The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-10-12
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BOUTWELL, ON FINANCIAL HONESTY.
From the NJ Y. Tribune
Mr. Boutwell's speech in Philadelphia in
culcates two principal lessons 1. That hon
esty in dealing with our national finances is
tbe best policy; .. That it is perfectly easy.
There is no way of dodging our obligation to
nav the debt principal and interest, in coin or
lis equivalent, according to promise, unless
we are prepared for straightforward repudia-
tion PAYMENT in greenbacks is not payment
at all; it is giving promise to pay in exchange
for another promise, and imagining that by
that easy process the whole score is wiped out.
Our bonds call for payment at q certain date;
suppose when the fixed times arrive, instead
of paying them we hand our creditors
preenbacks, which are mere promises to pay,
ut some future day not specified, bearing no
interest and having no intrinsic value?
OF course, the moment this scheme is adopted
the bonds depreciate in value. But the bonds
are the foundation of the entire banking busi-
ness of the country; they are the securities of
the national banks and savings institutions.
Whatever lessons their value shakes the credit
of the currency which is based upon them,
and the greatest sufferers will be the savings
banks in which the working classes have de-
posted their surplus earnings. Moreover,
when we come to exchange those bonds for
greenbacks we must create an immense over
issue of currency, and So depreclate our paper
of these disasters Not the rich, for they will
make haste to exchange their bonds and cur
rency for real estate and other species of pro-
perty; but the poor, whose savings will be lost
by the failure of the banks, and upon whom
the distress of high prices will fall with un-
usual severity. Nor is this all. We are now
paying to European holders of our securities
a much higher interest than they can get at
home If we continue paying off our debt
nd ou xryao ora 1nip
there is little doubt that we shall be able to
fund large part of it at four per cent, in
stead of six, and foreign capitalists as well as
our own people will gladly take it at that rate,
in view of the certainty of prompt payment of
principal and interest. By this means Mr..
Boutwell, estimates that we can save annually
from SIS, ,000 900 TO $25, 600, 900 of interest.
OF course, if the Packer and Pendleton policy
is to prevail, we cannot hope to carry out any
such plan as this; our bonds will be thrown
upon our hands as fast as the European
holders can get rid of them, and instead of
funding at four per cent, we shall hardly be
able to sell them at all. Pennsylvania will
consider carefully, we hope, before voting to-
day, whether it is worth while to have
MIR. Packer for Governor at an expense to the
country of $25, 900, 600 year.
Not only is a strict performance of our obli-
cations the cheapest thing we can do, but it
is SO easy that the wonder is how any honest
man should try to escape it. In 1901 our
debt amounted to 1873, 100000. Our popula-
tion at that time was about 3,000 900, and
the value of property in the country proba-
bly, did not exceed 81 800, 600, 000 Yet by 1886
that debt, and the heavy cost of the war
of 1912, also, were practically extinguished,
only $300,S00 remaining due, SO that we
actually distributed our surplus revenue
among the States. Now we have O popula-
ton of 40, 600, 900, and $50, 900, 000 900 worth
of property. With debt of SS3, 800, 900, 600 at
the close of the late war, we were therefore far
less heavily burdened then we had been at
the beginningof the century. To express it in
figures, in 1901 we owed 81 on every $1S of
property; in 1865 we owed 81 on every $l4
and considering how enormously the produc-
tion of wealth has been facilitated within the
last fifty years by labor-saving inventions,
this is actually difference in favor of our
present situation. In four years we have
already reduced the debt to So, 400. 100000,
and during the seven months of General
Grants faithful and economical administra-
ton the reduction has been no less than
$57, 900. Under the present system of
taxation we can pay off 800, 000,0 900 year;
that would extinguish the debt in fourteen
years. If we reduce taxes and pay off
$50,000,000 a year, we shall wipe out the
whole interest bearing debt in twenty-five
years. How, then, can there be any hesita-
tion as to our proper course?
We do not suppose the elections to-day will
actually direct the financial policy of the
United States. Even the triumph Of Packer
and Pendleton would not insure the adoption
of the greenback heresy to which they bave
given their influence But the immediate
success or long postponement of the plan for
saving $25, 200, 900 a year by funding part OF
the debt at per cent. does depend upon the
prompt rejection by the American people OF
IL ,l.N.
good faith of the nation shall be kept invio
late. Mr.. Pendleton is a very accomplished
gentleman; Mr. Packer is substantial citizen
but we can't afford to have them for Cover
nors of Ohio and Pennsylvania at a cost o.
$25, 100000 year.