The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1868-02-15
Mr.. Psndlston's Financial Plan.

Mr.. Pendleton's Financial Plan.
Nearly everybodylhss crude idea of what
is understood to be Mr.. Pendleton,s financial
plan but to explain what it is exactly can
be done in no better way than by the repro
duction Ola succinct statement oft in his own
words, as we find it in one of his published
speeches: "
"And now say not only that these bonds
are payable in legal tender, but that they ought
TO DC paid as soon a. II 10 possible to do 80. do
! not KNOW that it is possible to pay these bonds
| IS fast as they mature even in currency; but 1
do know that every possible effort ought to be
made to do IL.
7" But at this point am met with the state
mont that this policy will issue an immense
amount OF paper, and thus 40 far initiate the cur
rensy as to destroy its value, and bring disaster
upon the country Now, gentlemen, let rs OK.
anime this objection. Mr.. McCulloch in his last
monthly report stated that the public debt which
bears interest is comprised in three kinds that
$500, 100000 of this debt could not be redeemed
bsfOreflS14; that $500, 600 more could not
be redeemed before 1881 and that the rest Iof
the debt, amounting to nearly 81, 700,O00,0OO is
Comprised in fve-twenties and bonds which bear
interest in currency.
Seventeen hundred millions OF 5-2O's and
|
due within the next five years. l cannot state
to you the exact time nor the exact proportions
in which these bonds fall due. mean these 5.
2Us- Their very name implies that, when five
years shall elapse after their issue, the govern
ment may pay them; bnt need not pay them un.
til 20 years have elapsed.
"Now, gentlemen, / maintain that the SEQ
bonds should be paid as far A. it is possible TO
do without initiating the currency beyond safe
/ al No Ind II ia h,o 81.
show you how rapidly that can be DONE The
unliquidated debt of the United States consists
OF greenbacks and claims which have not been
adjusted, and amounted to S800,O00,000 Itpays
no interest
"Three hundred and thirty eight millions of
these bonds are, IVY the report of the secretary Of
the treasury, deposited to-day AS security in the
vaults OF the treasury. Three hundred millions
OF bank paper is issued on the faith Of the bonds
Now, gentlemen, maintain that this circulation
ought to be called in; that these bonds ought to
he rodeeined with legal tenders which will take
the place Of that bank circulation. Applause
What would be the effect Of this! The $1,.
7Oo,OOOOOO OF intersst-beariny bonds would be
reduced TO Sl,40o,0OO,00O; and s20OOOOOO
would be saved to the government from the in.
tersst which is paid to the bankers far the bonds
which they have deposited Cheers
Now, then, suppose YOU take this 500 600 900
OF interest which is saved and add i. to the $40,
100000 which these gentlemen say thoy can pay
from the current revenue and Won have sos 900 900
year by year, and if you CONVEX. that sum into
greenbscka, at l40 you have 100000, 900 year.
aud ii this is appropriated sinking fund You
can pay the whole debt Of. in less than 15 years,
without ndCin. 81 to You taxation or 81 to the
circulating medium. Applause.
81 Bear in mind that | am arguing a PROPOSE.
ton that these bonds can be paid in greenbacks
without initiating the currency. Bear in mind
this can be accomplished in II to IA years with
o1t the addition Of 81 70 your taxation, or 81 TO
&c your circulation medium. And now tear in
mind, also that l have no, touched tho
revenues OF the government which, in 1866.
amounted to s5cO.OOO,0o0; have attacked
the expenditures OF ;ha: year OF radical admins
tr;ition.
but now set the re.ormer to work Let him
cut off every extraragsnce-lop off every unnec-
cssary expenditure. Let him reduce the current
| expenses OF the government to Sl50,OOO,00O %
year, mean expenses independent Of the ints-
rest on the public de5t,-thOugh it ouglt TO be
reduced 70 $l00,0C0Coo; that would be S2j, Co.,
600 more than Mr.. Buchanan expended; tina.
would be ~ much in one year as Andrew jack
son expended in any one Of the Jour year. OF his
administration. Blu, let THE expenditure be re-
duced to 10000 900, and what 30 ysu have
Sl50H0, 900 for current expenses Sl3D0W 900
for interest upon the public debt and 81 % 000-
900 Of sinking fund. rs have the aggregate Of
$3.50 900 600, and if ven take that from the rev.
enue Of 1866, which amounted 10 s5c0Ug0 COO
yon lI,ve balance Of %ls0G00,CG0, which You
may add 10 your sinking fund and thus bring
it up to $3.50, 100000 annually. And with that
you can III I'VE years lay every cent OF the prin-
cipal and interest upon yonr public debt, with
out the addition Of dollar 10 the circulating
medium Of the country. tAppause
"Whcn tiyeycars s!iall have passed, YOU can
reduce Sl35,OoV0D If our taxation, and yet be
able to pay the $500 100000 which falls due in
1871 fhen you can reduce your taxation 5000
OoO,eOO more. and, by retiring your greenbacks
as tn. great burden of taxation i reduced, you
will be able 70 pay the debt maturing in 1891,
and at the same time to call in Your yreenbacks
and return to the constitutional currency of the
country. "i.t
And yet yon ace that have net proposed 10
Increase the t,sss or add one farthing to the cur
rency." -''
The New York 2riDHe thinks the demo