The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-11-13

J
Both the bonds and the coupons to be made receiv-
able in all public payments The latter not to bear
interest &
Surprising the revenue to be estimated twenty five
millions, the operation would throw into circulation
$3.50 600 quarterly equal TO one million in the year
And having that corporation had issued near
~ million and half in small orders, mainly for
the of single State, embracing not foItieth
part oflhe entire federal population, by whom they were
found convenient facilities and passed freely until the
supply exceeded the demand, it may be- thence, fairly
assumed that the amount of coupons would be pro-
gressive until the public convenience for travelling
or otherwise, should be fully satisfied. And they
could remain in excess because OF their recevabi
ty for all public dues. And containing as they should
the essential elements of national currency in their
uniformity OF value and their sslidity of foundation
they would justly inspire universal confidence.
So much for the coupons, now for the principal of
the fiscal bonds
They are per Sc irredeemabe constituting fee sim
Pile lien upon the wealth and credit of the whole nation
OF which the bearer can only be disisted at his vo
ton either by sale or by payment for public dues.
And towards their redemption by purchases, on the
public account all The surplusses Of the revenue should
be applied under such supply il would not be
cessary any balance in the Treasury the
" fiscal bonds" would always be available
And the redeeming effect OF all surplusses, applied,
would be financial lever to enhance their market
value, that the rate Of interest might be practi
calIy reduced, by the substitution of issues al lesser
charge upon the Treasury-say to three and perhaps
eventually TO two per centpm per annum
l. it not marvellous my esteemed philosopher, that
the inhabitants OF an island, whose ierrene supelfces
is less than that of several Of the States OF the Re
public with debt of nearly four thousand millions of
dollars amount in fact, greater than the aggregate
valuation Of all the real and personal property of the
whole Union, (Which may he said to owe nothing,)
should be able to augment her Indebtedness by ems
sions of consos, iIredeemable bonds at 80, be-
ing equivalent to borrowing at 3 i3 per centum per
annum, whist The requs tion for our mere temporary
supplies tardy taken at nearly the double Of that
rate Is II not because the arrogant English in their
pride OF purse, in their bank parlor, and stock
change, have determined to disgrace this great
nation 7 Or is i not by reason of the operation Of
fnanc al lever applied in purchases of their public
securities Yes, most truly il may be ascribed in
great decree TO the actual effect OF such purchases
the enhancement Of the national credit mainly repre-
sented in their consolidated debt, vugarly called the
"consols"
Then why should not we, in the majesty of our
vast ncaculable resources create capital upon the
faith and wealth Of all people and properly, with
Iedeemng appropriation TO elevate its price common
sura,ey with lis obvious solidy and produciveness
The practicabiliiy is apparent, and its expedency
would to be no less
Phiio. Sop Most sage economist, thou rcasoncst
well-but why impose debt upon the people, whilst,
in the exuberance of resources the evil of
mula ed surplusses in the Treasury is to be APP
pretended than a deficiency
,Stat-Such Is the fact but specializing politicians
have essayed their eoquence and ingenuity TO prove
the necessity of national debt of considerable mag
nude. And as they have succeeded in authorizing
an hypothecaon Of the public credit 10 the extent OF
twelve millions at six per cen, the interposon Of
measure which would reduce the charge by one-ihird,
could not fairly be objected To- And the further CT
tension could no, transcend the popular will as repre-
scented in Congress and the application Of surpusses
would tend TO the reduction Of the rate of interest
and the consequent promotion of the general happi.
ness and prosperity.
Phio. Sop What are the advantages Of the pecu-
liar evidences of public debt such you have detail
cd distinctly
Stat.--They mainly consist in the avoidance of
trouble in transfers, and in collecting the interest as
they would be pocket security TO accompany the per-
ron of the owner, in all his movements aud the inte
rest would be available in any section of the country
by merely clipping the coupons as they should arrive
at maturity. And from their accreiive principle they
would attract the reserved moneys of many prudent
individuals and unS!oeking large amount of boarded
treasure
Phiio Sop.-Do you esteem the project as the most
eligible for raising MEANS and supplying currency
for the country
Stat-For raising means it certainly possesses pc
culaT advantages; but the system of the Maryland
inancier which has been frequently printed by order
ofeilher House of Congress- presens principles which
from their homogenity with the political ins,it utons
the Treasury the facilities of commerce, and the ac
commodation and promotion of all interests, would
seem to be more generally useful and consequently
entitled to preference all others which have ap-
pcared.
Phiio Sop.--Your information is replete with all
important considerations. | will digest IT, and endea-
yor TO turn il TO good account
PHILo.soPnUs.
Nov. TO- 1871.