Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1879-08-07
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| 1880 lbl .StS ,y3t, %
| While Congress reduced the revenues
and increased appropriations. II neither
| levied new taxes nor gave authority to
borrow money TO meet these extraordinary
demands. but used the sinking fund which
was specifically set aside by law for the
reduction OF the public debt, thus arrest
ing the established policy OF the Republ-
can party OF yearly reducing the debt.
In the last session It Appropriated s26,-
500 600 for arrears OF pensions, debts due
most worthy class OF citizens, but pro-
vided no means for their payment. Rap
piled for this purpose the fund In the
Treasury Tor the redemption of fractional
currency. leaving this form of debt TO be
paid out OF current revenue. Fortunately
the increase OF reveaue caused by resump-
ton and reviving industries will. hope,
enable the Treasury to pay every dollar
appropriated for arrears OF pensions by the
lst OF January next, without any other In
crease of the public debt than that caused
by the temporary application Of the fund
for the redemption OF fractional currency.
The ability TO pay these demands Is largely
due to economies effected In collecting the
customs duties and other executive saw
ings.
RESULTS OF RESUMPTION.
Let US now see what have been the legi-
timate results Of resumption.
Since the lst OF January, and prior TO the
ist OF July, 1879. we have paid about sl.-
100000 coin certificates with United States
notes. and have paid 81 10, sol .l09. % United
States bonds with United States notes. or
the enormous sum OF called bonds paid by
the Treasury, so far a. Is known, not q dol
lar has been demanded in coin. aud thus
he hav "A
ing daily, the ave-twenty and ten-forty
bonds ID currency.
Prior TO definite preparations for rssunp-
ton, 1t was impossible to sell 4 per cent.
bonds OF the United States at par 10 coin.
After such preparations we were able To
sell in 1871, $4,000. 600 four per cents
and in 1873. sl2s, ,Gs5 $50; tut the moment
that resumption was complete, the sal. OF
bonds increased with unexpected rspidty,
We sold IN the month OF January, 1879
si5s. .9ot 100 aud In the month OF February.
$50 l0l .50. Ia the month Of March the
sales fell 10 $50. So 100, chiefly by reason
OF a fear that the enormous payments re-
quiroi under the refundiug act during the
mon'hs Of April and May would create a
disturbance a the money market, but this
fear having beeo dtssipAteI, by the 1T of
April the sales were rapidly resumed and
enough to cover sad pas Of all the out
standing ave-iweaty bonds OF the United
States Thus. a. the drst frult OF resump-
tion. within Que hundred days after it,
coming. we sold sJi5, 10. $50 four per cent.
bonds with hlch 20 pay an equal amount.
of 8 per cent. bonds. securing i saving Of
Sc s52 2o5 year. Nor Is this all. There
were oat,ianling a. tha, time slai $50 800
i've per cent. tcp-iorty bonds, redermablc
AZ the pleasure OF the United States. To
pay of these bonds the Treasury Depart
meni offered 5O.OO0 ,OO0 four per cent.
bonds AZ a premium Of one-half OF one per
cent, the residue 10 BE- paid from the pro-
csctis of tcn-dolllr refuhdiug certificates or
the direct exchange OF honds. Pending the
preparation OF this offer. Il was greatly
doubted whether the Department va. jus
tiled 10 demanIing premium. but as these
were the last bonds that could be Offered
within two years. | then thought prem
iugn could be secured, aud would have de-
manjcd higher rate but that the iaw re-
quircd the reluuding certificates to BE- ex-
changed az par for LAWFUL money These
reiIniing certificates were dcs s.ue1 - fur
uist an easy opportunity for persons of
limited means tn Invest their savings IN
small sums. and were OF great importance.
not Only for the convenience OF all classes
OF onr people, but 10 lniere., them IN the
advantages and stability OF the public debt.
Within two days the whole $50, 900 90
bonds were sold upon the terms stated. and
offers were made for the whole Of the re-
funding certificates, which offers were de-
cllued, and the certificates were sold by
postal money order offices throughout the
United States, and were eagerly taken la
suns OF Que hundred dollars. This closed
ali the refunding operations authorized by
law, tor there are no other bonds that eau
now be redeemed except by purchase IN
the open market al their market value
The annual saving 10 The interest-charso,
effected By these refundng opcl atoms since
the Is, OF January last i 81, $40. .i5S, and
since the lst Of March, 1877. 20 the present
time. i,297. III.
Sometimes complaint has been made
that, daring this process Of reiuuding, the
amount OF interest-bearing debt was ten
porhrily increa.ed, aud that interest vas
paid on two sets OF bonds at the same time.
This IRON the nature OF things. was un-
aye.'Iaole under the provisions OF the TT
funding act OF 1870. by that act, before
any bond eun he redeemed. notice must ne
given for the period OF three months. Be-
fore that notice can be given, bonds have
IN be sold aud the money either collected
wolves the payment OF interest ior three
months, not ouIy upon the bonds sold, but
upon those 10 be redeemed. Advantage
was taken OF this fact TO dnjustly aTraign
the Department for matter beyond Its
cs.ofrol. A constant outcry Was made that
the Understanding debt WAS being in-
creased. The debt statement would neccs-
sAriiy show that. during the three months,
two .els of bonds were outstanding. but II
wouid show also that the money was Ia the
Treasury, soi this being deducted would
leave the balance OF the debt as before,
Thus, II you ONE a Thousand dollars with
the rig ht to pay ss your pleasure. and oor-
row money for that purpose, you will have
TWO notes outstanding AT the same time
until you can apply the borrowed money
to the payment OF the first note.
This Is precisely the condition the United
States was in when borrowing money to
pay outstanding bonds. The debt state
ment OF July LIST shows AS part of the pub
lie deot the whole OF the ten-iorty houds,
and also the whole OF the ooads issued for
their payment, but also shows the money
la the Treasury TO paw them. In the next
debt statement the ten-iOrties will disap-
pear, or such as are unpaid will appear
among the debt bearing no interest. The
cash in the Treasury viii also decrease ac-
l thought the notice required
by the law was entirely too long, and 10
my annual report TO Congress, Democratic
in both branches, earnestly urged a short
ening OF the period to thirty days or less,
In order 10 save this double interest, but
the recomme udarion was declined or ignor-
ed. II any one is to be held responsible for
the double interest il should be Congress.
In justice to the Department. it is bnt fair
TO state that all the loans negotiated for
the two years have been on more favorable
terms than any loans ever made by the
United States. They were generally made
by popular subscriptions by the people di
rectly. The saving from the amount a.
lowed for the expense of negotiating the
loan Is over 81, 100 900. and the premium
exacted on IL and per cent. bonds
amount to tl ,496, ,94S. 25. can say with
out tesr OF contradiction that no nation
ever negotiated its loans at less cost or
on as favorable terms The sales Of the
famous 5 per cent. consols OF England,
when made, were on far less advantageous
terms than the United States was able to
secure after accomplishing resumption.
The resumption Of specie payments has
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