Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1867-08-15
The journal ON National Finan.

rusnes TO tne defense OF secretary McCul
Tough and ehdeavors to show that the ma
tional debt of the United States is not a
large as it is represented.
"The persons and presses above spokeI
of are in the habit of saying that the pub
lie debt is already over $4,000, ,0O0 900, am
that n is daily Increasing. They know tina
this is false; that they overstate tn,
amount of the debt by about S500,O00O00
and that during the past year, notwith
standing the extraordinary expenses of tht
Government in paying extra bounties, sc.
the debt has been reduced in the aggregate
$l21,792, $40, or an average of over $4,000,
600 per month. fOn the first of August
1866, the debt of the United States, les
cash in the Treasury, was $2,633, ,099,276
and on the first day of August 1867, it haC
been reduced to $2,511, 1856, ,420. With the
same revenue it will be reduced over $780,.
current expenditures will be near 500,
100000 less"
That the debt is increasing, we have th,
denial of the JournaL and the admission
that such was, and necessarily must be tn,
fact, from the Secretary of the Treasury
We are constrained to believe the latter th'
better authority.
The ascertained debt of the United State
on the 1st of August, was two Thousand
six hundred and eighty-six million sn
hundred and eighty-four thousand thret
hundred and ninety-six dollars and thirty
cents, with claims hanging in suspense
and not yet settled, but which in time mus
be, sufficient to run the debt far beyond the
amount of three thousand million dollars
claimed.
But the Journal says the debt has beer
reduced. Nominally it has been so, but in
reality, by a trick of financiering, the
amount to be paid by the taxpayers has
been increased. ma
The pretended reduction between the
1st of June and the 1st of August was
81. 9,511-$ $4,00O,bO0 of which was by
withdrawing of legal tender notes from
circulation, on which no interest was paid
leaving but $309,511 of an apparent re-
duction in two months. The Cincinnati,
Gazette, Radical organ, but having, in
strips the mask from the pretended re-
duction. 1t says:
"This nominal reduction of the currency
debt has some other features which modi-
fly the net profits. For instance, the debt
in long gold bonds was increased more than
seventy-siX millions during the previous
two months, which was done by the shift
ing of debt payable in currency to debt
payable in gold. As no one will pretend
that this transfer does not increase the debt
as much as the difference in the value of
these two mediums of payment, it will have
to be admitted that this exchange has add
ed forty per cent. to over seventy-siX mill
lions, which makes in exact figures an ad-
dition of $30,505, $50 in two months; all
done by financial policy. Deducting from
this the four millions of non-interest pay
ing currency debt contracted, i. e. retired,
we have net increase of the public debt
of twenty-siX and one-half millions in two
months. But we may set off against this
calamitous policy to the public the profits
which patriots have privately been able to
realize by the imitation and depression of
the stock market through the mysterious
operations of the Treasury in proclaiming
a cessation when itwas carrying on sharp
With the means which initi-
alton into this mystery gives to hedge
against public calamity by accommodating
private fortune, tits likely that the Secre-
tary will be able to keep the firm support
of the Congressional finance committee
men to his policy, anG in the meantime
their growing wealth will soOthe the sore
ness of the general poverty.
This, however, is but a small part of the
currency contraction which has been car
ried on during the period of proclaimed
suspense OF the contracting policy. 1t will
be seen that during the same period the
compound interest notes have been de-
creased 81, 900, $40. These notes having
largely entered into the currency reserve
which the banks were required to keep,
have occupied the place of currency. On
this account, lest the contraction of the
by the maturity and payment OF
these notes should be too sharp, the Secre-
sary procured of Congress authority to is
sue one hundred millions of legal tender
notes, to be used to replace so much of
them as should be deemed expedient. And
lest the holding of notes bearing no inter-
EST in the bank reserves of currency should
100 greatly curtail their profits, the Secre-
.ary and Mr.. Sherman, Ohio's great tinan-
,ier, insisted that the Government should
lust to allow the banks .'a leetle profit"
rhus it being clearly recognized that these
notes held the place of curren-
~, it will appear that the real contraction
IF the currency during the period of the
suspension of the contracting
policy, has been twenty-five and a half
millions. The public policy OF these mys-
JcTlOuS OpeTdGlOUS vi Gll0 TREASURY Is HOGl
clear, but it will not be difficult to find
many private considerations in their favor
20 those who are initiated. sf
ssThe results of the McCulloch-J johnson
Sherman financial policy for the year is an
exhibit of its benefits onsia grander scale.
N that time the six per cent. gold five
wenty bonds have been increased $426,- |
67, ,150; while the debt bearing currency
interest has been reduced $5047 704, 104. lfl
We calculate the Increase by the actual
Inference in the value of the two mediums
# payment, taking the premium on gold
or a criterion, we find that we have added
% per cent. to our 426 millions. making, in
Xact figures, an increase of $17O, $50, 500 in
he year, by financial policy alone. of
curse the reduction by payment is mere
'agatelle compared with this increase by
Thus do these great Radical Doctors, the
4asette and the Journal, disagree. The
ormer shows the latter either to speak
alsely, or else it speaks of that of which it
,nows nothing.
The journal, to show that Judge THUR
IAN, Judge RANNEY, The STATESMAN, En-
7tirer, and other Democratic papers and
'rators speak falsely about the National
Debt, makes statements about the matter
o utterly false as to be ridiculous.
The Gazette, not having the same ends in
Jew, and no similar purpose to aid, in its
rticle shows quite different state of
fairs.
We commend what the Gazette says to
he Journal editor, and as he is dull of
we. urge upon him that
While he charged falsehood on Judge
THURMAN, Judge RANNEY, THE STATESMAN
md other Democratic sheets, the Gazette,
Without intending it, has written the Jour
,al man down either knave or an ass-in
either case showing that he makes state
nents as false as they are silly.