The Plymouth weekly Democrat. (Plymouth, Ind.) 1860-1869, 1867-08-29

federal affairs more encouraging picture
FEDERAL FINANCES.
The revenues Of the Government. De.
rived from taxation in 1866. amounted t,
nearly five hundred aud ninety millions oi
dollars This was ! year Of peace the ~
! my had been reduced; the navy had been
: diminished; the vast military movements
had ceased. Vet. the expenditure wa.
one hundred millions more than that o.
England, and one hundred and eighty mil
lions more than that of France. Tho
: greatest expenditure Of England durirc
the Nanolconic vars, when even Ruzsia
/ was stimulated by her ~idies-when
large armies were kent in Spain and on tho
: Continent, never reached one hundred
, millions Of pounds-less than five hund-e,
, miliicns OF dollars. England has thistv-
J SIX thousand millions Of property as . taxa
bic basis. France has forty thousand
millions. The United States have si teen
thousand millions. With les than two
hithS ofthe taxable property. our PEOPLE
pay largely more taxes Two wears have
elapsed since war ceased Two reeular
sessons-two extra sessions Of Conercss-
have been held Has aay scheme Of
economy. has any reduction Of taxes been
proposed? Ga the contrary has not The
crly scheme Of finance lookcl to the in
crease Of the interest-bearing debt. and
to the increase Of expenditure by the in
crease of interest?
The public debt, hearing interest
amounts to twenty-five hundred millions !:
the interest reaches ono hundred and lortv
millions. When the Republican nartv
came into power tie debt was only cigh-
+ millions. In five years # has grown So
much. and this notwithstanding the vast
annual revenue. Through the principal
is considerably less the annual interest Is
considerably more than that Great Brit
ala and the highest reach OF RcpuJl;can
sta'esmansh;p las been TO propose the con-
version o' greenbaks. which pay 70 inter
est. into bonds, which pay interest in gold
and thus to increase the number Of those
who 90 not pay faxes and TO increase the
bur'hens Of those who do
The amount Of unfpndel icht has been
estimated al $500 600 fit shall be-
converted into bonds the interest Will
amount to forty y-cielt millions in gold and
this sum viii be aided to the exuendi-
tures In the meantime the number of
National Banks viii be Increased. and The
place Of the grecnbacks supplied by bank
currency.
Our Gorernment poys a. higbcr rat Of
interest ttaa any IN Earope. Ere,y dol-
icr Of is Indebtedness IS 10 b. NUDE te Jqy
didt rate,- and ~ rroy;ston ,rhatr ;. Is
mo9c far is re@emltioa
This process should cclse instantly.
'Ihsse Ioriy-eight millions annually should
be. saved. The five twenties should tie
paid in srecnbacks as they mature, Q. rs
fast as can be done without too great de-
rangemeat Of the currency. Neary four
hundred millions OF them are deposited by
the banks as security for their circulation.
These can be redeemed without adding
one dollar to the currency. The interest
on these bonds amounts to tweuty-flur
millions of dollars annually. Adlth sum
to the forty-ei3ht millions above spoken
OF. and re have seyenty-two millions III
gold. Create this into sinking fund ani
YOU can Fay the whole debt IN sixteen
years, without adding dollar 10 your tax
es or increasing Your circulating medium
But the condition OF the country could
bear-an increase in the currency The
ravages OF war at the Sonth-the Gestruc-
ton OF capital there. thc loss of houses.
horses, cattle, agricultural implements. tie
scarcity Of provisions, the cnfranchiSemeut
of til negro the Importance ol setting The
whole population to labor at once-creafe
Il demand Tor more currency. Every In
tcrest there would be advanced by the
stimulating effects Of m enlarged curren-
cy. As fast as this increase could he wise
ly made, the bonds should be redeemed
the interest should be reduced and the
amount thus saved be added to the sink
inc fund
This is rGpa7,otion. I hear somebody
say Not at all The five twenty bonds
are all payable at the option Of the Gov-
ornment after FIVE years. Their very name
shows it. They are payable by the law
under which they were issued aud accor-
ding to thcir.face, in grecnbacks. They
are not payable in gold. The interest is,
according to the provision oi law and the
language of the coupon, to be paid in gold /
Not 80 with the principal The tcn-forfy
bonds authorized by the Act Of March 5. 1
1868, are by the terms Of the law. made
payable in gold. This is the only class of
bonds of that character and as read the |
last official statement OF Secretary McCul- |
loch, very few. if any of them; have been
issued. The Government may then. ac
Il, e. fl
contracts pay the fivc-twenties in green
backs ut any time alter five years from
their issue, and there i. no renudaiion in
doing so. OF this class, there were out
standing on the first of August, eleven
hundred millions. and they mature proba-
bly, in nearly equal proportion in each OF
the next iive years. This viii not super
ccdc the necessity for high taxes, for close
economy, for continuous industry. They !
arc inevitable With them and whatever
other plans wisdom may suggest the
burthen will press heavily on you and your
children.
| have shown that the redemption OF
the bonds will be so gradual, the increase
of the currency 50 slow that values will
adjust themselves and business interests
become regulated without that shock which
usually attends great changes of financial
policy.
But if it were not so, still the bonds
should be converted into greenbaeks
They were sold for greenbacks, it is fl
ting they should be redeemed in the same
currency. This policy would save the in
terest. pay the debt, and bring upon the
nntn fnr tnrn.,,,, al