Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-07-15

his last report, Nov. !, 1878, says
Tnere has been large falling OF n the re-
seir5ts, amounting to So go 76407 ON customs.
sgold,l and to si6,9i2' so55s on Internal revenues
He adds:
Either taxation must be increased. an expe-
dent that can hardly be thought OF, or apprO-
nriatiOns must be kept largely below tine re-
ceipts Otherwise the rapid reduction of the
puhlie debt will be arrested, II not abandoned.
20 t sin he seen. tjrst tbe Treasurer is
already pushed to the 6aii. He c5n sec
lint two alternatives for escape-taxaiioE,;
or retrenchment.
The Treasurer ineiin to retrenchment,
the President 10 ta1aiiOn and bonds. 1t
dSniiot. be disguised tlidt ail the teiid9ns Of
! o,ir revenue AID financial Sfsfcfris nc n0V
strained un. il they are ready to snap. .
things now stand, our Government can do
nothing but nibble off the excrescent in
forest Of the public debt, and TO do this it
| t,as IL p,iSR the filters pf its yeyenBe sys-
tenn into the pockets Of all the people ii tiis
land. except the bOndhOlders who must be
protected, like Goshen amidst the plaques
of Egypt, though famine may smite the
test OF our land.
SoH we Are PREPARED 10 asseft that if tbs
quality OF obr legal1eiider notes is not
e;ual 10 gold tile fault does hot lie at the
| door Of tile people. II our ettrreiicS de-
| parted from It's FORMER unit o. valu5-th0
| cold dOllar-it was done by the force of
| law. Ii il was increased or contracted in
quantity il was by the act Of the Govern
ment. IL gold has become scarce by leay-
| Ing the collnlrT; y Wss not expelled 10y the
| inferior paper CURRENCY as soiile Iiay think
but 1t went at the bidding Of the Govern
irient. SGr vas It deprecated by any dis
trust of the pubic credit, for the legal-teT;
ders stand on the same credit with the
public bonds, which are the equal Of gold
| in the market. So that our legal-tender
urtes we're necessity. and not enough of
them at that by large ainOdLi, e think
L demonstrated in my former speech. The
Only difference between them and the bonds
is that the Government pays a Semi-annual
/ gold Interest ON the bonds aud none on the
notes. IF they were made TO bear an equal
| Interest with thu bonds they would Instant
IL spring 10 the bond value arid disappear
| from circulation and be hOarded with the
bonds. Or if they should be made con-
| vdrible into bombs bearing 4 like rate Of in
tereSt, for the same cause they would dis
appear from circulation. The only way to
keep them in free circulation is to pay no
| interest on them. nor to make them con-
yeTtibie into int est bearing bonCs 70 tempt
| tle Cupidity OF Tho -hOaT,leT,
To the extent of our legal-tender Holes
the people would be sure of a currency and
without taxation FORTS use. On the COLI
tary, to hare them absorbed in sOld-bear-
iAg interest bonds it would not only aid in
shrinking the whole value of the property
and productions of the country to a gold
basis, but il would require an annual tax Of
s30.OO0,OO0 in gold to pay The interest
alone on the bonds substituted IN their
place. What imaginable profit can il he to
the people to get rid Of the present dill-r-
ence between gold and greeubaeks, il il not
only costs them a general loss on all their
pr, auctions and property but the paylEen.
Of S2O.OgO0lO annual taxes in gold for
years 10 come? In fifteen years the inter
est alone would cost the people S3OO.0CO,OO
in gold. And TO add 10 the injustice and
| folly Of such a scheme. il would, perhaps.
| open another financial O-iiice for the outflow
of our gold to Foreign CJ'urtriss. TO con
| vert them into gold bonds IL would not only
shrink tie whole value Of the property and
| productions Of the country, TO that extent,
| TO the gold basis. bat it would also require
an annual tax Of twenty millions in gold
to pay the interest on the bonds substi-
tuied in their place.
| II, then, the Government has not been
| able to raise more than enough gold from
| its revenue laws 10 pay the interest and /
| per cent. per aunun sinking fund on the
| public debt. and now, for the want OF gold
| to redeem the legal-tender notes according
TO the proposed plan. would be forced to
/ make gold bonds 10 raise it at the expense
Of S2O,OOO.OOO per aRi,um Interest, it be-
| comes too plain for argument that after the
| Government has thus taken the lions share
| there would be no gold left for circulation
among the people, and no. enough left to
| furnish a pretext for specie payment b. our
| national banks. Should the banks attempt
| it, the experiment would I've as pitia5le a.
the specie resumption Of Secretary Rich
| ariSOn.
