Fayette County herald. [volume] (Washington [Washington Court House], Fayette County, O. [Ohio]) 1860-1???, 1867-10-24

4 From the Indianapolis Journal.I
, Why the Public Debt Should
: be Paid.
Without intending to discuss all
: the questions connected with our
l finances, such as taxation of the
bonds, retirement Of the National
Bank currency, etc, l beg leave to
call the attention of your readers
. 70 the subject Of the time of pay
, ment Of the National Debt.
The total debt on the first Of the
present month, less the amount Of
cash IN the Treasury, was s2A92,-
1866, and includes 1856. .l64. .844
! OF greenbacks or legal tender notes,
} and S29,392,l72 in fractional cur.
r rency. The total bonded debt Mt
the same time, including old bonds,
issued before 1861, was 1882, ,3Gl,-
$40 48.
OF this amount Sl98, ,431, 300
draw five per cent interest, and fall
due in 1904, and are what are com.
monty called Ten Forties. S2S3,-
G76,lOO, drawing six per cent inter.
est, fall due in 1881. Sl,20j, 500
draw six per cent. interest, and fall
due in 1882, 'S4, 'S5, 81, and are
what are commonly called Give
Twenties." The interest on all
these bonds is payable in COIN
There were outstanding on the first
of the present month S400,78G,025
Of three years "Seven Thirty" notes
due in June and July, 1868.
The law creating the "Ten Forty"
bonds provides that the Government
shall have the right to redeem them
at any time after ten Years from
the date Of their issue, and this right
of redemption will accrue in 1874.
The law creating Five Twenties''
provides that the Government may
redeem them at any time after five
years from the date of their issue,
and this right Of redemption will
accrue in regard to those already
issued in the years 1867, 60, 70
and ~.
The right to redeem these differ
ent bonds at the expiration Of five
and ten years, as above stated, is a |
mere privilege reserved by the Gov
ernment to be exercised or not, ac-
cording to its convenience, and
there is no moral orlegaI obligation
to pay off one Of them an hour be-
fore it is due. When these laws
were passed it was supposed it might
be TO Jne interest q" the Govern /
ment to pay of the debt, or some I
portion Of it, before it was due, and /
the right to do 50 was accordingly !
reserved.
1t is now proposed by Republican
politicians that the Government
shall at once pay off in greenbacks
all the bonds which it has 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
i'll seven years; and the more yio-
lent are insisting on the immediate
discharge of the whole debt by
compelling our creditors to take an .
equal amount of greenbacks, to be
issued for that purpose,
The latter proposition would re-
quire the immediate issue Of more |.
than two billions of greenbacks, and
the former issue of a like sum with fl
in seven Years, and would be clear
ly fatal to the credit and prosperity {
Of the country.
OF the Five Twenties," $jl4,- 4
780, ,050, were issued in 1862 and are
not due until 1882; but the Govern t
ment has the privilege of redeeming I
them in 1868. Il
According to the last monthly
statement Of the Treasury Depart $
nent, there are now absolutely due {
md must be paid on presentment, {
'arious notes, bonds, and certificates t
If Indebtedness, amounting to S19,- {
E40,375 81. There are six per cent. |
oonds falling due in 1868, '6S, and t
must then be paid, amounting to f
;14, 4,S69,79 90. {
There arc of three years com '
Dound interest notes, which fall due +
II 1868 and must then be paid S7S,. c
i39, 800 How shall the Govern t
nent get the greenbacks to pay the 1
lebts that are due, and that will be t
.ue next year, and to redeem the r
i've hundred and fourteen millions
If Five Twenties" Ii
There are three ways: il
First. By issuing new bonds and "
with the proceeds of their u
ale; but this would only make a g
lew debt of like amount, as the y
ime bas not come when a note a
earring a lower rate of interest can "
C sold at par.
Second. BY lcvying tax more v
Ian double that of the present; but b
lis the country cannot and will not n
ear, Or, p
Third. By issuing within the next o
yelve months not less than six al
undred millions of greenbacks, and IL
lis operation must be repeated
ON year to year, until after 1874.
What effect this would have upon =
he value of the currency and the S;
usiness of the country need not be ST
: ! ! ]