Baton Rouge tri-weekly gazette & comet. [volume] (Baton Rouge, La.) 1865-18??, 1867-09-19
THE NATIONAL FINANCES.

LIE NAI1ONAA T1NANCESs
The question Of paying off the
national debt, principal and interest,
with the greenback currency instead
Of gold, is assuming a character Of
absorbing Importance throughout the
land. It was only the other day
that we published a speech delivered
by the Hon. James G. Allen, at
Bridgeport, ILL.,, on the 18th ult., in
which that gentleman took strong
and urgent grounds in favor of the
scheme to redeem in paper currency
the principal and coupons due on the
outstanding Government bonds. We
have since come across certain views
promulgated in speech made by
Gen. Butler, favoring the same
proposition, from which we copy as
follows:
"The argument used why we should pay
them in gold is, that our capitalists and
bankers took them, when the country was
engaged in war, as an act of patriotism;
but with gold at 200 and from that to $50,
one cannot forget that they had an eye to
proceeds as we'll, in this that they shaved
them at from fifty to sixty per cent. Now,
why should the country ba called upon to
disarrange its business relations, to reduce
its values, to burden its people with taxa
ton, in order to pay from the poor mans
labor into the capitals pocket this i'm
mense premium-while too, this invest
ment escapes taxation, which is thus
wholly thrown upon productive industry
It would seem to be wisdom in the first
place to have all national securities taxed,
and while should recognize the fact
that during the war the country might
raise money upon any terms, and that
those terms, whatever they were, should
be faithfully kept-yet, now that peace
has returned, with it should come a return
to a financial policy which shall raise the
money to pay off these untaxed obligations
at the earliest possible moment, and sub
stitute for them securities liable to taxa
ton.
"AnotheT and vital mistake in finance,
it seems to me, is allowing the national
banks to issue currency. There is some
four hundred millions of this currency on
the issue Of which Government .ubstan
TALLY pays some thirty million dollars au-
nually. That is. If, instead Of these bills
it issued its own legal tender notes to the
amount Of four hundred millions dollars,
it could withdraw that amount Of seven
,rfy 10 In inn as h, nl IL
amount to more than thirty million dol
lars. Now, can there any reason be shown
why this amount should be given to the
national banks?
'ssOn four hundred millions of capital
then July returns show that they have
over sixty millions surplus. Now, bank |
ing business, if properly done. is the safest
possible, and it is AN axiom in finance that
safety in Investments corelative with low !
rates of interest. Hazard in business |
should bring interest in proportion, but |
now it is the safe business Of banking |
which returns from sixteen to eighteen |
per cent esstrapge enough If he were |
not banker, and governed evidently by
the banking idea Of Wall street-Mr. Nc |
Culloch is retiring as fast Us possible the |
legal-tender notes, and substituting for |
currency the national bank notes. Why |
should not the precise opposite be done
The Government is responsible for sill |
these notes, national bank notes. Why |
should not the Governm ent lake the profit
On their issue, and thus save from thirty |
TO fifty millions yearly z"
Gen. Butler was quite emphatic in the |
of the opinion that the national
banks were making to much money.
The amount of outstanding Gov
srnment bonds is computed at
$780, 0O,o00-the largest proper.
ion of which has found it's way in
he hands Of the specializing gentry,
many of whom have been realizing
'rincely fortunes by their invest
nents. As an instance of this, we
lave seen it stated, that Jay Cooke,
that eminent Christian banker" as
le has been sycophantically denom-
mated, made over twelve million dol
ars profits out Of Government secu-
tiles during the war. He pays no
axes on hisamount, but draws as in
crest in gold, each year, eight Aua-
red and forty thousand dollars
Quite little contribution from the
of America.
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PowERIN A GROWING TREE.-Wal-