Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1869-12-17

are not only tnuh ucpenucnt upon llVtA
country for the performance Of the busi-
neHs which should be in the hands Of our
own people, but our ability 10 maintain
specie payments is materially diminished.
II the entire foreign trade Of the country,
both of exports and imports, were carried
on in American ships, the earnings would
not be less than $75,000,000. Were the
trade exclusively In American hands
large part Of this difference of $47,O00000
would be due 10 citizens of the United
States and payable In other countries.
This amount would be thus added TO our
ability TO pay for goods imported from
those countries. AN# deem II
essential 10 our prosperity that the ship.
ping interests Of the country be iostered,
not only rs nursery for seamon, but also
as an essential agency in enabling the
Government to institute and maintain
specie payments II Is an interest, also,
which, In It's development IL as important
to the States, and 10 the people remote
from the sea coast, ss IL is TO the maritime
sections. Every addition to our facilities
for the export Of the products of the inte-
rior Ia as advantageous TO the producers
as TO the merchants and ship builders Of
the coast. While do not anticipate that
II will he necessary TO delay resumption
is regained, am satisfied that The de.
yelopment of tho navigation and ship
building interests will improve the credit,
and rapidly augment the wealth of the
country"
Concerning the resumption of specie
payment the Secretary says
The suggestions that have made in
dicate my opinion that IL will not be wise
TO resume specie payment while 80 large
part of the interest bearing debt of the
country Is represented by hvo.twenty
bonds, and held by European merchants,
bankers and manufacturers. Questions
that have been raised in regard to the
nature OF the obligation assumed by the
government In the issue of these bonds,
have undoubtedly deferred many persons
from purchasing them ms permanent In.
vestment, and consequently they are large
ly held In this country and Europe for
speculative purposes, by persons who de-
sign TO put them upon the market when
| ever an advance shall furnish sufficient
induCcment, or when political or financial
disturbances may create demand for
money for other purposes. II Is probable
that from seven to nine millions of these
bonds are now held in Europe and, TO a
considerable extent by persons who will
not dispose of them under tho influence TO
| which have referred. Such panic as
| existed In Europe In 1866, at the opening
| OF the Austrian and Prussian war,
! would be likely TO induce the re-
| turn of n sufficient amount to
this country for sale to embarrass bust
ness, and, in case of resumption, TO cause
the suspension of the banks. II Is there.
fore, in my Judgment, essential that the
largest part of the $50 bonds be with
drawn, and that other bonds be substituted
In their place, issued upon terms and con-
ditions which admit of no doubt. In fine,
the practical question is not merely the
resumption of specie payments AS q
measure by ITSELF 1t Is not difficult, but
the problem is to resume under such cir
cumstanccs that tho position can be main.
tanned, not only in times of tranquility hut
also in peril. Our course, IL seems to me,
is plain. Every measure OF the govern.
ment bearing upon the subject should
tend to appreciate the value of our paper
currency. II Is probable that some dc.
crease In the volume of paper will ulti.
mately be necessary, and therefore re-
spcctfully suggest that the Secretary OF
the Treasury be clothed with authority ia
reduce the circulation OF United States
notes in amount not exceeding So, 100000
in any one month. Thus will the country
be brought gradually, it may be, and yet
without disaster, into condition wher
the resumption Of specie payments will be
easy, II not unavoidable.
when the credit OF tho country shall
be fully established in Europe, and there
| shall be no doubt either of our ability or
| disposition to meet all Of our obligations,
| bonds, heretofore, and now, TO large
extent, held by merchants and bankers,
will be transferred TO capitalists for per
manent Investment, When this change
shall have taken place the probability o
our securities being sent home under the
influence OF political or financial disturb.
anccs in England will be very light, and
when, as a concurring fact our exports,
exclusive Of public securities, shall be
equal To our imports specie payments
may he resumed without even tempor,
AIRY embarrassment TO the business of the
country" .. .. .. 1906
Mr., Boutwell, cites attention to two evils
In the present banking system, the same
as noticed In the report of the Comptrol
lor of the Currency--the FIRST that of the
banks allowing interest on deposits, and
the second, the practice of making cal
loans for speculative purposes, IL doel
not seem 10 him tn be wise to authoriH,
the funding of the whole gamount of 5-2t
bonds,which rs Is now anticipated, will'bC
outstanding on the tst oi July next; bu
that $3.50, 100000 at least should be sui
fered to remain, either for purchase ol
redemption previous TO 1874 Should th,
sum of $3.50 600 be lef( for that pur
pose, the entire public debt would be In
condition To he easily redeemed between
1874 and 1881. The 1040 bonds ooul,
be paid and provision also be maoe for tn
redemption of the bonds which will be
. come due In the year 1881. II may b
, wise TO reduce the proposed loan TO a.
: OO0,000,000, which would then leave 10
. payment previous 10 1881, the sum @
T about $6i00o000Ot or hardly hosa ina
u $60,O0O, 900 4 year. Assuming that tn
loan will be for an amount not exceeding
, l,200,O00,000, he recommends that It b
offered in three classes, Of E40Q 10000
each, The frat class TO Ne payable In |
: years. and to be paid Ia No Years; tn
second class OF AlOO, 900, 900 to be payahl
q III 20 years, and TO be paid In 25 years; an
n the third class of $400, ,000, 900 to be payahl
4 in 20 years, and TO bo paid IN 10 Scets,
In Offering the rev loan, citizens an
! 4 subjects ut other governments should r,
: tceiee the strongest assurance that the IN
|, terest and principal are to be paid in Ooir
- according to the terms of the bonds issuot
- without any deduction or abatement whAr
y ever.
,fl When the $40 bonds shall have bee
II funded TO the amount of 81, ,000, ,000, 600 {
a 81 200 600, 900, the revenues can be r,
r duccd materially, and yet sufficient sun
be raised 10 meet the ordinary expens,
|. OF the government, TO pay the interest o
/ the public debt, and also to pay from $e5
a 600, 900 to $4,000, 900 Of the principal al
r nually.
d Should the success In negotiating II
a loan be equal 80 the Secretafy's expect
m tons, based upon the fact that the abilit
le and disposition Of the people of Il
United States to pay the public debt a
10 sufficient TO justify us in assuming In
4, the bonds Of the United States win cor
Y. mand the highest rates In the markets
,e the world, we shall then bo in cond
r. ton TO enter upon the work Of reducir
b. taxation at the commencement of Il
,a | next session of Congress