Year: 1867

time has not come when new bond
bearing = lower rate Of interest
can be sold at par.


Secondly levying g tax more
than double that Of the present; but
this the country cannot and will moi
bear. Or,


Thirdly issuing within the next
twelve months not less than six
hundred millions Of greenbacks, and
this operation must be repeated
from year to year until after 1874


What effect this would have upon
the value of the currency and the
business of the country need not
be discussed, for none are SO stupid
IS not 10 understand it.


If this vast body Of currency is to
be redeemed, then the debt is mo-
paid. but has only changed its form
II it is NOT to be redeemed, then il
will not be worth the paper upor
which it is printed, and Reputation
and comm efcfai ruin viii be the re
suit. The present value of green
backs is chiefly due to the under
standing that they are to be re
deemed, and body of currency thai
is not to be redeemed, and will lie
in the hands of the last holder, can
not be sustained by making it a legal
tender, or by any other Legislative
continuance. Not one dollar of the
bonded debt will fall due before
fourteen years, and it will then be-
come due at different periods, run
ming down to 1904. Can any good
reason be given for paying it off sc
long in advance? The country has
not yet recovered from the war
Trade and commerce still langIish
throughout the land. Nine States
are disorganlzed and desolate, and
can scarce pay anything for years to
come. The rebellious South caused
the debt to be created, but whatever
is paid in the next five or six years
must come almost entirely from the
North. Why not wait at least until
the South can pay part? Why not
wait until the country has recovered
from the shock and waste of war;
Has not this generation put down the
rebellion and done its part, and may
it net justly leave the payment OF
part of the debt to the next? This
generation has to discharge large
State, county and municipal indebt-
iedness growing out of the war, and
within the next ten years will have
to pay not less than $400, O,OOO for
pensions and bounties, besides ex-
traordinary expenses for Indian
wars and other causes. In ten years
our population will have increased
ten millions, and our taxable proper
ty nearly doubled in value. In ten
years tax twice in amount can be
borne easier than the tax of to-
day.


Within ten years the Southern
States will be reconstructed and II
the enjoyment of comparative pros
perity. Within ten years, and per
haps within five, the increase OF pop,
ulation, wealth and capital will en-
able the Government to sell at par
bonds bearing a much lower rate OF
interest than the present, and thus
consolidate and reduce the debt.


Should the Government find itsell
at any time in possession of coin OF
currency that can be applied to the
reduction of the debt, it should, OF
course, be promptly applied, but
any attempt to pay the bonded debt
in advance by heavy taxation, or by
initiating the currency, will be un-
necessary, unwise and injurious.


/ would pay the interest promptly,
according to the contract. l would
pay off our currency obligations and
other debts as they mature, and see
to it that the public debt should un
der no circumstances be increased.


I would reduce the rate of taxa
ton to the lowest point that would
defray the expenses of the Govern
ment, economically administered, and
pay the interest and maturing obli-
cations, and leave the principal OF the
bonded debt to be discharged IN
other and better times.


Who ever before heard of a ma
ton while still exhausted from war,
and with wounds unhealed, attempt
ing to pay off the war debt? Foreign
nations may admire our ambition in
this respect, but would despise our
discretion. The national taxes can
be reduced by the adoption of the
policy propose, and by the honest
and faithful collection of the internal
revenue.


In fifteen years, and possibly in
five, the difference in value between
gold and greenbacks will have ceas-
ed to exist, by gradual return tc
specie payment, and the question o.
the mode of payment of the bonds,
whether in gold or greenbacks, will
have become unimportant. Specie
payments can be reached without
contracting the currency, by waiting
q reasonable time, until successful
reconstruction and the growth ol
wealth aud business has brought the
country up to the existing volume
of currency without financial con-
vulsion..


The decline of gold from 200 to
40 brought a corresponding reduc,
.tion in the price of property, at
tended with great loss and derange.
ment of business. Another imitation
of the currency would be attended
by another ascent and descent oi
prices, and with immense disasters
to the nation. What the country
needs is repose and stability in our
financial policy, and without these
trade and prosperity must languish.
When our debt was contracted, the
men who now clamor for its imme-
diate payment denounced bonds and
greenbacks as alike worthless, and
dissuaded the people from lending
their money to carry on the war; and
my opinion is, they mean no better