Raftsman's journal. [volume] (Clearfield, Pa.) 1854-1948, 1863-04-29
THE RAFTsMAN's JOURNAL.
OuR COUNTRY

Z Oh d DttuoCTdt-IrOm the LNlaeT6B O0SeTrer OIL
| April Sd, 1868. 1t may be well enough to re-
mark here, that the writer is a man possessed
of bright intellect, and one of the most pro-
found scholars OF the age, and that he has
been lifelong Democrat, and siaveholder
The Ample Ability of Government to Meet its
Peeuniary 0blIg ations, Affording the Best Sc
curlty for Private Investment.
Several of my country acquaintances hav-
ing funds which they desire to invest, have
proposed TO me the question to the safest
and most productive mode of investing them.
This, however, is by no means a problem of
easy solution. Even in ordinary times the
wisest man may fall into error on subject so
intricate and involving so many contingencies;
but at period like the present, strugg ling as
the nation is for continued existeuc against
the most extensive and formidable rebellion
that ever assailed a free and liberal govern
ment, il is matter fraught with unusual
complication and difficulty l would there
fore prefer not hazarding my Judgment by
the expression OF opinion. But as silence
might appear churlish, or Indicate spirit of
unmanly timidity, have concluded to com
ply with the request; and in order to save the
trouble of writing number of letters beg
the privilege of answering in the Observer.
My opinion then is, that the mode of invest
ment combining the largest measure of safety
and productiveness, is the purchase of govern
ment stock. There are several kinds of stock
such as bonds payable at different periods,
certificates, &C.; but almost any person
may safely exercise his own Judgment iu max
ing selection, as he cannot in any choice go
far astray.
Ny reason for recommending this mode of
investment, will appear from the following
exhibit of the undoubted ability of govern
ment to meet its pecuniary engagements.
From off piai th,t -,
war continue until the 1st of July, 1864, the
national debt will reach the round sum of SEP
enteen hundred miliions,-less than half the
present debt of England. The internal taxes,
1t is authoritively maintained, will amount
annually to one hundred and fifth millions
which is.ffty millions more than will be re-
qured to pay the interest al 6 per cent, on
the aggregate debt, leaving this amount as an
overpIus to be employed in the form of sink-
ing fund for the final extinction of the nation
al debt This however, is the least favora-
BILE aspect of the subject. Let us look at
some OF the NOR: encouraging mitigations
First, there is good reason to believe as
the ablest fnanciers assert, that the taxes
already in operation and yet scarcely felt,
will amount to $50 instead of l50 millions.
Second, the rate of interest paid on the na-
tion's Indebtedness, does not average per
centEm.
Third, a considerable portion of the debt
pays no interest at all, it being used in the
form of treasury notes and constituting the
currency or circulating medium of the coun-
try.
Fourth, the public domain furnishes a
source of income, which, being in process of
gradual development, will prove perennial
stream of increasing wealth to the govern
ment; Notabene, provided we prevent our
rirtuons and patriotic politicians from cheat
ing the country out OF it, which the people
"a do ~ alactjnU pntitical char 70
office but only talented men of principle,-of
sterling integrity.
These facts prove that the taxes. ono heav.
ier than they are in other countries where
there is incomparably less ability to pay them)
VIII amount to more than double the sum re-
quisite to pay the interest on the public debt,
leaving surplus, .(annusliy increasingly of
more than one hundred millions for the grad.
uaI or final extinction of the debt.
But in opposition to this view of the sub
ject, it is argued that gold, the supposed only
correct standard of value. is selling at a pre-
MUM of so. so or 20 per cent, reducing in
that proportion the actual value of treasury
note.
The entire argument derived from this con
sideraton is profound fallacy. Gold has
become an article of merchandise, and Its
nominal or current price has little 10 do with
its insirinsic value. 1t is subject TO all the
fluctuations of fancy stocks or any other arti-
less controlled by brokers, spectators, bulls
and bears. When gold became article OF
traffic in England and other countries, the
premium on il advanced just as it has done in
our country. The tru is, gold is not, and
in the very nature of things cannot be, the true
standard of value or fhe basis of a nations
credit, but the resources, mineral, agricul-
tural, commercial, manufacturing, &c, ale.
One government may not have million in
gold in its treasury, and yet be more able to
pay debt OF billion than another that has
hundred times that amount. If By the sale
or exchange or our staple productions, we
are enabled to pay our taxes and debts, we
have more substantial basis Of credit than
are even the precious metals. On the other
hand, it must be borne in mind that a treas
ury or legal tender note cannot lose it's value.
because all the exhaustless resources of the
country are pledged for its final redemption,
and in the meantime, sit circuates at its ia II
par value in the purchase of every article of
prime necessity
With this view of the subject. which [ re-
gard as incontrovertibiy correct, there can be
no danger of national bankruptcy, and hence
have 40 hesitaDcy in prcferripg investments
insgovernment stock to any other, not even
excepting ground rents. 1 forgot to mention
that by late judicial decision, this stock is
not subject to state tax.
But it may be objected that these consid-
erations in favor of the unfailing solvency of
government, are based upon the hypothesis
that the rebellion will be suppressed by the
1st of July, 1864. Well, my conviction is,
that it will not last till then. But suppose it
should even continue five years longer (Which
in the nature of things, is impossible;*) even
then the national debt will not exceed that of
England, (say four billions.) which amount
will be vastly easier for our country to pay
than for England. For though the latter may
be able to command ten times as much gold
and silver, our resources hundred, nay
thousand times greater; they are IN fact