The daily union. [volume] (Washington [D.C.]) 1845-1857, 1847-12-07

ii in gold and silver gives government additional power
to borrow IRON IL to 20 millions on stock certificates
ana that such an addition can, necessary, be readily
made lnasmuch two only OF the at present untaxed
ticesnamey, tea and cofee-have, in year, yielded
five millions of revenue.
"a. That there is no probability that government will
be under the necessity of borrowing even third of the
amount 1t has ample means of paying interest on; and
that, therefore, there is not excuse for issuing
governmental paper money for receiving in payment OF
public dues bank notes issued on the security Of public
stocks, or for any other humbug scheme of nancerng
20 mat the very distressing pecuniary difficulties
under which the people of this country labored from 1914
to 1928, were owing to the principles of the financial sys
tenn adopted IN the war OF 1922 and that the grand
OF that system consisted in not providing promptly ad
equate revenue in gold and silver to pay ordinary
penses and the interest the public debts the depend
ence placed on bank credits to perform functions for
which bank credits not adapted and in the
Issue OF treasury notes. especially those OF small demon
nations and bearing no interest
30 That the rate at which loans can be negotiated,
depends not solely on the ability Of government to pay,
but partly on that and party ON the varying ability OF
moneyed to lend, and the demand for capital for
other objects. AS Mr.. Gaatin has said !" Whatever
may be the amount OF money wanted by the public, it
must be purchased at the market price"
~ That, nevertheless, government may deceive the
ner OF negotiating loans and appear to be paying less
than the market rate of interest while they are rea
ty, paying more. That in this way the government OF
the United States during the war of 1Sl2-l5 though it
never appeared to pay more than per cent, paid
actually, in some instances, much as fifteen or tacentH
And that the British government has been paying more
face OF its engagements.
2s That in this way, the cost of the war of Is12-l5
was according to the report of committee of Congress-
increased about one-hird and that the British govern
ment has, IN this way added, unnecessarily hundreds of
millions TO its funded debt besides preventing itself from
reducing, the annual burden by taking advantage of
falls in the market rate of interest aa
49, That IN view OF contingencies which may occur,
growing out of the present state of the in
Europe and America the Poprety suggested of taking
prompt measures to increase the revenue In matters OF
finance, and especially in times of war; it is better to err
on the safe sde-better to have too much than
too little.
80 That if part of the extraordinary expenses occa-
stoned by the be defayed out of the revenue for
the year. much the better The funding system has its
conpenaences but II the expenses of each year of war
could be during that year. the cost would be less
the people
81. That, independently OF this, whenever public
DEBT IS incurred prompt measures should be taken not
only for tho punctua payment of the interest," but for the
| redemption, at no distant day, of the principal
Extensive as is the scope we have taken, some of our
readers complain that have not said all we ought to
nave SAID One gentleman, in particular, complains that
we have not touched the runous effects the schemes
OF policy we are opposing would, if carried out have on
manufacturing interest He saws (and he is himself
New England man) that the only efficient protection
our manufactures can have is to be found in the hard
money principles which government has adopted
"By cheapenlng currency and raising prices" he saws
eve can initiate the speculatons of 1887 so that it will
again be found more profitable to import our bread than
to raise it, and end in wping off another debt of one
thousand millions, public and private, by the sponge of
bankruptcy"
These are. indeed, important considerations, but we
should attempt portray all the evils that would fol
low the issue OF governmental paper money, and the
adoption of quack schemes of nanciering we should I'M
the columns of the Union for month. THETA