The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1864-07-06

ent fictitious value? Clearly the fact that it is
the only commodity with which foreign mer-
chandze can be bought, or the duties thereon,
or the interest on the public debt can be paid
Here is a legitimate, regular demand for the
articles gold aud silver, as permanent and cal
cuable as the demand for wheat, for leather,
or for iron.
AS the price cannot be lessened by increas-
ing the supply, the only other mode open to
US is to lessen the demand. This can be done
by disseminating temporarily the payment of
interest on the public debt in gold, and paying
it in currency.
While the government comes into the gold
market as buyer, it is a very reliable Gus
toner. Every Jew broker knows that it will
require twice year steadily increasing num-
Der of millions Of coin, to pay the interest on
the ever expanding public debt. He is sure
OF one good customer. When the first gold
bill passed allowing the Secretary the Treas
ury to sell the coin received for duties, and the
government was allowed to become a seller as
well as buyer of gold, the broker was sure that
the more coin the Secretary sold, the more he
would have to buy. Let Congress now enact.
that the interest on the public debt shall be
paid in currency, and the government goes in
to the gold market as seller. Il will make
an amazing difference in the prices of specie il
the principal customer, that has hitherto con-
sumed some % to 40 millions per aunum ceases
to consume the article, becomes instead a reg
ular seller.
Why should not this be done? 10 you'd de-
precidte The price Of the government bonds
hereafter 10 be sold. Undoubtedly to some ex-
tent. But not to the extent it will save in the
interest of the outstanding securities. For, by
lessening the amount of interest paid during
the war on the present debt, the government
strengthens its credit, adds to its power to pay
the principal OF all its debt ultimately, and
makes it certain that the accruing interest to
its creditors shall be promptly paid. BY throw
Ing itself upon the indulgence of its creditors
during a season of great pressure it ensures its
ability TO make good to them all its undertak-
ilgs.
10 'cM be unjust to The holders Of gorerR-
meat securities. | do not see this. These
loans were made in most instances in the pa
per currency declared legal tender by law
Even where gold has been invested by our
own citizens or foreigners in the government
stocks, it has first been exchanged at a premi-
UNI for green backs, which have been exchang-
ed for U.S.bonds. Why is it not just and equi-
table to pay as the annual interest six per cent
of the very currency which the government
borrowed? The interest on the State stocks,
\ on town and city scrip, on Bank and Insurance
shares is payable in green backs; and yet all
/ such stocks are eagerly bought at a premium.
! The personal interest OF this writer is incon-
1 siderable in the question he is discussing, but
very much greater as bond holder than as u
| taxpayer. Aud he undertakes to affirm that
q convention OF holders of the national
securities would petition Congress to require
their coupons to be paid in currency. What
[ gives these creditors apprehensions and depre-
1 ciates these securities is not fear, that the
coupons falling due next fall or next spring
shall not be paid, but that after the war has
ceased the people may not consent to the tax
alton that will be required to pay the interest
and the principal. BY lessening the expenses
OF the war aud helping the government over
this crisis, Its solvency is ensured, and the per-
manent value Of these securities is established
whatever may be their temporary depression.
Why should the United States scrip be any
less desirable or at a less premium than the
State scrip None of the latter has been Offer
ed at more than per cent, and both interest
aud principal are payable in currency. Ii ii
is said the United States are heavily indebted,
it is apparent that the State, reckoning the
town and city war debt, which it must assume,
is proportlonally more 10 deb: than the United
States, besides, the United States debt Is a
charge upon each of the separate States. When
it is considered that the general government
have public domain, and right to impose
external and Internal duties on commerce and
productions, in addition TO their right TO i'm
pose direct taxes. whereas the State has no
resource, but direct taxation, the security OF
4 the national government should be estimated
three TO one better than of the States. Ii the
people ever entertain the thought of repudia.
ton, it will be of the debt payable oy direct
taxes to the States and not through tariff or
excise act to the United States,
If then per cent, in currency is a fair equiv
alent for loan to the State, and is so indi-
Gated by the voluntary offers of capitalists, il
is fair equivalent for loan to the nation. In
paying it the nation keeps its good faith, and
the patriotic creditor, not all pleased with this
process of Killing by ereessice depletion the
goose thathe RELIEF Upon ~ lay golden eggs for
himself and his children, is treasured of the
solyency of his debtor.
IL ,cW enlbdrrdSs the ne,o national banks
and present the success Of banking system
relied upon 10 absorb a large portion Of The
government bonds. That is, the new national
banks connot receive twelve per cent. on
their own capital stock invested in bonds, and
then seven per cent. on their loars. But by
receiving the interest on their capital in cur
rency, there is still profit OF twelve or thr-
teen per cent. out of which the banks may
pay expenses and dividends. This is profit
enough. Six per cent, is interest enough for
the patriotic creditors of the government to
receive in a time OF public danger. Six per
cent. is all that debtors ordinarily can safely
pay. all that the government gan pay without
the risk of Reputation and bankruptcy.
Why should the Secretary OF the Treasury
make point Of honor of paying coupons in
gold, when by paying them in greenbacks
the creditor would receive fair equivalent Of
interest, and one hundred per cent. Of all the
interest on the naiiona debt would be saved
and by the depreciap of gold in the market,