that soon the public come TO under
that this to be adhered to,
the premium gold will decline as rapidly
as is consistent with the interests OF trade
When the bids for the succeeding weeks ofernglare
made they will be at lower rate and probably for
smaller aggregate. and in this way believe the pre-
MUM will he gradually reduced 10 par without creating
alarm either the managers OF the Treasury or 70 the
trading community. And the nrger the amount OF the
bids accepted the first day the smaller and more eau
tious will doubtless he the bidding Oh the subsequent
days.


In considering the feasibility Of this mode Of attaining
specie payment should be lost sight OF that
while il very easy for Of small means to buy
up and hold large amounts Of gold, II Will be very di
them dealers in the precious metals will he more
shy OF each other will exact larger margins, and ten
dollars of cash will he required in their business where
one is sufficient now The certainty that the Treasury is
against them Will the death Of the gold SPECTATORS


Having raised our currency to par all the money in
the country will be a condition for direct conversion
into the five per cents without the loss of any part of il
IN ne form OF discount Then five per cent, expressed
in the body OF the bonds will be that and nothing less to
Americans whose money i, in currency, well as to
foreigners whose money g.. in gold I'm such state Of
things rs this our savings and other trust institutions
can afford buy least the series Of five per cent
bonds and within reasonable time. Meantime
France. II is to be hoped twill have become
TRANQUIL the markets of the world will have become
settled AMI we VIII given such proof Of our hnan-
ca strength that the and the per cent series OF
bonds will hud ready purchaser, abroad they do not
actually find them at home We believe it Will be long
time before the managers of Trust institutions VIII
nc inclined 10 sell their currency discount Of 10 or Il
per cent and then invest the proceeds in per cent
security, however safe i; may be. W.