Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1867-09-05
FEDERAL FINANCES.


ed from taxation in 1866, amounted to
nearly five hundred and eight millions of
dollars This was year of peace the ar
my had been reduced the navy had been
diminished the vast military movements
had ceased. Yet, the expenditure was one
hundred millions more shan that of Eng
land, and one hundred and eighty millions
more than that of France The greatest
expenditures of England during Napole-
onic wars, when even Russia was stimula-
ted by her subsidies-when large armies
were kept in Spain and on the Continent,
never reached one hundred millions of
pounds-less than five hundred millions of
dollars. England has thirty-six thousand
millions of property as a taxable basis
France has forty thousands millions. The
United States have sixteen thousand mil
lions. With less than two-ffths Of the tax
able property, our people pay largely more
taxes. Two years have elapsed since the
war ceased. Two regular sessions-two
extra sessions Of Congress-have been
held. Has any scheme Of economy, has
any reduction Of taxes been proposed ? On
the contrary has not the only scheme of
finance looked to the increase Of the inter
est-beariDg debt, and to the increase Of ex-
penditure by the increase of interest
The public debt, bearing interest,
amounts to twenty-five hundred millions.
the interest reaches one hundred and forty
millions. When the Republican party
came into power the debt was only eighty
millions. In five years it has grown so
much, and this notwithstanding the vast
annual revenues. Though the principal is
considerably less, the annual interest is
considerably more than that of Great Brit
ain; and the highest reach of Republican
craftsmanship has been to propose the con-
version of greenbacks, which pay no inter
est, into bonds which pay interest in gold
and thus to increase the number Of those
who do not pay taxes, and to increase the
burthens of those who do
The amount of unfunded debts has been
estimated at $500, 600, 900 If it shall be
converted into bonds the interest will
amount to forty-eight millions in gold, and
this sum will be added to the expenditure
In the meantime the number of National
Banks will be increased and the place of
greenbacks supplied by bank currency.
Orr Government pays a higher rate Of
interest than ony IN Europe. Ere1y dol
Tar Of ITS Indebtedness IS to pay that rate !;
and no provision IS made achoeuer for its
redemption. THAT is fact" and cheers.
This process should cease instantly.
These forty Eight millions annually should
be saved [Cheers. The ive-twenties should
be paid in greenbacks as they mature, or
as fast as can be done without too great
arrangement of the currency, Nearly 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 twenty-four mil
lion of dollars annually. Add this sum to
the forty-eight millions above spoken of,
and we have seventy-two millions in gold.
Create this into sinking fund and you
can pay the whole debt in sixteen years,
without adding a dollar to your taxes Or
increasing your circulation medium.
But the condition of the country could
bear an increase in the currency. The raw
ages Of the war at the South-the destruc-
ton of capital there, the loss of houses,
horses, cattle, agricultural implements, the
scarcity of provisions, the enfrancEisement
of the negro, the Importance of setting the
whole population to labor at once-create
demand for more currency. Every inter
est would be advanced by the stimulating
effects of an enlarged currency. AS fast as
this increase could be wisely made, the
bonds should be redeemed-the interest
should be reduced, and the amount thus
saved be added to the sinking fund.
This is Republication, hear somebody
say. Not at all The fve-twenty bonds are
all payable at the option Of the Govern
ment after five years. Their very name
shows it. They are payable by the law I'M
der which they were issued, and according
to their face. in greenbacks. They are not
payable in gold. The interest is, according
to the provisions of the law, and the Ian
guage of the coupon, to be paid in gold.
Not so with the principal The ten-forty
bonds, authorized by the act of March 8,
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 statement of Secretary McCulloch, very
few, if any of them, have been issued. The
Government may then, according to the
terms of the law, and Of it's contracts pay
the five-twenties in greenbacks at any time
after five years from their issue, and there
is no reputation in doing so. Of this class,
there were outstanding on the first August
eleven hundred millions, and they mature
probably in nearly equal proportion in each
of the next five years. This will not super
cede the necessity for high taxes, for close
economy for continuous industry. They
are inevitable With them, and whatever
other plans wisdom may suggest, the bur.
then will press heavily on you and your
children.
[ have shown that the redemption Of the
bonds will be so gradual, the increase o.
the currency so slow, that values will ad
just themselves and business interests be-
come regulated without that shock which
usually attends great changes of fnancia
policy.