, 1868-01-03
Mr.. PendIetOn's Financial
Views

As Mr.. Pendleton is prominently spoken
Of as the democratic candidate for the next
Presidency, his views in regard to the ma
tioual debt and as to how it ought to be dis
posed Of, will be read with interest. In the
late canvass in New York; he made several
speeches, and in one of them he expressed
the iOllowing views upon the financial situ-
atiOI:
The public debt of the United States, as
I stssed to you before amounts to s3,O00,-
O00,000. s2,00,000,000 or more is in a
liquidated form, and bears interest $780,
900, 900 more are in greenbacks and unli-
auidated claims, and bears no interest. This
is an enormous amount, and yet gentlemen,
believe, and think the democratic party
believes, that it should be paid, every dollar
of it, principal and interest, at the time it
comes due, exactly in accordance with the
terms of the contract under which the loans
were made.
And now 1 say not only that these bonds
are payable in legal tender, but that they
ought to be paid as soon as it is possible to
do so. do not know that it is possible to
pay these bonds as fast as they mature, even
in currency; but l do know that every
possible effort ought to be made to do it.
But at this point l am met with the states
| ment that this policy will issue an immense
amount Of paper, and thus so far initiate the
currency as to destroy its value, and bring
disaster upon the country. Now, gentle
men, let me examine this objection. Mr..
McCulloch in his last monthly report stated
that the public debt which bears interest is
comprised in three kinds; that three hundred
millions of this debt could not be redeemed
before 1874; that three hundred millions
more could not be redeemed before 1881;
and that the rest of the debt, amounting to
nearly seventeen hundred millions Of dollars,
is comprised in Gye-twentes and bonds,
which bear interest in currency.
Seventeen hundred millions Of five twen-
ties and bonds which bear interest in cur
rency, will fall due within the next five
years cannot state to you the exact time
nor the exact proportion in which these
bonds falls due. | mean these 6ve-twenties.
Their very name implies that when five
years shall elapse after their issue, the gov.
ernment may pay them; but need not pay
them until twenty years have elapsed.
Now, gentlemen, l maintain that these
tlvetwenty bonds should be paid 80 far as it
is possible to do so without Initiating the cur
reney beyond safe and just point. And it
is nv business now to show you how rapidly
thai can be done. The unliquidated debt
of the United States consists Of greenbacks
and claims which have not been adjusted,
and amounts to eight hundred millions of
dolbrs. 1t pays no interest.
Three hundred and thirty-eight millions
of these bonds are, BY the Secretary of the
Treasury, deposited to-day as security IN
the vaults of the Treasury. Three hundred
millions of bank paper is issued on the faith
of these bonds Now, gentlemen, l main
tain that this circulation ought to be called
in; that these bonds ought to be redeemed
with legal tenders which will take the place
Of that bank circulation.
What would be the effect of this? The
seventeen hundred millions of interest bearr
ing bonds would be reduced to fourteen hun
dred millions; and twenty millions of dollars
would be saved to the government from the
interest which is paid TO the bankers for the
bonds which they have deposited.
Now, then, suppose you take these twenty
millions of interest which is saved and add
it to the forty eight millions of dollars which
the segentlemen say they can pay from the
current revenue, and you have sixtyNeight
millions of dollars, year by year, and if you
convert that sum into greenbacks, at lao,
you have a hundred millions of dollars a
year, and if this is appropriated as a sink
ing fund you can pay off the whole debt In
less than fifteen years, without adding one
dollar to your taxation, or one dollar to the
circulating medium.
Bear in mind that am arguing prop
osition that these bonds can be paid in green
backs without initiating the currency. Bear
in mind this can be accomplished in twelve
or fourteen years without the addition of one
dollar to your taxation, or one dollar to your
circulating medium. And now bear in mind
also, that 1 have not touched the revenues
of the government, which, in 1866, amount
ed to five hundred and sixty millions Of
dollars; nor have 1 attacked the expendir
lures of that year Of Radical administration.
But now set the radical reformer to work.
Let him cut off every extravagance-lop of
every unnecessary expenditure. Let him
reduce the current expenses of the governs
ment to $3.50, 900, 900 year-I mean ex-
penses independent of the interest on the
public debt-though it ought to be reduced
to 100000, 900; that would be twenty-five
millions more than Mr.. Buchanan expend-
ed; that would be as much in one year as
Andrew Jackson expended in any one OF
the four years of his administration. But
let the expenditure be reduced to Sl50, ,OOO,-
900, and what do you haveY S150,O0O,O0O
for current expenses, s1SO,OO0, 900 for in-
terest upon the public debt, and slO0,OOO,N
900 of a sinking fund, as 1 have described,
and you have the aggregate of $3.50, 900, 600,
and if you take that from the revenue OF
1866, which amounted to $500, 900, 900, you
have balance of s180, 100000, which you
may add to your sinking fund and bring il
up to s2S0,0O0,000 annually. And with
that you can, in five years pay every cent Of
the principal and interest upon your public
debt, without the addition of a dollar to the