The Bolivar bulletin. [volume] (Bolivar, Hardeman County, Tenn.) 1865-1888, 1868-06-27

The following is the plan in general form
Of Mr. Pendleton, as stated in one of his
speeches last fall
Details may be varied as experience and
sound discretion may indicate. Mr. Pen
dleton says:
"And now 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. l do not know that it IS possible to
pay these bonds as fast as they mature, even
in currencyj butt do know that every pos
sible effort ought to be made to do it.
But at this point [ met with the
statement that this policy will issue an inl-
mense amount Of paper, and thus so far in
fate the currency as to destroy It's value,
and bring disaster upon the country. Now,
gentlemen, let me examine this objection.
Mr.. MeCulloch in his last monthly report
stated that the public debt which bears in
terest is comprised in three kinds; that
S300,000000 Of this debt could not be re
deemed before 1874; that $500, 600, 600 more
could not be redeemed before 1881 and
that the rest of the debt, amounting to
nearly s., 700.000,000,i is comprised IN five
twenties and bonds which bear interest in
currency.
Seventeen hundred millions of 5-2O's
and bonds, which bear inter est In currency
viii fall due within the next five years 1
cannot state to you the exact proportions in
which these bonds falldue mean these
5-20,s. Their very name implies that, when
five years shall elapse after their issue, the
government may pay them; but need not
pay them until twenty years have elapsed
- Now, gentlemen, l maintain that the
5-20 bonds should be paid as far as it is
! possible to 90 US without initiating the cur
| rency beyond safe and Just point and
/ 1t is my business now to show you how
rapidly that can be done. The unliQuidated
debt of the United States consists Of green
backs and claims which have not been ad-
! justed, and amounts to S800,000,000 It
! pays no interest.
Three hundred ard thirty eight millions
isof these bonds are, by the report Of the
Secretary Of the Treasury, deposited to-day
| as security in the vaults of the Treasury.
Three hundred miiliaRs of bank paper is
| issued on the faith of these bonds. Now,
| gentlemen, I maintain that this ei-culation
ought to be called ms that these boudsought
! to be redeemed with legal tenders, which
W Il take the place Of that bank circulation.
"What would be the effect of this The
| 81, 100, 600, 600 Of interes5-bearing bonds
would be reduced to 81 600, ,000, 900; and
/ $40 10000 would be saved to the Govern
ment from the interests which is paid to the
bankers for bonds which they have deposited
! TCheers.
Now, then, suppose you take this S20,-
! 600 900 of interest which is saved and add
it to the S48 600, 900 which these gentlemen
1 say they can pay from the current revenue,
and you have SOS, 600, year by year, and
/ if you convert that sum into greeRbacks, at
/ 40, you have $I00,O00,O00 a year, and if
this is appropriated as sinking fund yon
can pay the whole debt off in less than
fifteen years, without adding 81 to your
taxation or Il to the circulating medium
! Applause.
" Bear in mind that am arguing a prop
Osition that these bonds can be paid in green
| backs without inflatIng the currency. Bear
! In mind that this can be accomplished in
twelve or fourteen years without the addi-
| ton of 81 to your taxation, or 81 to your
circulating medium. And now bearin mind,
also, that have not touched the revenues of
! the government, which, in 1866, amounted
to $560,000, 600; nor haYe | attacked the ex-
penditures Of that year of radical admins.
tration.
"But now ses the reformcr to work. Let
him cut off e cry extravagance-lOp of
every unnecessary expenditure. Let him
reduce the current expenses Of the Govern
ment to $50 00000A a yeaF-I mean eX-
penses Independents of the interest on the
public debt; though it ought to be reduced
to 100000, 900; that would be SO 100000
more than Mr. Buchanan expended that
would be as much in one year as Andrew
Jackson expended in any Of the four years
of his administration. But let the -expen-
diture be reduced to $l50,090,000 and what
do you have? $50, 100000 for current ex-
penses, $4,000 600 for interest upon the
public debt, and SI00009,000 of a sinking
fund, as have described, and you have the
aggregate Of $3S0;000,000, and if you take
that from the revenue of 1866, which
amounted to $560000,000, you have a bal
ance of $3.50 000,0G0, which you may ado
TO your sinking fund, and thus bring it W
to $280,O00,OOO annually. And with tha
you can, in five years, pay every cent of the
principal and interest upon your debt, with
out the addition of dollar to the circulating
medium Of the country. Applause.
When five years shall have passed yot
can reduce $780, 100000 Of yonr taxation
: and yet be able to pay the 00,000,O0l
r which fall due in 1874 Then you can re
duce your taxation $200,00 900 more, and
; by retiring your greenbacks, as the grea
| burden Of taxation is reduced, you viii bt
able to pay the debt maturingin 1881, ant
at the same time to call in your greenback'
} and return to the constitutional currency 0
! the country.
l And yet you see that I have not pro
posed to increase the taxes or add one far
thing to the currency.