The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-09-29

interest Tor three months. at the rate OF five per
cent per annum, on 10000 zoo or o25 COO show
Ing q net gain to the Country OF s2I,3I5,oOc. This
estimate assumes that the new bonds are to be
paid In Ten years Should they remain unpaid for
When all the details OF these negotiations COM
pleted the new bonds issued ana the old ones re-
deemed. the way VIII be opened Tor presenting TO
capitalists in this country and IN Europe other por
lions Of the oaa and with the prospect OF complete
MSr Should It DC forgotten that all this is due 10
the burmese of the republican party to accept
,.r TUE DEBT As 4 n. e ~ The WAR
.'hu, wre,o., 49, ~ nc CONSIDERATION which
uie .nelt received for the bonds 10 look ony
" ..,e nature OF the obligation which the country
had assumed, and faithfully to perform it. II on the
! part OF the republican party there had been any
hesitation, If they had listened TO suggestions that
backs, the public credit would have been
st further impaired and the substitution OF
1t is worthy Of notice that The interest paid by the
government on the public debt Is the standard 1or
the rate OF interest throughout the country and 10
some extent throughout the world; for at the
| present moment rhe bonds Of the United States are
| negotiable at more commercial points outside or
| this country than the bonds OF any other govern
ment. THIS Is due TO the implicit faith OF the
| lions OF the republican party, ana sustained by
the evidence given In the daily reduction OF the pub
paired, and while we were Struggling to secure a
| financial position which would enable us to nego
uate bonds at lower rate OF interest. heavy tax
debt were not only desirable, hut even necessary.
IL was important TO demonstrate conclnsively not
| only the disposition but the ability OF the cOun-
try to pay the debt. Having reached that position,
| IL is no longer necessary to make large payments
upon the principal Of the public debt merely for the
purpose OF demonstrating ability dlsposi-
! ton; but it Is my opinion hat very considerable
| PAYMENTS ought TO be made for the purpose or re-
ducing the debt relieving the labor OF the country
| from tax burdens through many generations, or
| even through centuries and above ALL for the pur-
pose OF placing the nation in such position that In
an exigency large loans might he Obtained al home
or abroad. In my annual report for 1870 stated
that the public debt ought to he reduced at least
FIFTY MILLIONS YEAR,
and to that opinion adhere. And this can be aC-
com pished with such reduction OF taxes as win
meet the demands Of business and remove most Of
amendments made TO the internal revenue system
have relieved the people OF most II not ALI OF the
taxes really burdensome. Under that system there
SEVEN SUBJECTS OF TAXATION.
First, the income tax Of Two and half per cent
pires unless there further legislation In the year
1872. The other subjects OF taxation are stamps,
liquors. From all these sources 1t is expected that
about one hundred anu twenty-five million dollars
said that these taxes bear heavily upon the
people, or that they are an emoarrassment
considerable part OF the depreciation Of
United States notes was due TO the want OF faith In
country. The improvement OF our credit at home
and abroad has eliminated from the difference be-
god Sa and paper AL that was que to want Of
a difference still remains. That difference can be
overcome by one or both Of two means. One is to
await the growth OF the country until its demand
for money shall be equal to the volume now fur
nished. But 1t Is to be taken INTO account that the
increase of railroads and the facilities furnished by
the telegraph counteract the influence OF the growth
OF the country iDaSmuch as such facilities render 1t
practicable to DO given amount OF business with
less volume Of currency. There is also the adul-
tonal fact that the practice OF using checks aud
stantly increasing, and the use OF actual money,
either coin or paper, is In degree
though not prOpOrtiOnately, diminished. Still 1t
Ia IN or
rency may be continued, and with good harvesis
and general prosperity, the difference between the
value OF paper aud OF gold will annually decrease
Another course recommended by me in my annual
report Of December, 1869. Is to reduce
THE VOLUME OF CURRENCY,
for which then asked authority for an amount not
exceeding two millions OF dollars per month. II is
Of the President and Of those associated with him
In the administration OF the government, to do
what is practicable to render n the paper Of the
without yoeanSs 81 injury TO the business nereHts,
Of the country. The means must be left to
ion 10 the republican party, that the volume OF
paper money Is not under any circumstances to be
with the democratic party Of the country. Fnan,
'l@ Rssr sS OF GENERAL eSAsTs ADMINISTRATIONS
sold for SO cents in CON- are worth to-day about ST.
sS sold o per less than Is psr cent IN ac
worth about par in the markets OF the world More
public debt has been paid. The taxes have been
reduced at the rate OF $50 900, 900 year and our
financial condition at tins moment Is SUCH as TO JUS
tfy the expectation that at the next session OF Con-
gress they may be reduced at least $50 000 600
Further 5000 100000 OF bonds, bearing interest
the rate OF per cent, neing called n and in
their place an equal amount Of bonds, hearing In
terest at the rate of five per cent are to be issued,
making saving for the ten years OF more than
million dollars. The interest account has
been reduced about $15,0o00 600 year. The net ex-
penses, excluding the interest on the public debt,
pensions, bount,es the Of the Internal Revenue
Bureau, and all expenses resulting from the war,
ending June 3d. 1865 to $685. 1892 80 for the year
ending June 30, ISL, thus showing the actual cost
dred millions year. 1t Is due TO truth to say-and
" IS remark Of which our opponents cannot justly
cOmpain-that
In reference to the public debt mas had substantially
the same effect that was produced by their course
OF our difficulties in 1860 and 1861, the democratic
party as an organization had declared against The
the Union, it is probable that the war Itself would
not have taken place; or, II II had taken place,
course pursued by the democratic party led
the rebels 10 hope that they might accomplish
tneir purposes through divisions Ia ihe North; the
creased the loss OF life and augmented vastly the
Ppc dsS y not Saes snswsr 70 %
democratic party who gave themselves to the coun-
Try, who sustained the course Of the government
there were, but they did noe accept as the rule of
their conduct the policy marked out by
the organization. Since the close OF the war
one Of the The chief obstacles to the Improvement
OF the public credit has been the declared purpose
OF the democratic party to compel the holders OF
fve-twenty bonds to accept greenbacks IN their
place. coupled with the condition that the green
backs themselves might be converted al tile Will OF
the holders into new bonds bearing three per cent
interest But whether The interest Is to be paid IN
coin other grcenbacks does not clearly
appear. This proposition has prevented invest
menis in Europe, has lowered the character
been overcome by the close adherence
Of the government 10 the policy marked out by
President Grant in his inaugural, to the favorable
response which this policy has received from the
country and 10 the belief entertained In Europe
that there no probability Of the success OF the
democratic party III the coming presidential cleo
ton. The platform adopted by the Democratic
Convention OF ONO in the particulars TO which
have already referred seems TO disregard entirely
the supulations found in the act OF Feb
ruary rs, 1852, which authorized the issue
OF bonds and pledged the faith OF the gov
eminent I certain particulars. In that act IL IS
provided that the duties OIL imports shall be col
iected in com; that amount or that coin, equal
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