The New York herald., 1868-06-11

emOunss W ouo-R on AL the property real ana Per
sonsl Of every man, woman and child In the coun-
trythat capital SO wel able to bear taxation-and
yet that 0ne-nfth Is exempt from taxation. In his
famous speech at Milwaukee, last November, Mr.
Pendleton used the following warm language in this
connection:-sLabor win become restive: discomfort
win enter the hearts which control Its brswny arms
This state of things cannot last. It ought not to last
beg Of the bondholders to be prompt ana wise
wise to discern their true interests prompt to act
upon them for tell you, gentemen-i do not say 1t
by way OF threat; say 1t BY way OF solemn and
timely warning; 1t Is threat to say when the sun
rises In the east that will ascend to the zenith and
set in the west and leave in darkness; it Is no
threat to say when see the gathering CLOUDS that
there will be o st0rm-that as sure as thero
are passions In the human heart this capi-
tai OF the bondholders will be made TO bear
the same burden as other property, and those
burdens will be speedily lightened, or other and
worse consequences will follow, involving, perhaps,
the violation OF national honor and OF plighted
faith" 1t Is this system which, In his opinion, makes
the rich richer and the poor poorer. The temptation
to moneyed men to invest In these bonds converts
active capital into inactive capital, increases the
number Of those who do not pay taxes and adds to
the burdens of those who do. Capital Is practically
exempt from the Onus Of taxation, and labor sus
tains IL.
HIS VIEWS CONCERNING THE NATIONAL DEBT.
Mr.. Pendleton is the advocate of very general
policy concerning the liquidation Of the national
debt. He s emphaticay opposed to the doctrine
that It Is Irrational blessing" He thinks that the
finances Of the country possess the capacity Of pay
ing 1t or In i've years-that is by their tudcious
management; and he Is not In favor of protracting
the payment Of the last dollar one day longer than Is
necessary. will give you his arithmetic for the &C.
compishment Of this most desirable object. Reduce
nS tho mt IN
$3.50, 100000 Q year, which Is quite feasible
by cutting or every extravaganza and lop.
ping on every unnecessary expenditure. This
sum does not include. Of course, the inter-
est on the public debt, which requires about
one hundred and thirty millions annually. The ag-
gregate s, therefore, two hundred and eighty mil
lions. The revenues Of the government in 1855
amounted to nve hundred and sixty millions. They
were not as much in 1857, owing to wastage in the
Revenue Department and to the impOitc contraction
of the currency during that year, but they can be
made al great by proper management. From this
revenue take the aggregate above and balance OF
two hundred and eighty millions is left annually
with which to create sinking fund that would pay
or In five years every cent Of the principal and in
terest of the national debt and without the addition
OF dollar to the circulating medium OF the country
He would pay or the ive-twenty bonds In currency
as fast 1t possible to do so. He does not know
that 1t Is possible to pay them as fast they ma
ture in currency, but he thinks every possible
effort ought to be made to do The result Of such
course would also be to hasten very rapidly the
day OF specie payments How soon that would be
reached Mr. Pendeton does not attempt to pr0phesy,
but he specifies the time In general way In the very
general adverb ''sOOn."
INJUSTICE THE NATIONAL BANK SYSTEM.
Mr.. Pendleton is inveterate opponent Of the
not han IN
by a very ingenious argument the depth OF which,
however leave to greater experts in finance. The
money which the government Is wasting, and will
waste in the national banks would, according to his
figures pay Off the national debt In from thirteen to
fifteen years-certainly very original way Of looking
at the national bank system. Here is his arithmetic
| The government is paying annually the sum Of
eighteen millions OF dollars In gold interest the
| bonds which the national banks have deposited at
| washington collateral. II the present policy Of
converting the unliquidated debt the circulating
medium into national bank notes is persisted in,
this annual interest in gold will be augmented by
| fortyeight millions BY compounding, the aggre-
gate would amount to the national debt in the time
| specified. Those who complain OF the system for
other reasons have new light in which to see Its
gross injustice. The Inference OF Mr.. Pcndletons
theory that the aboishment OF the national banks
| would pay the national debt In less than sixteen
years. His remedy for the evils OF the system is
| repeal OF the law authorizing 1t, with provision
for the withdrawal of the notes and the purchase OF
the collateral bonds at their face In greenbacks The
| purchase OF the bonds would reduce the national
debt $780, OOO would do away with the necessity
Of paying the $1s,OOO.OOO gold annually and would
not add one dollar to the volume OF the currency,
because the greenbacks would take the place OF
| the old bank notes. lie maintains that this theory
or plan for adjusting the finances OF the nation IN
this particular has the additional recommendation
that 1t does not add ono dollar the taxation OF the
country.
THB CURRENCY AND THE FINANCIAL SYSTEM.
In Mr.. Pendleton's opinion the cause OF the depre-
citation Of the currency is the redundancy OF paper
| money, the lack of faith on the part OF the CON-
munity and the consequent impairment OF public
| credit. He does not think the attempt should be
made to pay the national debt by any firther issue
Of greenbacks while justice TO the bondholders de-
| mands that the currency should not be expanded.
He is equally opposed any sudden contraction OF
| the currency. The interests OF the people and OF
business and require that any step In this
direction should he OF most deliberate and gradual
| kind. The great defect Of the present financial
policy, in his judgment, Is the conversion OF nom
interest bearing debts into interest bearing bonds
Thus the oflcal statement shows that the national
debt at the end OF May larger by several millions
than at the end Of April, owing to the payment OF
some twenty millions OF interest Yet the same
statement shows that there was $10O 0O0 900 in gold
In the Treasury which might be applied to the qui-
daon Of these debts and thus prevent the recurring
! OF interest.
As to the question Of taxation, he Is OF the opinion
that 1t will take care OF itself when the i'm
portant questions of the regulation Of the finances
| and the payment of the national debt disposed
Of For the present 1t s only secondary in interest
| and importance.
CRATIC VICTORY NEXT FALL.
He is not over sanguine as to the success Of the
democratic party next fall. The successive victories
Of the past year have their logic, however. and the
| prospect Is most hopeful one. democratic VIC
tory would make great difference In the relative
value of gold and greenbacks. The success of the