Year: 1874

INDIANAPOLIS, Dec. 1l.-HOn. W. ID.
Kelley's letter of Dec. 3 TO I. B. BuchaR-
an, esq, Secretary of the National Execu-
tive Committee Of the Independent party,
will be published in the Indianapolis Sun
tomorrow. In that letter Mr.. Kelley says:


For the present, owe duty to the Re
publican party, and will perform it so far
as can cOnscientiouSly. II, however, the
demands of the party shall trench upon the
domain of conscience or self-respect,
shall be found at least so far in opposition
to it. A few days will enlighten me on
this subject. If the message of the Presi-
dent and the report of the Secretary of
the Treasury are to contain such prop
ositions as we are told they will, with
reference to the speedy resumption of
specie payments. and the Republican party
accept them, | shall in the end, cooperate
with those who oppose it. L have carefully
considered your proposed basis OF the
Union, and may say that | have long be-
lieved, and for some years enforced the
doctrine that it is the duty of the govern
menL to issue the money of the country,
and prohibit the circulation of the notes of
corporations, whether State or national, and
that the money so issued should be legal
tender for all debts, public and private, in
Guiding duties on imports.


In these views agreed with my late dis
tinguished colleague Thaddeus Stevens so
early as 1862, but having been instructed
by the results of the issue of assignets,
based upon property to which the Govern
ment had no legal tenure and Of the Con-
tinental money, for the funding Of which
no provision had been made, l hold that
cOincidentally with the issue of Govern
ment paper, means should be provided for
its funding in interest bearing bonds, so
that the Government might be able to bOr-
row from its own people and distribute the
taxes collected from them among them,
when paying the interest on its funded
debt.


Two classes of bonds should be issued
by the Government for the absorption of
any excess of paper money that might be
issued, one, long bonds with the affixed
rate of interest payable, principal and in
terest, in paper, and therefore not likely to
be favored byIfOreign investors; another in
ter convertible at the option of the holder
at a lower rate Of interest, say 3-65 per
cent. With these two classes of bonds
open to the people, there need be no ap-
prehenSiOn as to the emission of an exces-
sive volume of currency, by converting the
present bonded debt into bonds bearing
lower rate of interest in paper, and placing
it in the hands of our own people.


He says in this way We may turn the
balance of trade in our favor and retain
the bullion produced from our own mines,
and come naturally to the use of gold and
silver as part Of our currency, without the
terrible suffering that forced contraction,
as means Of resumption, is now imposing
on the men of enterprise and the men OF
toll, and the small economies in every part
of our country, for the benefit of the com
paratively few who are in the enjoyment OF
realized capital. The effect of this system
would unquestiOnably be to reduce the
rate of interest, and in so far remove the
necessity for a certain per centage of the
protection now demanded by those who are
engaged in developing the resources Of the
country and providing diversified employ
ment for its men, women and youth.