Year: 1868

"


Of Chatham, from a visionary,a dream


er, and troubled the heads of finan-


ciers in England for about fifty


years. Its folly is now admit


ted, and if the revenue in IGreat iBri-


tain in any yearsexceed the expenditure,


the Chancellor of the Exchequeri applies


it at once to the debt, instead of placing


it in sinking fund, where it is in CON
stant danger of being sunk.r With us,
if lit be advisable at once to levy a tax


to reduce our debt, it can be better done


without than with a bureau or board for
the special purpose. But lido not think


itiis. Make the interest on our debt
light as we cane is burden enough on
the present generation. All that is paid
for the next ten years or more the North
must pay, besides being burdened with
heavy expense in maintaining govern
ments in the South, and saving it from


anarchy, and b starvation. Certainly


after the past years experience,
and -, in view i,oof what is now


before us, no sane man y can hope
that in the next ten years the ten States


now in process of reconstruction can con-
tribute anything to interest or principal
of the public debt. The day is remote,


but surely will come, when that fine sec
ton of our country skill be again pros
porous and able to contribute its portion
to the payment of the debt, in which, its
wild passion and folly have plunged the


nation. And l am not willing to see the


people of the North burdened with taxes
beyond what they can well bear to- re-
duce the debt, until all portions of the


Union can pay their part. Besides, by
the mere growth and increasing wealth
of, the nation, the burden of the debt will
be reduced one-half in twenty years.


The four per cent. forty-year bonds
which I propose, will, I have no doubt,
be worth in market more than the FIVE
twenty skies, when tits certainly known
that these, last will be paid in currency
at their earliest maturity. The British
consols, three per cents, are seldom be-
low ninety per cent. in the market-of-
ten ninety-threer or ninety-fo Our
four per cents will be worth much more
than these; and their exchange for five
twenties will be facilitated by belief
that the payment in currency will in
crease the circulation, raise the price of
gold, and consequently lessen the value
of the currency, by which the value of
the fve-twenties when due is measured.
As fast as our bonds of every description
become payable in currency, 1 would
deal with them in the same manner, and
thus reduce them all to one funded debt,
which should have a known name, and
a well-defned and positive character,
free from all encumbrance and ambiguity
y, -Four per cent. upon funded debt
having long time to run, is as much as
a solvent government ought to pay, and
it gives sufficiently large return for the
use of money where the repayment is
certain. Compound the interest by con-
slant reinvestment, and it more than
doubles twice in forty years. In fifty
four years it doubles three times, max
ing every hundred of the original in
vestment yield in round numbers eight
hundred. more or less.q 1 would suffer
no bond of the United States to bear an
interest of more than four per cent. one
day after it becomes payable.


The proposition to pay the States. for
omitting to tax the bonds is, in my
opinion, quite inadmissable. The States
have no right to tax; it is not for their
interest to tax, nor is it for their interest
that the United States should levy taxes
on their people to pay over to them. The
States can, as a general rule, manage
their own Finances better than Congress
can do it for them. Once, when there
was surplus of money in the Treasury,
and no public use to which it could be
applied, it was deemed proper to divide
it among the States, but it was not col
lected to be divided. 1t came from the
people, was not wanted, and was, there
fore, returned to them. If we allow the
States to, tax, the bonds, we must add a
rate of interest equivalent to the tax,
which would be taxing of the United
States by the. States, and compelling the
United States to levy a tax ON the people
Of the States to pay this tax to the
States. The United States would thus
become pro tanto the; collector of taxes
FOR the States. All this absurd compli-
cation would require officers, and involve
risk and expense, and would take much
from the value of the, bonds. <g.i,.. w. ,,,i


10 the proposed paymentof the bonds,
payable nIcurrency, whenever, and as
sast as may become optional, it is object
ID that it would throw an excessive
amount Of currency into circulation, raise
greatly the value Of gold, and thus dis
;urb the business of the country. This
effect, if produced at all, would be to
limited extent only. The holders of FIVE
swenties would know their own interest
well enough to prefer fourlforties
10 greenbacks, except where
hey have present need of currency,
and where that exists the danger of ex-
cess is obviated. To make the bonds
more valuable, would not sell them in
market, but give them only in exchange
for some other form of the public debt.
There is no possible danger of doing in
Justice to bondholders by such arrange
ment, for in any probable condition of
things the legal tenders or the four-forty
O0ndS would De worth more IN gold than
was paid in gold for the five-twenties by
The bondholders.


Our people have been averse to long
loans, and with reason, when we paid
large interest which brought our bonds
in quiet times much above par; but this
objection will be removed if the interest
be moderate. If we want to redeem
any portion Of our debt bearing an in
terest Of four per cent. before it falls due,
we can purchase our bonds in market at
par, or at small premium.


J I earnestly hope that the bonds will
not be put at more than four per cent,
Add one per cent, making it five, and
you add to; our annual burden more than
twenty millions, making in forty years
without compounding.
Compound the interest, and the sum is