Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1878-10-25
From the st. Adams Messenger, Dec. C, 1851
National Debt, Currency and Taxation.
ST.. ALBANs, W., Dec. 3, 1867.
Hon. BENZ f. BUTLER:

ST. ALBANs, W., Dec. 2, 1861.
Hon. BENZ. F. BUTLER:
R:-Allow me to express to you my thanks
for your very able speech upon the debt and
currency question, and permit me to make
few suggestions for your consideration.
That Congress authorize fifty year loan
of fifteen hundred million dollars principal
and interest payable in gold, free from all
taxation, with interest payable semi-annually
at four per cent. per annum.
Authorize the withdrawal upon just and
equitable terms of the national bank circu-
lation, and the substitution of illegal tenders"
Authorize the issuing of illegal tenders, in
the whole, to the amount of one thousand
million dollars.
Authorize any creditor of the government to
exchange his evidence of Indebtedness for the
four per cent fifty year coin loan at par or
take his pay at maturity of debt in illegal
tenders"
Pledge the receipts from duties upon i'm
ports Ito be collected in goldD for the payment
OF the principal and interest of the four per
cent. fifty year coin loan.
Provide by law that whenever there has ac-
cumulated in the treasury one million dollars
In coin over or above the matured coin liabili-
ties of the government, including the half
yearly interest on the coin debt, that the sec
Rotary of the treasury shall purchase in the
open market one million dollars of the four
per Cent. bonds and so continue till the debt
paid: Provided that if the coin debt is
being paid faster than the interests of the
country require, duties can be reduced or
wholly taken from tea, coffee, and raw mate
rails that enter into manufactures.
To provide for any possible redundancy of
the currency that might ensue from the issue
of one thousand million of legal tenders, and
to equalize the currency to the legitimate
wants of the business of the country, huctu-
ating in amount as it does, from time to time,
according to the activity of business, the
amount of the product of the country to be
moved, and the price it brings.
Authorize the sub-treasurers or assistant
treasurers in all the principal cities in the
Union to receive on special deposit legal ten
ders in amounts of one, five, ten twenty, fif-
ty, and one hundred thousand dollars, and issue
certificates therefor, payable on demand at the
place of issue, in currency, with interest in
currency, at five per cent.
The government furnishing this currency,
thereby saving an equivalent amount of in
terest, can well afford to allow interest on it
while withdrawn from circulation.
The plan of special deposits of currency and
the issue of interest bearing certificates | re-
gard of the greatest Importance, for many
reasons, some only of which l will state here
It is we'll known that when business is dull
money accumulates in large amounts in the
commercial centers, and those in whose hands
it is, desire to make something from it. Le-
Ultimate business does not require its use. 1t
is offered ION cal" at low rate of interest,
and is loaned, and is used for speculative pur-
poses Sooner or later the wants of legitimate
a lrata of
interest in the locality. The banks and deal
ers in money attempt to respond to the wants
of legitimate business, and call in their ''call
loans" and panic ensues, and without there
being dollar more or less in the country,
money is scarcely to be had at any price.
The plan of special deposits and interest
currency certificates prevents all this, by pro-
viding a mode for the government to absorb
any redunancy of currency there may be at
times and would provide for all the contrac-
ton necessary.
This plan recognizes the fact that more cur
rency is needed at some times than at others,
and gives that fiexibility to the currency SO
much needed and will secure the country, at
all times, against either a want of sufficient
currency for legitimate purposes, or redun-
dancy that fosters speculations.
Provide by law at once for taking all discre-
debt, from the secretary of the treasury. The
reasons for this last provision must be obvious
to every one who has given any attention to
treasury operations the last few years.
Upon this plan the government would have
a non-interest bearing debt of one thousand
million dollars at times portion of it for
which certificates were issued would bear in
terest in currency at five per cent; but the
amount would never exceed three hundred
million dollars, and probably would not aver
age one hundred million dollars. The inter
est on this debt, together with the amount re-
quired for the annual expenses of the govern
ment could be raised by internal revenue, and
sufficient amount by tax on spirits, tobac-
co, and three or four other items
Thus the country would be relieved from q
taxation that swallows one-half the fruits OF
industry a sufficient currency would be fur
nished to carry on the business of the coun-
try, and the rate of interest for money would
be so reduced as not to swallow up all the
profits of Enterprise.
The coin interest bearing debt, being fifteer
hundred million dollars at four per cent. in.
terest, would require sixty millions in coir
annually for the interest, with the customs
revenues pledged for the payment of the in
terest and the principal within fifty years
That being substantially all the interest bear
ing debt of the country, who can doubt, If the
system here recommended should be adopted
that the holders of the 5-20s and other in
debtedness would gladly exchange them foi
the fifty year loan? 1t would be a better in
vestment for the foreigner than he coul(
make in his own country; and for our own