The Vermont transcript. [volume] (St. Albans, Vt.) 1864-1870, 1868-01-17

purchase or payment of one per cent.
of the debt" That is, after the LIST
dav of July of each year, the total
amount of the public debt" That
is, after the LIST day of July Of each
wear, the total amount of the public
debt shall be ascertained, and a sum
in coin equal to one per cent. OF the
whole shall be set apart, out Of the du-
ties on imports, and be made a sink
ing fund for the purchase OF portion
of the public debt. The word pur-
chase occurs twice in that connection,
and is significant of different inten-
ton on the part OF the law makers
from that which is claimed for this
section.
Now, the principal of these bonds Is
payab in coin or 1t is not. Ii 1t is SO
pay able under existing laws, as Is dis
tinctly assumed in the preamble TO the
resolution, then there can be no real
necessity for the passage OF the reso-
luton, for the allegation Is not that
anybody is seeking to evade the law;
tits only that doubts have been raised
as to the duty and propriety Of a
certain course in reference to them
But the very fact that this resolution
has been brought forward is some sort
of confession that they ale not so
payable, AID that further legislation
Is necessary to make them payable ia
coin.
But if, on the other hand, the prin-
cipal is not payable in cola OF its
equivalent, it becomes q very serious
question whether we ought in this
manner, or in any manner, to 50 alter
the law as to declare it payable In
coin, or otherwise Than the law now
prescribes For whatever we do in
this regard, our action, after all, viii
neither liquidate the debt nor increase
our ability to hquidate It. At best,
the resolution if passed, will only
amount to q declaration of intentions
not, however a vain and imperative
declaration, for if it will have the eff
feet, if any effect at all, TO bind us alb
solutely to discharge in coin vast
debt, which otherwise would be re
deemable in such lawful and current
money, whether gold, silver, or Treas
ury notes, as we are able to pay or to
borrow when it falls due.
This most important acknowledge
mcnt, which is to add hundreds OF
millions to our present burdens. will
apply wholly to an existing indebted
ness, for it is not pretended that there
is one dollar of new consideration
moving the Government thereto. 1t
is to be an act of pure generosity, IN
dertaken professedly for the purpose
of strengthening our national credit.
The case may be stated in this way
by reason of our owing 81, 100000, 600
our credit is thirty per cent. below
par. In order to demonstrate that il
ought to be at par, and to prove to the
world that we are in a sound financial
condition, we will magnanimously add
without consideration, some seven
hundred millions to the sum Of oul
Indictment. If q reputation for sol
vency is to be reached in that direc-
ton, it is just as easy, while we are
about it, to go little further and rem
der the matter of our ability to pay
still more certain.
But we are told that if we do thi;
generous act we can hereafter, in cast
of need, borrow money with greater
facility. 1t does not, however, appear
very clearly that We ought to borrow
trouble about the future. Most likely
We shall have enough Of our own, IL
the form of taxation and other exac.
tons, III order to meet what we al
ready owe. At any rate sufficient
unto the day is the evil thereof
But if loosely adding this large
amount to the existing pressure upor
the Treasury will increase our abilit,
to obtain money in open market upor
still further securities, 1t argues mos
incomprehensible difference between
public and private financiering. AM
business firm or person in the world
would at once break down under sucl
policy.
1t is assumed for this occasion tina
the public laws relating to this subiec
are not ambiguous, and need no inter
probation by additional action of Con
gress. They were plain enough at tn
time of the investments, otherwis
capitalists would have withheld thei
funds. 1t is not usual for fnancer
to dispose of their money on doubtful
securities. It is alleged, however, tina
another and higher motive than
mere pecuniarv one entered into an,
became part of these transactions
That NAV be so; but whether tn
promise of a large gold interest, to
Sether with a prospect OF speedy re
turn to specie payments, was the con
trolling inducement for these invest
nents, or whether they were mad
with patriotic desire TO sustain tn
Government, cannot now b accurate
~ determined. 1t is my firm belief
however, Notwithstanding the extrem,
circumspectness with which the lend
ers selected their securities, that boil
these considerations entered into tn
loans. At all events these creditors
patriotic as they are, have the doubl
satisfaction of beholding a restoration
OF the Government, npon which thei
all depended, and of receiving thei
regular interest semi annually in gold
Far he IT from me to detract from thei
ranero1s 1--we of country Inv n rof