The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1868-02-01
NATIONAL INDEBTEDNESS
HOW IT CAN BE LIQUIDATEr

the annuel expenditures of the Government,
are questions that areengaging the attention
of the press oil over the country. The Mon.
grels take hold Of them quito reluctantly
but they are forced into an examination and
discussion of them by surrounding circum.
stances. The financial question, like the
ghost of Banquo, will not down ut their bid.
ding. We clip the sulioined from a loto
number of Harper's Heeklvs
s'Under the present policy, the people raise an
annual revenue of $3.50, 000. 900 moro than Is need
ed for Government expenses aud the interest on
the debt, This surplus Is supposed to be applied
to the reduction of the principal of the debt. If
there was any overwhelming necessity why this
vast sum should be raised annually, the people
might still attempt IL but what matters Il wheth-
err cur obligations are paid in thirty or sixty years 2
It matters considerably. If no part of
the public debt is paid from year to year, at
the end of fifteen years the people will have
paid as much in interest as the principal now
amounts to in thirty years twice as much,
and in sixty years four times as much. There
is an Overwhelming necessity" why this
public debt should be got rid of in some way
Immediately. The people will not submit
to such an enormous burden always, and the
more speedily it is removed from their shout.
ders the better for all concerned.
We say pay tho debt, and pay it as fast as
possible. We don't object to lessening the
annual expenditures of the Government
They should be reduced 5000, 900, 900, and
under Democratic rule would be, because
! Democrats would administer the Government
more economically, and because they would
not let knaves, swindlets and thieves robthe
treasury and go unpublished.
The debt should be paid as soon as posi-,
bic. The principal and interest should BIO
paid as the law stipulates. The bonds-all
except the ten-forties-are payable in green
backs. The Supreme Court of the United
States have decided that greenbacks are q
legal tender, the same rs gold and silver.
The law makes g~reenbaeks lawful money"
It provides that greenbacks shall be "a le-
gal tender in the discharge Of all debts, psb
ic and private, except only duties upon i'm.
orts and interest upon the public debt
Tot only this, but the face of tho bonds shows
hat the principal may be paid in lawful
honey, alias ~greenbacks. while the coupon:
eclare that the interest shall be paid ir
gold.
It may be said that the Secretary Of ths
Treasury gave it as his opinion that these
bonds would be paid in gold. Mr.. Stevens
Chairman of the Committee on Ways ant
Means, said in his place in the House, tina
these bonds were not payable in gold, an'
that the opinion Of the Secretary of tn
Ereasury was wrong, and would bind no
OOuy: Ia said that ''loil'i newspa
pers declared these bonds Will he Maid /,
: gold. When the ten. forties were issued, ia
: Cooke, in an advertisement which he sent I
US for publication, said that they were th
only bonds whose principal was payable i
gold. oEe declaration may Offset the other
The n has as much weight as the other.
A late number of the Salem Record says
t "Tks plan Of paying OF the war debt With eui
: rency is devised, because Democracy everest
mates the ignorance and eupidity Of the America
people-not as TO the existence Of these qualiiie
in its own party. It looks like q payment, but1h
l. iEsue of two thousand millions more Of currency
n when there Is already enough sHoat 10 answer Ii
business uses of the country would produce specs
i lation, panic, and ruin. The result would be. uhs
Democracy desires, that thecurreney would decreas
, in Talue as much IS It Is increased ia bulk, an
S the national debt would disappear in . scene
universal ruin"
We concede that the issue of two billion
more of currency, would be very apt to PR
duce bad results. But who authorized tn
e Record to say that the Democratic party Fl
vors such a policy? The fact is no Democrs
Of any prominence, nor no Democratic Cor
%vention has yet endorsed such a plan. Whe
they do it will be time enough for the abol
ton leaders to make the charge.
We now submit a plan by which the n,
tional debt can be l~iquidated in twelve or Fl
teen years, without increasing at all II
amount of currency now in circulation, an
without raising by taxation Il solitary doIls
more than is now raised. We now state
= as briefly as possible.
: Secretary McCulloch, in his Septemb,
Report, states that the national debt, bearin
interest, is of three kinds. He says thI
$500, DOC, 900 Of this debt cannot be redeem
ed before 1874 that $500, 600, 900 mol
cannot be redeemed before 1881, and thi
n the rest of the Interest," bearing debt amoun
to about seventeen hundred millions of do
lars, and is comprised principally of fy,
: twenty bonds.
But this is not quite all of the nation;
debt. There is an ''u~nliquidated debit b
sides, of about eight hundred millions
dollars. This debt is not interest bearinj
and consists of greenbacks and claims again
the United States which are manifestly ju
! and will yet be allowed.
d The present policy of the Radical party j
to convert these eight hundred millions
dollars into bonds (which pay six per cen
interest in gold. It was only a few days az
a that the telegraph announced that the tot.
: public debt has increased, in one shoI
month, upwards of $50, 900, 900 that is
G say, as we understand it, this much of IL
non-interest- bearing debt, consisting mostl
of g~reenbacks, has been converted into bono
drawing six per cent. gold interest.
What, let us inquire, is the effect of th
policy? 1t converts a large debt, whic
: bears no interest. into n bonded debt bearin
: a gold interest. It also annually adds to I'll
expense of the Government $4s 600, 900
t for that is the interest on $500, 900, 900.
increases the number of the b~ondhoIder