Year: 1871




parts Of the loan with prospects of com


plete success. These results were the


fruits Of the purpose of the Republican


party to accept the debt as q result Of the


war, and without inquiring into the con


Rideration which the Government had re


ceived for the bonds, to look only to the
mature OF the obligation which the cOun.


try had assumed and to faithfully perform


H. Hon the partof the Republican party


there had been any hesitation, if they had


listened to thesuggestion that these bonds


might be paid by the issue OF greenbacks,


the public credit would have been still


further impaired and the instilatiOn OF


bonds at lower rate Of interest made


impossible, II was noticeable that the


interest paid by our Government on the


public debt was standard for the inter-


est rate throughout the country, and


to the same extent throughout the


world, for the bonds OF the Uni


ted States were negotiable at more


commercial points out Of this country,


than the bonds OF any other government.


This was due the implicit faith of the
people Of other countries, inspired by the
declarations of the Republican party, and
sustained by the evidence given in the
daily reduction Of the public debt, He
believed very considerable payments
should be made to reduce the debt and
relieve labor from the tax burdens through
many generations, and above all to place
the nation in such a position that in an
emergency, large loans might be obtained
at home or abroad. The public debt
should be reduced at least $50,OOO,0O0
yearly, and this could be accomplished
with such reduction of taxes as would
meet the demands OF business, and re-
move most Of the Objectionable features
Of the tariff system. ThGAmendments to
the Internal Revenue system had re-
lleved the people from most If not all Of
the really burdensome taxes, while from
seven subjects now taxed about one hun
dred and twenty-five millions would be
received annually The improvement in
our credit ut home and abroad had elm
mated from the difference between gold
anEApaper all that was duo 10 want of
faith In the financial character OF the
country. The remaining difference
could be overcome by waiting tho growth
of tho country, until lis demand for
money should bo equal 10 the present
supply, or by reducing tho volume Of the
currency Tor an amount not exceeding
two millions per month. 1t was no
doubt true that the present volume might
be continued with q good harvest and
Innnral nrOunnriIv 0nI thn d;Tinronna
between the value Of paper and gold an.
nually decreased. II was the purpose Of
the Republican party, President Grant,
and those associated with him, to do what
was practicable to render the paper oil
the country as valuable as gold at the
earliest moment, without injury to bust.
ness interests. The means were left TO |
Congress, and there was, he took 1t, no
difference in the Republican party that
the volume of paper money was under no
to be increased. In this
they make distinct issue with tho Dem.
ocratic party.


Mr.. Boutwell, reCapitulated the financial
results Of Grants administration, and in
connection with the statement, taxes had
been reduced $SO,0O0,OOO annually, he
said VIC could reasonably expect that q
further reduction OF $4,000, 900 might be
made. He said the net expenses, eXclud.
ing interest on the public debt, pensions,
cost of the Internal Revenue
Bureau and all expenses resulting from
the war, had been reduced from $l73,520,
87l n for the year ending June, 30th
1868 ; $05, ,G49,509 30 for the year ending
June, 30th 1871 +; showing IN actual cost
In the peace establishment Of less than
00000000.


Mr.. Boutwell, then said that the course
Of the Democratic party in reference to
the debt was substantially the same in
effect that its course was during the war,
and since tho war the principal obstacle
10 the improvement oftho public credit
had been the declared purpose of the
Democratic party to compel the holders
Of flve.twenty bonds to Eccept greenbacks
In their place, coupled with the condition
hat the greenbacks might be converted,
1t the holders will, into new three per
cent bonds. He traced the unfavorable
effect Of tho Democratic party on our
credit in Europe, and said the Democratic
tiornrseemed to entirely disregard the
ltipulations Of the act Of February %,
1859, providing that the duties on imports
should DO collected IN coin, and that
IN amount OF coin equal to one
per centum Of the public debt should be
annually set apart as q sinking fund, and
hat the interest on the public debt should
DC paid in coin. The Democratic propo.
Iiti0n Is to pay the 5.2OS in greenbacks,
which would require an additional issue
1t $i,800,000,00O. II European holders
accepted greenbacks they would convert
hem into gold, by which the country
would be drained and currency depressed
10 rates ruling during the last year Of the
war.ia The irredeemabe paper money
would be invested in lands and other pro.
petty more reliable and least affected by
tho deprecated currency. The currency
itself would pass rapidly from the capital.
sts to the middling interests and labOring
classes, who would be the losers. Land
Tor agricultural purposes and labor would
be- The last to feel tho advance, while
clothing and living would advance imme.
liatelyS 1t was difficult to conceive Of q
proposition fraught with sucli evil to oil
classes as that ppresented by the Demo-
cratic party Of Ohio. II the seven hun.
lred millions Of paper were increased TO
Two thousand millions, he asked If fifty OF
4 hundred dollars Of such paper would
buy gold dollar or a btishel Of wheat.


In conclusion he said the future was in
Dur own hands. The first duty was 10
provide for the payment Of the public
debt in coin or It's equivalent. The next
was lor a considerable annual payment Of
lhe public debt, to delay transferred the
burden more and more from property to
labor; postponed the time for national
at home and powerful in
rluence abroad retarded immigration and
lindered the settlement Of the new States
The payment Of freed capital for other
uses lowered the interest rate, and showed
he superiority of our country and instilu-
Iinna and oavp America n new claim To he