Year: 1869

IktucAVUl Ol tho EIVc~IWeuu0o 5n0ui0 MOL


Re Paid In Gold-A New Plan for the Fand-


Ing Of the National Debt.


WASHINGTON, Jan. TO- 1850.


Tho following letter has been written by Thomas
Ewing, formerly Secretary OF the Treasury, to the
Committee Finance Of the United States Senate:-


GENTLEMEN-Understandin that you have the
subjects OF finance, the national debt and the cur
rency now under consideration IN your honorable
Dody, take the liberty or presenting you some
views which, though they by no means attempt to
compass these most intricate questions, yet, as
ful consideration, may be found useful as sugges-
uons 70 the progress Of your investigation.
,,rIr y nss 6een ~ my opinion from the st exceed
debt and currency and finance from general politics,
as there ls great danger, when these become party
more or less unreas0ning and unjust, should lead
the party dominant for the time into acts subversve


% Ias Seyp puSc Sace we to
some extent become an element OF party
strife and there Is danger that in the vicsstnde Of
events Injustice may be done by one party TO the
the people-the taxpayers--who are the debtor
class, and as consequent reaction, at some future
day. perhaps not far distant, to the creditor. II the
creditor be adjudged now than he is equitably
and fairly entitled to- that very fact Is likely to pro-
duce change OF popular feeling, and with 1t OF poll.
tical pSWer which Will give him less. My nope and
desire that all open questions now ripe for sette
ment may be settled fairly and justly, by the present
Congress, even as they would be settled In u court
OF equity between man and man, with this saving
only: whatever. is distinctly written down In the
bond OF the United States is contract which must
be strictly complied with, although as between
individuals 1t might be considered as tainted
with exorbitant usury, for 1t is not meet that
sovereign should set up that defence to mitigate
the hardship OF his own contracts. In the case of
our hve-twenty bonds OF 1862, which are now paya-
hle-and this is the proper time to consider tnese
and ADJUST thenl-we contracted to pay, and have
thus far paid, six dollars year In gold on sum
which, when loaned 10 US, was equivalent in value
TO less than eighty dollars In gold; that is TO
we have for seven years pad on the OF
1852 and are still paying seven and half per cent
interest on the gold actually invested By tae cred
itor, and actually received by the United States.
This loan now payable, amounts in the aggregate
to the sum OF S50o,00o,0o0 II We offer now TO pay
the creditor interest at the rate OF six per cent
these bonds up to the first day OF May 1862 and to
then pay him In the funds which we received OF
him, and undertook to pay him, or In some other
security which he Will prefer, We do HIM ample JUS
tice; but If we give him an advantage beyond this,
we are generous to him, but unjust to the peoe


We are not bound In faith or morals to make the
fund which we pay TO the creditor for his prncp al
be 1t what it may, gold or legal tender notes-worth
more at the time OF payment than IL was worth
when it was borrowed. This appears to me strictly
just-the view which righteous arbitrator or Judge
csi0n; and 1t better for the creditor than an
exuberant generosity which would promise him
than he Is entitled to- when the debtor is but
just able to comply with his actual contract fairly
interpreted. Looked at IN this point of view names
are nothing. II you borrow piece OF coin called
dollar having III II 100 cents worth OF pure metal,
and by virtue OF your sovereign power debase your
coin that the dollar contains but seventynve cents'
8.
tice. II you, in behalf OF the nation borrow coin
having IN 1t but seventy-ive cents worth OF pure
metal and call 1t . dollar. and afterwards improve
your coin and put In 1t one hundred cents worth OF
pure metal TO make the dollar, and pay this I'M
proved dollar to discharge the loan OF the baser coin
II is generosity to the lender and injustice to the ma
tion-t Is taking from The taxpayer without reason
and giving to the capitalist without consideration.
The same is the case whether the fund loaned and
borrowed be adulterated coin or deprectated cur
rency


