Year: 1868


creditors. The bondholder is no more
the creditor of the United States than
a note-holder. We have always com-
piled with our promises TO the bond
holder, but never to the note holder


We promise 10 pay the note on demand,
but don't pay it at all, and refuse even
to take it for our bonds except at 8
discount. This is the key to all our
financial discredit. If We will pay our
notes, or make them equal to other
money, all the trouble about the bonds
and high prices disappears. Do we re-
fuse to pay the notes because we can't
pay them? Not at all. We could pay
them easily with the gold in the
Treasury, or redeem the amount OF
them, so that the rest would be equiv
alent to gold. Why then don't we do
il? The answer is, that to do il ab-
ruptly would so contract the currency
as to interfere with the vast business
operations Of the country. twill COM
pei the debtor class to pay their debts
in q different medium or money than
the debt was contracted in. 1t would
suddenly reduce the nominal value,


but not the real value of ali commodi-
ties Prices would fall from one dollar
to seventy cents. Now every body ad


mits that we must come to this some
time; but all shrink from the evident
distress of the change. Now, what we
want is to gradually bring up the value
of our notes to par, with gold, and, IT


possible, without too great a contrac


tion OF the currency, or too abrupt a
change Of prices.


Another difficulty occurs. Gold is


the money of the world. 1t measures
ali values, except domestic values in


the United States. All our foreign
commerce is in gold. We collect duties
in gold and pay our interest in gold /;
and yet a contract for gold cannot be


enforced in our courts. 1t is banished
by law, boarded in our vaults, and yet


is the king of all prices. Now the real


king should be enthroned again. Con


tracts, when made in gold, should be


enforced in gold. Our people should


become familiar with the jingle of goid


so that when our paper money becomes


equal to gold the transition will not be


abrupt. Now, these three things the


Senate Committee on Finance sought


to effect by what IS called the funding


bill. We provided for the reduction


of the rate of interest by the voluntary


exchange of bonds bearing interest at


six per cent. for bonds bearing interest


at FIVE, four and a half and four per


cent, according to the time for which
they run, and made the terms so that


we were confident the exchange would


be made without raising the legal


question as to the payment in green


backs. We provided that the United
States notes might be converted into


bonds, and thus advanced in value by


being made equal to the bonds, and


to rise with them to the par in gold


We provided that people might deal in


gold as well as in greenbacks, at their


pleasure. All these changes are very


important, and effect vast interests,


but, feel sure, are wise, and will soon


be adopted. There can be no reason


why people are not allowed to deal in


gold as well as in wheat and corn.
There Is no honor or honesty for the
United States when it owes a man a
note due on demand, and can't pay it
in money, to refuse to give in exchange
its note on interest. A private person
who would do it would be called a
rogue or bankrupt. There is no-rea-
son why the United States may not
now, when at peace, borrow money at
as low a rate as Russia or France. But
the Funding Bill had g Troublesome
voyage, was mutilated in both Houses,
and finally landed in the pocket of
Andy johnson. But 1 have no more
doubt that every provision of the
original bill will be the law of the land =,
than i have of the election of General
Grant-about as certain as any future
event can be-and that the Republi-
can party will reduce the interest of
the public debt to less than Sl00,000,-
600, IN strict compliance with the
public faith.


When proper financial measures
shall be adopted a revenue of $780,
600, 900 will not only meet all current
expenditures ard pay the interest of
the public debt. and pensions and
bounties, but will rapidly pay off the
principal of the debt, leaving as the in
heritance of the next generation,
country magnificent in its proportion J,
free in all its institutions, and without
a stain of dishonor on its public faith.


The question then remains. how can
this sum, or sufficient sum, be collec-
ted from the people in the fairest way,
In just proportions, and with the least
expense and burden This leads me
to very brief statement of our system
of taxation, and that statement, though
brief, trust will be satisfactory.


Every session of Congress since the
war, 1t has been within lis power TO
throw off taxes, and in doing it the
chief inquiry was what taxes bore most
heavily upon the people, and they were
repealed. We have thus thrown off
internal taxes which yielded US annu-
ally Sl67 ,269, 900, besides greatly sim
plifying the node of collection. We
have repealed all taxes on food, on |
clothing, and on all the necessaries of !
life; also, all taxes on all agricultural |
including cotton and live
stock. upon every thing produced by |
The farmer; also, all taxes on all man
1factures necessary for life, comfort or
businesS-indeed, on all manufactures
except spirits snd tobacco. We carried |
the general desire to repeal taxes so
FAR that many feared that we had not
eft enough for revenue. Let US see
what remains.


The duties or taxes levied on impor-
ed goods have not been reduced for
obvious reasons. This is the most pro
iuctive, the most certain, and the
FASTEST collected form of taxes. Most
articles imported are articles of luxury
consumed mainly by the rich. The
are tea, coffee and sugar;
'ut their consumption is so fairly dis
according to the means of the
consumer, that the tax is not so severe
y felt. The heavy duties on foreign
,oods operate as a protection to our
domestic industry, and have tended to
ne general prosperity of the country
or establishing factories, furnaces,
mines and work shops, all over the
ountry. For one, | think it would be
lnwise to lower the duty on articles
1e can manufacture, until our work
hops are so well established as to com
'ete with other countries. These
uties on imported goods yield US, an
ually, Sl65, 900, 900 IN gold, or enough .
o pay the interest of the public debt
nd all the pensions to our soldiers, :
heir widows and orphans; and enough, =;
annually applied, to redeem every !
ollar Of the principal of the debt in !
IL I