West-Jersey pioneer., 1868-06-12
OUR NATIONAL FINANCES.

ornamented notes of national banks float into
the hands of such as are sufficiently well off to
have either labor or property to exchange for
them, occasionally United States bond is
displayed before the woud ering vision, some
strange looking certificates of Indebtedness
once in while are dubiosly accepted as a
representative of value; and this is about all
that the general public either zee or under
stand of the money basis of the nation. There
are round statements that the national indebt
edness is So, 500, 900, 900, but in what shapes
it lies. or to whom it is owing or when ii must
be paid, are matters of which there is not by
any means complete knowledge among the
people. Nearly all that is generally known is
that coin has disappeared from general cir
culation, and is only seen in the windows of
bankers in the cities where it is kept for sale
the same as any other article of commerce,
and that far higher prices are paid for labor
and received for goods than were necessary
when silver and gold circulated as the stand
ards by which the value of either labor or
products were measured. To look at this
matter intelligently it is necessary to under
stand exactly the different forms in which this
vast amount of bonds and currency assume.
In presenting this the greenback currency
comes naturally first upon the list. This paper
was first issued during the stress for money
caused by the pressure of the war and which
the banks were unable to supply, ani now
amounts to 1887 ,s7l AT. law was passed
by Congress to reduce this at the rate of $4,-
900, 900 month, and which for brief period
was put in operation, but the moneyed men of the
nation clamored strongly against it and it was
repealed, so for many months past the amount
Of currency of this character has remained
without change. As there is no probable
pathway to specie payments and lower prices
but the reduction Of this currency, it is prob
able that before long the contracting policy
will be introduced again, and carried as far as
the safety of the country's financial interests
will allow. There is as we stated about the
samA annnnnt- of national hanh-netee IL, or
eulation, but as they are based upon the bonds
of national Indebtedness they do not make any
increase of the debt, although they double the
volume of notes which are used to transact the
business of the nation.
The next item of the Indebtedness, is bonds
bearing six per cent. interest, due in 1881,
to the amount of $2S3, ,676, 900. These are
called the long bonds, and command the best
prices in the market, proving that there is no
dnuhf in tho minds ~ 70 @ba
ultimate redemption of the debt, because if
this were not true, the longer the paper had
to run, the less would be its value. The next
class is of bonds bearing six per cent, to the
extent of ST, ,267 1898, 100. This enormous
amount is redeemable at the pleasure of the
Government almost Immediately, or the pay
nent can be deferred until 1882, and part
of them run a year or two beyond this date.
Tha-- --Lst --.iisa 49, no ---a-, ---a
constitute the principal part Of the debt, about
whether they shall or shall not be redeemed
in greenbacks or gold. Following this is
1884, 607, 700 of notes bearing seven and
three-tenths interest, which can either be re-
utcmco III tuC RICCuUdCh CuTTelCys VI GA-
changed for these bonds of which we last
spoke, at the option of the holder. Then
come $171 1928, $50 of bonds having interest at
five per cent, and which can be run without
payment until after 1874. These are what
have been known as the 10-40 bonds. There
are also 5000 900 of the same class of
bonds which fall due during that year. Be-
sides this there are $7,022,O00 of the same
class due in 1871.
In addition to this, there are $14, 11S, $40
of compound interest notes, or notes upon
which the interest is compounded and added
to its value until it is redeemed, and certi6-
Gates of Indebtedness, which bear but three
per cent. OF interest. There is also the navy
pension fund of $l3 ,00O, 600, which is to be
added to this enormous schedule, and also
SIS, ,042, 600 of Pacific Railroad bonds, bear
ing six per cent. interest, which have been is
sued by the government in aid of that enter
prise. These figures added together, make
up The staggering burden, which now rests
upon the shoulders of the nation as its debt
There is dedustion to be made from this of
S86,555, III, on account of spare cash in the
national treasury, but still the whole sum
foots up about the aggregate we first gave of
So, 500, ,0Go, Geo. 1t is not supposed. of course
that the nation will be able to redeem many
of its bonds as they become due, or that it is
desirable that they should, for except the re-
demption be managed with the utmost care
the change in the money valne of things
would be SO great, as to send us into universal
bankruptcy. The true plan, we think to be,
to steadily and gradually contrast the cur
rency, as we began to do while ago, stopping
the contraction when the country begins to
feel it, and only resuming it when the national
industries are able to bear it. Certain it is.
that no plan of either reduction of the cur
rency, or payment of the principle, except
one so gradual as to be almost insensible, can
be successful in bringing us to a solid standard
again, without the bankruptcy of almost cur
entire trade and commerce. The proposition
to pay off the bonds as they mature, in green
backs, which greenbacks would, in that case,
be nearly as worthless as Confederate notes.
we regard as simply silly There is some
thing in it to catch the applause of the unre-
fecting, but it is easy to see that if over
S., 1000, 100000 Of greenbacks were thrown
upon the country as currency. now that the
necessary result would be to make them worth
but about one quarter of their present value.
This loss would fall, Of course, upon the
masses, among whom the bills were held, and
would produce distress which ne amount of
legislative skill could possibly avert, and
which, we think, would naturally cause an
uprising of an indignant people, in the form
of riots for bread. Besides this, we do not
think that the foreign holders of our bonds
would submit to this. 1t is true that they
bought the bonds at deprecated prices, but
then our credit was deprecated at the time,