The Sun.
London, England, 1869-11-02 00:00:00

MR. BOUTWELL'S SPEECIL

Secretary BOUTWELL'S speech at Philadelphia on
the 9th inst. was addressed to the two great States
of Pennsylvania and Ohio; from his stand-point the
question directly involved in the election being the
faithful discharge of the National Debt. It did
not depend, as the Secretary observed, on the deci-
sion of these weighty communities whether the debt
would or would not be repudiated, repaid in green-
backs, or dealt with in any other way than that pro-
posed by the present Administration. But what
Mr. BOUTWELL foresaw, though not involving so
momentous an issue,was still one of great importance,
being, as he put it, whether he should be enabled
to reduce the annual burden within a few months,
by funding the debt at an interest not exceeding 4}
per cent. ; whereby a yearly saving of from 18 to 25
millions of dollars would be effected. Unless the
Secretary of the Treasury be wrong in his calcula-
tions, the election or rejection of Messrs. PENDLE-
TON and PACKER was the answer in the simple words
—No or Yes. We are not inclined to estimate at
the full meaning of the words the speech even of a
Cabinet Minister, addressed a body of electors to
influence an election ; but Mr. BOUTWELL'S was so
moderate, terse, argumentative, and simple iu its
conclusions, that we believe it to contain neither
more nor less than the plain, unvarnished truth.
Simplicity is its chief beauty as well as value. It
was addressed by the Financial Minister mainly to
the working people, and not only did it studiously
avoid complicated economic subjects, but it swept
them away with the besom of common sense. "There
is nothing in schemes," said Mr. BOUTWEEL, "no-
thing in plans of shaving down, of cutting off ; it
is a simple and straightforward work." That work
he defined as an honest collection of the taxes, the
surplus being applied to liquidating the debt. If the
people desired to repudiate, they should at once
avail themselves of their power, and shake off all
their obligations, so as to derive a real benefit from
a dishonesty that would stigmatize them through
all time. If not, let them say so with that decision
which settles the question for ever, deriving there-
from the benefit it would quickly confer, such, for
instance, as the funding the debt at a greatly re-
duced interest. But let them not lose both, while
haggling over a dishonest policy, which did not,
and never would relieve them from a dollar of the
burden, while depriving them of the good to be
derived from an improved credit. Though Mr.
BOUTWELL directed this telling argument against a
leader of repudiation, it is not our object to follow
him in the electioneering portion of his speech ; but
to get at the views of this important functionary on
the finances entrusted to his care. lie maintains
not only that honesty in this matter is the best
policy, but that it is easy for the United States to
be honest. To the labouring men more especially
is the policy of honesty wise. What we have so
often urged is ably reproduced in the Secretary's
speech. On the shoulders of the poor, not of the
rich, would fall the main burden of repudiation.
The very men who think that in shaking off the
National Debt, they are shaking off taxes wrung
fr_m them to enrich the bloated bondholders, are,
in truth, sweeping away their own savings. On the
bondsrests the banking business of the country. Not
only are they the securities of the National Banks,
whose notes the poor men hold, but of the Savings'
Banks, wherein lie the bard earned fruits of their
toil. The quicker information, and the more ob-
servant eye of the wealthy, would guide them out
of such investments, and when the smash came it
would not be in their bands that the dishonoured
promises of the United States to pay would be left.
The unsophisticated, the trusting, and those re-
moved from sources of information would then
as now and ever be the victims, and no delu-
sion could be greater than to suppose that the
burden of the poor would be lightened by the
weight of the loss being transferred to the back
of the rich. The substitution of one promise to
pay for another promise to pay is not a liquidation,
but a repudiation, for the promise substituted is
irredeemable and bears no interest, while that
whok surrender is enforced is redeemable, and car-
ries an interest till the promise be redeemed. In
effect such an act would be repudiation, and Mr.
BOUTWELL called it by its right name. The portion
.F wnhictrtt which will be read in Europe with
most interest relates to the actual figures he fur-
nished. The debt was less at the close of the last
war in proportion to population and prosperity
than was the debt at the close of the revolution,
which then was manfully assumed and honestly paid.
In 1791 the Funded Debt was $75,000,000, which
in 1801 had been increased to $83,000,000, the popu-
lation of the Union at the time numbering 3,000,000.
Though without positive statistics of the then value
of property it might be estimated at one-fifteenth as
compared with the present value. Say, that there
were $100,000,000 of Debt based ou a property of
from one billion to two billions of dollars. Now,
there are forty millions of citizens, with a property
valued at fifty billions, and with a Debt, taking it
when the war closed, at three and a half billions of
dollars. Hence the debt of to-day is less in pro-
portion than the Debt of 1801. To the disparity
must be added the increased power of production
given by labour-saving machinery, and the rapid
accumulation of wealth in the country. Already
several hundred millions of dollars have been paid
in liquidation, thus reducing the total in four years
after an exhausting war by over 25 per cent.
During Mr. JEFFERSON'S two Presidential terms
the-Debt was reduced from eighty•three millions
dols. to fifty-seven millions dols., being $26,000,000
in eight years. In proportion this in no degree equals
what has already been done since the close of the
civil war, and if the rate of reduction be continued
at $100,000,000 a year, which it easily might, the
Debt will be extinguished in less than fourteen
years. Fifty millions dollars a year will wipe the
interest-bearing portion out under twenty-two years,
or twenty-six millions would finish it in a period of
thirty years. Mr. BOUTWELL is astonished that
under such circumstances there should be any ques-
tion as to the course of the country, and lie then
proceeds to show with such a power, giving an abso-
lute security as far as ability goes, yet that the
United States is paying a sum in interest vastly in
excess of what confidence under this head ought to
command. He considered it certain, unless there
should be some disturbance of the peace of the
world, or a calamity national in its character, that
the country would be enabled within a few months
to re-fund so much of the Debt as is desirable, at a
rate of interest not exceeding 4i per cent. But
the people must first recognise that credit required
a belief in the disposition as well as in the ability of
the citizens to discharge all their obligations. The
world did believe in the ability, but the deprecia-
tion of the Bonds in value is due to a want of faith
in their disposition. It is here that the Secretary so
dexterously cast the weight on the shoulders of the
Democrats; audwe maintain (as a European journal
regarding the question from a European point) that
the Secretary was right both in his premises and in
his deductions. Not less interesting was Mr. BOUT-
WELL'S statement of what GRANT'S Administration
had already done. lie considers, as of primary im-
portance, honesty in the collection of the revenue ;
and he asserted that above all things was the Presi-
dent desirous economically and honestly to have the
Government work performed. Of all means to in-
jure public credit, and render taxation odious, the
most effective is to hand over the collection of the
revenue to dishonest men, an axiom with Grant's Ad-
ministration, though there was a difficulty in working
over so vast a space of territory. From liquors the
revenue of last year was $44,000,000; from tobacco,
$23,000,000 ; from fermented liquors, $6,000,000 ;
from transport of merchandise, $6,000,000 ; with
six millions more from sales of merchandise, eight
millions income tax, thirty-four millions stamps,
and fifteen millions miscellaneous, aggregating some
$158,000,000. It is advisable to transcribe iu his
own words what Mr. BOUTWELL then went on to
say :

