The national Republican., 1867-12-21
THE NATIONAL FINANCES.

we Know oil no question which 10 so import
ant at this juneture to our nations prosperity
and progress as this: How shall we adjust Our
financial polieyf Mr.. Sherman, the chairman
of the Finance Committee Of the Senate, has
reported a bill, which we have somewhat con-
sidered. II Is a very important measure in sew
cral particulars 1t Is evidently designed to set
tic in many important points our financial
policy. In the nrst place, II provides for the
funding of the debt, the conversion OF the legal
tender currency, and the settlement of the vexed
question Of the taxation OF public securities.
II recommends the issuing of bonds bearing six
per cent. interest, and payable in forty years,
but these bonds may be redeemed at the pleas
ure of the Government after ten years. No tax
Is to be assessed upon these bonds, either by the
National or State Governments. 1t Is further
provided, however, that in consideration of this
exemption a certain proportion of the interest
shall be reserved for distribution among the
several States. This is q seeming maintenance
of the doctrine that Government securities
ought to be exempt from taxation, but In reality
1t strikes us that 1t is rather q roundabout way
to maintain a distinction without a difference
To be sure, 1t recognizes the principle that pro
perty must contribute to the support Of the
Government. In our Judgment the people will
be satisfied with any plan that provides for the
just taxation Of all the property of the country
but they will be satisfied with nothing short Of
the full recognition on the part OF the NAtiona
Legislature Of this principle.
This bill further provides that the bonds sc
Issued shall be made convertible with legal ten
der currency "unless the amount of United
states outstanding bonds shall be equal to fou
hundred millions of dollars"
This bill Is accompanied by a report Of consid
cradle length, in which the committees view
of our financial policy are stated with muc
cloarness, and the measures they propose are dc
Tended with much ability. The committee ar
of opinion that the ave-twenty bonds should b
paid in gold. They think that as the law doe
not declare to the contrary the precedent is es
tablished by the course that the Governmen
has heretofore pursued, which has been to pa,
in coin.
These views appear to be fairly stated, and tn
conclusions well drawn. We can see no good o
valid reason for dissenting from the expresse
opinion Of the committee on this particula
point. 1t is evident that the committee mean h
present a comprehensive policy, that shall es
tablsh the public faith In the nations abIlIt
and disposition to pay all OF Its liabilities The
seek to promulge system, so to speak, tina
shall inspire the confidence of the people, and
uniformity that shall give stability to all of ou
business interests.
What we most need, and what we think tn
committee are aiming to accomplish at as carly
day as possible, is restoration of our currency
the standard Of gold What Congress will d
with the committees bill or how 1t will tres
the recommendations In their report, remains
be seen. We trust that those who have gon
home to spend the holidays will return fires
from their constituents, and that they will
advised to do that best thing which can possibl
come within their reach, and thus place ou
financial affairs in the most prosperous cond
tion which is attainable.