The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-12-19
The National Financcs-A Senatorial De-
fusion.

S~y Ns1seSsyI AW 0sA sOasSAs AsAee
The National Finsnces-A Senatorial De-
Mr. Sherman, of the Senate Finance Com
mittee, has reported bill that II II become
. law, will determine some important points in
our national finances. Il provides for the
funding Of the debt the conversion Of the
legal tender currency and the settlement Of
the question Of the taxation Of public securk
ties. 1t il proposed to fund the debt on bonds,
bearing six per cent interest payable in forty
years, and redeemable at the pleasure Of the
government after ten years These bonds are
to be exempt from al taxation, State
and national; yet in confederation Of this
exemption. certain proportion Of the interest
h reserved for distribution among the several
States By this course the bill proposes 10
hold on to the principle Of the exemption Of
government securities from taxation. yet ct
the same time rscognixJ that property should
contribute to support the government that
gives 1t safety. These bonds arc made CON-
vertible with legal tender currency, "unless
the amount Of United States notes outstanding
shall be equal to four hundred millions Of dol
lars" With this bill the committee has sent
in lengthy report the principal point In
which Ia it, argument that the Avs-twsnly
bonds should DO paid in gold, because,
as the law does mot declare the contrary,
It must DO determined by the precedent estab-
lished by the practice Of the government
hitherto, which has been to pay In coin. Tho
bill makes no mention Of the national banks,
but The report touches thsm lightly IN these
words s--"various propositions rslating 70 ~
national banking system are under eoaaldera-
ton by your committee, and win be carefully
examined. Whatever view may be taken by
Congress ~ to the continued existence Of this
system, Il Is manifest, from the report Of the
Comptroller Of the Currency, that . moro
equitable distribution Of the bonds among the
States, and new provisions for reports and for
the redemption Of their notes, must DO made.n
The members Of the Finance Committee
seem to believe that this bill reflects "com-
prehensive policy that will preserve the public
faith, restore confidence TO the people and
stability to our business interests" and even
"rapidly restore our currency to the standard
Of gold" And Of al this Il would be diflcult
TO convince any ono outside the Senate Finance
Committee. Il u clear that the remedy for the
financial dificulties Of The country il mot 70
come from that source; and the reason b
that these troubles have not their origin in any
mere departure from financial laws, but are
due to the political condition Of the country.
Political and financial troubles 70 together in
the United States more than anywhere else,
and tho relationship between the two Il 90
obvious at the present hour that u Is
clear to oil that tho mismsnSkcment Of
our finances, bad ~ u has been,
d less 70 DO blamed for the present
dangerous condition Of the country than b
the madness OF the dominant political party.
Were The country restored TO peace, the South
ern States represented In Congress-, labor and
capital bearing their proper relations TO each
o!Aer In the South--wsrs the revolution
ended. The country could readily and easily
bear is burdens, and might treat - tribes
even the iolliss Of Mr.. McCulloch. But 20
long ~ the politicians In the interest Of wild
partisan schemes and President making pur-
poses keep the country distracted and organize
anarchy in politics, 90 long win II DO nonsense
70 expect that financial committees can restore
confidence BY billA however denly drawn.
Our troubles arc tho necessary consequences
Of that policy that keeps half he Union In .
stats Of suspended vitality, In order 70 force
10 theories Of negro supremacy through The
very distress Of the people. Radicslism hopes
yet - foroe IRON the nation desperate &C.
cepsanes Of It, policy = The oaly escape from
ruin, bat, apparently, does MOI - thst IL
victory, n svsr ssoarsd, win be Of lltals value
in ~ univsrsal disasIen that ws1ld come
win IL Abselsts repsdiatioA or radicslism
IL Ne only rsnsdy for our financial. - for our
political troubles, ssd that remedy 0uss come
IRON NE people.