The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-11-20
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MON The ~ Y. Herald
Since the question of paying the national
dsbt IN lepal-tenders, with other financial msa-
aurss. have begun to attract public attention,
tho bondholders and their organs cry out
mora Justify for immediate specie payments.
These parties, who gave only forty or fifty per
cent. in currency for the bonds, and have
since been drawing six per cent. interest in
gold, now clamor for specie payments in order
that they may get the full amount Of their
bonds in gold. ShylOck like, they must have
their pound Of flesh, though the country bleed
20 death under the operation. They do not
want TO be paid in the same money they gave
for the bonds, but demand forty or htty per
cent. more. They believe their interest lies in
the perpetuation Of the debt, and do not wish
TO see it extinguished; and their policy, If car
rled out, would assuredly faSten it upon the
country as perpetually as the debt of Eng
land is fastened upon the British people.
Seeing the growth of public opinion against
contraction of the currency and forcing specie
payments, and in favor Of paying the debt
while money is plentiful, they have become
alarmed for their anticipated cent. per cent.
profit.
The monstrous fallacy Of the bondholders'
organ is, that we can reach specie payments
at once, and while the debt remains undimin-
ished. 1t took England years to reach that
after the prolonged war in Europe ended in
1916, and then she only reached it through
alarming revulsions and universal distress.
Forcing specie payments there resulted in
frightful disasters, in burdening the people
with an enormous debt which can never be
paid, and, while it erected bloated bondhold-
ing olgarchy, in reducing the mass Of the
labOring population to pauperism. Yet this is
the example we are urged to follow. We might
possibly come to the same result in the course
Of few years if Mr.. McCulloch's ruinous
policy Of contraction were to be carried out.
But who besides the bondholders and their
organs desire this These senseless onto
specie payment theorists imagine that we can
jump at once to a specie basis by the fat Of the
Secretary of the Treasury. They have but one
idea, and, like all insane people, can see
nothing except through that. They learn
nothing from history or actual experience
They lose sight of the taxpayers and the
future in their eagerness to benefit the bond
holders.
It is neither practicable nor desirable to
force specie payments now. The first thing tC
be done is to pay off the bulk of the debt
while money is abundant and the currency de-
preciated. The bondholders pretend to cal
this reputation. It is, in fact, the way to
prevent repudiation; for if the people of this
country continued to be weighed down by an
enormous debt and oppressive taxation, they
would soon elect Congress that would take
off the burden in one way or another. But
the proper and shortest way to arrive at specie
payments is to reduce the debt. Suppose the
three hundred millions of national bank cur
rency were withdrawn and legal tenders issued
in their place, and with these three
hundred millions of the interest-bearing
debt were to be bought up and cam
celled, would not that tend to bring down the
premium on gold Suppose Mr.. McCulloch
were to pay off two hundred millions more
with that amount of surplus money which he
has all the time lying idle in the Treasury,
thus reducing the Understanding debt five
hundred millions in all, would not that bring
down gold still further Then, again, with
economy and proper administration of the
revenue laws, hundred millions year could
be applied to the liquidation of the debt.
Thus, in FIVE years thousand millions, or
about half the interest-bearing debt could he
paid. Who can doubt the effect of this upon
the market value of specie 1t is the enor-
NOUS debt which hinders us from returning to
specie payments. The rapid liquidation of il
= in the manner suggested would soon bring
down gold and restore specie currency. Nc
other course can be pursued without produc-
ing frightful revulsions and distress, and sad
ding the country with vast and perpetual
debt.