Indiana American. [volume] (Brookville, Ind.) 1865-1872, 1867-09-27
When tho Public Debt Should be Paid.

To the Editors Of the journal:
Without attending to discuss all the
questions connected with. our finances,
such ~ taxAtion Of the bonds, retirsme n I
Of the National Bank currency, etc., beg
leave to cah the attention Of Jour readers
to the subject oil the time Of payment Of
the national debit 81 ee,.e<.- - ssfi.s s. 10
The total debt on tho first Of the present
month, less the amount Of cash in the
Treasury. was s2,492, 1886 and includes
1865, 164 ,6f4 Of greenbacks or legal teu-
der notes. and s29,392,172 in fractional
currency. The total bonded debt, at the
same time, ncluding old dbonds. issued be-
fore 1861, was 81, ,732, ,36l $40 AZ. rsI q
OF this amount one hundred and nine
Ityseieht millions four hundred and thirty
one thousand three hundred dollars (sl9S,.
4Bl BOO draw fye per cont. .intesess and
fsll duo In 1904, and are what are CON-
monty called Ten Fortirs. ." Two hund.
red and eighty three millions ak hundred
and seyenty.six thousand one hundred
dollars is2s3 .G76 1909 drawing six per
cent interest, fail due ,in. 1881. Twelve
.huudfedla aud ige-milIione, seven hundred
aud ten .thousand ave Hundred dollars,
(sf ,205, ,7i05O0) draw six per rent. inter-
est and fall due ia 1882, 80, 'S5 and 81,
and are what are commonly called sFive
Twenties," The interest on all these
bonds Is payable in coin. There we're
outstanding on the first OF the present
month four hundred millions seven hund.
red aud eighty.six thousand and twenty
five dollars $500 Is6 ,O25) of three years
.,sevee Thirty" notes, duo in Jupe and
July, 1868. 8 q stf.
The law creating The eTen Forty bonds
provides that tho Goyernlnent shall have
the right 10 redeem them mt any time after
ten years from The date Of their issue, aud
this right Of redemption will accrue 10
1874. The law cres,ing The "Fiye twon.
ties provides that tho Government may
redeem them Ut any time after five years
from the date of issue. aud this right Of
redemption will accrue in regard to those
already issued In 1867, go, 10 and ~.
The right TO redeem these different
bonds al The expiration Of FIVE aud ten
years, as above stated, is n mere privilege
reserved by the Government TO be exer.
oised or not according 10 its convenience,
aud there IL NO. moral or legal obligation
to pay oil ono Of them an hour before it is
due. When these laws were passed il was
supposed it might be to the interest Of tie
/ Government TO pay OF the debt, or some
portion Of il, before il was due, and the
riehtdo do SO was accordingly reserved.
.Itis now proposed by Democratic poll
ticians that the Government shall at once
pay of 10 greenbacks all the bonds which
ID has right to redeem, and shall con-
/ tinue to do so from year to year, as the
right 10 redeem shall accrue, until the
whole il paid, which would thus DO done
In seven years, and the more violent are
insisting on the immediate discharge OF
VIC wiiUle debt by compelling our creditors
TO take an equal amount OF grtenbacks TO
be Issued for that paipose.
The latter proposition would require the
immediate issue OF more than two billions
OF greenbacks, and the former the issue OF
u like sum within seven years, aud either
would bc clearly fatal TO the credit and
/ prosperity of the country.
or the "FiNe.twentics." five hundred
and fourteen Millions seven hundred and
eighty thousand and fifty dollars we're Is.
iue1 in 1862, and are not due until 1882
but the Govcrnment has the privilege q
rcdeeming them in 1867. tfs ss1t
According to tue last monthly statement
of the Treasury Department, there are now
absolutely due aud must be paid on pre-
sentiment. various notes, bonds and ccr'if-
ieates Of indebtedness amounting to nine.
teen million four hundred aud forty thou
sand three hundred aud seventy five dol
lars aud eighty seven cents, (Sl9. .4I0, ,375.
so. There are six per cent bonds falling
due in 1867 7-6S, and must then be paid,
amounting to fourteen millions eight hun.
.dred aud sixty pipe thousand seven hun
dred and ninety-onc dollars aud eighty
cents.
There are Of. three years compound in
terest notes. which will fall due in 1868,
aud must then be paid, seventy eight mil
| lions eight hundred aud thiriy-nine thou
sand six hundred dollars. How shall the
Govcrnment get the. grccnbacks to pay the
debts that are due, and that will be due
next year. and to redeem the five hundred
and fourteen millions of "ive-twenties?''
There are three ways: ''ef' -
First. BY issuing new bonds and re-
dceming with the proceeds Of their sale;
but this would only make new debt Of
like amount, as the time has not come
when o new bond bearing a lower rate OF
interest car. be sold ut par.
Second BY levying tax more than
double that OF the present; but this the
country can not and will not bear Or,
Third. BY issuing within the next
twelve months not less than six hundred
millions OF greenbscks. aud this operation
must DO repeated from year to year until
after 1874. ff4a ssai'. = ffa -
- What effect this would have upon the
value OF tho o'currency and the business OF
the country need not be discussed, for
none are so stupid as not to understand il
II this vast body Of currency is to be
redeemed then the debt is not paid, but
bias ouly chapged its form. IL it is no,
10 be redeoned, tllen II will not be worth
the paper upon which IL Is printed. and
reputation and commercial ruin will be
the result. The present value Of green.
backs IS chieay due to the understa di nj .
that they are 10 be redeemed, ard bod J
Of currency that Is MOTTO be redeemed
and will die in the hands Of tho last hold
or, can not be sustained by making il .
legal tonder or by any other legislative
confrivanco. Not one dollar of The bond.
A. A.