Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1867-11-19

city and railroad bond-now turn round
aud depreciate these notes, and say they
arc not "lawful money" as they were
declared by act of Congress TO be; and
not fit to be given TO public creditor
Do not, gentlemen, misunderstand me
here. | did not vote for that legal ten
der act was in Congress at the time
| opposed it. / voted against it. j be-
lieved the policy bad We had coin cur
rencv and | believed we should maintain
it, j thought the war might have been
carried on, as the wars of Napoleon
against the world we're carried on, for
years, upon n coin basis, and without
initiation and without the issue of notes.
| endeavored to the utmost of my feeble
ability TO enforce that policy upon Con.
gress was overruled, and contrary
policy was adopted. 1t became incor-
poraied into the business of the country,
and | am now in favor, in good faith, OF
carrying it out to the end, until every
advantage shall be realized, and until
we caniwith safety aud ease reverse this
policy, as i believe we ought, and return
to specie payments ID the country.
And now, my friends, ! not only say
that these bonds are payable in legal
tender, but that they ought to be paid as
soon as it is possible TO do 30. do not
know that it is possible to pay these bonds
as fast as they mature, even in currency !;
but j do know that every possible effort
ought to be made to do it.
But just ut this point | am met with
the statement that we will issue an i'm
mense amount Of paper, and thus so far
initiate the currency as to destroy its
value, and bring disaster upon the coun-
try. Now, gentlemen, let me examine
this objection. Mr.. McCulloch in his last
monthly report stated that the public
debt which bears interest is comprised in
three kinds-that three hundred millions
of this debt could not be redeemed before
lo74-that three hundred millions more
could not be redeemed before l88l-and
that the rest of the debt, amounting to
nearly seventeen hundred millions of
dollars, is comprised in five-twenties and
bonds, which bear interest in currency.
Seventeen hundred millions Of FIVE
twenties and bonds which bear interest
in currency, will fall due within the next
five years. ! cannot state to you the
exact time nor the exact proportions in
which these bonds fall due / mean
these 520s. Their very name implies
that when five years shall elapse after
their issue, the Government may pay
them; but it need not pay them until
twenty years have elapsed.
Moo, Doofiop,an I maintain ,boN al, 40
five twenty bonds should be paid as far
as it is possible to do so without initiating
the currency, beyond safe and just
point. And it is my business now to
show you how rapidly that can be done.
The unliquidated debt of the United
States consists Of greenbacks, and claims
which have not been adjusted, and
amounts to eight hundred millions of
dollars. 1t pays no interest.
The policy Of the Republican party is
to convert these eight hundred millions
of dollars of unliquidated debt into
bonds, which pay six per cent. interest
in gold Now what will be the effect Of
that ? 1t converts debt which bears no
interest into debt which bears interest
in gold--it will add to the expense of the
government SIS, 900, ,0OO--for that is the
Interest on SS8,0O0, 900. 1t will increase
the number of those who do not pay
taxes, and increase the burthens Of those
who do pay taxes. 1t will add to the
untsxed property of the country. 1t
will convert active into inactive capital.
Now, | maintain that this system ought
not TO 90 on; that the debt ought not to
be converted, that this capital ought not
to be locked up; and that this large
number of people ought not to be ex-
empted from taxation; and that this
additional burthen of forty. eight millions
of dollars should be saved. The Repub-
licans say they can-I know they ought
to be able to pay this amount from the
current revenue.
If you look at the report made to-day
in the evening papers by telegraph, the
national banks have three hundred and
thirty-eight millions of dollars of the
bonds of the United States deposited in
the treasury as security for their circua-
ton. You know how these national
banks are established. A man buys the
bonds of the Government of the United
States, and deposits them in Washington
and receives the interest on them year
by year at six per cent. in gold. He re.
ceives ninety per cent of bank paper
which he takes home here to your own
city, establishes bank, issues these
notes and derives the interest of six or
ten or twenty per cent, as the case may
be, when you borrow those notes.
Three hundred and thirty eight mil
lions of these bonds are, by the report of
Secretary of the Treasury, deposited to-
day as security in the vaults of the
treasury. Three hundred millions of
bank paper is issued on the faith of these
bonds. Now, gentlemen, maintain
hat this circulation ought to be called
n; that these bonds ought. to be re-
ieemed with legal tenders which will
axe the place Of that bank circulation.
What would be the effect of this The |
seventeen hundred millions of interest
)earirg bonds would be reduced to |
ourteen hundred millions and twenty
Millions of dollars would be saved to the !
Government from the interest which is
,aid to the bankers for the bonds which |
hey have deposited.
Now, then, suppose you take these
wenty millions of interest which is saved |
md add it to the forty eight millions of
lollars which these gentlemen say they |
AN pay from the current revenue, aud |
-ou have sixty-eight millions of dollars,
lear by year, and if you coHvert that
um into greenbacks at 81 40, you have
hundred millions of dollars a year,
nd if this is appropriated as a sinking |
and, you can pay off the whole debt in
ess than fifteen years, without adding
me dollar to your taxation, or one dol |
ar to the circulating medium.
Bear in mind that l am arguing a
that these bonds can be paid
4 greenbacks without Initiating the cur