The Hancock Jeffersonian. [volume] (Findlay, Ohio) 1857-1870, 1867-09-27
TREsPUBLIG DEBT.
'WHEyITSHOULD BE PAID.
Views of Hon. o. =. Morton.
To the Editor of Me Indianapolis Jour


Without intending to discuss all
the questions connected with our fl
lances,S such as taxation of the bonds.
retlrement of the National Bank cur
rehcy, etc, L beg leave to call the at
tention of your readers to thesubject
Of the time Of payment Of the nation
Al debt. -
The total debt on the first of the
present month, less the amount Of
;ash in the Treasury, was S2,492.:
7s3, 1865, and includes 1886, I64 e44
of greenbacks orlegal tender notes,
and S29, ,S92,l72 in fractional curren-
cy. The total bonded debt, at the
same time, including old bonds, is-
sued before 1861, was 81, ,732, ,36l, :
$40 4s. raos So e
Or this amount one hundred and
ninety-eight million four hundred
and thirty-one thousand three hun
dred dollars 1898, ,4S1, 500 draw five
per cent. interest, and fall due in
1904, ard are what are commonl,
called. ,.' Ten Forties." Two hun
dred and eighty-three millions six
hundred and seventy six thousand
one hundred dollars lS2s3,676, 100, }
drawing six per cent. interest, fall
due in 1884, Twelve hundred and
five million seven hundred and ten
thousand fiye hundred dollars ISL
205, ,7l0, ,500) draw six per cent. in
terest. and fall due ID 1882, 'S4, '85
and ss7 sand areiwhat are commonly
called "SFiye.Twenties.' y The inter-
est on all these bonds is payable in
coin, There are outstanding on the
first of the present month four hun
dred millions seven hundred and
eighty-six thousand and twenty five
dollars (s490, ,TS6, ,025 Of three years
Seyen, Thirty notes, due in June
and July, 1858 80, ..-..--
The law creating the !" Ten Forty
bonds provides thatthe Government
shall have tho right to redeem them
stany time after ten years from the
d6te Of their issue, and this right of
redemption will accrue In 1874. The
law. creating the !" Five'Twenties'
provides that the Government may
redeem them at any time after five
years Pom the date of issue, and this
right of redemption will accrue in
regard to those already issued In
1867, go, 20 and '72. u o1g d s-s
The right to redeem these different
bonds at the expiration of FIVE and
ten years, as above stated. is mere
privilege reserved by the Govern
ment to be exercised or not accord
ing to its convenience, and there is
no moral or legal obligation to pay
off one Of them an hous before it is
due. When these laws were passed
it was supposed it might be to the
interest of the Government to pay
of the debt, or some portion of it,
before it was due, and the right TO
do so was accordingly reserved.
1t Is now proposed by the Demo-
cratic politicians that the Govern
ment shall at once pay off in green
backs all the bonds which it has a
right to redeem, and shall continue
to do so from year to year, as the
right to redeem shall accrue, until
the whole is paid, which would thus
be done in seven years; and the more
violent are insisting on the immedi-
ate discharge of the whole debt by
compelling our creditors to take an
equal amount of greenbacks to be is
sued for that purpose.
The latter proposition would re-
quire the immediate issue of more
than two billions of greenbacks, and
the former the issue of a like sum
within seven years, and either would
be clearly fatal to the credit and
prosperity of the country.
OF the "five-twenties," five hun
dred and fourteen million seven hun
dred and eighty thousand and fifty
dollars were issued in 1862, and are
not due until 1882; but the Govern
ment has the privilege Of redeeming
them in 1867. a1f- -1 .
According to the last monthly
statement of the Treasury Depart
ment, there are now absolutely due
and must be paid on presentnent,
various notes, bonds and certificates
of Indebtedness, amounting to nine
teen million four hundred and forty
thousand three hundred and seventy
five dollars and eighty seven cents,
1913, 40, ,375 81 }. There are six per
cent. bonds falling due in 1s67-6S,
and must then be paid, amounting to
fourteen million eight hundred and
sixty nine thousand seven hundred
and ninety one dollars and eighty
cents. .ziis Ief
There are three years compound
interest notes. which will fall due in
1868, and must then be paid, seven
ty eight million eight hundred and
thirty nine Thousand six hundred
dollars. How shah the Government
get the greenbacks to pay the debts
that arc ,due, and that will be due
next year, and to redeem the five
hundred and fourteen millions, of
five twenties. ~ -. f..,,r..-- =,
There are three ways: : - '-'-
First-By Issuing new bonds and.
redeeming with the proceeds Of their
sale; but this would only make q new
debt of like amount, as the time has
not come when a new bond, bearing
q lower rate of interest, can be sold
at par. z5,s : i-- -
Secondly levying a tax more
than double thatof the present; but
this the country cannot and will not
bear. Or, 81
Thirdly issuing within the next
twelve months not less than six hun
dred millions OF greenbacks, and this
operation must be repeated from
year to year until after 1874 AZ
What effect this would have upon
the value of the currencv and the
business of the country need not be
for none are so stupid as
not to understand il. sf..7
If this vast body of currency is to
be redeemed, then the debt is not
paid, but has only changed its
form. If it is not to be redeemed,
then it will not be worth the paper
upon which it is printed, and repudi-
alton and commercial ruin will be
the result. The present value of
is chiefly due to the un-
that thew ara to he re-