The Cass County Republican. [volume] (Dowagiac, Mich.) 18??-1880, 1862-02-08

y
terest is that of finances and taxation,
. subject that very few of our Legisla- |
tors and people generally understand.
There are however. some general
points of agreement. There is very
general accord that the Government
must rely largely npon its credit, or, in
other words, that the war must be ear
RED OH by loans. Its also agreed that
loans without taxation will not suffice,
for loans to. pay the interest on loans,
would speedily ruin any nation. 1t is
also agreed, but not SO generally, that
the Government can not rely on banks
exclusively for its loans, but must de-
wise some scheme of borrowing from
the people without interest, or, in other
words, supplying them currency.
When we pass from these grounds
of general agreement, however, there
is great diversity of opinion. One
class Of financiers think considerable
part of the Government loan should
consist in what are known as demand
treasury notes; another class opposes
such issue il not altogether, at least to
any large extent, and insists that the
whole Governmentindebtedness should
consist in Government bonds drawing
q fixed per cent. All who are IN favor
Of sound system of finances de
rnand that taxation shall be ade-
uuate to pay the interest on the public
debt, and some add, and rightly, we
think, the civil expenditures and mod
crate sinking fund to liquidate the prin-
cipal. 4..f...s
We can not pretend to GO over the
whole subject, aud will confine our
selves to that part of it which is now
most generally discussed. 1t is claimed
by those opposed to an Issue of demand
notes that they will depreciate in con.
sequence Of the quantity $3.50, Ooo.ooo,)
contemplated, having first inflated
prices aud given rise to wild specula-
ton. They contend that the laws of
trade show that country can only car
~ about so much currency, and beyond
that is inevitable depreciation, and that
the demand notes will transcend the
point of safety. They also claim that
currency, whether issued by private in-
diyiduals, corporations, or government,
should represent specie, and that the
demand notes in the sum named, will
exceed by almost two thirds, the specie
in the country. To meet the principal
of these objections, it is proposed to
make demand notes a legal tender, as
gold and silver now are. And here is
interposed class of objections which
are based upon principles asserted
above, viz: that treasury notes in point
of actual value, will not be eqnal to
specie, but must inevitably, in spite of
any legislation, depreciate, aud that to
compel people to take them the same as
specie, dollar for dollar, is unjust, and
tantamount to forced loan, and thus
the credit of the government with the
capitalists will be destroyed.
On the other hand the friends of a
large issue Of demand Treasury Notes
urge the plea of necessity to start with.
They say that there is no other means
of meeting the vast expenditures of the
Government-that the banks cannot
furnish the money-that it is no use to
insist upon strict specie basis, for
there is not near enough specie in the
country upon which to base the Issue
of currency TO the extent that it is in
dispensibly necessary-that the direct
tax and custom receipts provided for,
arc mere drop in the bncket-that
former loans are about consumed, and
the expenditure of 81, 100000 a day
calls imperatively for large and
prompt provision Of means. These
arguments are of course elaborated,
and. we must say presented with muel
power and effect. On the point oi
making these notes legal tender, OF
calling them equal to gold and silver
they recount in the first place that there
arc only Sl5O,000, 600, that the provis.
ion is made by taxation for meeting
the interest semi-annually on the rest
Of the public debt, and finally for fund.
ing the demand treasury notes and
meeting the interest on them, and tina,
the whole wealth of the nation. in all
sixteen billion one hundred and fifty.
nine million sixteen thousand and sixty.
eight dollars, is pledged for their re-
demption, and that gold and silver in
vault could not be higher security
that the money will pass current among
the people, and will be widely used in
the increased payments caused by the
war, and be so convenient for paying
taxes and government dues, that it will
not depreciate. sqb Z
We can not help thinking that the
latter class have the right of the argu.
ment. 1t is not case in which we can
deliberate, delay and act as We would
prefer, but we must take practical
view and act to meet the emergency
guarding our interests as well as we
can. 1t is mere trick of language to
call treasury notes irredeemable paper.
for the necessities of the country will
keep them circulating at par, until such
time as they are funded, when six per
cent win be paid on them, and the
whole property real and personal of the
country stands pledged for their final
redemption It's unGeniably true that
currency may be issued in such sums as
to make depreciation inevitable, but
Congress has not yet proposed to an
thorize such an Issue as brings rs face
to face with this danger, and the peo-
pie must see that this is not done. MOI