Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1868-10-06
C. G. Washburn on the Finances He
Replies to Doolittle.

ADLER or sounder en- financial ques-
tions than G.. G.. Washburn, late a
member of Congress from the La
Crosse District. We remember when
be used to represent our District, (the
third, he was the standard of all
parties on financial issues. Lately
Washburn challenged Doolittlc for d
discussion of the currency and Bond
taxation issues but Doolittle came
not to time, and Washburn arose and
said =" fhe public debt of the
country now amounts to about $500,
600, 900, of which 100000 and up
wards is in bonds and the balance in
greenbacks drawing no Interest,"
The total interest we now have to
pay on that debt as it now stands is
about l25, 900, 900. The total popu.
iatiOn of the country is t } 900 600 SO
that the annual financial burden Of
the war, per capita is Sd II. That
sum, thea, represents the price we
must pay annually Tor the luxury of
| the late Democratic war, and as that
sum also represents the cost of /. pre-
served country, what person is there
so poor in spirit, 50 wretched ia
character, as to grudge that small
sum for the salvation OF his country :?
II there be such, 80 mark him well. !"
\ ct that sum by no means represents
what each ono actually pays for
while very many pay vastly more;
the great mass pay far less, while so
far as the great majority OF the DEM
ocratio party is concerned, | may
say at least nine out OF ten pay no
direct tax whatever. Congress hav-
ing largely reduced the expenses Of
the government, has been able to re-
duce vastly the taxes on the people ;
so that at the present time there are
hardly dozen articles which are the
subject of internal taxation. The
whisky and tobacco tax, if honestly
collected, az they will be if we once
have an honest Executive, will more
than pay one half Of the cxtraordi-
nary expenses growing out Of the
war. So far as the whisky tax is
concerned, | admit that il bears rath
err heavily on the Democratic party,
but as all laws to collect revenue
have to DO general in their character,
| do not see how that could be avoid
ed, Now, have said that we have
outstanding 100000 of government
bonds, authorized under different
acts Of Congress portion of them
were issued before the currency had
become deprecated, and consequcnt>
~ the purchasers paid for them near
ly the equivalent of gold A larger
part Of them were issued at u time Of
great depression in the public hopes,
and when great doubts existed az TO
the final result OF the contest we
were engaged in. The f0rtur es OF
the country were, as it were, in the
balance. TO cause our people to
subscribe for the bonds, great induce
ments were held out. Among those
inducements was the exemption from
taxation, and the declai alton by Mr..
Chase, then Secretary of the Treas
ury, and late candidate for the Dem>
ocratic nomination for the Presden-
cy. that the bonds would be paid in
gold / have always regarded it un,
fortunate that anything was said in
the law in regard to taxation. The
Supreme Court had so often decided
that United States bonds were not
subjects of State, local or municipal
taxation and as snch thing as the
government taxing It's own bonds
| had never been heard OF. it was quite
unnecessary to say anything on the
subject. This was not the first time
the Government had issued bonds to
carry on the war. in the war OF 1872,
an amount was issued, when COM
pared with our ability. nearly as
large as our present bonded debt, and
we also created u bonded debt, to
carry through the Mexican war ;
but you never heard anything said
about taxing those bonds, and moth
| ing ever would have been said about
taxing tho bonds issued to put down
the Democratic war, had not a pros
vision boon placed in tho law doclar-
ing that they should not be taxable.
But with the inducements held
out by Secretary Chase and his
agents, our people brought out their
money and gave it to the Govern
ment. The war went on, aud the
country was carried through, and
the credit of the country sustained,
But for the faith of our own people
who gave the Government the mon
ey, the war would have been fail
ure. And now it is proposed to pay
off these bonds in greenbacks. The
law which authorized the issue of n
large part of the bonds now outstand-
ing, it must be admitted, made them
payable in lawful money, and de
cIared at the same time that the in
terest should be paid in coin, but il
was also declared, in tho same law
that authorized their issue, that the
amount of Greenbacks at any time
issued or to be issued, should not
exceed $3.50, 1000, 900, thus clearly
negativing the idea that they could
be paid off in greenbacks, even were
it desirable so to do. Now if these
bonds were pay able in greenbacks
He told you himself why. He said
issue more greenbacks, and you de-
press TO that extent, as the price o.
every article needed to carry on the
war. will be advanced in value 10 the
extent you increased your green
backs, so that in point of fact,if | is
sue more greenbacks they will serve
me no good purpose, al argument
equally good now against further in
aation of our currency. But The
Government foresaw, that if it wa!
sustained, it would be able, after thu
war ceased, to borrow money at {
cheaper rate and on more favorable
terms, therefore the right was re
sumed to pay them off at any time
after five years, if for our interest t
do so. The anticipalions of the Gov