Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1862-12-15
KEW PLAN OF PUBLIC CRzD1T
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I'D RisseHcfers.

the nnancial affairs OF our government TPC1iI
TO DO so systemssized ss to command the cont
denes OF the country in the administration {
the business Of The Treasury Department
That the system pursued BY the head Of th
treasury Of issuing irYedeemabls notes, esrtif
Gates OF indebtedness, ssven-thrty bOads, an,
certificates of deposits for short loans, is aecu
mulasing an enormous demand debt that vii
soon create an uncomfortable alarm among bust
ness men, It it does not totally destroy the na
tOaal credit.
! l. sppears, from statements made by the chic
OF the treasury, that only sixty eight millions @
our public debt have been funded in twenty
year bonds sinee the rebellion commenced. ana
that she treasury depends npsn the Temporary
loans to supply al the funds required ior TIC
| expenses of the government beyond the income
foT revenue and tax-s.
It is not possible 70 invent a more hazardeu,
plan of finance to provide money to pay the
current indebtsdness Of great e5uatry Involved
in au expensive and pToJacted war. Against
this eXtTsordiuary practice yeur menoriaiists re-
spectfullg bat earnestly protest
It is customary among business men as well
as governments, to make short leans when
money is dear. aad long loans when money is
cheap. But the treasury reversss this common
practice For while money has been cheaD bs-
yon1 all PRECEDENT during the last eight months.
| the ireaEury has made few twenty year loans,
and has restricted its borrowing u loans of an
extremely temporary character The only rsa
son we have heard assigned for this plan of ns-
tionsl fuaReieTihg, is that this war must Be Of
very short duration, and that when it ends our
twenty year bonds will bring great prsmiun
fouE memorislists are not able to fx the tirse
when peace viii be restored to oar country but
| they do say that It Is matter Of msthemstical
certainty that, if peace is restored within fsE
years a demand fer money will spring IN gil
d'pa5tmeuts of trade, manufactures and com
merce to 50 greas an extent that the prices of
money will rule higher than at any former period
of our commercial history; and when money is
ihus IN demand can the treasury expect the eapi-
talisls Of eur country to divert their funds from
those natural channels Of business to invest in
six per cent bonds
The time when the treasury could have fund
ed six per cent boRds a. par, to the extent of
hVe hundred millions, has now passed away, not
soon to return.
The paralysis Of trade, which destroyed bust
ness sad the demand for money, and threw it
back upon banks and capitalists, is disappear
ing, ans speculation, trade, commerce and manu-
iaetures are gradually creating the sama demsnd
for capital that existed before the rebellion
Thus 1t becomes necessary to resort to some
other means OF Obtaining money to carry On
this war and meet the wants Of the country.
IL should be remembered that our condition
as people is different from any otber. IL a
well known fact that we have no large caDitsI
ists that can absorb any. considerable amount of
new securities. Our capitalists have ths cir money
invested IN bonds and mortgages, real estate.
State bords, bank, insurance and other local
stocks. L would be extremely iriurious TO the
interests Of ali classes Of oar people were these
securities and properties forced upon the market
to raise money to invest in government boads at
any time but especially would II be so at q time
when trade, commerce and manufactures shall
after the peace again ask for the faeilitesswhich
can alone be obtained il an easy money market
It is also important fact that the greater
portion Of the available capital of this countrv
is employed ia trade aud business, and ia TN.
used for the profit it viii earn, instead OF an an
nusl interest upon revenue securities.
This condition OF our country is known 10 us
All, and is the practical demonstration and evi-
dence Of the intelligence, enterprise and thrift
of our people; and hence we esteem those evi-
denee Of debt most valuable thar possess The
most convertible character while thew contain
the intrinsic merit Of certain value.
In consequence Of these facts aud eonclusions
your z1emorialists desire 10 present 10 Won a
system Of American 1nsnes- which will conform
to the condition aud genius Of our psople. and
whirh will make the burden Of a heavy debt
bsar as lightly as possible upon all interests. bv
adjusting it to the shoulders Of traders, bankers
and capitalists,
Ia our country, money is tha. article which
the Federal government should declare to be
legal tender, and the public win take this money
80 long as trade and businsss may demand it.
Trade viii employ money 80 long as the use Of
it viii produce profit greater than tha amount
OF interest paid for its use. When we wish to
hoai more money than can be profitably en-
pleyed in trade. we must make it bear an inter
est, or i viii depreciate in current value.
II is not the quantity of bonds bearing inter
est that creates imitation or Over-issues, but the
large quantity of irredesmable bills forced upon
the public as currency that bears no interest
The principle we now propose 20 embrace in
our national finances, we trust, may be one that
will preserve the credit and life Of the nation,
and alleviate the fears Of those who consider a
national debt an unmitgated evil.
Your msmOrialists, therefore, respectfully re-
quest you to authorizs and direct the Treasury
Department 70 issue coupon bonds having
twenty years to run, Of The denomination OF
twenty, fifty, one hundred, five hundred one
thousand, and five thousand dollars esch. bsar-
ing an interest Of four and one-half per ceutuu1,
and to make such bonds q legal tender.
Your menlorialists represent that these bonds
will be taken and held by al classes Of our peo-
pie, and especially BY merchants, traders and
manufacturers, to a very large extent, and that
the Introduction Of these bonds viii induce
business men to use more capital and less per.
sonst credit in their business, because surplus
capital invested in these interest paying bonds
will still be money in the hands of the holder.
We propose four and one-kslf per cent. inter
est, because We hnd. by a careful estimate of
current values, that four per cent. would be tco
L. 4 u A.
and One-haif per cent, with the legal tender
clause, making the bonds money, viii make a
merchantable As well as legal par value. This
viii cause them to be freely used IN the general
business OF the country, in place of bills Of e1-
change, bank credits and individual accept
auces.
Another important advantage will flow from
this system of finance The rate of interest on
government bonds will not so seriously depreci-
ate mortgage securities or the current value of
real eatate as the rate of six and seven per cent
now being paid BY the treasury upon its issued
bonds
Aud, again, these bonds, being money, bear
ing interest, will soon take the place Of, as well
as absorb the irTedeemable demand notes, be-
cause those bonds viii possess all the character
isles of money, and bear interest.
BY adopting this system the treasury viii not
be compelled to ask anOtheTlOan; for as these
bonds will be legal tender, the treasury may
use them as other money in payment to public
creditors. Thus viii the national credit be pro
tected sinst dishOnOr, to which it is now ex-
posed By the plan Of demand notes and eall or
short loans.
II is probable that these boads may be ab-
sorbed in the business Of tho country, without
materially affecting values, to the extent of more
than one thousand millions within six months
and, by allowing short time to bring about a
proper appreciation Of the valus Of this new
money, bearing interest, and gradually placing
the bonds into the hands of the public, it is not
unlikely that two thousand millions may be
proitably taken in our country.
By issuing these bonds, that viii take the
place Of tho iEredeemable demand nolss, the
treasury win be enabled TO resume specie Day-
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