The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-12-07

~ @ 70 ~ nsttute ana maintain specie payments. IL
IL an lnterest also which In its development is inn
portant TO the states and people remote from the
sea coast as IL IL TO the maritime sections. Every
auuiuOn 70 our facilities for the export OF the pro-
ducts OF the interior is as advantageous TO the pro-
uucers as TO the merchants and shpbuilders OF the
While do not anticipate that &c will be necessary
70 delay resumption until our proper commercial
position Ia regained am sats1ed that the develop
ment Of the navigation and shp-bulldlng interests
VIII improve the credit aad rapidly augment the
wealth oi the country The suggestions that have
aue Indicate my opinion that " will not be wise to
resume specie payments while so large part OF the
Understanding debt Of the country is represented
~ flve-tweny bonds and held by European mer-
chants, bankers, aud manufacturers. Questions
that have been raised In regard 10 the nature the
issue Of these bonds have undoubtedly deferred
nany persons from purchasing them as permanent
Investment and consequently they are largely
held IN THIS country aud In Europe for speculative
purposes by persons who design to put them upon
the market wheneuer the advance shall furnish
sumclent lnducement, or when political or financial
disturbances may create a demand for money for
other purposes. II Is probable that from seven to
nine hundred millions OF these bonds are now held
In Europe, ana to a considerable extent by
persons who Will dispose OF them under
panic as existed in Furope in isSs M the openng Of
the Austrian and Prussan war, would be likely to
induce the return Of sufficient amount TO this
OF resumption TO cause the suspension OF banks II
Is, therefore, In my Judgment essential that the
and nat other bonds be substituted In their place,
issued upon terms ana conditions which Will
STaaca Sa9I question a9 doubt not mdloIa ns the the
resumption Of specie payments as a measure by
itself, II is not difficult, but the problem is to resume
maintained not only In times OF tranquility, but also
I'm periods OF excitement and peril.
Our course, IL seems TO me, is plain. Every mea-
sure OF the Government bearing upon the subject
should tend TO appreciate the value OF our paper
currency. II is probable that some decrease in the
volume or paper Will ultimately be necessary L
therefore respectfully suggest that the Secretary
Of the Treasury be clothed with authority TO reduce
the circulation of United States notes In amount
not exceeding two millions OF dollars in any one
month Thus will the country he brought, gradually
1t may be and yet without disaster into condition
when tine resumption OF specie payments VIII he easy
if not unavoidable, on the LIST of December, 1869,
the principal of the public debt Of the United states.
not deducting bonds and cash on hand, amounted to
~, sos, ,2S6 1882. OF this amount the of
1856, $3.50 is represented by United states notes
not bearing interest. The larger part Of this is
needed for circulation, but the amount can be re-
duced from the ordinary revenue OF the country II
Congress shall consider il eXpedlent TO make proyi-
sion for such reduction. The fractional currency in
circulation was s3S, ,Ss5 56i6s and there ls no Occa-
sion for any legislation In reference o this item Of
hcates for gold deposited in the Treasury to the
amount OF s36,sG2,94O. These certificates are
redeemabe on presentation. These three
s491 sol, ,1G31s and in making provision for the pub
lie debt they are not necessarily to be considered.
or the loan Of January l. 1861, the sum OF SI,O22,
600 is outstanding and payable on the lst Of Janu-
airy, 1871 The loan Of 1s5s, Of twenty million dol
forty bonds, amounting to si94,56I 800 are not pay
able until 1874. The six per cent. bonds pay
able in 1881 amount to S2S3,61I,0OO. AS the
bonds known as cighty-ones and ten-fortes,
amounting in the aggregate TO SI6,2ii90O, are not
due and cannot he paid previous to ts74 and $751; it
is unnecessary to consider them ia making provision
for new loan. The Five-twenty bonds, amounting
in the aggregate to 81 6O2 6Tl 100 are either due or
will soon become due, and it is to this class of the
public debt and to this class alone that attention
OF this amount the sum OF s75i47, 500 has been
purchased since March last, and the
ponds are now held by the Gov
flye-twenty bonds can he cousunmated the Govern
ment will be able to purchase at least seyenty-fiye
first of July next about Si,45OOOO,OOO of the i've
twenty bonds in the hands OF the public creditors.
OF the entire ndebtonness OF the United States only
the unimportant sum of twenty-seven million dol
lars will be due and payable previous to 1874.
Under these circumstances 1t does not seem to me
to be wise to authorize the funding Of the whole
amount of the ave-twenty bonds which, as is now
anticipated, Will be outstanding on the 1st OF July
next but that s25O0OO,0OO at least should be suf
fered to remain either for purchase or redemption
previous to 1874. Should the sum OF $3.50 900 900 be
left LEFT for % that 0 purpose the entire public
bee be easily redeemed. Between 1874 and 1851 the the
ten-forty bonds could be paid, and provision also
become due In the year 1851. II may be wise to re-
duce the proposed loan to 81 00O 000O which would
about 500 900 6O6 or hardly more than 500 1000
year. Assuming that the proposed loan will be for
an amount not exceeding sl,2oO,OoO,0OO, | recon-
$4O00OO,O00 each. The first class OF $4,000 900
to be payable in fifteen years and to be paid in
twenty years, The second class OF 400, 900 dol
lars to be payable in twenty years and to be paid in
twenty-five years. The third class of 400 900 dol
lars to be payable in twenty.fve years and to be
new loan appear to me to be these:-
First. That the principal and interest shall be
Second. That the bonds known as hve-twenty
bonds shall be received in exchange for the new
bonds.
Third. That the principal be payable
this in this country and the interest payable
either in the United states or in Europe, as the sub
scIibers to the loan may deiire.
Fourth That the rate OF interest Shall not exceed
~ per cent. per annum.
Fifth. That the subscribers in Europe shall receive
their interest at London Paris Berlin or Frankfort
as they may elect.
Sixth. That the loans, both principal and interest
shall be free from ali taxes, deductions, abate-
ments of any sort, uuless It shall be thought wise TO
subject citizens OF the United States TO such tax
upon incomes derived from Investments
IEere are two reasons, and each seems to me TO be
controlling reason, why the bonds OF the United
states should be exempt from State and local taxes
II not SO exempt, the amount OF the taxes imposed
the Government will be required to pay, and thus
the national Government will be compelled to pro-
vide for taxes imposed by the local authorities.
Secondly. Inasmuch the ability 10 borrow may,
under some circumstances, be essential 10 the pre-
seyation OF the Government the power should not
even in times OF peace and prosperity he quail
ned by any concession TO the states OF
the right to taNthe means by which the National
Government Is maintained. The right TO use its
lawful powers free OF anysconditon, restriction or
claim OF another, is an essential condition OF sove
reignty and the National Government should never
surrender qualify its power In this particular. In
onerng the loaD citizens and subjects OF other
governments should receive the strongest assurance
that The interest aud principal are to be paid in cOn
according TO the terms OF the bonds issued without
deduction or abatement whatsoever.
In order to avoid the necessity OF employing
agents for the negotiation Of the loan, l
respectfully recommend that liberal commission
be allowed to subscribers, and that those who first
subscribe be permitted to select the class OF bonds