New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-01-11
THE NATIONAL FINANCES.
,1rrrER TRoM THE HOY THOMAs DIVING. |

United States senate - A.. srh
, OF finance the national debt, and the currency no"
,nder consideration in your honorable DOdy' '"Ao ~
liberty Of presenting you some views WHICH, tous W,
DIV no means attempt to compass these most
Questions yet as they founded ON some reaoinE "u
much careful consideration, may be found uSeiu 10
eestions IN the progress Of your Investigation ,,,
has beep in my OPINION from the first, eXceeuI"k9
desirable TO separate all questions Of national DEBT anu
reney and finance from general politics. as 'ho -
danger when these become party questions 'na
controversy which is always more or less m ., limo
and unjust should lead the party dominan' ,,Ins 10
into acts subyersive Of the public ialn "a .na have
49, ,u,,,o ve,fore Unfortunately, however 'n.' -,
20 some extent become an eienon 4, ., vents |
strife and there danger that III 'ne A., ore tho
t,iustice r,ay be done by one parry ~ " i.oo,ort
,noverswho are the debtor class anu a' " 80
iaAPAsVi ,n,ure day perhaps not far Distant 10
,i,r n the creditor be adjudged now more man
heis eoutaby and fairly entitled 10, tha' NeiS ..
,,kov IN produce q change OF popular leenk anu WIN
- c,,t,ca mower which will give less My nope amaze
,r "a that all open questions now [pe Tor set'emen'
h settled fairly and Justly, by the present Congress
r "a they would be settled in court OF equity De-
tween man and man. with this saving only; Whatever 10
distinctly written in the bond OF the Unted states
a n contract which must be strictly compiled Win,
,,bouob ne between individuals IT might be considered
tainted with exorbitant usuy for 1t is not meet taV
sovereign should set up that defense 10 mitigate
the hardship Of his own contracts. In the case Vi
our FiyeTwonty bonds Of 1862, which are now paya
ble-and this the proper time TO consider these ana au
inst tem-we contracted to pay and have thus lar pu
sr dollars year in gold a which, when loaned 10
ma was equivalent value to less than $50 in god; that
w we have for seven years paid on the FiVeIWeh
ties of 1862 aud st paying u per cent interest On INC
cold actually invested by the creditor ana actually re-
ce,yed by the United states This loan, now payaDie'
amounts in the aggregate to the sum OF SOoOOOWO IL
we offer now TO pay the creditor interest at the rate OF SIX
per cent on these bonds up the LIST day OF May l6J
and then TO pay him in the funds which we received Oh
him. and undertook pay him, or in some other security
which he viii prefer do him ample justice; Dut We
give him an advantage beyond this we are generous u
him. but unjust to the people who are the debtor
We nre not bound faith morals TO make the iuhu
which we nav 20 the creditor his princpal-be what
A. NAV gold or egaltender notes-worth more al '"o
time OF payment than it was worth when IL was uo'
rowed Looking at it IN this point OF we" n"u'oS
are nothing II you borrow piece OF coin caed uOha
having in it 100 cents worth of pure metal ana
Inv virtue Of your sovereign power so dcbase your
com that the dollar contains but 70 cents WORTH
1t is reputation OF its equivalent act OF MUS
tce II Won in behalf OF the nation borrow coin having
I'm it but 70 worth OF pure metal ana call II dollar
and afterwad Improve your coin aud put in 100 cents
worth of pure metal make the dollar and pay this I'M
proved dollar discharge the loan OF the baser CON- u
Ia generosity the lender and Injustice to the naton-t
is taking from the Taxpayer without reason ana giving
20 the capitalist without consideration The same Is the
ated coin or deprecated currency.
Having fonnd the true measure OF justice Won may
safely do it without fear Of being chargeabc with undue
partiality to the paying over the receiving class.
Mr. Ewing then asserts that paying excessive IN
teres and argues that cannot borrow money except
at exorbitant rates. aud continues:
IL Is clear that individuals aud as party you are
safe in dong simple Justice The question: then, at once
arlses-what can you do and what ought you to do at
once to tighten the burdens resting the pro-
ductive ndustry-the labor Of the country
is thought by many advisable ito hasten by legisa
tive resumption of specie payments-that is to
say restoration Of specie currency and making gold
and silver the only legal tender in payment OF debts
Those who propose this have not it seems TO me, well
considered it, general provision of the kind would be
productive OF much hardship and injustice TO the debtor
class of our communicable class made mp OF our active
young business men, merchants manufacturers shippers
IN short producing cassthOse who combine their
own personal energies with borrowed capital and thus
build up gradually independence for themselves while
they give prosperity the country Now, If we resume
specie payments at and make gold and silver the
only legal tender, ruin this whole class Of bust
ness men at once and drive them TO bank
ruptcy II their debts,now amount to S6O0OooOOO, re-
peal the legal enderac Or,chcrwisc force an immediate
resumption OF specie currency, you add by stroke Of
the pen 100000 to their debts; and the mischief
does not end hereyOu disturb the business relations OF
the country close manufactures, deprive aborers OF en-
ployment for a time until the business Of the country
can shift hands and be readiused and rearrangcd II
Won pass posonng resumption for two years and
then making absolute you produce the same result in
very slightly mitgated degree. Make the greenbacks
payable in gold in two years ana they will be at once
bought up and boarded by capitalists. To all who
derstand their value they would be worth at as
much as gold less years discount upon them, not
quite ~ per cent. Tie debtor class then
instantly suffer loss Of about q
per cent on SG.OOOcOOOO Of indebtment
loss OF taken from the debtor and given
10 the creditor class for whchit will be difficult To find
reason other than the true kncy rOiO The Same act,
national debt equivalent to 900 in gold, Tiso
at once IN value TO s250OGoo0o making an increased
volve the payment Of interest on amount OF additional
debt nearly equal 10 onr present greenback currency
adding nearly SlSoO0oO0 70 Our annual interest This
looks like sinking the ship and am afraid OF 1t. II Is
certainly better TO let the law OF trade regulate the
quences. and yet for time Rather bear the Ills we
have than fly to others" Of which know quite too
much 10 meet If We can avoid them
The evil must be very great that will Justify so harsh
rem edy. They loaned the United states very
large amount Of money, each hundred dollars OF which
ranged In value from little less than $40 to about $40 at
year interest, in gold for every nominal SoOmaking
the aggregate Interest on the whole debt when reduced TO
value OF abOut u per cent This debt, II we
compound the interest, which is the legitimate mode OF
estimating 1t, where paid punctuay for the interest
be at reinvested and made TO produce INTEREST,"
doubles every six years. Thus the purchaser OF Five
Twenties who purchased when tho currency worth
nifty cents the dollar. WILL when they become due. at
FOUR times the amount OF his original invest
elpai-Sx times the amount OF his Investment
IN ~ years. Thus long, l understand it "a
aud 10 the mean time resume specie payment that the
question OF specie payments may put out Of the way
disturbing element before Won proceed 10 fnnd e
debt Do this and there will be no Logger middle course
between reputation aud condition OF usury al which
Jast e VII WI revolt Hon put the nation al once IN the
p9",1 Vi ie creditor You longer hope To fund
~ less rate than six per cent gold our present bonds
nay H.,