The Plymouth weekly Democrat. (Plymouth, Ind.) 1860-1869, 1869-05-20
Mr.. BOutwell's Policy.

AN examination of the market prices,
as quoted in Wall street, of tive-twenty
bonds and treasury notes, since both were
issued, will show that the difference be-
tween them has been merely the interest
on the bonds and the cost of converting the
notes into bonds There has been occasional
unimpOrtant fluctuations varying this rule,
but it has been generally operative. The
credit of the government has been the ba-
sis for determining the prices of each, and
the assumption has been that no policy
would be pursued that would discriminate
unjusrly between the demand notes of the
government, bearing no interest, End its
interest bearing obligations.
1t is possible that the purchase of five
twenty bonds by Secretary Boutwell, NAV
increase their price, without causing q
corresponding increase in price in green
backs. But If the credit of the govern
ment shall be advanced by the diminution
OF the principal and interest of the debt.
that advance must favorably affect the
national currency. Every dollar paid on
the debt is an additional assurance of the
solvency OF the government, and the pro-
portion OF decrease in the national indebt-
edness ought to determine the time for
resumption of specie payments
MIR. Boutwell, is, In fact, commencing
the payment of the bonds with treasury
notes. In this he is pursuing a policy de-
manded by the Democratic party, and one
which would have been inflexibly main.
tanned by large majority of the Repub-
lican party in the Western States, i'm the
Presidential campaign of last year, had
not this one question been overridden by
other issues Those issues will soon be
settled. They chiefly concerned the negro,
and, as the people are becoming tired of
elevating him to positions in which he
does nothing but make himself ridiculous
and work mischief, they are turning their
attention to political issues which directly
and greatly affect themselves.
MIR. Boutwelrs policy is an open and
positive trampling upon the humbug
which his party has created and circulated
about reputation. 1t is an assertion that
1t is not only the privilege but the duty of
the Government to buy its bonds for less
than their face If it can do so, and is q
positive contradiction of the doctrine of
the bondholders, that the Government
cannot, without dishonor, pay or redeem its
bonds in anything but coin at one hundred
cents on the dollar.
The explosion of this idea, and that. too
on the heels of the passage of Schenck's
public credit bill, will unite people of all
parties In the demand that the government
shall employ whatever advantage it NAV
possess in the privilege it has reserved to
itself of redeeming the bonds in lawful
money. This question will now assume
prominence it has not before attained !:
and if Secretary Boutwell, will but firmly
resist the pressure which the bondholders
are now bringing to bear on him, we may
hope that the interests and rights of tax
payers, as opposed to the outrageous ex-
actions of bondholders, will be regarded
by Congress next winter.
The amount of bonds which the Secre-
tary may purchase under the law provid-
ing for sinking fund, is disputed ques-
tlon. de assumes that he may buy an
amount equal to that which Secretary Nc
Culloch was authorized to purchase, and,