The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1881-02-02

that the debt was to be considered as a tempo
nary burden 10 be paid "a rapidly as possible. In
mat of Fntopeam eountries We have always
made provision for gradual payment
of our debt, and they do not. Another
principle upon which We have acted,
Is that public securities shall run but for
short period. and that the right of redemption
shall always be retained as far as practicable.
This right of redemption has not in any case
been placed beyond the average life OF single
generation, and this principle is more tenaciousy
adhered TO in the popular branch oil congress
than any other in respect 10 our debt Another
principle formerly held by US is that whenever
the public debt is contracted slnHiing nnia tnna
Another principle OF our financial policy Is mat
not only shall the principal of the debt be gradu
ally paid but every suitable occasion be taken to
reduce the interest thereon, and thus lessen its
burden. But more than all the United states has
always firmly and fully and honestly performed
every promise made TO the public creditors.
These principles were inherited by us when the
civil war came on us and compelled the con-
tracing OF debt, in amount so vast, one years
interest was more than the debt caused by the
wars of the revolution and of lSl2 Attention
was devoted TO the rapid payment OF the public
debt and the adoption of the funding act OF 1870.
At that time legal tender notes were unliquida-
ted, dishonored promises of the Government;
worth less than par IN coin, ana
no man can say the extent OF the evil
of this single fact upon credit during the first
fifteen years after the war. at all events. though
the funding act gave the Secretary OF the Treas
ury ample power TO sell bonds bearing interest al
per cent. yet IL was six years after the passage
of the law before he was able to sell s5.000Oo0 of
this class of securities. When they were
hausted IL was a long and tedious process to
establish in the market the AZ per cent. bonds.
IL was not until after the passage Of the resump-
that act was announced by the Executive branch
of the Government, and ample provision made
TO redeem our legal tenders, according to law,
that were able to sell our 4 per cent bonds at
par During 1877 they were first offered. Our
notes were rapidly advancing to par
under the effect OF the meas
an Qnnnfpd under
and we were able sell during that year S77 0O0.
0G0 worth but when ii appeared that Congress
was not prepared 10 sustain the policy OF redemp-
ton. the sale of these bonds at once ceased, as
with a clamp. When it was manifest that Con
greSs would not repeal the resumption act: they
again sold :: but ii was not until after the lst
Of January, 1879. when the United States were
fully prepared to redeem its notes at par, that the
credit of the Government became so firmly ad-
vanced that the per cent. bonds were eagerly
taken. at home and abrOad-so rapidly taken,
indeed that within four months. S5S7 COO 900 were
sold. thus providing for the redemption OF all D
and per cent. bonds then redeemable. The pol
icy of refunding is not yet complete: SOP OOOOcO
Of the per cent. bonds, issued at.the beginndng
Of the war. are atOut TO mature: S46O.O 10000 of
the per cent. bonds, issued under the refudng
act will become redeemable on the lst OF May
next, and the question Is, how best can
We apply the principles of our Government in
the reduction of the rate OF interest," ana the grad
ual payment and redemption of these bonds.
can only say We should follow the examples Ofthe
last. We should pay what we can from the sur.
plus revenue; should maintain interest and
apply without diminutiOn the sinking fund fixed
by law should sell our securities at the lowest
possible rate OF interest. Teserving the right TO
redeem them in short period OF time, and pay
them either as they become due or by purchase in
the open market. Our rcountry is indeed fortunate,
when il NAV now cOnfesSedly borrow money at as
low n rate OF interest any nation in the world,
however ancient, l'opulous or wealthy. Many
among us are hopeful enough 10 believe wecan do
what has never been done by any Nation in ancient
or modern times borrow money upon our bonds
at per cent. The mother country has not yet
been able to do So although in moments of high
prices her per cent. eonsols have touched par.
These questions are now being considered by
Congress- and believe wise conclusion will be
reached. We all wish to do what is best for the
public, but we do not want To lose the oppOrtu-
nifty OF doing good thing oy attempting what G Is
gress will conclude that II is best to- offer bond
bearing 80 per cent interest. kept with short
periods of ofredemption, maintain a sinking fund,
and perhaps apply the greater amount OF the sur
plus revenue so that we may expect To see within
the next decade the public debt reduced to 81,
office and in life will not feel il, and a very
small price for the countless blessings
that the generation that fought dur during
now enjoying the good things of life. because we
have been brave in the performance of public
duty OIL the field and in the public councils; be-
cause we have resisted all temptation to i'm pair
the public credit; because we have at least been
honest to Ihe holders of our notes well as to
| the holders of public securities. The duty OF
this generation has been to preserve their cCun-
try; the duty of the next viii be TO develop and
advance il, and no youthful eye, looking 10 the
future with hope, can even in fancy portray the
picture that our country ought and, / believe,
will present within the next generation. Re
sources now unknown will then be developed
riches hidden away In the womb of the earth will
be recovered and made useful, new lines of com
munication by land and By water will OF ell
up, new sources of wealth aud education, the
surefouudauOn of a Republic vii be extended by
our Common Schools and Colleges so that all our
people, whether rich or poor white or black, may
have an equal chance in life This Is the hope
full view take of the future, unless it is checked
by some departure from the principles OF honesty,
marvellous rapidIty into wealth. power and
strength. The Secretary closed his remarks with
the expression of his regard for the character and
achievements of the merchants of Boston. Before
the banquet Secretary Sherman attended con
cert in Music Hall The Secretary is accompanied
here by General Nelson A. Miles and General
Stewart l.. WOOdfOrd the United States District
Attorney at New York.