" This system of taxation can be changed so as to relieve
the burden of taxation from the mass of the people. A
greater amount of the internal revenue is derived either
from the luxuries of life or from taxes on people who are
able to pay, and the butden ups'. the labouring people is,
after all, very small. But I mug Say that no system of
taxation is desired that does not look to a larger taxation
upon luxuries or upon accumulated property, thus relieving
.the labour and the ordinary business of life to as large a
degree as possible. I desire to call your attention to the

manner of the application of th revenues of the country
to the payment of the public debt. The public debt of the
country presents itself in three forms—Bonds issued hi
Government, payable at a fixed time in the future, and
bearing interest, most of them at six per cent., and a small
proportion of them et five per cent.; the currency of tbs
country known as greenbacks used for circulation, and
issued by Government with interest ; and outstanding
$50,000,000 of Three per Cent. Certificates, with interest
and principal, and which are payable on demand in cur-
rency. When the Secretary of the Treasury found him-
self in possession of five, ten, or fifteen millions of Or-
plus funds he would appropriate it to the payment of one
Or the other of those forms of indebtedness. By the law
of Congress ho was prohibited from diminishing the
amount of $356,000,000. That was the amount issued
when he came into the Treasury Department, and that
amount has under the law been continued substantial):
the same. Therefore he could not, without violating the
law, redeem and cancel the circulating medium of the
country, whatever his opinion might be. Then there are
50,000,000 of Three per Cents. held by the banks. The/
answer, to a certain extent, the office of currency. The/
were held closely by the banks, and would not be givenf
up except ou some sort of pressure. The Secretary °
the Treasury did not avail himself of the liberty to env
ploy this pressure, even if it were in his power to a°
so ; but, moreover, he felt that it was to some extent •
departure from the law of Congress by which he wag
requ'red to allow the volume of currency to remain as It
was when he entered office. Therefore there scenta
only the course which has been pursued to purchase 51
per Cent. Bonds at the market price."
After a very beautiful exordium to the working
men, and with an eloquent peroration, these were
the words he used in conclusion :
" Inculcate justice, recognise the great doctrines Of in"
dependence—not some, but that all men are created eclna •
Recognise and act upon these great principles, and 13°:
thing can shake your Government. Neither the reP°'"
of wealth can weaken, nor the shock of war disturb it'
It is more powerful in the intelligence and virtue of the
people than any other nation can be either in the caPrf
city of the hereditary nobility or in the integrity elrell,°l,
the monarch. Rule, labouring men, the land in
you dwell, but rule under principles of virtue, guided Pi
intelligence."
eteell
It is more than probable that this admirable sP—
carried great weight not only in Pennsylvania an
Ohio, but in the Tennessee Legislature, where 'IU4.
DREW JOHNSON was defeated in his canvass for the
Senate, although when Mr. BOUTWELL spoke his Sue"
cess was considered almost sure. The force of W/13
we say lies in this, to borrow a simile from -
FISK'S expressive language, that ANDREW JOOlO.
" has become the greatest toad in the Repudiatl°4
puddle," and readers interested in these bonds oure,
not to overlook the fact that the two strongest
pudiationists, PENDLETON and JOuNsoN, have P°
only been defeated, but defeated even in their 'ter/
strongholds.—Anglo-American Times.