The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-12-18
THE NATIONAL FINANCES.
The Senate Finance COmmIttss's Report
The Argument for the New Issue Of
Rnmhn-

-Vhe ArRumont Tor the New issue OF
Bonds.
WASHINGTON, Dec. 1.-THE following is sub
the important report made by the
Senate Finance Committee to-day on the hnan-
cial situation and In explanation and support
Of its pill TO fHnd the debt OF the G0vernment:-
The Committee on Finance. to whom was referred
Of the Presidents Message as relates 70 the
treasury on the state ofihs fuancss IS cssi to re-
port pom three sgoeets peeeasSSry coz
public debt, and as an iucdent TO IL the redemption
bonds; secondSThe taxation, State and national. OF
public securities; and Thlrd-Ihe redempt,en and
currency , ,,- - 40,
b eSGe 69r beg Ss to Ss
condition of the public debt 1t consists OF numerous
out Of the urgent necessities OF the late war. The
SO impefave GI that many different forms CT loans
were Tesorted TO- and as means 10 enable the GOV
Iency was as impT9visse6 % se TINS currency now forms
sorry loan without lnterest
from the advantage the Government derives from lt
by he G m eSepT nS 6s
exchange of domestic products. IL only remains,
Increasing It's value the standard Of gold make
il mot only the most fayorabe form of loan but the
only be contracted at hBn rate OF Interest," but the
closed into one loan at as low rate OF interest as pos
sible, has been conceded. -. -
thirty bonds hsys been GSnysrtsd S or are CONVEX
ago are removed. portion of the debt may be dis
missed from view. The bonds commonly known as
the go basis, and are neither redeemable nor paya-
Se Te s paySe oe Until M ana h
principal and interest are payable in gold. The
be psid % from the funds on hand or Current
receipts, and may be dismissed from our eonsldere-
ing with them the seven-thir;ies in the aggregate
and fractional currency amounting l42457
comprises the body OF the public debt OF the United
at the pleasure the United states aud the whole or
IL % Ss se sG m OF opop ha he time to
vide for the redemption of these bonds they be-
terms TO the United saiss aud also to secure to Eae
holders fthe United States notes as soon as praot
veIt6le into gold. with public DEBT bearing as low
to redeem the principal when more favorable terms
can be had. with a moderate provision to diminish
tRxss levied far practicable imported goods.
luxuries, and incomes; these are the elements Of
financial system which your committee seek to ests-
blish.
did In his advertisement. aiirm that the principal
on GG cauesc in Go6gress and h0G
sands to take these bonds who would not otherwise
Is not in accordance with the plain language Of the
LAW apG % Is not binding 's Sia Of M the Jaw No
expired, specie payments would be resumed. No one
BACKS Would still be depreciated Tne adverisement
was supposiLon Of a state OF facts to occur Ave
public law accessible to all men And It 4 cOntended
Rs R sR' as ndnr the psG
States to pay ,Y the OF o this debt in
rally acquiesced in and adopted BY both parties 60 the
Tned states is bound to execute to preserve It's faith
Is h true that this contruction was SO generally ad
uniformly refused to declare this construeOn TO
bonds And il is further and very significant fact
t6St 1se pn 1as s1
on this act Every state had public debt IL stood
It's bonds had uniformly been paid pTincpal and
IN puS wss ys S whn S
paid either principal or interest In legal-tender
uHef 6eir credtors So with corpcratons and private
citizens who had contracted debts which by law
sidered themselves and were released by payment
cpe Of the law OF contracts when it is sought to vary
the meaning of the words OF contract, by contem
parties acquesced in and understood and acted upon
of The contract must govern. When general rule is
laid down and exception is made lt Implies that
sooGs snd Interest public debts are excepad The
Eo IS @ he y s e G %
under which this loan Tas ISSUED 1,n expressly de.
We'll as gold. and shall be receivable in pay
ment Of public debt The argument that a
H' the United states is answered by the fact that
parties as part Of the contract but was rather an
opinion based upon snpp0sltIon OF state OF facts,
exist Il is clear Ihst the bonds are payable when
due la legal tenders tney are reueemA0e atJer nV0
years from the date In same kind of money. The
word payable imports duty or obligation which
must be performed At the time stipulated. The word
''redeemable'' implies a discretionary power, which
may be or may NOT be exercised But the same Kind
OF money. in the same mode rendered, will redeem
note or pay a note. ,.. 49,
United States notes. limited as they TO 800 900 600
can applied 10 the REDEEM pl0n OF the bonds. The
question now arises. Can the United States. In good
faith avail itself OF the Depreciation of its notes
issue greater amount Of them than provided for
when the 500 bopds were sold. and with them TO pay
promise by the United States to pay specified rum
on demand. No legRI.tender clause applies TO this
note. 1t Is conceded that the money Of the world.
gold silver con Is the only money that can redeem
This note During the war this was ipprRcticable,
and therefore the United States TO she note every
valuable qu aliy possible 1t was made lawful money
and a legal -ten nder for other debls.
But the obligation to pay this note In coin AT the
earliest moment practicable is a continuous obliga-
ton Our failure TO do is the standing reproAch of
our financial system. II lis the cause OF all the dis
cusson that have arisen In regard TO our bonds Unt
our promise Is made good to pay the United States
notes in coin or its equivalent on demand we must
suffer the reproach OF partial repudaton. Ths does
not consist In allowing our lawful money promises
demand to continue 10 be less valuable than
gold silver coin. Payment OF the bonds in existing
notes would not materially affect the market of the
bonds the market value OF the notes. increased
IL would be by The provisions Of this bill would make
both notes and bonds approach nearer the standard
of gold The present issue Of notes is held by the
people and cannot be drawn into the Treasury except
BY taxation, We have already largely diminished
Internal taxes and cannot hope to receive over
in currency in OF expenditures.
IContinued in next Odition.l