Year: 1867

[From the N. Y. Herald. Oct. 31.l


The Qne~tiOn of Paying the Ma.


tiOnal Debt in Greenbacks.


The question of paying the national debt
in legal tenders, together with other uues-
tiOns relative to the national finances, are
looming up prominently before the public.
But that OF liquidating or reducing the
debt with the greenback money of the
country before an effort be made to force
specie payments is most discussed. The
press has begun to take it up earnestly.
and many of the leading public men of
different political parties discuss it freely.
to the reconstruction question, and were
this latter disposed of it would occ lpy the
first place in the public mind. The policy
of the radical republicans, however, to
Africanize the South and to give the semi
barbarous negroes the political power in
that section and balance of power in the
republic, is SO revolving that any other
question must remain secondary till that be
settled. Still, as we said, it has become
prominent, particularly throughout the
West, and it had considerable influence in
turning large vote at the late elections i'm
Ohio and other Western States against the
dominant republican party.


A very interesting phase OF the discus
sion upon this proposition to pay the debt
in greeubacks, and upon the other cognate
subjects of the national banks, taxation
and revenue, is the position the press has
taken. The Radical organs of the East
generally denounce the proposition, and
are in favor of maintaining the iniquitous
privileges of the national banks. They are,
in fact, the organs of the bondholders and
the national banks. Their policy is to ia
vOr capitalists at the expense of the in
dustrious classes. They would not pay the
debt till the bondholders could receive it
all in gold-till the people would be COM
PEELED to pay from thirty to hundred per
cent. more than they ever received and
more than strict justice requires. They
must have the pound of flesh though the
victim bleed 10 death. Col.s spicuously
among these organs of the bondholders are
the greater and lesser Radical papers of
this city. They endeavor to make it par
ty question, and ring the changes on all
ation," 'natiOnal dishonor," and the like,
for the purpose of damaging the Demo-
Gratis. But this is only a specious dodge.
Ii Is not party question, as parties have
been divided heretofore. The organ of the
Democrats in this city, though it has
twisted about good deal on the subject,
holds in the main the same views as the
Radical papers hold. The Chicago Tribune,
which is thoroughly Radical in politics;
General Butler, of whose radicalism no one
can doubt, and numbers of other newSpa-
pers and prominent individuals of the Re
publican party, take pretty much the same
view as Mr.. PendletOn, OF Ohio, takes with
regard to paying the national debt and to
the national bank system. The Republi-
cans OF the West are with the Democrats
of that section OF this issue. No doubt
parties will be formed on questions of ma
tional finance when the country shall be-
come surfeited with Radical negrophobia
and reconstruction be accomplished; but
then it will be the bondholders, the monop-
olists. the capitalists and the national
banks, as one party, against the mass OF the
industrious classes as the other party.


There will be, evidently, great popular
movement, movement that is swelling
immensely i'm the great West now, to pay
the national debt, or large portion of it,
in government lawful money. The people
begin to see that unless this be done, and
we come to specie payments with an enor-
nous debt resting upon us, this debt will
remain, like that of England, vast and
perpetual burden upon the nation. The
people will not bear such weight for all
time to come, and they have sense enough
currency be contracted, specie payments
forced, and their incomes and the income
of the government reduced before large
portion of the debt be paid. While there
is an abundance of money IN circulation and
the currency deprecated, and, consequent
ly, while the government receives a large
income, is the time to liquidate the debt.
To do this would not be reputation, but
in all probability would be the way to pre-
vent that; for people who have the max
ing of Congress and the administration
every two or four years are not likely to
suffer themselves to be bowed down per-
petually by an overwhelming debt. The
bondholders and their agents are pursuing
a suicidal policy by attempting to fasten
this burden on the people.


No sensible person proposes, we sup
pose, to issue two thousand millions of
Government money and pay off the debt
at once with that. What is meant by pay
ing in greenbacks is to keep as much of
that currency afloat as the country can
reasonably bear, and by no means to con-
tract the present amount till all or a large
portion OF the debt be liquidated. That
is the proposition, and that, we think, is
what the country will come to. And
what injustice would be done? Who would
be injured? Nearly all of the bondholders
would be paid more than they gave for
the bonds. The country would continue
to be prosperous with an abundant circu-
lation, and the Government would have
its Golfers full. Why, one-fourth of the
interest bearing debt-which. after all. is
really the only debt-could be paid off in
year. If the national bank currency
were to be withdrawn and three hum
dred millions of greenbacks issued lin
its place, with which the Government
could buy up and cancel three hum
dred millions of its bonds, tho in
terest bearing debt would be less
ened that amount at once. Then,
Mr.. McCulloch has on hand and
unemployed all the time gold and notes
amounting in currency to about two hun
dred millions. The application of this, to-
gether with the three hundred millions of
cancelled bonds, as proposed, would re-
duce the debt five hundred millions. This
could all be done within year or so. The
Secretary of the Treasury does not need
such reserve; for with an easy currency
and money market the revenue would al
ways come in as fast as the drafts upon the
Government, or faster. That, too, would
be the shortest way to reach specie pay
ments. With five hundred millions of the
debt paid and the process of payment GO
ing on we should soon return to a specie
basis. But with the national bank notes
in circulation, and with the ruinous finan-
cial policy of Mr.. McCulloch and the bond
holders, we shall be long while coming
to that. The true course is to pay The debt of
as rapidly as possible in greenbacks, and acith
the means at our command, before zoe attempt
to force specie payments. And this, If zoe mis-
take not the signs of the times, is aoaat the people
aoiU demand.


A Radical "Declk Load''-Carious


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