Litchfield enquirer., 1868-07-23
Funding the Debt.

Funding the Debt.
 Congressis proposing new issue of bonds at low rate of interest, and with long time to run. Much as we desire such s measure, We do not believe the time pro pitious. No financial question will now meet the unbiased consideration it de serves, but will become subsidiary to tn, great political questions before the people Who is to be our next President, is now the great matter, and every thing else of mi nor importance. Moreover, not only poll ticians, but capitalists, are waiting for the expression of the popular will, next fall. Whether the American people will de eide for honesty as the best policy, with Grant and Colfax; for limited amount of rascaity, with Seymour and Blair, Ste- vens and Butler; or for unlimited villainy, with Pendleton and the Western Democracy, is matter that must be settled before any reasonable man fur nishes moro money to the government of the United States. Between this time and November, therefore. we do not expect, ei- ther that Congress will perfect the best possible scheme for funding our debt, or that money lenders would avail themselves of such an act if it were passed. This is particularly the case with foreign capital ists. from whom, alone, can we ever expect to obtain money at a less rate than i've per cent. and who must have the fullest confi- dence in the ability and honesty of our government before they lend us money at any rate of interest. Let us briefly exam inc the financial difficulties under which the country is at present laboring, and the remedies Republicans propose:
 1. The government pays interest at near ly an average rate of s per cent on it's debt.
 ?. In addition, this debt is exempt from all State and municipal taxation,
 These seem hard terms; but did our mil itary and financial condition, when that debt was contracted, warrant better? The public creditor ran great risk and he de serves his high interest. From this pre- dicament there are but two modes of escape: one, by speedy re turn to specie payment and by an homes payment of our obligations according te their letter and spirit, ensuring loan from foreign capitalists on more fa vorable terms, after our financial policy is thoroughly settled and understood and our credit thoroughly established; the oth. CT, by threats of partial repudiation and special taxation, frightening our creditors into settlement for something less than the face of their claims We consider the latter scheme not only dishonest but short sighted. We doubt whether it would even lessen our present burden. We know that in the end it would cost us ten times any dis honest, temporary gain, in increased in- terest.
 The exemption of national securities from state and municipal taxation is a great evil; excusable only because the na- tional necessities have been so much great CT than any state or municipal necessities. Still it is evident that the Nation gains much more by it, than the smaller political bod les lose. But for the exempting provision, United States bonds would have been tax ed out of existence in the great commercial centres where the bulk of those securities are held. Nevertheless, next to adequate provision for the payment of its creditors, the nation should provide for the return of fair proportion of the money they have saved at the expense of states an6 municipalities. Any other permanent ar rangement will be more unsatisfactory even, tl.an it is unjust.
 In thus endeavoring to sketch the finan cial policy that seems to find favor witf most Republicans, we are aware that tha policy is not yet fully developed. Never tneiess, the inclination of Congress seems oeclded in favor of a permanent loan al rom three to four per cent, free from al '"Ha'lon' and expected to be dispo 'eu oi Tn foreign markets togethe, "l'n loans at higher rates for do ines'lc investment, subject to drawback ioa n"'lonal' state and municipal revenue, Alter the Presidential election. closino 9, lt VIII the recohstruction issue, we nav ex. Pect that our national legislature will h, ready to issue we'll considered proposals for funding the debt, and that cap;tal lsts will see their way clear to accen them.
 , M. Does any gentleman of this vicinity reco rlous parts of the country with placard on m fi h