Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1867-10-03
State,ssjnlllIa,!nll:;; ,sjllI, Il;
THE SITUATIONS! !
FINANCIAL: AND POLITICALLY j
Icorrespondenoe Of the Ohio Stat Statesman.

| Ing quesClons OF uneXampled Importance to
us as State and nation, let us endeavor to
take a calm and deliberate view of the sit
uation. Laying aside, for the moment, ev-
cry partisan reconsideration, let us come up
to the discussion of these Questions as
|, American citizens, having one lot, one des-
tiny, In this our common country, and in
terested alike in, its prosperity and glory.
L am no alarmist, seeking to arouse the
| fears of the timid, or to impose upon the
credulous. say only what will be admit
ted by all. whenoI say that we live in
troublous times-that the times are, indeed,
out OF joint, and that there are fearful fore-
bodings of evil. If we look to the National
government, we find that the co-ordinate
departments move unsteadily in their or
oits,, lostllng and Interfering with each
other, and Threatening collisions Dangerous
alike to the public safety and the established
order and harmony so essential to the
proper administration of affairs Witb
threatened impeachment of the Chief ExI
ecutive. on the one hand, and retorted
usurpation and violation of the Constitu-
tion. on the other; in one-third of the IN
loq lne clYll power put in subordination to
the military martial law-which is sifonlv
the will of the commanding General-hev.
Ing iull sway, and threatening to extend
itself over the whole country: an immense
public debt Incurred ; the people groa nino
under taxation; and, worse than all. the
uoctrine boldly announced that the organic
law-the Constitution itself-has lost its
vitality and become imperative in nearly
one-thlrd of the States in the Union. Il
@. AT such time, brought face to face with
questions of such Tremendous import to
the country, involving the very framework
and Perpetuity of the government itself Il
becomes every man who would address
himself to the popular ear to study well
the political and financial problems we are
working out as a nation
| Finance, taxation, reconstruction tbasa
are the great questions agitating the conn
try, the resulting legacy of the contest
through which we have passed, and which
are now before us demanding a solution
Two thousand five hundred millions Of
public debt. Truly, these are startling igl
ures. They almost pass, our, comprehefl- :,
sion, ana we 1nvoluntarily pause whilst the,
mind endeavors to measure the LENGTH and
breadth. and height and depth of these ar
gregated millions, that rest with such pom
derous weight on the capital labor and
resources of the country, from which there
is no escape but by the slow, uncertain and
oftrtimes oppressive process of erinding
taxation. or that, other desperate resource,
reputation, ,..l--- = ~. - -,
AS yet no person of prominence has dar-.
ed to pronounce in favor OF repudiation!o
But, impelled by the necessities of the Sit
uation, and seeking in all quarters for hone
of relief we have numerous projets for
liquidation of the public debt. Perhaps
the most plausible yet presented, looking
to immediate relief, as its advocates claim.
is the proposition to liquidate the entire in
deptedness by an emission of Government
greenbacks in payment, to the holders of
the bonds outstanding or yet to be issued
in pursuance of existing laws. This is.
ly,neXt to positive republic
tlon. the sharpest, quickest and apparently
easiest way to dispose OF it. Various argu-
ments are offered by the advocates of this
plan.i Thus, 1t is ,argued, the bonds were
PAID for In greenbacks, therefore it is right
to redeem them in greenbacks. The-inter-
est Is too high, and they are exem nted from
taxation. They are payable, princinaI and
interest, in gold, whereas the people have
to be content with greenbacks, These. and
arguments OF IKE character, are presented
10 tne CONSIDERATION OF the people, already
restless under taxation, State and national
unprecedented in the history of the coun,
try, and there is force in some of these ar
guments, and they will acquire Increased
force and weight unless the causes of COM
plaint are remedied. Let us, then. take q
deliberate survey of this colossal debt.
Let US see it in its component; parts, and
we shall 6e better prepared to torn an
opihlon wlth regard to our duties as well
as interests in the matter.--
Starting at the lst of, July, 1851 we find
that the entire public debt. at. that time
amounted to $50 S67 S28 6S. The outstand,
ing bonds, representing this inlebtedness.
had been paid for in gold. During the
summer and fall of 1861, treasury notes
were lssuedi bearing seven and three-
tentns interest per annum.; and Dayable
three Years after date, or convertible at the
option of the,holder into bonds bearing six
per cent. interest, and payable alter five
years and within the limitation of twenty
years, when they Were finally payable.-
This was what was termed the first s.popu
lar loan, Nbeing taken by subscription. and
amounted believe to 100 millions of dol
lars. al OF which was paid in goldior its
equivalent. This heavy draft on the specie
in the country, estimated at about 275 mill
lions of'dollars; with che prospect of large
additional sums being REQUIRED Inv the
Goyernment produced the, suspension of
the banks on the last of December, 1861,
although their circulation was only about
200 millions of dollars. Then came An isc
sue OF paper by the Government called
"greenbacks," declared by law to be a legal
tender in payment of all debts. and Re-
ceivable by the Government, except In paw
ment of duties Fon imported goods. whish
were still required to be paid III gold. The
continuance of the war and increased ex-
penditures of the Government necessitated
further loans and issues of legal tenders
thereafter, OF course, all loans were paid
III legal tenders which. as COMPARED with
gold, fuctuated during the war. the reIa-
1--WE value at the gold exchange depend
ing on the news Of military Operations
rather than the quantity of currency in
clroulations or any other cause Il Durinp
the year, 1862 the ipremium ON gold aver
aged about 10 per cent; in 1863 about to
per cent; and In 1854 it gradually rose 81
SO until in June it reached 9S, and in tha1
month following run up to lS5 per cent
premiumTbeing the highest point attained
AN advance of 100 per cent. in a single
mouth. This was at the time of the inva-
sion of fPennsylvania by Lees army. In
August, September, October and Noyem-
Der, 1854, it ranged, at .l30 to 160 per cent.
premium, and thereafter gradually declined
until at the surrender of Lees army, in Anril
1865, it fell to 40, and subsequently to %
but gradually recovered to DO, and has since
that time yibrated between 30 and 40. as
the political situation appeared satisfac.
tory, or otherwise, or combinations of
speeula ors were able to temporarily affect
the market. During all this time, and on
this state OF facts these bonds and treasury
notes, of various descriptions, have been
issued, all alike obligatory and based on
the same public faith. until we hay. reach
ed an aggregateof LIS millions now ONT
standing, of which 19S millions are at < Der
cent. and the balance at per cent. There
are also Outstanding seven Thirty treasury
notes to the amount of 400 millions Of dol.
lars, which fall due next June, and are
then payable or convertible into per cent.
bonds at the option of the holder, making
an aggregate, when converted as they
doubtless will be- of ais millions Of
bonds. The remainder of the indebtedness
is represented by the legal al-tender notes or
green backs. fractional currency, compound
interest notes not yet retired. &c. Now bv
an issue ofTgreenbacks in redemption Of
tn Sc bonds, as suggested, with the 400
millions already in circulation, and the 3O0
millions of national bank notes in circnIae