Delaware gazette. [volume] (Delaware, Ohio) 1855-1886, 1867-10-04

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To the Editor Of the TSsdionapoJis sTc8t7-e
HGL:-WithOut intending to discuss all
the questions connected with our finan-
ces, such as ia xatiOn of the bonds, re-
tirement of the National Bank currency
etc, I beg leave TO call the attention Of
your readers to the subject of the time
of payment of the national debt.
The total debt on the first of the pres
ent month, less the amount OF cash in
Treasury. was 81. 492, ,783, ,365, and in
cludes 1885, ,164 S44 of graenbaeks or le-
gal tender notes, and $29, 1892, ,172 in frac-
tlonal currency. The total bonded
debt. at the same time, including old
bonds, issued before 1851, was S1,732,-
$40, ,48.
OF this amount one hundred and
uinety-eighi million tour hundred and
thirty-One thousand three hundred dol
lars (@I98, ,431 ,300) 0rass i've per cent. IN
terest, and fall due in 1904 and are what
are commonly called .sTen-FO rites"
Two hundred and eighty-three millions
six hundred and seV6nty-siX thousand
one hundred dollars 42S3, ,676, 100, Oh aW-
ing six per cent. interest, fall due IN
1881. Twelve hundred and five million
seven hundred and ten thousand five
hundred dollars (S1 ,205. .71O, ,50O) draw six
per cent. interest fail due in 1882, 2S4,
7S5, 81. and are what are commonly cal
led 'tFive-Twenties. The interest Of
all these bonds is payable in coin.
There were outstanding on the first Of
the present month four hundred mil
lion seven hundred and eighty-six
thousand and twenty-five dollars (54OO,-
786. .O25) of three years "SeVen-Thirty"
hotes, due in June and July, 1858.
The law creating the "Ien-FOrty"
bonds provide that the Government
shall have the right to redeem them at
any time after ten years after the date
of their issue, and this right Ofredemp-
ton will accrue in 1874. The law crea-
ting the t'five twenties'' provides that
the Government may. redeem them az
any time after five years from the date
OF this issue, and this right of redemp-
ton will accrue in regard to those al
ready issued in 1867, '69, 20 and ".
The right to redeem these different
bonds at expiration of five and ten
years, as above stated, is mere priyI-
lege reserved by the Government to be
exercised or not according to its conven-
ience, and there is no moral or legal
obligation to pay of one Of them an
hour before it is due. When these laws
were passed it was supposed it might
be to the interest of the Government to
pay off 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 Democratic pol
iticlans that the Government shall at
once pay off in greeubaCks all the bonds
which 1t 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 in seven years; and the
more violent are insisting on the imme-
diate discharge Of the debt by compel
ling our creditors to take an equal
amount Of greenbacks to be issued for
that purpose.
The latter proposition would require
the immediate issue of more than two
/ billions of greenbacks, and the former
the issue of like sum within seven
years; and either would be clearly IA
/ tai TO the credit and prosperity of the
| of the ssfive-twenties, :" five hundred
and fourteen million seven hundred and
| eighty thousand and fifty dollars wore
/ issued in 1862, and are not due until
/ 1852; but the Government has the PRIV
iIege OF redeeming them in 1867.
4 According to thesl8st monthly state
ment of the Treasury Department, there
! are now absolutely due and must be
/ paid on presentment, various notes,
4 bonds and certificates Of iude btedneas,
amounting to nineteen million touf
! hundred and forty thousand three hun
! dred and seyenty-five dollars and
/ eighty-seven cents, l19)44O, ,375, 81. There
/ are six per cent. bonds falling due in
j 1867 -6S, and must then be paid, amount
| ing to fourteen million eight hundred
] ana 8l2bE=NGnb GHOu96n0 HEhEI % ALAA"
dred and eighty cents.
There are Of three years compound
interest notes, which will fall due il
1868, and must then be paid, seventy
eight million eight hundred and thirty
nine thousand six hundred dollars
How shall the Government get tht
Z. greenbaeks that are due, and that vii
be due next wear, and to redeem th'
III i've hundred and fourteen millions o
five-twenties.
There are three ways;
FITst-By issuing new bonds and re
deeming with the proceeds Of their sale
but this would only make a new deb
of like amount, as the time has no
come when new bond, bearing lowe
rate of interest, can be sold at par.
Secondly leYying a tax more thai
double that of the present; but this IN
: country cannot and Will not bear. Or,
Thirdly issuing within the mex
twelve months not less than six hun
: dred millions of greenbacks, and thi
operation must be repeated from yea
to year until after 1874.
i What effect this would have upon th
{ value of the currency and the bushes
4 of the country need not be discussed
for none are so stupid as not to under
2 stand il.
If this vast body of currency is to E
redeemed, then the debt is not paiC
but has only changed its form. If
+! is not to be redeemed. then it will nC
r be worth the paper upon which 1t
d printed, and population aDd cornmel
It cial ruin viii be the result. The pre-
Z, ent value Of graenbacks is chiefly du
= to the understanding that they are (
y be redeemed, and a body Of currenC
that Is not to be redeemed, and viii L