Daily Davenport Democrat. [volume] (Davenport, Iowa) 1864-1874, 1867-07-23

II We should succeed in reducing the rste
" interest 70 the same that 10 paid by Great
we should have to pay on that &C
sc unit less than tl20. 900, 600 annually. in>
stead OF Else, 00o. ooo, il the present policy
IS adhered 10. And when We succeed in
bringing this IN ire deb, upon the tax du>
piica,e, We shall have increased The duph.
cate to ~ amount neatly equal to the one
fourth OF the entire valuation Of the props
Prit OF the whole Union IN 1860; and thus
reduce the per centsgc. and the amount OF
tax 70 be paid bv the citizens generally, up
IN their property, for all State ard iocal
purposes.
Thus far have spoken OF the policy Of
funding the national debt ~ being the fixed
policy Of the Government, as ls is oil tue
Republican party.
We have now paper 10 circulation,w hich
by force Of law, answers ali the purposes Of
money consisting Of the issues Of the nation
al banks, and ei the notes OF the Governs
mcnt. amounting in all. il is Fad. TO about
one thousand million OF dollars. The prop.
osiiion 10 e. retire all the notes OF the Gov
eminent by the sale Of bonds. or by giving
bonds in exchange for the notes, and to pay
off that PARTON Of our debt nov nrsdjus,ed,
M it may be liquissted, in bonds, either by
the sale, and applying the proceeds to the
payment, or by exchange Of honda for debt.
until the Government shall have no debt but
that represented by bonds.
For paper circulation We shall then be
dependent entirely UPON the national banks,
which may bc increased a. the business OF
country requires "a increase Of the circuits
ton. Whatever may have been our opin
ions as to the propriety Of paper circula>
ton previous to the war, while the country
was enjoying profound peace, aud was out
out Of debt and but hghly taxed, We cans
not overlook the fact that We have now On
enormous debt to provide for {; that the reo
pie are taxed TO their utmost capacity 10
meet the requirements Of THIS debt aud the
current expenses of the Government; and
that any sudden change by which the cir-
,rulating medium would be largely reduced
would be disastrous IN the sexIreme, If not
absolutely ruinous TO US all.
What We should aim TO accomplish is,
first, to furnish the country . circulating
medium ia which the people will have con-
lidence, and which would be equal 70 oil the
wants Of business.
There are but two modes proposed one
10 that this circulating medium shall be fur
nished by the Government, directly, and
without cost to the people and the other
that it shall be furnished by the national
banks.
Now, # the national banks offer TO the
note holder . greater security than the
Government can, then there is some reason
why that mode should be preferred to the
more direc, one Of receiving the circulation
from the Government.
DO the national banks offer greater see
curlty, That ia the question. A bank
| With circulation OF one hundred thousand
| dollars, has to deposit, &C security for the
redemption Of that circulation, about one
hundred aud ten thousand dollars Of gov
ernmcn, bonds and these nrc the only scs
curity the note holder has that the notes oil
the bank will be redeemed. In the end
then, the security is the Government. anc
the notes issued directly by the Govern
nent are fslly AS cate as those issued
through the Intervention Of of a bank.
| The bank Noes, then, have no advantage
| over the Government n)tes. But suppose
these one Thousand millions Of circulation,
which We nov have, md which II is but
reasonable 10 suppose We shall need II
some form or other for the business Of Ia,
country, be furnished through the nationa
banks, the result will be that We shall have
the circulation at n cost of sixty millions o
dollars. and with no security tor its redemp
ton but the Government. This is the mod,
by which the party IN power proposes Il
furnish us with a circulating medium ant
as aconsequence To abstract from the hare
earnings Of the producers and consumers o
tlns country, sixty millions OF dollars, an
nually, with which g. pay the interest upor
he bonds So deposited by the nations
| banks.
But. on the other hand. suppose the Gov
eminent should elect To furnish this rircu
| latiun, then the process Of funding the bal
ancc Of the debt would cease, and sufli
| clcnt ar.ount OF the outstanding bonds o
the Government would he retired to rednc,
the interest bearing debt to two thousAn,
millions OF dollars. which would require 4
to raised bv taxation hut one hnndred an,
twenty millions Tor interest, instead Of on
hundred and eighty millions. thus lessen
ing the burdens OF the people sixty million
annuAlly--a sum certainly worth look'n,
after in these tunes OF general distress AM
public embarrassment.
But, a. this national debt must be paid
let as suppose that the people, IN their ais
dom, have determined 10 submit for u lev
wears tothe heavy rate Of TAXATION. Withou
increasing their taxation one dollar, thes'
sixty millions per annum, which, under th'
policy Of the party in power, would go I,
The support OF the national banks, withou
| IN any way reducing the debt, If put into
sinking fund would in eighteen years pa,
the entire interest bearing or bonded deb
81 the government. and in twenty thre,
years eXtinguish the entire three Thousand
| millions of Indebtedness.
| Upon this state Of the csse, my country
men, have 40 comments to make. 1t i,
Tor you to decide whether or not the fruit,
% your labor, mental and physical, shall h'
| appropriated Tor the good OF the people, OF
| Tor the benefit II few only.
la he statement ! have made, ! hav
| limited the circulation TO l,u00, 600, 900
thereby reducing the interest bearing deb
| OF the government to 81, 0o0, 900, 900 only
| make this limit, because | sm not prepared
to say that il would be wise ct present 4
increase the circulation beyond tina, amount
hut there is no doubt of the propriety o
increasing it o. rapidly a. the business anc
wants Of the country may Justify, until thu
| interest bearing debt of the government
shall have been paid.
Interest is the eating moth, destructive
alike to the public as to the individual credi
and prosperity. Relieve US Of that, an,
without any serious embarrassment, we Cal
manage the principal.
| ------ >c~----------
lr is reported that some members Of the
House, who have read the letters Of '.Mack
in the Cincinnati Commercial. asserting
| tha, members received consideration in on,
form or other for their votes on measures
before Congress, are threatening to ask tn
appointment Sol a commission Of inquiry
The author Of the letter says he is prepared
to furnish the persons and papers" to 6
tablish the truth Of his allegations. Tn,
members may talk about investigation, ant
express themselves indignant At this i'm
pdtation upon the purity Of Congress, bu
no commit tee of inquiry will be institu
ted Congressman are too intelligent 40,
sharp for that.
Horace GREELEY AND rms WOMEN
When Horace Greeley was elected - deli
egate to the State Constitutional Convention
it was confidently supposed by the advo
| catas of fanata su ffraya that or, That ,uas-