Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1867-11-08

dred millions of this debt could not be re-
deemed before 1884, -thatthree hundred MIL
lions more could not be redeemed before 1881
and that the rest of the debt. amounting to
nearly seventeen; hundred millions of dolT
lars, is comprised in s. 20s and bonds which,
bear interest in currency. a. '-'- '' II
Seventeen hundred millions of 5-20s and
bonds which bear interest in currency, will
fall due within the next five years. can
not state to you the exact time nor the eX-
act proportions in which these bonds fall
due. L mean these 5-20s. Their very name
implies that when five years shall elapse
after their issue, the Government may pay
them; but it need not pay ithemiuntil TWEEN
ty years have elapsed. % .re.-s,ag yf,tgTI
Now 1 maintain that these 500 bonds
should be paid as far as it is possible
to- do SO q with, out initiating, the
point. And tits my business to show
you how rapidly that can be done. The
unliquidated debt of the United States con-
sists of greenbacks and claims which have
not been adjusted, and amounts to eight
hundred millions OF dollars. 1t pays no
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. |
What VIII be the effect of that? 1t con- |
verts a debt which bears no interestinto a |
add to the expense of the government S4S,-
600, O06-fOr that is theinteresto on SS00,0O0.-
600. 1t will increase the number of those
who do not pay taxes. and increase the bur-
thens of those who do pay taxes 1t will
add to the untaXed property OF the ,coun-
try. 1t will convert active into inactive
capital. -lfi asj-al=Ee. e ~ T7os q
1 maintain that this system ought not to
go on that the debt ought not to be CONVEX
ted, that the capital ought not to be locked
up; and that this large number of people
ought not to be exempt from taxation; and
that this additional burden of forty eight
millions of dollars should be saved. The
Republicans say they CAM 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, you will
see that the national banks have three
hundred and thirty eight millins of dol
lars of the bonds of the United States de-
posted in the Treasury as security for
their circulation. You know how these
National banks are established. A man
buys the bonds of the government of the
United States and deposits them in WASH
ington and receives the interest on them
year by year at six per cent. in gold. He
receives ninety per cent. of Bank paper
which he takes home here to your city, es-
tablishes bank, issues the notes and de-
rives the interest of six or ten or twenty
per cent, as the case may be, when you
borrow those. lCheers.]
Three hundred and thirty-eight millions
of these bonds are, by the report of the
i Secretary of the Treasury, deposited to-
day as security in the vaults of the Treasu-
ry. Three hundred millions of bank paper
, is issued on the faith of these bonds. Now,
!, gentlemen, maintain that this circulation
ought to be called in; that these bonds
ought to be redeemed with legal tenders
;aI, fol- arl1n Of fIuf hot mir
culation. [Applause.l -...
What would be the effect of this? The
seventeen hundred millions of interst-
, bearing bonds would be reduced to four
teen hundred millions; and twenty mil
: lions of dollars would be saved 70 the Gov
: ernment from the interest which is paid to
the bankers for the bonds which they have
deposited. TCheers.l
Now then, suppose you take these twenty
millions of interest which is saved and add
? it to the forty-eight millions of dollars
which these gentlemen say they can pay
from the current revenue, and you have
t sixty-eight millions of dollars, year by
/ year, and if you convert that sum into
greenbacks, at 140, you have hundred
: millions of dollars year, and if this is ap-
: propriated as sinking fund, you can pay
: off the whole debt in less than fifteen years,
without adding one dollar to your taxa
, ton, or one dollar to the circulating medi-
um. [Applause.l -.-
, Bear in mind tnat am arguing a propo-
: sition that these bonds can be paid in green
, backs without Initiating the currency. Bear
5 in mind this can be accomplished in twelve
or fourteen years without the addition o
one dollar to your taxation, or one dollar tC
= your circulating medium. And now beaI
in mind also that l have not touched the
: revenues of the Government, which in 1850
5 amounted to five hundred and sixty mil.
e lions of dollars; nor have l attacked the
{ expenditures OF that year OF Radical ad
s ministration. it
a But now set the Radical reformer tx
/, work. Let him cut off every extravaganza
t -lop off every useless expenditure. Le
him reduce the current expenses of the
: Government to Sl50,000.000 d year-I meal
:. expenses independent of the interest or
j the public debt-though it ought tC
/. be reduced to $100,000000; that would bt
v twenty-five millions more than Mr.. .Buchan
|. an ex pended; that would be as much il
Y one wear as Andrew Jackson expended il
5 four years of his administration. But le
Y the expenditure be reduced to $3.50.
100000, and what do you have? $780,
e 100000 for current expenses, Sl30.000 0Ot
n for interest upon the public debt and SlOO,
Y 600 600 as a sinking fund. as [ have de
y scribed, and you have the aggregate OF
S $3.50 100000; and if you take that from the
/. revenue of 1866, which amopnted to $500
# OO0.OO0 you have balance of $1S0000 600
It which you may add to your sinking fund
e and thus bring it up to $2S0,000 900 annu'
v ally. And with that you can. in five years
It pay every cent of the principal and inter
!; est upon your public debt, without the a,
n dition of dollar to the circulating medi
n um of the country. Applause.
n When five years shall have passed, yol
e can reduce $l5OO00,O0O of your taxation
and yet be able to pay the $500, 0,O0
h which falls due in 1874. Then you can re
Il duce your taxation S2OO,OOOOO0 more, an,
1t by retiring your greenbacks as the grea
Is burthen of taxation is reduced. you will b
It able to pay the debt maturing in 1881, an
= at the same time to call in your greenback
a and return to the constitutional currenc
a. of the country. ~
1T to increase the taxes or add one farthing t
8 the currency.
IS | do rot know that these figures are ex
IN actly correct. L have taken them from
d the Secretary of the Treasury and tn
B. Commissioner of Revenue. They ar
r sufficiently correct. l use them for illus
l. tration only. Other modes of eXecu;in,
this general plan might be devised-per
d haps better ones. l designed only to SHOW
n that it was feasible and safe. Experienc
IS and wisdom will, when the time shall come
g determine the best. | urge the adoption
!! of this general idea because think l sc
" danger ahead. The Republican party re
sc fuses to adopt it. They insist upon pay
" ing the bonds in gold. This adds fort,
Of per cent. to your debt. They insist upol
ID curtailing the currency. This makes i
ID impossible to keep up your revenues, an
V postpones the payment of the DEBT. Ii
E. the meantime you are paying a larger in
,e terest than any government in Europe. A
the end of fifteen years you will have paid
id by way of interest, an amount equal t,
A your whole debt, and yet the principal re
At mains wholly undiminished. In the mean
t. time the bonds are wholly exempt from