Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1867-10-02
The NatIOnaI FInances-Lst-
ter From Senator Morton,
Of IndIaha-When the
Public Debt Should
BE Paid. rrr

Public Debt Should
BE Paid.
The following letter on the Govern
ment finances, from SRnator Morton, Of
Indiana. was addressed to the editor Of
the Indianapolis Journal:
Without intending TO discuss all the
questions connected with our finances,
such as taxation Of the bonds, retire
ment Of the National Bank currency,
&C., I beg Leave 70 call the attention Of
your readers 10 the subject Of the time
Of the payment Of the national debt
The total debt on the first o: the pres
ent month, less the amount Of cash in
the Treasury, was 81, 492, ,783, ,S65, and
includes $365, ,164, ,844 Of gIeenbscks or
legal tender notes, and S29, ,3o2, 172 in
fractional currency The total bonded
debt ct the same time, including old
bo1da, issued before 1851, was Sl,732.-
36l $40 4S. OF this amount one hund-
red and ninety-eight millions four
hundred and thirty-one thousand three
hundred dollars Sl98. .431, ,300) draw
i've par cent. interest and fall due in
1904, and are what are commonly call
led 'yHen-Eorties Two hundred and
eighty-three millions six hundred and
seVenty-six thousand one hundred
dollars 1888, ,676, ,l00) drawing 6 per
cent. interest, fall due In 1881. Twelve
hundred and Eve millions seven humid
red and ten thousand five hundred
dollars Isl, ,205, III, ,500) draw 6per cent.
interest, and fall due in 1882, 1884,
1855 and 1887 and are what are COM
monly called "Five-Twenties." The
interest on all these bonds is payable
in coin. There were outstanding on
the first of the present month four
hundren millions seven hundred and
eighty-six thousand and twenty-five
dollars (400, ,I86, ,025) Of three years
''SeVen-Thirty" notes, due in June and
July, 1868. .--,----r.
+. 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 sccFue in 1874. The
laR creating the "Rive-tWenties" pro-
Vides that the eGovernment may redeem
them at any tine after i've years from
the date Of issue, and this right Of re-
demption will accrue in regard to those
already Issued in 1867, 1859, 1870 and
1872. ----... -,-. ..r-
The right TO redeem these different
bonds at the expiration Of Eve and ten
years, as above stated, is q mere privil-
ege reserved BY the Government to be
exercised or not according to its con-
Venience, and there is no moral or le-
gal obligation to pay of one Of them
an hour before it il due. When these
laws were passed it was supposed It
might be to the interest of the Govern
ment to pay of the debt. or some por-
ton Of il, before il was due, and the |
right to do 30 was accordingly OBJ
served. r..-4 -r
It Is now proposed by Democratic /
politicians that the Government shall |
at once pay off in greenbacks all the |
bonds which 1t has right to redeeLn,
and shall continue to do so from year
to year, as the right to redeem shall |
accrue, until the whole is paid, which 1
would thus be done in seven years /; I
and the more violent 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 lat
tar proposition would require the i'm
mediate issue Of more than two bill
lions Of greenbacks, and the former
the issue OF like sum within seven
years, aud either would be fatal to the
credit and prosperity of the country.
or the FIye-Twenties- Eve hundred /
and fourteen millions seven hundred |
and eighty thousand and fifty dollars1
we're ,issued in 1862, and are not due
until 1882; but the Government has
the privilege Of redeeming them in
1867. /
According to the last nonthly state
ment Of the Treasury Department.
there are now absolutely due and must
be paid on presentment, various notes, /
bonds and certificates Of indebtedness
amounting TO nineteen millions four
hundred and forty thousand three
hundred and seyenty-fve dollars and
eighty-seyen cents (l9, ,440,375 67).-I
There ara six per cent. bonds falling /
due in lS67-68, and must then be paid, 4
to fourteen millions eight
hundred and sixty-nine thousand sew
en- hundred and ninety-one dollars and
eighty cents.
There are Of three years. comptund
interest notes, which viii fall due in
1868, and must then Be paid. seyenty-
eight millions eight hundred aud thir-
ty-nine thousand six hundred dollars.
How shall the Government get the
greenbacks 10 pay the debts that ara
due, and that will be due next year,
snd to redeem the FIVE hundred and
fourteen millions of "Fiye-Twenties." !"
There are three ways.
J.. By issuing new bonds and re-
deeming with the proceeds Of their
sale but this would only make new
debt Of ike amount, as the time has
not come when q new bond bearing a
low rate Of interest can be sold at par.
2. By levying q tax more than dou-
bic that of the present but this she
country cannot and will not bear. Or.
8. By issuing HiGhin the next twelve
months not less than six hundred mil
lions of greenbacks, and this operation
must be repeated from year to year un-
til after 1874
What effect this would have upon
the value Of the currency and the bus
mess Of the country need not be dis
cusssd, for none are so stupid a. not to
understand it.
If this vast body Of currency is to be
then the debt is not paid,
but has only changed its form. If tits
not to be redeemed, then it viii not be
worth the paper on which it Is printed, ,
and repudiation and commercial ruin
will be the result. The present value
Of the greenbaeks is chiefly due to the
understanding that they are to be re-
deemed; and body of currency that
e not to be redeemed, and will die in
the hands of the last holder, cannot be
by making it legal tender
Or BY any other legislative contriVance.
Not one dollar Of the bonded debt I
viii fall due before fourteen years, and i
it win then become due at different
periods running down to 1904. Can
any good reason be given for paying it !
of 30 long in adVancef The country Z
has not yet recovered from the War.-t
Trade and commerce still ANGUISH
the land. Nine States are }
and desolate, and can
'earcs pay anything for years TO come.
The rebelliouB South caused the debt
10 be created, but whatever Is paid in y
he next Eve or six years must comeal- 2
most entirely from the North. Why 9
rot wait until the South can pay partf y
Why not wait until the country has D
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