Evening star. [volume] (Washington, D.C.) 1854-1972, 1867-12-03

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practicable, there would be no way IN which
,ne bonds now redeem bic could De paid % has
been proposed, except by putting the printing
isss, which must themselves eventuaily be
paid in coiI, converted into coin bonds, or re.
puciated. This process Of making money
and the experience OF every other nation that
has tried u, prove II 10 be neither judIcious
nor profitable As the paper circulation of
the country Is already redundant 1t would
il, and, by the distrust thus
created, Its depreciation would doubtless be in
greater ratio even than the additions would
btar 10 the volume to which they would be
sdded. II is not too m uch to say, that an ad-
ditonal Issue of five hundred millions of
United States notes wouls reduce the seven
eulauon TO one-half their present valus so
that legal tender note or a National Bank
note, now worth seventy per cent in coin,
would rot be worth more than thirty Ave per
cent, even If the apprehension OF further is
sues did not place il on par with confederate
notes At the collapse of the rebellion. The
bonds would of course decline in value with
the currency in which they would be payable.
Can any one seriously propose thus to depre-
ciate, n not to render valueless, the money and
securities Of the people Can any one, know
upon the Government bonds, upon the cur
reney now afioet, upon business, upon credit,
upon the public morals, seriously advocate
such measure, not as matter of necessity,
but TO anticipate the payment of debts due
many years hence! The statement of the
proposition exposes its wickedness. When
fairly considered, 1t cannot fail to be stamped
with universal condemnation. 1t is a propo.
sition that the people of the United States, who
own four-ftfths Of the national obligations,
shall, by their own deliberate act, rob and
ruin themselves, and At the same time cover
the nation with ineXpressibie and inefaceable
disgrace.
In opposition to all such sxpedients for pay
ing, or rather for getting rid of, the public
debt, il the upright, world honored economical
policy of paying every obligation OF the Gov
eminent according to the understanding with
which 4. was created-the policy OF appreca-
ting the paper dollar until il shall represent q
dollar in coin, Of giving stability to business
and assurance 10 enterprise, and wiping from
the country the reproach that rests upon IL by
reason Of the low price of It's securities IN the
great marts Of the world. That this is the
policy which will be sustained by the people
and their representatives, the Secretary mas
the fullest confidence. They may hereafter be
nations, which ignoring their honorary obiiga-
tons, may look 20 their own statutes for the
measures of their Liabilities. If there shall be
such nations. the Republic OF the United
States will not be found among them. 1t has
essentially suffered by the actual alton of
some OF the States and the virtua rep of
others; IL rs still suffering from the same cause,
although more than a quarter Of a century has
elapsed since this stigma was fixed
upon American credit. 1t is suffering also
from the fact that Massachu sets and CaIifor.
MIA alone, of all the States, have continued to
pay The interest en their bonds in coin But
although it has suffered. and is still suffer-
ing, from the bad faith or false economy of
some OF Its members, its own fnanc ial honor
Is unsuliied. 1t has committed the mistake
Of making its inconTertlble promises q legal
tender. bot IL has never taken advantage Of
as own legislation 10 lessen IN the hands OF
the holders the value OF Its securities or yio-
late Its engagements by covert repudIatson.
IN The darkest hours OF the rebellion ~ tai
JeTed lot IN the observance of its contracts
shall II fslter now when Its ability to pay 20
me uttsrmcst farming. even wItho ut oppras-
sive taxation, cannot De questioned,
The importance OF the restoration of the
southern states TO Their proper relations with
FEDERAL Government canno' De oyerestim ated
"A cuTtsilfnent OF the currency and the main
tenanoe OF he public faith are not all that is
required 10 restore The 0uutry 10 perfect finau-
ciaI health. We need, in addition 10 these, a
Tn'teo oouBtrV-united IN fact as well as in
name Ii may not be proper for the Sc 5retary
il this report 70 discuss the measures regarded
by hin as best calculated 10 bring about this
most desirable result, This however, lie feels
II 10 be his duty TO say, as ne substantially
SAID IN ia his last years report, that tn. ques-
ZION OF reconstruction. as q purely financial
question, is. IN has Judgment second In im :
Iortance 70 none that Con gress will ever be
sailed upon to consider. The great sta pies OF
tie South have for many years con stituted q
large portion of our exports. But for the COT
ten held IN that section st the close OF the
7 oeilion the foreign exchanges would have
beeu so largely against the United
states that commercial Revision would
have been imminent. if not unavoidable
Even IN the deplorable condition of
these States, last year more thsn two
tsirds OF our exports consisted OF their
Productions and IL is the crop of the present
year-small though it may be-that is to save
Us from ruin GUS Indebtedness to Europe. 1t is
OF the greatest moment, therefore, that the
productive power of the southern States
should be restored as rapidly as possible. Lit
tie progress has been MADE in this direction
during the pasttwo years, an n 10 real progress
will he made until their political condition is
determined by their restoration to the q MON
- V1rI vila nF
States under he CONSTITUTION. The Secret Try
does not allude 10 this subject for the purpose
OF calling The attention of Congress to it. This
- unueCes sary. 1t Is absorbing the public a. =
tsnticn, and the further action of Congress in
relation TO It will be watched by the people
with intense solicitude. Upon the judicIOus
settlement of II depends, IN a great degree. the
national prosperity. The views presented by
The Secretary, upon this subject IN his last re-
port, are eq1aiIy appropriate at the present.
line. ..I
The Secretary proceeds 10 quote from his
report Tor the year IS6j in regard TO taxation
by the States OF Government obligations, and
fays the views thus expressed have under
gene 10 change but the exemption from TAX
arion of any kIRd of properly, by which spe-
ciai privileges are. or seem TO be-. granted 70
any class OF citizens. is odious to the heavily
burdeneG masses III all countries. ana is es-
pecially so IN Republic like ours. Local
ItXes In all the States are heavy, and no
MISTER what the law may say upon the
subject. no matter what the contract may
have been under which they were nego.
tIatec. there is a general sentiment among tax
payers that the exemption of Government
bonds from local taxation Is not exactly right,
and that II ought TO be in some way avoided in
IuJurs issues. The Secretary has no hesitation
in admitting that he rs in sympathy with this
sentiment. The difficulty in the way how
ever. as has been suggested, arises from the
fact that il bonds hereafter TO be issued were
10 be subject TO local tax, very few would be
held where taxes are heh b, and there would be
constant tendency TO q concentration of them
IN States and counties and cities where taxes
are 'ow, or in foreign countries, W here the v
would escape taxation altogether 1t is mar.
ter Of great importance that the Governmen,
bonds should be q desirable in vestment IN all
parts of the country, and IL is obvious that the
States should be in some manner compens ed
fer the right now denied of taxing them as
other kinds Of property are taxed. After Civ.
ing the subject careful consideration, the Sec
rotary can suggest NO better way OF doing
II than by an issue OF bonds to BE-
known as the Consolidated Deb, of the
United States. bearing six per cent in
terest, and having twenty years TO
run, into which all other obligations OF
the Government shall rapidly as possible
be converted;-One-sixth part of the interest
AT each semi annual payment 10 be reserved
by the Government and paid over to the
States, according to their population BY this
means, all the bonds, wherever held, wonId
b. taxed alike. and general distribution Of
them be secured. State taxes, including the
levies for the county and municipal purposes.
now. "a general thing, exceed one per cent
out " ben the debts incurred for the payment
or bounties are paid land in most OF the