Having found the true measure OF justice you may
safely do 1t without fear OF being chageable with u-
due partlaty to the paying the receiving class
They are all alike your constituents. You are the re-
presentatives and may safely make yourselves the
impartial representatives OF all. A distinction may
be suggested rs to the foreign creditor, but you
do justice TO the domestic you do justice also to tho
bodies have much more than Your due pro-
portion OF creditors as compared with the outside
masses OF the community. who are producers and
taxpayers so that your members, "a body are
personally Interested on the side cf the Dondh0iders
rather than the taxpayers, and when 1t to the
payment You may meet 1t with concl lslve an
overwhelming argument. IN proof OF your disnter-
@ iS@ nave epos nos Vny Larger Ion
your salaries will be 10 each worth S1,7y0 a year
more In gold than 1t Is now worth whlie paid In


II is clear tnat "a individuals and as party Won
are safe IN doing simple Justice. The question, then,
you TO do at once to tighten the enormous burdens
resting on the productive industry-the labor-of
the country





no nation worthy OF credit ever yet paid for long
IerOd OF time-such az no nation can long continue
to pay, and enjoy credit OF home abroad; and we
must continue TO pay 1t until our bonds be paid or
funded on reasonable terms. There Is some talk OF
borrowing to pay our debt We cannot borrow
with tins enormous load OF annual interest upon u.s.
except on terms OF like extrava2ance. We may
perhaps, buy our six per cent nve-twentIes with
bonds at fraction less interest, having longer
term to rum and with principal and interest express
ly payable IN gold, but this would not much relieve
our burdens or at all remove the doubt which hangs
and tssh
In foreign markets.


II IL thought by many advisable to hasten by
mentsthat Is to say the restoration OF specie car.
rency, and making gold and silver the only legal
tender IN payment OF debts. Those who propose
general provision OF the kind would be productive
or much hardship and injustice to the debtor ella =
OF our community y-the class made up of our acrlye
young business men, merchants, manufacturers,
shippers IN short, the producing class--tbose wno
combine their own personal energies with borrowed
dence for themselves while they give prosperity
the country. Now, II we resume specie payments
tender, we rum this whole class OF business
men at once and drive them 10 bank
ruptcy II their debts now amount to So 900 ooo0Jo
repeal the legal tender act otherwise force an I'M
mediate resumption Of specie currency, you add by
stroke OF the pen 81 600 900 10 their debts; and
the mischief does not end here-you disturb the
business relations Of the country, close manuiac o.
ries, deprive laborers OF employment for a time,
unt the business OF the country can SHIFT hands and





postponing resumption for two years and then
making II absolute, you produce the same result In
very slightly mitgated degree. Make the green
backs payable Ia gold In two years and they viii De
at once bought up and hoaroed by capitalists 10
all VINO understand their value they would be worth
at once as much as gold, less two years. discount
upon thein-not quite twelve per cent. Tho
debtor G ass then instantly suffer a loss OF about
twenty-five per cent SO 0o0 000, 900 OF Indictment
loss OF 1,4zn,0 100000 taken from the debtor and
given To the creditor class for which 1t will be dIfl
cult 10 find reason other than the true kingy sic
r0to. The same act when IL should produce ITS full
erect. would make our national debt, now equiva-
lent TO 81 $50 0oo In sold rise at once in value
10 $500 600 600; making an Increased gold indebt-
ment OF $3.50 0O0, 900; and IL would at once involve
the payment OF interest on amount OF additional
debt nearly equal to our present Rreenback cur
rency adding nearly $4,000, 900 to annual In
tCrest. This looks like sinking the ship. and am
afraid OF II. IL s certainly better to let the law OF
trade regulate the currency than TO hasten
frauyht with such consequences, and yet for time


Rather bear the nIa We have


Than hy 10 others'


Of which we know quite too much to meet, II we can
avoid them.


me cyl must be very great that VIII Justify 80 harsh
remedy It would operate most severely on men be-
ow middle age the relics OF our hard fought battles
The energy Of our people would in time rise above