Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1880-09-02

lican party, resumption came. and came so
certainly and so securely that at this day
specie payments are more complete, in the
true sense CT the term. than ever before in
I this country, anc1as complete as in any coun-
try in the world. There is no longer any
depreciation of the notes of the United
States, and not only in this country. but in
all foreign countries they are received at par
with gold.
The democratic party. convicted of false
prophecy, could only shout out that it was
Providence that did il; that the good crops
which came SIN months after resumption was
a complete success, did it and some of them
had the audacity 10 say that the way to re-
sumption was prepared by the economies
enforced by democratic House of Repre-
sentatives. which, as l will show you here
after, instead of reducing the expenses,
actually increased them largely in all
branches of the public service subject TO an
nual appropriations. One thing is certain.
that if its desire for a change had been
gratified four years ago by the American
people, the resumption act would not have
been enforced. resumption wonld not have
| come, and the hopeful joy which gladdens
the homes of millions of laboring people
would still be repressed by the evils of ire
deemable paper money. Resumption, then.
with all the good that has accompanied and
followed it, is the direct result of the wis
dom of your choice in the election of a
republican President four years ago.
| REFuNpiNG.
| When President HAYES was inauguraled
there was upon the statute-book the refund
ing act of 1870. 1t was placed there by the
republican party-a part of its policy for the
gradual reduction of the burden of the pub
lie debt 1t had been partially executed by
the sale of five per cent. bonds and when
| President Hayes was inaugurated we were
selling fourand-one-half per cent. bonds at
par, slowly and with difficulty. 1t then
became my duty to continue the refundng:
and, taking a hopeful view of the future of
the country-its power. its wealth and great
ness-I determined to withdraw from the
market the four-and-one-halfp per cent. bonds
and sell the four per cents. at par This was
| believed at the time To be doubtful expert
ment; but, being firmly supported by Presi-
dent Hayes, the Treasury department
undertook the task. A sale of every such
bond was saving of one-third of the inter
est on that portion of the debt; for every
dollar realized was applied to the payment of
an equal amount of bonds bearing six per
cent. interest. Bankers shrunk from taking
such bond; but on an appeal to the Amcri-
can people. through popular subscription.
within sixty days after they were thus offered.
S75,000,000 of these bonds were taken and
were absorbed mostly in small sums, all over
the United States. Thus, the success of the
| loan was established
Frequently, however, as the opposition of
the democratic party to resumption was de-
veloped. and at times appeared to be success
ful, credit would become impaired cofidencc
would be destroyed, and the sale of these
bonds would fall of. But as events resulted.
| and 10 m f,i IN,
of the resumption act. the bonds sold again,
but in comparatively less sums. The credit
of the government advanced precisely as re-
sumption approached success; and within
one hundred days after resumption there
were sold SJl0.3i7, 800 of four per cent
bonds, thus completing the work of refund
ing, as far the law allowed it to be DONE
by the redemption of all the bonds bearing
| five or six per cent. interest, that were
then redeemable. The result of this republi-
can policy was the saving to the people of the
United States of Sl4 ,290, 453. 30 interest per
year.
| But this was not the only benefit derived
| by our people from refunding operations
| The rate of interest became permanently re-
duced on all investments throughout the
country. Low interest is the chief factor in
our prosperity. 1t became possible for man
ufacturers and trades people to borrow
money. so as to conduct their business profit
ably. This low rate of interest produced a
demand for new investments, and new enter
prises were started into life. Thus. by the
policy Of the resumption and the rcfunding
acts. the way was paved for the present era
of prosperity. And the whole of this was
the work of the republican party. If the
change desired by our opponents four years
ago had occurred. no man can truly say that
such results as these would have taken place;
for from Tilden down. the democratic party
| favored the repeal of the resumption act.
That party. during these four years, has been
the slave of the most idle and crazy popular
delusions of fiat money-their leaders even
talking about bloated bondholders and aris-
tocrats-and was ready to fan into flame the
passions of men to mobbish violence and to
fierce contentious between capital and labor.
HONEST PAYMENT OF THE PUBLIC DEBT.
| Again. the policy of the republican party
has always been the honest and faithful OBJ
servance of public obligations. From the
time the public debt was created as the result
of the war, until this hour. they have sought
to adopt policy which would secure its slow.
but sure and steady payment, according to
the letter and the spirit Of the public obiga-
tions. No thought of Reputation, wholly or
in part, has ever entered into the republican
policy. The gradual payment of the debt,
and the reduction of the rate of interest.
have been kindred measures of the same pol
icy, which have been pursued without shadow
of turning. The principal of the debt had
attained its maximum August 81. 1865, when
it reached s2..5G. i3l 43. 1t has been
gradually paid off with the surplus revenue,
so that. on the first day of July of this year,
it was 81 ,9la, ,326 741.75. The principal of
the debt has been reduced ss37, l04 ,s23. .Gs,
but the interest has been reduced in far
greater proportion. In 1865. the interest
bearing debt was 81. .3Sl $50, ,29i.96, and the
rate of interest on rart of it was as high as
seven and three-tenths per cent. per annnm,
and the interest-charge was $50, ,971 .697 81.
The interest-charge had been reduced to s79,-
633, ,9sl, on the first of July, 1850; and we
only await the maturity of s720, ,645 300. the
balance of the five and six per- cent. bonds.
to reduce the interest-charge to not exceed
ing so. 900. A republican administra-
ton is now paying the public debt at the rate
of ten millions month, or two and half
millions week In all human probability,
before this administration closes its ternf. the
debt will be further reduced seventy millions.
making a saving in annual interest of four
millions of dollars.
This policy of debt-paying and interest