Year: 1869

public questions This matter of the payment
of the United States bonds, especially the
five twenties, is the subject Of considerable
discussion at this time, aud It becomes inn
portant for the Government to take speedy
action in the matter. The great stringency
in the money market is owing to the fact that
the National Banks can make more money by
holding United States bonds at the present
rate of interest than by lending to the people.
Let the rate of interest on all the bonds be
lowered as soon as possible. 1t is impossible
for the country to carry our immense debt at
high rates of interest, with any reasonable
degree of prosperity. Mr.. Ewing advocates
the idea that the Government should issue a
requisite amount of legal tender notes and
give notice to the bondholdcrs that the Sec
rotary of the Treasury is ready to redeem the
bonds with these legal-tender- notes, or in
other bonds, running forty years payable in
gold, with interest at four per cent. payable
semi annually in gold. Read his propositions
for yourselves:


would propose that the Secretary of the
Treasury be directed to prepare, and hold
ready for delivery, fifteen hundred million
dollars in bonds, payable at the option of the
United States ut any time after the expiration
of forty years, bearing an annual interest of
four per cent. payable semi-annually, both
principal and interest in gold; continue by
law the payment of gold for the custom duties
and pledge their proceeds for the payment of
interest on the bonds, until they be paid and
retired and by present act appropriate the
proceeds of those duties to the payment of.
such interest during the continuance of the
bonds, and authorize and require the Secretary
of the Treasury, without any further act of
appropriation, to pay such interest, as it shall
accrue; and exempt the bonds from taxation
by all States and Territories, and all municipal
corporations in any State or Territory or
district within the United States.


would make the pledge of the customs
and appropriation absolute and enduring, SO
that no further legislation would be necessary
to pay the interest on>the bonds until the time
when they should be finally paid and retired
so that there could be no negligent repudi-
alton by the failure of one House to pass, or
the President to sign, an appropriation bill;
and no active reputation, unless the Pres
ident and both Houses Of Congress should
concur in making themselves parties to the
national dishonor-which we may safely pro-
nounce impossible. The semi annual pay
ment of the interest would thus be made abso.
lutely certain, until the principal should be
paid and the more remote that day, the more
Valuable would be the bonds. They would be
the best money securities in the markets of
the world, safer and exposed to fewer risks
than the British consuls, and better by their
one per cent. excess of interest.


And 1 would direct the Secretary of the
Treasury to retain or issue the requisite
amount of legal-tender notes-give notice
that he is ready to redeem the whole issue of
1862 and 1868, at the Treasury, on the 1st
of May, 1870, in legal>tender notes, or in 4
per cent. forty year bonds secured as above,
at the option of the creditor.


l would make the loan long, for it will add
greatly to the value of the bonds, making
them desirable as permanent investments;
and if at any time in the spring tide of our
prosperity we wishto pay part ofthe principal,
we can go into the market and purchase
But that state of things will not arise. The
present generation has enough of burden to
keep down the interest, and leave it to our
much richer than we, to pay the principal.


II x


IF we adopt this mode of adjustment, there
is no danger whatsoever of an excessive in
crease of the currency. We will not have to
pay in currency the half of $4,000, 900, for
the simple reason that our four per cent. bonds
will be worth more than currency, and will be
taken in preference by sagacious public
aud the creditor portion of the public is
always sagacious. They will know. too, that
the issue of large amount of currency will
tend to reduce its value, and if they rely on
that in part for the payment of their i've
twenty bonds, they willtake care not to compel
an emission that will much reduce it. The
only question in my mind is whether four per
cent. be not too large rate of interest-it is
more than justice requires, and more than
money will net in Ohio, loaned at six per cent.
on bond and mortgage. On this subject
can speak understandingly. lent out some
money at six per cent, and receive the in
terest punctually; my bonds are worth par,
and so return them for taxation, and they
are assessed for State, county, town, and
school tax S2.63 per cent on the principal
sum, leaving me S3.27 per cent. interest
From this deduct 1856 income tax to the
United States, and it leaves 1921 in green
backs, worth now, in gold, S242 per cent. per
annum net, making the four per cent. United
States bonds 81 4S per cent. per annum better
as an investment than bonds and mortgages at
six ner cent. in currency in Ohio On these
premises feel safe in saying that no sane
canitalist would take dollar in greenbacks if
offered four per cent. bonds in their stead,
unless, indeed, the currency were needed for
actual and immediate use.


These views are, think, sound and prac-
tical, and ought to be enforced by the people
at the polls, as they have much to do with the
prosperity of the labOring and producing
closses who create our nations wealth. and
who must provide the means to pay its debt.
- Twenty-one guns were fred at sacra-
mento on the arrival of Carl Shurz. Carl was
| .a.-l. tar,ed To death. as he was never