The Morristown gazette. [volume] (Morristown, Tenn.) 1867-1920, 1876-01-05
"CONTRACTTON HICTORTOUS.r
WHAT IS INITIATION?

WHAT IS INITIATION?
The Sullivan Landmark, copying
our editorial of 22nd ultimo, headed
as above, makes the following pref
atory remark:
We clip the following from the
GAZETTE, of the 22nd. Whether the
GAZETTE is for unlimited imitation,
or not, we are at some loss to deter
mine. The article, however, sets
ont fully the real condition, not on
ly of the sections of the country of
which it speaks, but of the entire
country.
1t had never occurred to us before
that our position on the subject of
imitation had been left at all doubtful
or liable to be misunderstood. Lest
others may not have been able to
understand US, we will try now to
make ourselves understood.
If we are asked the question Are
you for unlimited imitation? Answer:
No. Are you for imitation to a linn
tied extent? Answer: No. The
word initiation, as used in regard to
the financial policy of the Govern
ment, is a falsehood on its face.
There can, in the very nature Of
things, be no such thing as imitation.
five mean by that term Jan extern
sion of the Governments credit-an
increasing of its obligations to pay.
The Government owes $2,10O,OOO,-
600. Ofthis sum $1.7OO.00O,O 900 in
round numbers is evidenced by in
terest bearing non-circulating prom
Uses to pay, and $4OO,OOO,000 is evil
denced by non-interest bearing cir
culating promises to pay, commonly
called greenbacks. Because there
is so much of the former class Of in
sdebtedness, our taxes are high. Be-
cause there is so little OF the latter
class, money is scarce. Suppose the
Government should convert $780,
100000 Of the bonded bebt into
greenbacl1s Would she be more
deeply indebted? BY no means.
Would she thereby be initiating in
the sense the hard-money party use
that term? Most certainly not. The
only result of such q conversion
would be, plenty of circulating me-
dunn in the country, and S30,000,-
900 less. gold interest to pay annu
ally. This we are for, because off
these plain, beneficial results. The
Government might make this con-
version by going into the market and
buying her bonds for greenbacks.
Suppose she did so by paying cur
rent rates, say about $1.15. The re-
suit would be 1915, 900, 600 paid out
in greenbaoks for $500. 100000 in
bonds.
According to all past experience
from to 10 per cent. (say 8 per
cent? of this would never find its
way back to the Treasury for re-
demption. The account would then
stand thus:
s4 per cent of $780, 600 900 lost $40 600 600
Interest year 500, 900 900 .-..-. 3OOO0,OOO
Saved ..................... SO 900, 900
So, at the end Of the first year,
even upon the basis Of buying bonds
at Sl15, the Government would owe
less by 100000. At the end Of
the second year the Government
would have $3O.OOO,OOO in gold in
Lhe Treasury to commence specie
And so on.
The hard-lnoney parry talk about
Such talk is false in
theory, as the above figures demon
strate, and the merest twaddle Of
set of demagogues. We repeat, we
are for more currency, because the
country needs it. But we are not
Ror Increasing the Indebtedness Of
Inc Government. We are for chang
no the character ofits Indebtedness,
BY some Just method, from bonds to
Instead of increasing, |
his gradually reduces the indebted (
less. Instead of depreciating. this
Inevitably enhances the value Of the !
Instead of postponing /
ipccie payment. this, in our judg- {
nent, i the only practical way that
.recie payment can be reached. with !
mt ruin 90 the country.
~ Congress reiassemblcs to-day. /