Year: 1867

The Reading Journal says: The subject Of Ma
tional Finances is just now q matter of paramount
Importance in financial and business circles. The
Pendletonian theory of paying off our vast debt
by an unlimited issue of "greenbacks." approxi
mating it does to virtual reputation of course
finds favor among Rebels and Copperheads who
own not dollar of these securities. but occasions
feverish anxiety among the patriotic few who
hold these certificates of indebted ness 1t is not
probable that this plan OF rep pddiation will be
ried out, because such result could only be
co.hplished by Rebel and Copperhead triumph
in the coming Presidential election. Still the
bare possibility of such a result has occasoned
general alarm throughout the country, ana Gov
ernment bonds not now held in as high esteem
formerly. Parties who hold them are selling
out and investing in Real Estate and other secu-
rites Should the war upon the National Banks
continue. and the system be broken up, univer-
sal panic would be the consequence


The argument that the National bonds too
greatly favored by high rates of interest and
lief from taxation is not without point and States
men are looking about for remedy that shall
relieve the Government from portion of its
burdens. An equitable mode of providing proper
relief to the Government and the people without
serious loss to the bond holders, ana which
we advocated year ago, would be to consolidate
the entire national debt into five per cent gold
bearing loan running for an indefinite period,
the interest of which should be paid promptly, ,as
fast as the means of the country warranted. We
are glad to see, in the dispatches from Washing
ton, that the Secretary of the Treasury will, in
his forthcoming report, recommend such loan
for the action of Congress. 1t is stated that he
is encouraged in this course by the ready sale of
the 1910 bonds, and by the opinions of prom ent
bankers with whom he has been in consultation,
Senator Sherman, it is stated concurs in the rec
ommendation of the Secretar and has prepared
a bill to be presented Immediately on the next
meeting of Congress, auth orizing the consolida-
tion referred to.


By converting the whole debt into q We per cent.
consols and requiring the National Banks to take
them collateral security for their notes the
present high interest loans could speedily be
changed for the new Consols, and the government
and tag payers be relieved at once of the annual
payment of many millions of dollars. 1t is true
that business men. who look for high interest,
might seek other investment but the solid men
and of the country, who desire a secure
and permanent Investment without risk or trouble
would gladly become the creditors of the govern
ment. Tie prompt payment of interest, and reg
ular payments of the principal from time TO time,
would give to the u S. Consols, at all times, a
premium in the market. What is better, th lis loan
would teud to consolidate the Union, by making
it the direct interest of every governr,e ent bond
holder to set his face against any future Rebel
lion. 1t has often been argued that Kngland's S
debt is England's strength, and the same rule
would hold good SO far as the United States is
concerned The moro the consols were diffused
among the people-and care should be taken to
itors of the nation stand up for its union and
perpetuity