The Sweetwater forerunner. [volume] (Sweetwater, Tenn.) 1867-1869, 1868-06-11
The Pend1eton Financial
Policy.


the legal and moral obligations of the
government to pay these bonds in gold,
because it has been thought in some quar-
tiers, a sufficient answer to every argu-
ment to cry out reputation repudiationw
There is not particle of reputation in
the proposition. Neither the law, nor
the contract, nor the face of the bond,
nor good morals, require that they should
be paid in gold. REPUTATION That
is charge which comes with an excellent
grace from men who, in Ohio and Indiana,
and New York and Pennsylvania, and
perhaps here in Wisconsin, paid in legal
tender notes the interest upon the State
debt, which was contracted to be paid in
gold. REPUTATION The charge is made
by men who paid in deprecated paper
the United States notes of 1861, which
we're bought for gold at par, and by the
the contract were to be paid in gold. Re-
PUDIATIoN! the charge is made by the
men who voted for the law which author
lied every man who had agreed to pay
hundred dollars in gold to discharge the
debt by paying hundred dollars in pa
per. REPUTATION they are the repudi-
ators, who after they have compelled the
people to take these legal tender notes in
payment of every public and private debt,
in payment of every State, and county
and township, and city and railroad bond,
now turn around and depreciate these
notes and say they are not lawful money
as they were declared by act of Congress
to be, and not fit to be given to a public
creditor. To expand the currency when
the people are incurring debt, and to
contract the currency when they come to
pay it, is public robbery, whether such
be the motive or not.
And now say not only that these
bonds are payable in lcgal-tender, but
that they ought to be paid as soon as it is
possible to do so. I do not know that #
is possible to pay them as fast as they
mature, even in currency but | do know
that every possible effort ought to be
made to do it.
But at this point l am met with the
statement that this policy Will cause the
issue of an immense amount of paper, thus
so far initiate the currency as to destroy its
value, and bring disaster upon the coun-
try. Now, gentlemen, let Inc examine
this objection. Mr.. McCulloch in his last
monthly report stated that the public
debt which bears interest is comprised in
three kinds; that three hundred millions
of this debt could not be redeemed before
1874; that three hundred millions more
could not be redeemed before 1881; and
that the rest of the debt, amounting to
nearly seventeen hundred millions of dol
lars, is made up of fve-twenties and bonds
which bear interest in currency.
Seventeen hundred millions of Eve
twenties and bonds which bear interest in
currency, may be redeemed within the
next FIVE years. | cannot state to you the
exact time nor the exact proportions in
which these bonds may be redeemed. |
mean these fve-twenties. Their very
name implies that the government may
pay them; but it need not pay them un>
til twenty years shall have elapsed.
maintain that these fve-twenty bonds
should be paid as fast as it is possible to
do so without initiating the currency be-
yond safe and just point. And it is my
business now to show you how rapidly
that can be done. The un!iquidated debt
of the United States consists of greenbacks
and claims which have not been adjusted,
and amounts to eight hundred millions of
dollars. 1t pays no interest.
The policy of the Republican party is
to convert, in whole or part, these eight
hundred millions of dollars of unliquida-
ted debt into bonds, which pay six per
cent interest in gold. Now, what will be
the effectl 1t converts a debt which
bears no interest into debt which bears
interest in gold; it will add to the ex-
pense of the government $4S,0O0,OO0 in
gold--for that is the interest on $500, 000,-
900. It will increase the number of those
who do not pay taxes, and increase the
burdens of those who do pay taxes. 1t
will add to the untaxed property of the
country. 1t will convert active into mac
tive capital. Ifany portion is converted.
the same proportionate result will follow
Now, 1 maintain that this system ought
not to go on, that this debt ought not to
be converted, that this capital ought not
to be locked up, and that this large mum.
Der Of people ought not to be exempted
from taxation, and that this additional
burden of $4s,OOO,OOO should not be i'm
posed. The Republicans say they can,
know they ought to be able to-pay this
amount from the current revenue.
If you look at the report made to-day
in the evening papers by telegraph, you
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