Clarksville chronicle. (Clarksville, Tenn.) 186?-1872, 1869-01-08
THE NATIONAL FINANCRs,
senator Sherman's Funding Bill
Letter from Hon. Geo. III.
gl's VcuNlafOu

senator sherman's Funding Bill-
Letter from Hon. Geo. III.
Pcmd1eton.
Alex. J. p. Garesche, ESQ, of st
Louis, gives to the public the follow
Ing letter received in August last from
Hon. George H. Pendleton. Tn,
Question is as important now as 4
was then, and the publication of Mr.
Pendleton's views more appropriat,
from the probability Of their receix
ing a more candid consideration
than could have been expected In tn,
heat of the canvass:
MR.. PENDLEToN's LETTER.
CINCINNATI, August 4, 1s6s.-A,ca
=: n qdresche-MY DEAR Srs (
You ASK my opinion of the "fundinp
piii' L have not a copy before me
but 1 remember well its importan,
provisions. 1t provides for tie issue
OF two classes Of bonds, the one bear.
ing four and and n half per cent. I'm.
terest, having thirty years to run, the
other bearing four per cent interest,
In coin, and both exempt from mu.
nicipal, State and Federal taxation.
These bonds are to be exchanged fol
the present outstanding bonds OF the
United States, or they are to be sold.
and the proceeds applied exclusively
to the payment of such bonds.
Two observations ON this bill will
occur to every person:
First. 1t recognizes the right of the
government to pay five-twenfy bonds
I'm greenbacks. II those bonds ARE
payable In coin only, no man viii ex-
change them, bearing six per cent. in
terest, for bonds bearing ONLY four and
one half per cent; and 1t is equally
true that no man, having money to
invest, will buy those boniy, bearing
this less rate of interest, When every
day he can buy in the market the
hve-twenties, bearing six per cent.
interest, at the same rate.
The law will be utterly inoperatiye
unless the holders of the five-twen-
ties and the moneyed men are driven
to Invest in the new bonds bv the
threat that the five-twentles will he
paid In greenbacks, and not coln.-
senator sherman understands this
very well, and accordingly, when he
made his report last winter to the
senate, he asserted that this means of
coercion would be resorted to.
But If the five-twenties may legal
ly be paid In ereenbacks, It seems to
me that 1t would be madness to con.
vert them into bonds which must be
paid In coin. The outstanding five
twenties to- day reach about 81, 100
OOO,OOO. Assume they are payable In
greenbacks and 81, 700, 200, ,O6O in green
backs will suffice to pay them. Sub
stitute for them bonds PAYABLE only
I'm coin, and coin being, as IL IA drfofed
to-day, at 81 40, $3.50. .OOO. 600 in
greenbacks will be required for their
payment, and $3.50, ,O0O, 900 are TINS
added to the public debt. We are
told that the reduction Of the interest
Will compensate for this addition to
the principal. We will save one and
one,half per cent. or perhaps two per
cent. on 81, 200, 900, O6O-that Ia S25.-
500, 600, or, at most, s34, ,0O0, 900, aiiflii-
ally In the way of interest. Even
the saving of the larger amount
would not in twenty years exceed the
amount thus added to the principal. -
venture to affirm that no tjrtidelit
business man wotild make such ar
rangements i'm his private AFFAIRS
NO nation can make it and maintain
its credit. Interest eats up the pros
perity of the individual. It Is equal
ly fatal to nation. But as an Offset
to the advantage the people derive
from lower interest, we must remem-
ber that the government expressly
abandons the right to tax the new
bonds, which unquestionbly exists as
to the five-twenties.
Second. If the payment of the
debt shall be postponed for forty
years, 1t will become permanent in
stitution-it will never be paid at all:
1t will he permanent the as debt or
Great Britain. The same considera-
tions which now induce us to post
pone the payment for forty years, will
then induce us to postpone ft indefite-
ly. Times will be as hard, money
will be as scarce, the seductions Of
light taxes will be as great, and the
to "let posterity bear the
burden as 1t will reap the benefit of
the public debt" win be as strong rs
IL now Is. And, above all, we will
then have contracted the habit of be-
ing in debt, and of being satisfied
with the rayment of interest, and
this habit will cause us TO yield very
readily to suggestions whose force we
do not now Withstand. I need not
paiiit to you the evils of q permanent
public debt. They bear with crush
ing weight upon labor, and condemn
to a lifelong slavery. They
are the fruitful parents of corruption
ana despotism, see no redeeming
feature In this bill.
/ have said that its theory Is that
tile five-twenties are payable In green
backs. At the discussion In the Sem
ate, rs well rs before aud since, Sena-
tors Sherman and Morton ably MAIN
tanned this doctrine. Their ergu-
ments are unanswerable. They have
not been, and cannot he, successfully
As far as argument
can settle any question, they have
settled this question. / will do these
gentlemen no injustice. They main
tain that the government has the lc-
gal right to p0y these five-twentles
in grenbaclSs, but ought not to ex-
ercise Ii. Both gentlemen have
hinted that they might make an ex-
ception In favor Of enforcing the
funding" process, but they general
ly ignore that especial case.
agree with them that tho govern
ment has the legal right, and against
them / maintain that the govern
ment ought 10 exercise II. say, in
deed, that IL Is in duty bound TO ex-
crcise It; / say that it can not honest
ly and legally do otherwise. The
government Is only a trustee--an