The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1868-02-28
MIR. PendletOn's Financial
plAn.

- so'ecte" from one OF MS specches.
"And now I say not only that these
bonds are payable in legal tender,
but that they ought to be paid as
soon asit is possible to do so.
DO not know that it is, possible to
pay these bonds as fast as they ma.
ture, even in currency but I do
know that every possible effort
ough ut to be made to do it.
"Butat this point Lam IN ct with
the statement that this policy will
issue an immense amount of paper,
and thus so far, initiate the currency
as to destroy its value, and bring
disaster upon the country. Now.
gentlemen, let me examine this
objection. Mr. McCulloch in his
last monthly report stated that the
public debt which bears Interest is
comprised of three kinds; that $500,
900, 900 Of this debt could not Sc
redeemed before 1874: that $780,
600, 600 more,could not be redeem
ed before 1881; and that the rest Of
the debt, amounting to nearly ST.
700, 900. 600, is comprised in 6vc-
twenties and londs which bear in
terest in currency. ....s'
Seventeen hundred millions Of
5-2O's and bonds which bear inter
est in currency will fall due within
the next five years. I cannot state
to you the exact time nor the exact
proportions in which these bonds
fall due: | mean these ..;5-2o's.--
Their very name implies that, when
five years shall clapse after their is
sue, the government may pay them;
but need not pay them until 20
years have elapsed. 7's..r
Now, gentlemen, maintain
that the 5-20 bonds should be paid
as far asst is possible to do so with
out initiating the currency beyond a
safe and just point. And it is nv
business now to show you Aow rap
idly that can be done. The unlia-
Undated debt of the United States
consists Of greenbacks and amounts
to $500, 900. 600. It pays no inter
est.
Three hundred and thirty-eisht
millions of these bonds are, by the
report OF the secretary of the treas
ury, deposited to-day as security in
the vaults of the treasury. Tirca
hundred millions of bank paper is
issued on the faith Of these bonds.
Now, gentlemen, | maintain that
this circulation ought to be called in;
that these bonds ought to be re-
deemed with legal tenders, which
will take the place of that bank cir
culatlon. Applause. r1
"What would be the effect of
this? The 81. 700, 900 900 Of inter-
est-bearing bonds would be reduced
to 81, 400, ,000, 900; and $50, ,OOO.-
600, would be saved to the gov
ernment from the interest which is
paid to the bankers for the bonds
which they have deposited [Cheers. I
Nov, then, suppose you take
this $40, 600, 900 Of interest which
is saved aud add it to the S4s, 900, ,
OOO which these gentlemen say they
can pay from the current revenue,
and you have sos, 900, year by
year, and if you convert that sum
into greenbacks, at 140, you have
100. 900, 600 year and lfthisi is ap-
propriated as a sinking fund you
can pay the whole debt off in less
than 10 years, without adding 81
to your taxation or 81 to the circu-
lating medium. Applause. !
Bear in mind that [ am arguing
proposition that these bonds can
be paid in greenbacks without in
fating the currency. Bear in mind
that this can be accomplished in II
or Il years without the addition of
81 to your taxation, or 81 to your
circulating medium. And now bear
in mind. also, that | have not touch,
cd the revenues of.tthe government,
which, in 1866, amountel to $3.50, :
900, 900; nor have | attacked the
expenditures Of that year of radical
administration.
:'But now set the refcrmcr to
work. Let him cut. off every extrav-
agance, -lop off every unnecessary
expenditure. Let him reduce the
current expenses Of the government
to $50, 900, 900 a year, mean
expenses independent of the interest
on, the public debt, - though it
ought to be reduced to $10O. .OOO.-
900; that would be S25, ,OOO, 900
more than Mr.. Buchanan expended;
that would be as much in one year
as Andrew Jackson expended in any
Of the four years of his administra-
tion. But let the expenditure be
reduced to $3.50, 900, 900, and what
do you have? $3.50, 900, 900 for
current expenses, SIoO, OOO, OOO for
interest upon the public debt, and
500, 900, 900 Of a sinking fund as
| have described. and you have an
aggregate Of $3.50, 900, 900, aud il
you take that from the revenue of
1866, which amounted to, $780,
900, 900, you have a -balapce Of
$50, 600, 900, which you may add
to your sinking fund, and thus bring
it,up to $3.50, 100000 annually. =
And with that you can in five years,
pay every cent Of the principal and
interest upon your public debt.