The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1868-07-06
The True Mode of Reducing the Bur-
don of the National Debt

WHns the disgraoeful movement in the House
Of Representatives to tax the United States
bonds has been rebuked by the report Of the
Committee of Ways and Means, declaring that
It disspproves Of the proposition, and while 1t
la evidently impossible that any law taxing
the bonds can be passed at the present session,
the best way to avoid continued agitation Of
this subject is to speedily provide some just
mode of funding the debt by which the interest
may be reduced. The first step necessary TO
the ttainment OF this end, however, is to sat
isfy capitalists that beyond all doubt the in
tentions Of the American people are strictly
honorable, and that it is utterly impossible
that any form of Reputation will be tolerated.
The noisy demagogues who pirate loudest of
their desire to diminish the burdens Of the
people, do infinite mischief by casting doubts
upon the maintenance of the public credit.
The persistent attacks made upon it by pro-
minent politicians, sometimes by propositions
that the bonds should be paid off in green
backs, and sometimes by demand for high
taxes on the bonds, tend to create fear in
the minds of capitalists that in the changing
currents of American politics, it is possible
forms of Reputation may acquire power.
Although the people continue to meet all their
obligations fully and fairly, the credit which
they should derive from this fact is weakened
by the constant efforts to create the impress
sion that Pendleton greenback policy, or a
scheme for taxing bonds may finally prevail
In the present state of the money market,
Iar0 70 inv
ments, the greatest obstacle to the negotia-
ton of a long Government loan, with interest
payable in gold at four, or at the
most five per cent, is to bs
found in the seeds of doubt
and distrust sown by the advocates of
reputation. Low rates Of interest are only
obtained by those who pro1fer securities free
from a shadow of doubt or uncertainty. If
Congress unanimously resolved that under no
circumstances would single member favor
either law taxing the bonds or law pro-
vidipg that the principal of the bonds should
be repaid in greenbacks, and then followed
this step by passing some well-devised funding
BILL real relief would speedily be extended to
the people in an honest and legitimate man
ner. If the rate of interest on the bulk of the
debt is reduced from six to five per cent, one
sixth of the present annual burden Of the
debt will be destroyed; and if the interest
could be reduced to four per cent. by new
loan to replace the old obligations as they fall
due, then one-third of the present annual
burden of the debt would be removed. The
path of duty is, in this instance, the path
of true economy. By meeting every
obligation faithfully, and establishing the
public credit on immutable foundations, a
sure and reliable means of relief would be
found in the reduced rates of interest capi-
talists would be willing to receive for our
securities. AS the case stands now, in Great
Britain, an American bond drawing six par
cent. interest in gold is at discount of more
than twenty five per cent, while other foreign
securities drawing less rates of interest, are
above par, and the English consols, drawing
but three per cent. interest, sell for from 81 to
95 cents. 1t is the attacks OF politicians in
and out of Congress upon the public credit,
mainly that causes this depreciation, and
that has prevented the nation from negotiat-
ing at par in gold up to this time any of its
six per cent securities. The first great step
in any real reform is to remove forever this
distrust, to frown down every proposition
looking towards any form of reputation, AMI
to reap finally in the low rates of interest OF
new long loans an ample reward for main
tanning the national faith undimmed by a
stain of dishoner.