The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1871-08-24
NO HERITAGE OFDEBT


Ewing addressed large Democraticmeet-
ing in front of the State House this eve
ming. The speech was very long and dis
cussed the new departure. Kuklux law,
tariff law and land grants. The following
is what he called Democratic finance new
departure, from the whole system of f.
nance. past, present and to come, adopted
and proposed by the Republican party:
The Democracy of Ohio announce a new
departure on which they will relieve the
people of much of the burden of taxes,
leave no heritage of debt to oppress and
enslave our children and so establish and
regulate the currency as to greatly reduce
interest and thus distribute the net IN
crease of wealth fairly between labor and
all forms OF capital. They propose the
general government shall furnish all mon
ey of the people in an issue which shall be
a legal tender equally with coin, for all
public and private debts whatever, except
where the contract expressly calls for
specie, and with it redeem the five-twenty
bonds; and to prevent an undue suspen-
| sion of the currency, issue a three per
cent. bond which shall be exchangeable at
par for the legal tenders at any time, and
into which the legal tenders, at the option
of the holders, at any time, shall be con-
verted. 1t is not at all likely that the
currency would fall so far below par or
gold, that any bond would be redeemed in
less valuable currency than that given for
it. If such instances occur, the hardship
will not be great however.
Take the bondholders of 1864 who, ac-
cordipg to Jay Cooks tables, gave little
less than forty cents in gold for their
bonds. They have already received six
per cent. on their investment and got the
principal returned to them, and still have
the bonds. So if the currency, In which
the bonds are redeemed, were to fall even
to sixty cents In gold on the dollar, which
is not to be anticipated, these gentlemen
will not have suffered much by their self.
sacrificing purchase Of bonds at forty.
/ know whole families who have suffered
more by the war and by the legal tender
act. But there is no probability that thi.
policy will depreciate currency at all fol
any length of time. But 5-20s have beer
below par IN Europe, not becauseo of lacE
Of faith IN the resources or stability of oul
government, but because it Is well known
that the people regard them as Justly pay.
able in greenbacks, and that our necks are
not yet callous enough to bear whatever
yoke our agents put on Us.
The credit of Great Britain ceased Wher
she compelled her creditors to take thres
per cent. for bonds bearing a. higher rate
of interest, and if we IN strict accordance
with our contract make our debt easily
supportable and therefore sure to be kind.
ly borne, our bonds viii have the value
denied to those compounded of repudia
ton and extorhon.
The effect of this system when outstand
ing notes and bonds are all converted By
payment or purchase into three per cent
legal tenders, will be first to give us cur.
rency superior to any we ever had in thest
important points.
1st. 1t will be legal order for all pur
poses whatever; it will pay every debt
taxes, and in fact buy every commodity
and rule every money transaction with the
power of gold
2pd. It will be stable currency, il
constant convertibility into bonds bearing
fixed interest will give both it and thu
bonds value as stable as that of the
consols of Great Britain. This quality be-
ing obtained, it will be of far more import
ance, so far as the adaptability Of currency
to all uses of the people goes, whether {
dollar Of it will buy exactly dollar O
gold, than whether it will buy exactly {
bushel of wheat. Gold will remain a.
now, mere article of commerce and of NJ
more influence on commerce than any
other article, as its measure of value II
about half the countries with which W.
trade. If the American measure of value
the paper dollar and the English, tn,
pound, keep about even proportion to eacl
other as they do now, our foreign trad
will not be injuriously affected by the fac
that the measures are not the same an
more than our trade with France in silk
is affected by the fact that our measures Q
length are not the same as hers and If on
legal tenders and the English pound
should vary in proportion to each Other
such fuctuationS affect chiefly our forsig
trade, which is not one-fiftieth part q
great as our home trade. But if we ha
currency redeemable in specie as the Re
pubhcans propose it would be incessantl
expanding and contracting, not becaus
of the fluctuations of the business it
used to transact, but because of the ez
: port of our gold to settle adverse balance
of our foreign trade. The whole super
structure Of domestic business would thu
be incessantly racked by the movement
of the foundation.
Sd. 1t will be an elastic currency, cor
tracing and expanding, to fit the fuctu
ating demands of trade. At seasons whe
large amounts are needed, the bonds WI
be converted into currency to meet Il
!, demand and as that fall off the surplr
will be re-converted into bonds. 1t wi
:, always be sufficient, never excessive.
D 4th. 1t will establish a moderate an
: nearly uniform rate of interest. As niue
will be used at once as will command II
g vestments preferable on the whole to Il
0I government three per cents. It will thI
: establish average rates paid by businei
0 men at about five per cent. instead of niI
= as now. Once establiseen these rates WI
D be comparatively uniform, because as the
8 tend to rise, more currency will be issue
0 and as they tend to fall, more will be e.
2 changed for bonds.
% Let Us see the effect of this policy
i lessening the burden of the debt, assun
3 ing that it will take one million of Gu
i rency to reduce the interest and meet Il
% frequent demands of trade. The peop
n will then pay forty-tYQ million dollars i
B terest instead of one hundred and thir
7, millions in currency as now. The curre
o cy will increase probably in equal rat
n with the population, say two and q b.
% per cent. Of twenty-five millions of dolla
% the first year. If the people pay the i
q, terest Of the bonds and apply the natur
o growth Of currency to extinguish the pm
acipal, the whole debt will be paid in abo
Sirty years or if they apply the natur
! -, Vbh of the currency to the interest
! g. Ids, the whole burden of the de
|. Ill he !. US the first year than the burd
Z Of tbe nres. ut national bank subsidy alor
! and fbSs iner. use of the currency. to ks
! naca With the in sreaslng population, wi
IN few wears pa y all the interest Al
0 | Gradually extinguish the principal.
{ But We will be told tlSe legal tender "
D be a debt outstanding Eh,@ Al the Don
q are paid. They viii Be no ot>pss 10 pro-
/ er sense of the word. The eNoyernme
q | will be bound then to do what it aiWa
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