New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-12-19
TILE NArL0NAL FINANCES.

TIE NATIONAL FINANCES.
Mr.. Sherman's Report to the Senate on the
Finances published yesterday exclusively IN
THE TRIBUSE) is remarkably dispassiOnate
and luminous. We dissent only from its ap-
parent concession that the attempt to make
the Five-Twenties payable in Greenbacks has
some shadow of reasOn-or at least of plausi-
bility-on its side. To our mind, the project is
one of naked, unmitigated rascality. For,
surely, either pe swindled the bondholders,
when we coaxed and entreated them to lend
the Government their money, on the assurance
that those bonds were payable and would be
paid in gold, or they would swindle them now
who propose to pay them in deprecated paper.
knowing well that ace did not Intentionally
cheat, we cannot escape the only alternative.
For not only have three successive Secretaries
of the Treasury-Chase, Fessenden, and Nc
extraordinarily declared those bonds pay
able, principal as well as interest in god-not
only did the Governments authorized, ac-
credited advertised, paid agents for the sale
of the bonds seek and secure purchasers under
like assurances, many times reiteated-not
only was there no disayowal.of, or dissent from,
when dissent would have operated as a caution
but Mr. Thaddeus Stevens, who reported the
bills as Chairman of the House Committee OF
Ways and Means, assumed as unqucstionabe,
in advocating the passage of the Legal Tender
act that the principal as well rs interest OF
those bonds was payable in coin. (Sce
Secretary McCulloch's unchalcnged citations
from his speechcs.) We give no quarter, there
fore, TO those who would repudiate the plghted
faith of the Republic, and regret that the
Committee has given any. IL is just as notorl-
Gus that the bonds taken under Well-
grounded expectation that they would be paid
in gold, and would not have been taken other
wise a. that they were taken at all. And any
attempt TO repudate the obligation thus in
Cured is not merely gigantic yillalny, but 1t
is so nconcevably silly and suicidal-in view
of the fgct. that We have vast debts 90 fund,
vas. Aoans, nearly matured to rcnew-that We
regard the countenance given 10 it by men
so able and loyal as Messrs. Stevens and But
Ter with unspeakable amazemcnt. We might
comprehend this if rascaity were its only char
acteristic but we are utterly dumbfounded in
view of its folly. And We cannot help regret
ting that the Committee, while dissenting from
it, has dealt with it so gingerly.
Nor can we assent without qualification 10
the Committees ayerment that the rapidity
"of the prOcess'-that is, of the return to
Specie Payments-"is question of public
policy We hold it question, rather, of Ma
tional ability There is neither dishonesty nor
disgrace in inability to pay an honest debt,
prOUided that inability is nowise the fault of
the debtor. But the man who owes an honest
debt, fully due, and responds TO his creditors
demand of payment that he has considered the
matter fully and decided that it would be bad
policy to pay at present is not honest. He is
morally bound either to pay his past-due debt
on demand or TO show that he is unable TO
pay it, though he has earned and saved to the
extent of his ability.
AS to the Committees suggestion that the
"tme is not distant when the Legal Tender
act may properly be repealed, we have only to
say that this is taking hold at the wrong end.
Make greenbacks equal to gold by Resump-
ton, and the Legal Tender act will harm no
body. Make every grecnback a true and no
longer a false promise, and what importance
can attach to repeal of the Legal Tender act9
What good end will be subserved by it7
we ike lne commuters suggestion tlhl our
various loans shall be gradually converted into
one SIX per cent. loan, principal and interest
payable in coin, whereof one per cent. shall be
reserved as taxes, whereof one half the pro-
ceeds shall be distributed among the States in
the ratio Of their population, respectively. This
will be especially generous to those States
whose citizens are not holders of Government
securities to any considerable extent; but we
trust the Eastern States, wherein these bonds
are mainly held will heartily assent to it. Let
US shame, if they can be sbamed those Western
demagogues who are ever seeking to excite
jealousy and hostility between their section
and ours. If this plan should be adopted, there
will soon be a large revenue accruing from this
source to the States, which will enable them to
Tighten their taxes and extinguish their debts.
True, you will say that we might fund the
Debt in an mtaxed fire per cent. loan, and
thus largely reduce the annual burden OF the
aforesaid Debt; but the demagogue clamor
against exempting the bondholders from
taxation is 30 widespread and SO specious-
since there are myriads too ignorant to realize
that such exemption must ever be neutralized
by the lower rate Of interest at which an un-
taxed loan can be placed as compared with one
subject to taxation-that it is better to adopt
the plan sanctioned by the Committee.
We do not believe that nominaly six per
cent but really five per cent. bond can be ne
gotiated so rapidly and extensively as will be