Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1870-09-07

debt, less cash in Treas, was s2i25, As, ,260 D
] ON the LIST Aug, 1870, the pub
] lie debt, less cash in the
treasury, ,W1s...-.------.------. 2,3o9 =. .yIo y
Showing a net decrease Off,. sl56, ,lSS.7 .7Si O
This result has had no parallel sine,
| the war. 1 have shown you the in
comes and OutgOes, the surplus, anC
what has been done with it. If thil
management Of the peoples money
has not been wise and honest, pleas
show me an example of administra'
/ tive wisdom.
] 1t is a peculiar Characteristic of the
American people that they are restivS
under debt. and are willing to make
great sacrifices to reduce and liqui
date all their pecuniary obligations
European writers have frequently
noticed this peeuliarity, as it con.
trasted with the disposition Of Othel
nations to reduce taxes rather than
debts. The London Times recently
said that nations, like families, have
skeletons in their closets, the ghastli.
est of which are their public debts
If an Englishman sees a statement
of the British debt once a year, il is
because he makes special inquiry at
the proper Office. The payment OF
the principal has almost ceased to be
a subject Of discussion. But" con-
| tinued the Times, "Our American
cousins have a strange fancy for eX-
amining their skeleton. They bring
! il out Of the closet once a month,
weigh it and measure its exact size,
and publish il in every hamlet. Its
decrease is the glory Of administra-
tions and the pride of the people" l
rejoice that this is the spirit Of our
people; and 1 hope that a substan-
tial reduction of the public debt each
year will be our fixed policy. But l
do not believe that theindustTy Of the
nation should be taxed to make the
reduction so rapid as it has been dur
ing the year and a half. The great
reduction of wealth caused by the
war; the great strain to which the
resources Of the people were subjected
during the war and since, make it
a matter of wise economy to Tighten
the burden as much as possible, and
allow industry to recover its tone.
Again, we are gradually passing down
from the high prices and quick gains
of the war, and taxes should be ad-
justed to the new conditions.
GREENBACKsNs. THE BANKS.
The issue of greenbacks would ut
terly fail to meet the necessities Of
business, which requires credit as well
as currency. There are still graver
difficulties in the way. Under the
late decision of the Supreme Court Of
the United States, not one dollar of
the new greenbacks would be legal
tender for any debt existing at the
time of their issue. Indeed, the plain
inference to be drawn from the opin-
ion of the Court is that the whole
issue would be declared uncOnstitu-
tiOnal. Treasury notes were made
legal tender only as a measure of
overwhelming necessity to meet the
demands of the war. Even those
Judges who dissent from the opinion
of the Court, defend the issue of the
legal tender notes only as war meas
ure. And yet the Democracy propose
to plunge the country into all the
legal difficulties which are sure to
arise out of a new Issue.
The proposed issue would so depre-
eiate the value of the greenbaeks now
as greatly to derange busi-
ness and indefinitely postpone the
return Of specie payments. As the
banks are now organized, the chief
strain will fall upon them when re-
sumption takes place. They are re-
quired to redeem their own notes
In greenbacks, and must, therefore,
march abreast with the government
IN the approach to specie values.
The Democracy propose to abolish
The banks Immediately, and leave
The government to carry the burden
alone.
The mates of expense is also wor-
Thy of consideration. Some people /.
seem to think that the abolition of |
lie banks would abolish or cancel the |
$3.50, 900, 900 or bonds on which they |
ire based, or would at least cancel the |
interest on the bonds. This is, Of |
,Ourse, a mistake. The stockholders !
II the banks own the bonds, and 4
hey would still own them and would /
iraw interest on them the same after 1
IS before the abolition of the banks.
The Constitution does not permit /
he State or local authorities to take
he bonds as such nor is the prinei-
)al of the bonds taxed by Congress.
But the $3.50, 600, 900 of bonds that 1
bank capital are taxed by
be State in the form of bank stock,
nd Congress taxes banks directly in
many ways.
During the year 1869 the banks
aid taxes as follows:
o the United 029 $50
% the several Statea.--..--.-----.-...... SgT27ll
Making total tax OO2 6ss
lr four and one-half per cent. on
heir capital.
This nineteen millions of revenue
would be wholly lost to the nation
nd TO the States by the abolition of
he banks.
But fellow citizens, this topic is too
important to be dismissed without
in still another direction.
T the immediate repeal of the Ma
ional Banking law would cause no
evulsiOn in the business of the cOun-
ry; il there would be no loss Of taxes
" it; if there were no constitutional
bjectiOn to an additional issue of
800, ,0O0, 900 of legal tender notes, and
10 violation Of plighted faith in it;
should insist that this proposal Of
he Democracy is most unWise, and
IS adoption would be extremely dan
erOus.
1t would be unwise, because a cur
ency of Treasury notes has no power
o adapt itself to the wants of trade,
which vary from year to year, and
rom month 70 month in the same
ear. An amount of currency amply
efficient for the winter and spring
light be wholly insufficient for NOV
az the fall crops. Any fixed amount
night be insufficient at one time and l
sdundant at another. On the con-
rary, the currency and credits af- !
)rded by the National Banks are /,
sgulated by the wants of trade, and !.
lcrease or diminish in amount ac- ]
Ording to the fluctuations of busi- :
ess. Its adoption would be danger ;
ls in the highest degree, because of
ne great temptation il would offer to :
ongress and the President to increase :
he volume Of currency in place Of :
Yying taxes. Suppose that Just on r
le eve of an important election, J
4 administration finds a large def =
ency of revenue and to meet the !
ants of the Treasury, new taxes
Iust be levied. VIII they be likely =
resist the temptation to print a few {
Iillions more of Treasury notes to r
de over the election ? Who does not :
e that this policy would place the q
hole business of the country, the 4
llue of all contracts, the cost OF liv- :
g and the wages Of labor at the 4
ercy Of partizan vote Of Congress.
OF myself. dare not trust the great
dustrial interests of the country to
ch uncertain chances. P