Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1868-01-15

remedies by unskilful hands. Congress
Should. as I think, advise the Secretary
to let this matter alone, and touch it in
no wise, except as the iexigencies of the
Department require. rlf- IN sfij beer
|d' The one hundred millions of gold
which has been kept for some time past
in the Treasury has not, think, had I'd
salutary effect. We have paid about
six millions year for keeping it there.
It gives the Secretary; much power over
the money market, and enables shrewd
men, who canfathomhispurposes, to profit
largely by their sagacity. 1t has, there
fore, a disturbing influence. There
should be at all times gold enough in
the Treasury to meet its wants as they
arise, and no more. 1t were better to
go into the market and buy a small
amount to meet a deficiency than to- keep
a large sum unproductive on hand. ~
But what does, ,iuperatively demand
the action or Congress- isrythei adjust
ment of the national debt on a sound
basis, which will do justice alike to the
creditors and the nation This is the
more Immediately necessary as mis-
taken notions are abroad concerning it.
A nation shonld be just, not generous,
in the settlement Of pecuniary obliga-
tions. We, should pay exactly what we
owe-no more, no less. 1t is, "a case of
debtor and creditor. We are able to pay
all our debts according to contract, as
those contracts are authorized by acts
of Congress, and printed in the bonds
themselves; and beyond and outside
ofwhat is authorized by law, and nomi-
mated in the bonds,1 the nation is not
bound either Justly or equitably.. Some
of our bonds are BY their express terms
made payable in specie; these must be
so paid. Others, and the larger part,
expressly provide that the interest shall
be paid in specie, the bond itself being
left to be discharged, like all other debts,
in the national currency with which they
were purchased, and with which the ex-
press law--the same law which created
the bonds provided that all debts might
be paid. There is no equity in the claim
that hondholders should be better paid
than is provided in their contracts. The
contracts themselves are favorable enough
to satisfy the most exacting. Take the
five-twenties issued November L., 1864.
They were paid for at par, in currency,
when gold was at a premium of from
$50 to 241. Take the lowest figure-23O
and the purchaser of the bond paid
for it in gold or its equivalent little less
than $44 on the $1OO-and his bond
bears interest in gold at the rate of six
per cent. These bonds will be redeem
able in November, 1869, at the option of
the United States, in the same currency
with which they, were purchased, that
currency being now worth twenty-eight
cents on the dollar more than it was worth
when they were purchased. And why
should they not be redeemed, if it be con-
venient for the United States SO to re-
deem them? The bondholders can
offer no objection which deserves
to be considered for. a moment.
They paid $44 in gold for each 500
of these bonds, and in 1869, when they
become due, they will have received in
terest on the price paid, also in gold, for
FIVE years, at the rate of. 1876 per cent.
per annum. The greenbacks in which
they are payable are now. and will
doubtless continue to be, worth at least
seventy-two cents on the dollar, being
an advance of twenty-eight per cent. on
their value when used in the purchase,
giving the capitalist about two hundred
dollars for every one hundred dollars ad-
vanced, all alike in gold. This is enough
for them to receive, and quite enough for
MS to pay. They are entitled to it by
contract, and we, of course, must pay it, j,
10 A comparatively small amount of our /,
fve-twenty bonds was bought when gold
ranged from 1873 to $50. The purchasers
of these bonds will not profit so largely
as those of 1894 but quite largely
enough. They will have received full
eight per cent. per annum on their in !
vestment; they will have held their cap
ital free from taxes, State or national,
and they will be paid in currency quite :
equalin, value that which they invested. !
Some of these bonds are held under spe-
cial contracts, which must, of course, be :
complied with, ',,. ~ u
Generally, the prices current show
that neither here nor in Europe do bond J
Holders expect gold for the principal of
their bonds. The prices range accord
ing to that ofllegaItenders here, with
allowance for excessive interest for the
time the bonds have to run, For exam +.
ple,r a few days ago, when gold was 140,
and, consequently, legal-tenders worth }
about 72. fve-twenties were quoted at ;
76 the large interest Of six per cent. for
two years making the excess of four per
cent. in the price. Wewould gain moth
ing in credit with an intelligent public q
by assuming obligations in form or
amount greater or more burdensome than
we really owe. 1t will be enough that
we arrange to pay our debts exactly ac-
cording to our contracts, or in such man
ner, as may be equally convenient to our
selves and acceptable to our creditors.
~ Then as to the mode. The best is, to
fund it as it becomes due, or in advance
Of its maturity, if it can be funded upon
reasonable terms if not, or what can
not be so funded, pay off, as it falls due,
in the currency in which we coyenanted
to pay it. - - i-. ~. t'7.''.- r..
u To this end, I would advise the issue
of bonds payable in forty or fifty years
the longer the better-bearing an in
ierest of four per cent, payable semi
annually, in coin, the bond at maturity
payable also in coin, and make them free
from taxation in any form by the States,
or by the United States-and suffer the
fve-twenties to be converted into those
new bonds at once, paying in gold the
excess of two per cent interest for the
time the fve-twenty bonds may have to
run, Then, such of the fve-twenties as
should not be converted before, or when
they became redeemable, 1 would pay in
currency, allowing no interest after they
become redeemable. I would give the