The Evansville journal. [volume] (Evansville, Ind.) 1866-1870, 1870-01-14

Nothing but the menace OF pay
ment VIII induce the holders Of six
norAeent. bonds to surrender them
and accept a bond bearing a lower
rate Of interest. If we reduce the
revenue SC that it is barely adequate
to meet necessary expenses and the
accruing interest, the holder of a Eve
twenty bond will resolutely resist
every effort to induce them to accept
a lower rate of interest.
Our net Interest account, excluding
Pacific Railway bonds, 1925, 900 200.
The Government has -already bought
500. 000, 600 of its own bonds, the in
teFest of which Is paid to the Treas
urer, leaving our actual Interest at
/ about S120. coo, 900. The reduction of
the interest account, S13, 100000 a
year. will enable us, If we choose. to
make this the basis Of a sinking fund,
to pay the principal Of the interest
bearing debt IN thirty FIVE years, even
II we should reduce our revenue 10
the necessary expenses of the Govern
ment, and the amount needed to pay
the interest at the present rate.
That is to say, a saving of SlS,OOO,-
QUO annually 10 the amount OF interest
WILL in thirty five years, with the ac
cumulating interest. be equal to the
bonded debt of the United States.
Ought there then, in the presence Of
such a possible advantage. be any
doubt as to the wisdom Of maintain
ing u revenues at a high rate for
one or two, or even three years, If
necessary.
With a large revenue for three
years, the result Is surely accom-
plished Ia one way or the other. If
the public accept the new bonds at a
lower rate. the question is settled In
favor Of the Government. If they
decline the opportunity, the revenues
will liquidate the principal of the
debt, and the interest will disappear
proportionately. In either case the
country succeeds.
LII, however, we al once reduce the
revenues till they are sufficient for or
binary expenses, pensions and interest
on the public debt. and the public
creditors shall consequently refuse to
receive a new bond at a lower rate of
interest, what will be the condition of
the country thirty five years hence?
1t will have paid $4,000, 100000 of in
terest upon the public debt, and the
entire principal will be then unpaid.
Again. [ say it is not sufficient for a
nation that it is politically independ-
ent of foreign or hostile powers. Ii
IS not sufficient that the people are
all citizens-that they are free and
equal, or even that political power is
in Their hands. To all these must be
added national financial independ.
enee.
This America has not, this she car
not have until she diminishes per.
ceptibly her public debt, aud renders
its payment certain within a genera.
ton. | dare not cite examples, bui
the nations are many that are Grip.
pied in their policy and retarded In the
development of their industries by
the magnitude of their debts. Their
example should be a warning to US.
The public debt is the only seriou:
result of the war of any considerable
magnitude now remaining. But it i:
a result so serious as to demand some
present sacrifices for the future pub
lie good.
They are sacrifices, however, which
will not interfere with the general
prosperity Of the country. nor is the
%exigencY so exacting as to leave US
without the Opportunity Of relieving
from time to time those interests that
arc NEST heavily burdened.
On the one hand, by courage anc
the manful acceptance temporarily o.
a burden, considerable, no doubt, blu
not insupportable, we secure the per
manent propriety and financial indie
pendenoe of the country. On the
other hand, if we shrink from the
m mas aio III these eq d~ificnItieg g0a at '@ onc e
we increase the aggregate burders Of
taxation, and lease to another genera.
ton the completion of a work which
should have been exclusively our
own.