The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1888-09-19

to them and the interest saved on the
bonds cancelled. For example. no calculation
being made of compound interest the purchase
at par of a one-thousand dollar per cent bond
twenty years before it is due, saves to the
people $500 In interest upon that bond; but if
the money bad not been taken from the people,
and If in their business it would have been
worth D per cent. annually for the twenty years.
then the total value of the use of 81 900 TO them
would have been 81 900, and there would have
Deen a loss of 500 IN consequence OF this sur
plus of taxation. But per cent. bonds cannot be
bought at par, and hence the ejaculation must
always be made upon the basis of a far less
saving In interest than 4 per cent. per annum
by the purchase of the bond, while the average
annual value OF the money to the whole people
may safely be put at not less than 5 per cent.
The government has purchased some bonds
during the present fiscal year for the sinking
fund and has been obliged to pay such price
for them that the annual saving in interest
upon the purchases is only about 215 per
centum. The price of the same classes of
bonds have advance since these purchases
so that the annual saving in interest
would be less if purchases were
made now. Should the government attempt 70
spend all of its present surplus revenues in the
purchase of bonds, the price would go much
higher. Indeed il is doubtful if enough bonds
could be bought to expend all the surplus rev.
enues at price which would result in any
considerable saving in interest to the govern
Intnt 90 tndL IL uOcS not seem wise 10 con-
tlnue taxation beyond the ordinary needs of
the government. and then resort 10 the buying
OF bonds for the mere purpose of re-
distributing the circulating media among
the people. / am not, however, at present
disposed to recommend TO repeal the sinking
fund requirements of the present laws. 1t is
probable that the command of these laws can
only be obeyed at heavy cost but nevertheless,
II is better and more wholesome that the coun-
try should each year continue TO devote such
sum as they require to the extinguishment of
so much OF the Understanding debt as can be
purchased Herewith. Atleast, the experiment
should he faithfully tried until it is demon
strated to he a failure.
The government has never paid premium
in gold for its bonds for any purpose but the
sinking fund since the enactment of the law
creating il, and it has done that but three
times-in 1880 when il paid premium in gold
OF -, 195, 320.42; in 1881, n premium of SlO6l-
24S7S, and again in the present fiscal year,
when 1t paid a premium of S2,S52Ol5SS.
With these exceptions, the government has
been in a position where it could purchase or
call its bonds at par or less, and has conse-
quenty been enabled to apply almost the
whole of its vast surplus revenue of the past
twenty-one years TO the retirement of its inter
est-bearing debt upon fairly good terms; it is
not probable that it can do this as TO any con-
''ue';sOie poS'ion OF us remaining ueO"
After the question of the annual surplus rev.
enues is disposed of there still remains the
surplus money which is in the treasury TO be
considered. One use which can be
made of this money is TO diminish taxa
ton to such an extent that the an
nual revenues will be less for some
years TO come than the appropriations:
thus the accumulated surplus would be used
for ordinary expenses, and the people would
gain the greatest possible good from it. Doubt
less by the time this money was spent in pur
suance Of this plan, the revenues would have
so increased as TO be equal to proper annual
expenses. Experience teaches that this would
probably be the case.
This is wise and patriotic finance; Mr..
HARRIsoN's plan is a mere juggling with
the peoples money for the benefit of the
great capitalists. The place for the peo-
pies money is in the pockets of the people
themselves; and any policy which takes
from them dollar more than is required
for the governments needs, and hands it
over to bondholders, monopolists or the
lobby, would be high crime against the
people.