Daily Davenport Democrat. [volume] (Davenport, Iowa) 1864-1874, 1868-02-19
MN. PENDI.ETON'S F1NAN.
CrAL PLAN.
a succ,rcs. statement Of Hs.

ara nnvablc 10 legal tender, but that they
orght 10 be paid as soon rs II is possible
10 10 go. do not know that it il possible
90 paw these bonds "a fast rs they mature,
even IN currency but 90 know that every |
possible effort ought I, be made to do il.
But at this point | am met with the |
statement tina. this policy will issue an i'm
mense amount Of paper, and thus so lar m
nate the currency as to destroy us vaiuc'
and bring disaster upon the country. now,
gentlemen. let me examine this OBJECTION
Mr.. McCulloch, in his last monthly report, |
stated that the public debt which bears in |
,erest il comprised in three different kinds;
thai 1900 0Oo, 900 Of this debt could not be
redeemed before 1874 that $500, 0OO. 900
more could not be redeemed before 1881
and that the rest of the debt, amounting to
nearly 81, zoo. O0O, 900, 10 comprised in Ave
twenties and bonds which bear interest in
currency.
Seventeen hundred millions Of 5-2Os
and bonds which bear interest in currency
will fall due within the next i've years.
cannot state to you the exact time nor the
exact proportions IN which these bonds fall
due. | mean these 20s. Their very
name implies that, when five years shall
slapss after their issue, the Government
may pay them but need no; pay them un.
Ill twenty years have elapsed.
| "Now, gentlemen, l maintain that the g.
90 bonds should be paid. as far as il is pcs
sible to do SO without initiating the currency
beyond a safe and Just point. Aud it is
my business now to show you how rapidly
that can be done. The unliquidated debt
Of the United States consists Of grssnbacks
and claims which have not been adjusted,
and amounts 10 $500, 900. II pays no
interest.
"rhree hundred and thirty eight millions
of these bonds are, by the report Of the
Secretary Of the Treasury. dsposited to-day
~ security in the vaults Of the Treasury.
Three hundred millions of bank paper is
ISSUED on the faith Of these bonds. Now,
gent emen, maintain that this circulation
ought TO BE- called in; that these bonda
ought b b redeemed With legal-tsndsrs
T which will take the place Of that bank cir
culstion. Applause.
What would be the effect OF this? Tit
81, zoo, 000, 900 Of interest-b bearing bondi
! would be reduced 70 81, 400. 900, 900 ant
, $50 600, 900 would be saved to the Govern
ment from the interest which 10 paid to thu
bankers for the bonds which they have de
Il posted. GChssrs.
. Nov, then, suppose you take this $50,
0O0, 600 Of interest which 10 saved and adj
il to the as. coo. 900 which these gsntlem-I
aay they csn pay from the current revenue
and you have e6s, 200, 600 year BY year. ant
7 Il you convert that aum into grsenhacks. .
II lao, you have &lOO, 600. 900 year. and
this is appropriated ~ sinking fund 20
= can pay the whole debt on in lees than !
e years, without adding 81 to your taxatio
., or 81 to the circulating medium. Al
% plause.
Bear 10 mind that an arguing . prop,
sition that these bonds can be paid
e. gresnbacks without initiating the currens.
OBJ Bear in mind this can he accomplished
it. l2 or IA years without the addition Of 81
your taxation, or 81 TO your circulate
medium. And now bear in mind, ala
" that i have not touched the revenues Of II
IT Government, which. in 1866, amounted
1T $500. 600, 900; nor have | attacked the e
he penditures Of that year of radical admin
traiion.
But now set the reformsr to work. l.
him cut of every cxtravngance-lop {
every unnecessary expenditure. Let hi
reduce the current expenses Of the Cover
ment TO tl50. 900, 900 . year, mean c
penses independent Of the interest on Z
10 800, 000, 900 that would TO &25, o0t
900 more than Air. buchanan expended
that would be as much IN one year as A
drew Jackson expended in any Of the 70
"s years of his administration. But let 4
ted expenditures be- reduced to $3.50 0Go0
and what do you have, $l5O, 00o. 900 [
ten current expenses, $3.50 ,OO0, 900 for lnters
bat upon the public debt, AMI 100, COS, 900 o
,ts, sinking fund, as | have described, and y,
Cd. have the aggregate of $3S0,000, 900, and
The you take that from the revenue of 1884,
no. shieh amounted to &5s9, COT, 600, you ha
ing balance Of $3.50 900, which you IN
40 add 10 your sinking fund. and thus bring
NJ up - &9S0, 900, 900 annually. And v
rili that you cen, in i've years, pay every c,
III. of the principal and interest upon your .,
and he debt. without the addition Of dollar
hts. the circulating medium Of the country. II
heir | plause.
pcs, When FIVE years shall have passed, '
the can reduce $3.50, 600, 600 Of your taxati
rec. and yet be able to pay the $500. COO, {
which falls due in 1874. Then YOU can
90 ince Your taxation &200, 900, 600 more, q
BY retiring your greenbacas as the gr
''"' bnrdened TAXATION is reduced. you will
bed able to pny The debt maturing in 1881, {,
ian. At the same time to call in your greenba,
Ia. and return 10 the constitutional currency
the country
And YET you SEQ that | have not D
n. posed TO increase the taxes or add enc far
hen my 10 the currency