New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-02-23

question. 1t thus discussed in the final hnanoial
report OF Hamilton, which may he not lnaptly es'l-
mated as legacy of dates the 10th and 2St OF Jahu
ary 1875 1T has been argued" he Observes that'
srrnosip, n steady preservation Of its faith by the
Government il is Indifferent to the creditor whether
his demand stands upon the basis OF an animal pro-
vision or upon that Of mortgaged funds This Is to
substitute theory for fact As well with regard TO
government as TO an individual, there Is, III the
nature of things intrinsic difference between the
value of debt bottomed on mOrtgaged funds and
that of debt resting on what is called in the one
case and can be called IN the other personal secu
rity The degree of this difference, and some OF the
circumstances on which it depends, may be different
in the two cases but the reality of its existence may
be denied in neither.
Government being administered by men, Is natu-
rally like individuals subject TO particular impulses
passions prejudices vices; of course to Inconsistency
Of views and mutablity of conduct.
kind of property Of which the essence is con-
tract must necessarily, therefore, be more or less
valuable because more or less secure in proportion
as il little or much exposed TO the influence OF that
Inconsistency or that mutability.
If provision is to be made by new resolution
every year. that resolution, being always liable to
momentary circumstances. is always casual
If made once for ALL it continues of course unless
revoked by positive act and has for that reason
moral certainty of stability.
But why, it might be asked, if disposition un-
faithful to the public engagements or unirendy to
the public credit should exist would it not operate to
produce a violation of provision made as well as TO
prevent the making of Onef
The twothngs are widely different To undo, which
is to act and in such case to act ch roience re-
ouires more enterprise and vgor. and preSupposcs
greater energy or stronger impulse than not 10 do or
TO forbear to act This is particularly true where
number of wills are to concur. Many men who VIII
not rOu,c TO the effort or encounter the responsibility
of doing mischief by positive acts. will readily enough
slide into it by negative conduct that is by omit
ting to act Many men, merely from easineSo OF tenn
per or want of active fortitude will sniler eVlI 10
take place which they neither deSironOr would them
selves commit In collective bodies, rocs are neces-
sary 10 action; absences may produce lRac''0H' IL
often happens that majority of voices could not be
had to resolution to undo or reverse anything once
done. which there would not be majority OF voices
10 do.
This reasoning acquires tenfold force when applied
TO a complete government like ours; that Is to u
government distributed into departments, acting
through different organs, which must concur to give
il rnoon as in our Constitution, the House Of Ecpre-
senfatires the Senate and the President
In delicate and difficult cases, whether to issue IN
good or ILL., suspension of action is far moIe natu-
raj to such government than action.
1t can hardly happen that all the branches or parts
of it can be infected at one time with common pas
sion or disposition manifesty inimica to justice and
the public good as to PROSTATE the public credit by
rcyoLing pledge given to the creditors. 1t is far
more probable that such disposition should at one
time possess one part, at another time another part
Possessing either part it might be sufficient to OBJ
struct a provision which was TO be made. Without
possessing all the parts, it cOuld not subyert ore
which had been made The last can scarcely be sup
posed except in one of those extraordinary crises Of
nations which cOnfound all ordinary calculations.
Hence the value of property in public debt which
rests Cd specified and competent funds firmly pledged
for the satisfaction of the creditor is ntrinscay
greater, and to a considerable extent. than that of
property in public debt which depends on annual
provision. Hence too, q creditor to whom such
pledge was not stipulated may be Justly said to have
received a compensation for the REIMBURSEMENT of
portion Of his interest.
From the year 1885, the fiscal condition of this
try was such that no provision for tho reimburse
ment of the small public debt was deemed necessary;
but the attempt to overthrow the Government Of the
United States in the interest of Slavery assumed
proportions which required the utmost cxortion of
all its herCulean powers.
In obedience TO ts great necessity. the nth Of
July. 1861. a national loan authorized. No pro-
vision was then made for sinking fund but. in the
following month of February an act was passed en-
titled San act to authorize the ssuo of United States
notes. and for the redemption and funding thereof
and for funding tho floating debt Of the United
States" BY its fifth section. the coin received for
duties on imports was to be applied after payment of
the interest on the bonds and notes of the United
IN tla has oT of nor
centum of the entire debt Of the United States to be
made within each fiscal year after the lst day of July
1862, which is to be set apart "a sinking fund and
the interest of which shall in like manner be applied
to the purchase payment Of the public debt as the
Secretary Of the Treasury shall from time to time
direct"
The state OF public affairs was regarded az such as
to dispense with the execution OF this important law
until the termination of the Rebellion; since which
time a fund of $2J7lG.0SO has been set apart as %
sinking fund with coin interest, and further sum
of ST. 36G 303 Sc has been invested in bonds bearing
o coin interest leaving an unexpended surplus in the
Treasury of $lIOOO0OOO. Trusting that no further
accumulation of SURPRISES which can be avoided
will be the policy OF tho Administration. and leaving
untouched the question of the proper distribution of
these existing funds. attention Is merely called to
the best mode Of carrying into effect the earyestab
lisbed and lOngapprOvcd system of American finance.
Different computations show that at six per ceut in
terest one per cent and small fraction will cancel
debt of 600 5000 in 90 years Can there be any
question that an appropriation and investment of the
proceeds of the stamp duties. rapidly as they must
increase ESTIMATED this year to amount to s2OOOOOO
together with the proceeds of the public lands (csti
mated this year at s5OOOOOO. will cancel the existing
debt several years previous TO the close of this cen
tuWf
A. 4. /. IL I'd anil
what reason is there why it should not be forthwith
odonted u tis first acp i'm fine right direct bcnp