The Columbia herald. [volume] (Columbia, Tenn.) 1850-1873, 1869-12-24

Ss6Nsa s60Srpso5puisy at the Ship-
ping Interests Of the country be fostered,
not only - alof6egy 1bf sta1nea, but also |
- m essential agency In enabling the
Government to institute and maintain |
Bpeoie payments. II h IN interest, also, |
which, In its development, d - important
to the 6hteA and to the people remote |
from the - coaek - Il b 70 the maritime |
sections. Every addition TO our facilities |
for the export OF the products Of the int |
nor b = advantageous 10 the produce1
~ to the merchants and ship- builden OF
the coast. While / do not anticipate that
Il win be necessary to delay resumption
until cur proper commercial position
l. reeaired, I am atished that the de
vslopnent Of the navigation and ship
building interests win improve the credit,
and rapidly augment the wealth OF the
country"
!, Concerning the resumption of specie
payment the Secretary nys:
;, The suggestions that ] have made In
dicate my opinion that Il win mot be wise
to resume specie payment while % large
Q part Of the interest bearing debt Of the
country is represented BY fve-twenty
bonds and held BY European merchants,
bankers, and manufacturers. Questions
that have been raised in regard to the
nature Of the Obligation assumed by the
government In the issue Of these bonds,
have undoubtedly deferred many persons
from purchasing them Is permanent in
vestment, and consequently they areArge-
~ held in this country and Europe for
speculative purposes, By persons who de-
sign to put them upon the market when
ever an advance shall furnish . sufficient
inducement or when political or financial
disturbances may create q demand for
money for other purposes 1t is probable
that from seven to nine millions of these
bonds are now held in Europe, and, to .
considerable extent, by persons who will
not dispose of them under the influence to
which I have referred. Such panic a.
existed in Europe in 1886, 1t the opening
of the Austrian and Prussian, war,
would be likely to induce the re-
turn of sufficient amount to
this country for sale to embarrass busi-
ness, and, in case of resumption, to cause
the Suspension Of the banks. It il there
fore, in my Judgment, essential that the
largest part of the $50 bonds be with
drawn, and that other bonds be substituted
in their place, issued upon terms and con-
diticns which admit of no doubt In fine,
the practical question is not merely the
resumption Of specie payments. Az .
measure By ITSELF Il Is not difficult, but
the problem Il to resume under such cir
cumstances that the position can be main
tanned, not only in times Of tranquility but
also in peril Our course, it seems to me,
il plain. Every measure Of the govern
ment bearing upon the subject should
tend to appreciate the value of our paper
currency. II is probable that some de-
crease in the volume of paper win ulti-
mately be necessary, and therefore re-
specially suggest that the Secretary Of
the Treasury be clothed with authority to
reduce the circulation Of United States
notes in amount not exceeding 81, 000, 900
in any one month. Thus will the country
be brought gradually, it may be, and yet
without disaster, into . condition when
the resumption of specie payments will be
easy, il not unavoidable.
"When the credit of the country shall
be fully established in Europe, and there
shall be no doubt either Of our ability or
disposition to meet all OF our obligations,
bonds, heretofore, and now, to . large
extent, held by merchants and bankers,
will b transferred to capitalists Tor per-
manent investment When this change
shall have ia ken place the probability Of
our securities being sent home under the
influence OF political or financial disturb
ances in England will be very light, and
when, as . concurring fact, our exports,
exclusive Of public securities, shall be
equal to our imports specie payments
may DO resumed without even temper
AIRY embarrassment to the business of the
country"
Mr.. Boutwell, cites attention to two evils
In the present banking system, the same
As noticed in the report Of the Comptrol-
Ter of the Currency-the first that of the
banks allowing interest on deposits, and
the second, the practice of making call
loans for speculative purposes. 1t does
not seem to him to be wise to authorize
the funding Of the whole lamount of $40
bonds,Which - is now anticipated, WILDE
outstanding on the LIST of July next; but
that $2SO, 100000 at least should be sui
fered. to remain, either for purchase or
redemption previous to 1874. Should the
sum of $250, 000, 900 be left for that pur-
pose, the entire public debt would be in .
condition to be easily redeemed between
1874 and 1881. The 1910 bonds could
be paid and provision also be made for the
redemption of the bonds which will be-
come due in the year 1881. 1t may be
wise to reduce the proposed loan to $1,-
000, 000, 900, which would then leave for
payment previous to 1881, the sum Of
about $670, 600, 900; or hardly more than
$00, DOT, 900 . year. Assuming that the
loan will be for An amount not exceeding
81, zoe, OOO, 900, he recommends that it be
! offered in three classes, of 500. 00O, 900
L onk h ola &c, 1o -, 4
years. and to be paid in 90 years; the
in % years, and to be paid in Is years and
in IS years, and to be paid in 80 years.
In Offering the new loan, citizens and
subjects of other governments should re-
csive the strongest assurance that the in
tsrest and principal are to be paid in coin
according to the terms Of the bonds issued,
without any deduction or abatement what
ever.
When the $40 bonds shall have been
funded to the amount of 81, 0O0, 000, 900 OF
| 81 200 ,0oo, 900, the revenues can be re-
duced materially, and yet sufficient sums
be raised to meet the ordinary expenses
of the government, to pay the interest on
| the public dsbt, and also to pay from $685.
900, eco to $50, 000, 900 of the principal An
nualy.
Should the success in negotiating the
loan b equal to the Secretary,s expects-
tons, based upon the fact that the ability
and disposition Of the pes pie of the
United States to pay the public debt ere
sufficient to justify rs in assuming that
| the bonds Of the United States viii COM
mand the highest rates in the markets OF
| the world, we shall then be in Q condi-
ton to enter upon the work Of reducing
taxation 1t the commencement of the
| next session of Congress
On the LIST of December, 1859, the prin-
cipal of the public debt of the United
States, not deducting bonds and cash on
hand, amounted to q, e06, 2S6. 1882. Of
this amount the sum of $3.50, lis, 1855
Il represented by the note bearing interest.
The larger part of this il needed for circu-
htion, bat the amount can be reduced from
the ordinary revenue of the country, If
Congress shall consider it expedient to
make provision for such reduction. The
fractional currency in circulation was $38, )
| 665, 1884 go, and there is no occasion for
any legislation in reference to this item of
the public debt There were outstanding
also certificates for gold deposited in the
Treasury to the amount Of $50, 49,, $40.
These certificates are redeemable on
presentation. These three items amount,
in the aggregate, to $4S1, 1851 ,783.18, and
in making provision for the public debt
they are not necessary to be considered.
OF the loan Of January 1, 1851, the sum
Of $7,022, 900 Is outstanding and payable
on the list of January, 1871. The loan of
1874 0f E40 no mn Il Y,avah1o in 1879