Then what means the clamOr Of the
| President and the cOntractiOnists for re-
ducine our currency to a gold basis? IL
means that the legal-tender notes shall be
| converted into gold interest bearing bonds:
| il means more debt and More taxation.
| Such is the drift of the currency bill which
| recently passed the House, as well as the
amendments 10 it reported by the confer
euce Of the two Houses. Sections { and
Of the amendments proposed by this con-
ference report show the manner in which
| the legal-tender notes were TO be dis
posed Of.
Sec. :. That the entire amount Of United
States notes outstanding and in circulation at
/ any one time shall not exceed the sum Of S3s2,-
| uuO,010 which shall be retired and reduced in
the following manner only, to-wit: within thirty
| DAYS after circulating notes 10 the amount Of
Sl,s0,OuO shall, from time to time, be issued 10
| national banking associations under this act IN
| excess Of the highest outstanding volume there
OF at auy time prior 10 such issue, il shall be the
| duty OF the Secretary of the Treasury 10 retire
an amount OF CHited states notes equal 70 three
tIglthS OF the circulating notes - issued. which
| shall be i'm reduction Of the maximum amount
Of S3s2 OdO,Ou fixed by this section; and Such re
ductiOn shall continue until the maximum
amount OF United States notes outstanding shall
be 10000 ,Oo0, and the United States notes %
retired shall be Cancelled and carried to the &C
count OF the sinking fund provided for by the
second clause Of section OF the act approved on
the 18th Of February. 1862, entitled can act 20
authorize the issue Of United States notes and
Tor the redemption and funding thereof and Tor
funding the floating debt of the United States,
/ and shall constitute a portion OF said sinking
fund And the interest thereon. computed at
the rate Of per cent, shall be added annually
| - said sinking fund But II the surplus revenue
he not sufficient for this purpose, the Sec rotary
OF the Treasury i hereby authorized 70 issue
and sell at public sale, after ten DAYS notice OF
the time ana place of sale a sufficient amount
OF the bonds OF the United States of the CharaC-
| ter and description prescribed in this act for
| United States notes 10 be then retired and can
| Crltd.
Sec. 8. That ON and after the LIST OF January,
| ISIS any holder OF a United States notes to the
amount OF So or any multiple thereof, may
present them for uaymeut 81 the office OF the
Treasurer OF the United States or &C the Omce
| of the Assistant Treasurer ut the city Of New
York; and thereupOn lac shall he entitled 70 re
ceiyr at his option. from the Secretary Of the
Treasurer who i authorized and required u -
sue in exchange for said notes, an equal amount
of either class OF the coupon or registered bonds
Of the United States. provided for IN the hrst
section Ofthe act approved ON the 18th OF July
1870, entitled IAN act 20 authorize th' refund
ing OF the national dubt.' and the act amenda-
tory thereof. approved the 9th day Of January.
ISL which bonds shall continue N De exempt
from taxation n provided in said act; Provided,
however. That the Secretary OF the Treasury
i'm lieu OF such bonds. may redeem said notes IN
the gold coin of the United States. And the
Secretary OF the Treasury shall reissue the
United states notes - received either IN tN-
change for coin at par. or. with the consent OF
the holder. i'm the redemption Of bonds then IT,
deemed at par. or in the purchase OF bonds NJ
| not less than par. or TO meet the current pay
mentS for the public service, and VIXEN used 10
meet current pay InentS an equal amount 81 the
GOLD ia the Treasury shall be applied IN redenp-
fion OF the bonds known aS iyc-twenty bonus.
Now. permit me to uncover one of the
most GINNING devices for additional taxa
ton hidden beneath the drtful phraSeOlO- Y
of the seventh section.
Eishty-twO millions Of lesal-tender notes
are 10 b. retired and Cancelled and carried
HI