The Fairfield herald. [volume] (Winnsboro, S.C.) 1849-1876, 1870-01-19

: duce tho rate Of interest on our loan
lDy only one per cent we should there
by eifeetat once q saving of, over $50,
Vo0,O0Oa a year for the whole timo tn,
: debt muy run. Moreover, this pay
: ment ofthc bonds before maturity ga,
be made only out of surplus revenu,
.. that is to say, by keeping up taxatio,
TO q point far beyond the actual need
of the government.
We must not forget that financia
laws arc self-created out of The Or
onmstances o., existing at tho poriod
They cannot be constrained by legis
lation. We shall be most likely te
avoid trouble by seeking the natural
solution Of our present difficulty
which natural solution is, as it seem,
to me, that the powcr which issued
che irredesmablo paper, uadar whiol,
we now suffer, should get ready to re-
deem it.
,GoyERNp1ENT GOLD SALES. -
Spasmodio sales Of gold from the
Treasury impart no additional worth to
the legal tender notes. Confidence in
ability to meet obligations is the
only source OF solid credit as we'll for
the Treasury as for others debtors.
increasing public confidence in the
growing ability Of the Treasury to
meet the notes in coin would operate
not merely to affect, from day to
day, as those sales do, the speculative
Iprice Of gold, but towards the recogni
tion OF greater intrinsic value in the
legal tender; note, and so to make the
possible range Of gold speculation mar
rover.
| 1t is obvious that sales of gold out
of the Treasury cannot have the cffcct
of bringing legal tender notes actually
aud permanently nearer to the value
of gold ; for it would be absurd to
maintain that tho Treasury, any more
than any other debtor, can, by par
ting with coin, make its promises to
pay coin moro valuable. The Treas.
ury sales Of gold have simply tho cf-
feot which is always produced by
throwing upon any market supply Of
an article, for which. there IL, in that
market, limited demand. an debts.
with rare exceptions, being now pay.
able in legal tender notes, the need
Of gold for use in business is not gen.
eral, and therefore Che demand for IL
is confined to q few, apdis ayery. lin
fitod one., In; n Market SO situated a
very temporary and small over supply
may dep css it much below its true
and correct value as compared with
legal teuder notes, which depends
obviously ON the prospect of the notes
being paid. in coin. DerangemeEt Of
business is as certain 10 follow tho
artificial depression Of gold below this
true value as its elevation above it.
Suoh depression cannot be relied
upon as lasting; nor does It afford any
guarantee, against great subsequent
fluctuations. These Treasury sales,
while they do not Snsproge permanent-
ny the vafue Of the government paper,
confound the most prudent. caloule-
;tions OF business men. ~. L.n,e. 81
! 1 must not be understood as favor.
as any expansion Of tho legal tcnder
currency. The government cannot at
present pay the notes of this kind al,
ready issued. It would be utterly
upjassiSabbe to- pat cut any more Of
| them.
| FEDERAL TAXATION.
The federal Treasury is not warran
ted intaxipg the people to keep up ite
present enor reous serplus Of revenues
If the COUNTRY, can be kept in aypros-
porous condition every, year of its
growth will make the pa ylnent Of the
principal Of the dobt come easier. A
moderate surplus beyond the interest
on tho ,aebs and Inc expenses of gov,
Iternment is all that is desirable 0,
Inccessery to enable it to devote itself
efficiently TO ttsa great, imperative
1duty ofmaking its paper money good
Egej gejsREDEMrTiorstor OF PAPER MONEY. q
~ The moment the people see that tht
government, is getting ready to redeem
!, its paper by providing itself with Tho
! onl means Of doing IL tho apprccia,
4 tionsin' the actual value of the lega'
,tendes ,noteaTwills com nnanoe .syIt vii
sontinue,, and tho progress towards d
return of, specie ,paymepts will bs
jgradually steady and .oeftain. Th,
livery fact thatthe government is undo
ia, fixed tand stable, and not au exper
slimental and variable policy preparI
J. ling to redeem its gpapsr,, and viii
eoms day, announce its read iness 70 do
: would narrow the range Within whicl
,Especulation' ingoM would boi possible
Il The current ,gnIus of tha .note 60 In th,
: opens market will indicate whom th,
proper time he's come. for redemption.
shc gpyernmeht need not declare it il
advancn. tS"'E' "''' 1"<
!, r. Tae' aaoss ssS ere, ordel and 'fdinoss
II 'dmethaay ye6eentya ction would he on
!. Ithat should ippt the value, Of thes
npses, by,yeggfar, gssdetipRs 9ti . high
sr and, higher rate. frons daY TO da
1! 9or week ID week,' Dis IS sugg u By t6
VI President Of tho oUkitaa 2Statss /; d
D jtaqy paatboa by.whiek they should gB
l,.onupsFted or ax,ehan Vedy into issteros