The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-12-20
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Lnances (publi5hed WeuueSu'y 70 i~''I
Hispassionate and luminous. we dissent only
from It's apparent concession that the attempt
In make the Five-twenties payable in green
hacks has some shadow of reason-or at least
Of plausibility-On its side. To our mind
the project is one OF naked, unmitigated
rascality. For surely, either we 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 we
did not Intentionally cheat, we cannot escape
the alternative. For, not only have three
successive Secreties of the Treasury-Chase,
Fessenden, and McCu loch-offcially de-
clared those bonds payable, principal as well
as interest, in gold-not only did the Govern
ment's authorized accredited, advertised, paid
agents for the sale of the bonds seek and
secure purchasers under like assurances,
many times reiterated-not only was there no
disavowal of, or dissent from, these
assurances when they were given, and
when dissent woHld have operated as a eau
tion--but Mr.. Thaddeus Stevens who reported
the bills as Chairman of the House Committee
of Ways and Means, assumed as unquestion-
able, in advocating the passage of the Legal
tender act, that the principal as well as inter
est of those bonds was payable in coin. (See
Secretary McCullOch's unchalenged citations
from his speeches). We give no quarter,
therefore, to those who would repudiate the
plghted faith of the republic, and regret that
the Committee has given any. 1t is just as
notorious that the bonds were taken under a
well grounded expectation that they would be
paid in gold, and would not have been taken
otherwise, as that they were taken at all.
And any attempt to repudiate the obligation
thus incurred is not merely gigantic villiany,
but it is so inoOnoeivably silly and suicidal-in
view of the fact that we have vast debts to
fund, vast loans, nearly matured, to renew
that we regard the cOuntenanoe given to it by
men so able and loyal as Messrs. Stevens and
Butler with unspeakable amazement. We
might comprehend this if rascalty were its
only characteristic: but we are utterly dumb
founded in view of its folly. And we cannot
help regreting that the Committee, while dis
senting from it, has dealt with it so gingerly.
Nor can we assent without qualification to
the Committees averment that 'the rapidity
of the process''-that is, of the return to
specie payments-"is a question of public
policy" We hold it a question rather of
national ability. There is neither dishonesty
nor disgrace in inability to pay an honest
debt provided 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
time 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-
a, Ill
nobody. Make every greenback true and
no longer a false promise, and what impor-
tance can attach to repeal of the Legal-tender
act What good end will be subserved by it
We like the Committees suggestion that
our various loans shall be gradually converted
into one six per cent. loau, principal and in
terest payable in coin, whereof one per cent.
shall be reserved as taxes, whereof one-hali
the proceeds shall be distributed among the
States in the ratio of their population, re-
spectively. 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 it. Let us shame, if they can
be shamed, those Western demagogues who
are ever seeking to excite jealousy and hosti-
lity between their section and ours. If this
plan should be adopted, there will soon be
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
pntaxed five per cent loan, and thus largely
reduce the annual burden of the aforesaid
debt; but the demagOgue clamor against eX-
empting the bondholders from taxation is sc
widespread and so speciOus-since there are
myriads too ignorant to realize that such
exemption must ever be neutraized by the
lower rate of interest at which an untaxed
loan can be placed as compared with one sub
ject to taxation-that it is better to adopt the
plan sanctioned by the Committee
We do not believe that nOminally six pei
cent. but really five per cent. bond can be ne
gotiated so rapidly and extensively as will be
requisite TO fund our existing debt as itmatures
if the right to pay it off after ten years is re-
tanned. On this point, however, further
light will be gained as the discussion proceeds
We prefer to say twenty, or even thirty years
rather than run any risk of failure. We like
the Committees suggestion that the greenbacki
be made fundable at the holders pleasure il
the new cOnsOls, and that the consols, within
proper limits, be convertible into greenback
again This would increase the value of each
ana would substitute a commercial for tht
presehI objectionable political regulation o
the Voluhe OF our paper currency. When
ever money suPerabounded, the surplus woulC
be converted into interest bearino consols
when money was eight" copsols wouId bt
sent to the Treasury for conversion into oreen
backs. Here would be oomnanSstion
balance that would place our currency nnde
a more benefcent regulation than that of AN,
Secretary of the Treasury, though he were
Hamilton, Gallatin, or a Chase.
As to the Committees programme of tn
remission and reduction of taxes, We only say