The Jackson standard. [volume] (Jackson C.H., Ohio) 1847-1888, 1868-02-13


and but few instances are to be found in history
where nations who after commencing this svs-
tom did not continue il indefinitely from genera
tion to generation, paving the amount of the
principal in interest over and over again. without
being able to reduce the principal Of the debt a
single dollar, did not finally, and when they
could do no better, quietly conclude to let the
obligation remain, aud like England proclaim to
the world THAT public debt was u public bless
ing" leaving their children to strugg lie under
the load.
Not so with young America; he is never so
happy as when paving his debts; never sleeps
50 well as when his obligations are ully met and
discharged and when he gives his son farm
he does not want 1t encumbered bv Government
mortgage to the extent of ten or fifteen per cent.
on its value. In respectable work on English
finances written twenty years ago, the following
statement occurs:
IAN the money borrowed a century ago by
the English Government has been repaid FIVE
times over in the shape of interest, without one
iOt Of progress toward ult innate relief"
The people Of the United States are paying an
interest which, If compounded semi-annually as
we pay IL, would exceed the principal every nine
years and yet instead Of preparing TO pay up
vigorously, we talk Of funding debt not yet
due for many years.
The first section of this funding bill authorizes
of six per cent gold bonds sufficient to cover all
outstanding or existing obligations of the United
States, which OF course includes the nOn-interest
bearing greenbacks in circulation, which it is
necessary to take up In order to reach a specie
basis, 50 much desired in some quarters, thereby
rvetiug upon the nation a six per cent gold debt
Of Il, 800 900 000 This section also provides
"Ihat the expenses of preparing issuing, and
dispOsing Of such bonds shall not exceed one per
cent of the amount disposed Of"
No one doubts that the expense incident to
preparing aud negotiating the bonds would reach
the maximum Of the one per cent. allowed,
making the net little sum Of S25 900, 900 TO be
transferred from the pockets Of the people to the
pockets of a few well-to-do individuals, (who
might or mghtnot appreciate the iayOr,) which,
instead of being thus squandered, might be
applied to the payment Of the debt
The terms of the Government have been 30
liberal towards its creditors that shrewd men
everywhere have been Withdrawing their capital
from agriculture, commence, and other pursuits
of life which tend to develop the resources Of the
country and add wealth to the nation, to invest
in our securities, from which they realize hand
some profit without labor or risk.
And, Mr.. Chairman, who can tell how long It
will be before we are embrOilCd in another war?
| would iain hope we may have long-continued
peace, but we can have no guaranty against the
horrors Oi war; and If such "A calamity should
Overtake us at no very distant period, despite our
prOwess and skill, with debt of $2, 900 600, 900
hanging over US, our financial ruin would be well
nigh complete.
And shall that intrepid, in1exible party of
patriots who suffered everything but death for
the salvation of their country, men who In the
darkest days Of the rebellion, exposed TO danger
and death on every hand, stood inseparably and
indissolubly united now separate on mere ques-
fiOug Of national nOlipV md hand over tho (lov-
ernmcnt won by their swords to party whose
patriotism may be measured by its declaration in
1864, that 'the war for the Union was q failure"
and whose love of equality and freedom may be
judged by Its untiring opposition to human
rights
SINKING FUND.
Mr.. Chairman, | believe there is not single
instance on record Of sinking fund established
on a proper basis, conducted with common wis
dom, economy and skill, having failed to meet,
aud more than meet, the expectations of its
friends. know there have been failures where
the fund has been borrowed at interest and It's
management characterized by stupidity and ex-
LraVagance or where the Government, too inn
patient or, perhaps, too needy to leave II
unlnterruptedly to accumulate and gradually but
certainly TO accomplish that for which IL was de.
signed, has been constantly aprOpriating It's
funds to other purposes than those for which they
were intended, thereby destroying its powers of
accumulation. Our own Government In 1890
established u sinking fund, which was kept in
successful operation for more than forty-hye
years, greatly aiding us in the payment Of the
debt contracted during the Revolution, as well
rs that Incurred during the war of 1872.
Many Of the States have formed a sinking
fllnd-a most efficient auxiliary in the discharge
OF their indebtedness-and very few, If any, who
have tested the system would be found willing TO
abandon It, A sinking fund forms part of The
financial policy Of my own State, aud under the
efficient management Of our commissioners Is
enabling us to pay the interest and reduce the
principal of our debt at very commcndable rate.
II Is stated by Allison In History of Europe that
II the sinking fund established under the admin
istratlOn Of Pitt in 1886, and which continued
until 1854 period of Wenty-seyen years-but
which was broken In upon by the succeeding
minister, had been allowed to 90 on accumuat-
ing until 1913 1t would have amounted to q sum |
sufficient 10 have paid in full the immense British
debt, but that now is conceded to be impossible,
and no statesman ever thinks of liking period,
however remote, when the debt eau De paid.
And so 1t will be with ours or any other Gov.
eminent which, instead Of making early and
proper provision for the payment of It's debts
suffers them to run on until, like an incurable
cancer ON the Dody-pOlltc, they cut out aud con.
sumo the energies of the nation. In order TO get
the necessary amount OF money to establish an |
efficient sinking fund without borrowing pro. |
pose that we Issue 800 900, 900, 600 of United |
states notes that we sell at the markst price all
the surplus gold that can possibly be spared from
the Treasury, which might amount TO 500, 900 OO0 |
more or less, and that we add to Ii from time to
time any surplus we may be able TO spare from
the Treasury until the amount reaches another
500 OOO, 900, the $500, ,0O0O 200 thus provided to
be applied to the redemption of an equal amount
OF hye-twenty bonds now at the option Of the |
Government, the gold Interest on which would !
amount seml-annuay to 81 100000
Assuming that our national debt bearing coin |
interest will In iow months, and when the out |
standing seven-thrty securities shall have been
fully converted into hve-twenty six per cent |
bonds, will be about two thousand one hundred |
million dollars, the annual interest on which |
Will vary but little from Si26 600, 900 aud as
sumlng that tax Of one per cent, for Govern
ment purposes will be levied on these bonds TO
be deducted and withheld from the payment of |
Interest which tax will amount annually TO S21,-
900 600 and assuming, also, that this tax will
10 to the sinking iand, then we will have ut the
end OF each six months an addition of @l0 500 900
arising from the tax, and q further sum OF So
900, 900 arising FROM the $1,000, 900 In bonds,
making together Sl6, 300, 900 In gold, which, at a
premium Of thirty-threo per cent (and certainly
the premium would as likely be higher as lower)
would make 522 900, 900 In currency TO be rein
vested at the end Of the first six months 10 five
twentles, aud so on compoundlng semi-annually
from year to year, rapidly increasing In amount
until II at least approxlmates the sum of our
Gentlemen ore perfectly aware of the prodig-
lous powers Of accumulation of money at com.
pound interest, and especially when compounded
every six months, and still more especially when
we have, as In the present case, In addition to
somLannually at six per cent the
benefit OF premium Of thirty-three per cent on
gold, making the rate of Interest precisely equal
TO eight per cent, compounded semI-annualy.
Following tho method which have laid down