The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-05-10
Senator Sherman's Proposition TO Com
.'I sOlidate the National Debt.
From he Herald.

senator Shermon's proposition to C0ns
.tl sOlidate the National Debt.
From ne Herald.
1t is gratifying to notice occasionally some
thing sensible proposed in Congress. Amid the
dreary waste of proftless discussion about the
everlasting negro, there does appear sometimes
an intelligent and patriotic man who endea-
vors to bring Congress to consider something
practical and useful for the country. Mr. sher-
man, of Ohio, has on several occasions lately
raised himself out of the mire of radical parti-
san politics, and has taken up with correct views
generally the important questions pertaining to
our finances, currency, and national debt. On
the I'd he introduced in the Senate a bill
Ito reduce the rate of interest on the national
debt and for funding the same" 1t provides,
as the Senator remarked in his explanatory
statement, for five per cent thirty years loan
in the usual form, to be called the CONSOLIDATED
Debt OF the United States, and to be disposed
OF at not less than par, and to be applied to the
payment OF the existing national debt other than
United States notes, commonly known as
greenbacks These few words state concisely
the object aud substance of the BILL 1t is a
most important measure, and the introduction
OF 1t now shows that sound practical ideas on
this subject are making their way in Congress.
In an editorial article in the Herald Of April
IL, on the subject OF ''the financial problem of
the country" we used this language:-"The
next step should be to consolidate the whole
debt, and make uniform and reduced rate of
interest. sinking fund, looking to the extin-
guishment OF the debt in forty or fifty years
should also be established. This would give
stability and confidence, and would tighten the
burdens of the people," We have been urging
the same views all along during the last few
months. We saw that the theory of a
national debt being national blessing, and
the powerful combined efforts of the bondhold-
ers, backed by the mol strous moneyed mono
poly OF the national banks, to increase and
perpetuate ruinous financial system,
must be strenuously resisted. We have
opposed too, the visionary notions of the
currency quacks as to contracting our legal
tender circulation Mr.. McCulloch, and the whole
Treasury Department the host Of bondholders,
the national banks, which are making fifteen per
cent. on their capital and out of the people, and
the radical press of the country in the interest
OF this powerful combination all were adyocat-
ing the most impracticable and destructive
theories. 1t is now the more gratifying, there
fore, TO see one OF the ablest and most inf1uen-
tal Senators adopt our views, both on the
question of the currency as we'll as on that of
funding the debt. Mr.. Sherman, in his PROPOSE
tion to fund the debt and reduce the interest
excepts the non-interest bearing debt in the form
of greenbacks. These are no burden upon the
country, and are evidently and properly re-
garded by this Senator as our safe, healthy, and
proper currency. 1t is reported that the Se-
cretary OF the Treasury approves of the bill
introduced by Mr.. Sherman. We hope 1t may
be So and II 1t oe we congratulate Mr.. McCul-
loch on the progress he is making and the good
sense he shows. I... ...... ~ ..
The funding of the debt, reducing the interest
and making it uniform and creating a sinking
fund Tor the eXtnguishment OF the debt, ought TO
be provided for at one and the same time. It
would be best, perhaps, TO do it all in one bill.
The consolidation Of the debt, all of it having a
long time to rum say thirty or forty years, gives
It the character OF permanent security, and
raises its value accordingly Old United States
skies OF long date always were quoted higher
than those of shorter date. 1t would be so with
the new debt. Six or seven per cent. bonds
having only lew years to run, would really
not be worth more than American, consols bear
ing five per cent interest. running thirty or forty
years. In no sense, consequently, does the
proposed bill OF Mr.. Sherman squInt at reDu-
diation or injustice to the bondholders.
There is not only the precedent set by all gov
eInments in this respect to justify us in doing
the same, but we should not be doing any one
wrong or breaking faith with the public Gre
ditors. We have been leglslating enough for the
benefit OF the bondholders and a moneyed
monopoly: 1t is necessary now to tighten the
burdens of the people as much as possible and
look more to the general interests of the Coun-
tIy. At the same time that consolidated
debt for a longperiod would enhance the value
OF the debt as permanent security. sinking
fund for the ultimate eXtinguishment of it
would raise the credit of the Government, in
spire confidence, and make its securities the
best in the world. Though this, at first sight,
may seem to be anomaly, it is nevertheless true
that both long time debt and the certainty
OF payment increase ns value. 1nere ought,
then, to be a permanent sinking fund created at
the time the debt may be consolidated.
There is one feature OF Mr.. Sherman's bill,
however, which is of a more doubt; ;ul character;
that which refers to the exemption OF the con-
soils from taxation or duties by the States,
municipal authorities, or the United States Gov
ernment and the provision that the interest
shall always be paid In coin. There IS no doubt
that this would facilitate the funding of the
debt; and it may be doubted if the Government
would not meet with some dihculty at the
outset in changing such a vast amount of in
debtedness from one form to another, witn-
out this tempting provision OF the bill Still
we have to look to the future and to consider
how lar the exemption or such a vast amount
OF property from taxation would affect here
after other interests and the countrg at large.
With regard 10 promising to paw interest and
principal in coin, that may not operate amIss
Just now, Yet the time may come-though we
hope it never will-when 1t might not be conve-
nent to pay in coin, as for example, in case of
war. Besides, the money OF the Government,
the regular greenback currency, should be the
basis OF all legislation and transactions of
financial character. We submit these views as
suggestions and hope Mr.. Sherman, who has
begun right, and has taken up the matter in
earnest, may consider them well. 1t may be
| necessary to nave another bill TO establish
uniform currency, TO abolish the national banks
and to create some system by which the paper
money oil the Goyernment may be made as
| valuable as coin. II thatshould be done, there
! would be no necessity for the coin clause of the
| funding bill. However, the main object is now
! TO fund the debt, reduce the interest, and pro.
| vide for it's extinguishment. L t,- r-.' go I'-.
But as no general system of national finance
| will be complete or can be as successful as de-
| sired until the currency and monetary ipstitu-
/ tions of the country be put on a pronar hasis
| one of the first things TO be done Is To aholisb
the sO,called national banks and make Govern