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Brought forward.

$140,865.981 Interest to May 1, 1888, at 3 per oent....... 4,26,560

Brought forward.

$43,997.285 From November 1, 1975, to May 1, 1870..... 2,50),000

46,497,285 Interest..


17.8*), 205 From May 1, 1876, to November 1, 1876..... 2,500,000

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involved in this bill. I believe that the public judgment demands that we should take some steps, this much at least, toward equalizing the position of the noteholder and the bondholder and toward reducing the interest of the public debt. At this late period of the session I do not intend to renew the discussion of last January; but if Senators wish fuller information on the subject than I now choose to give them, they will find in the remarks made by the Senator from Vermont, [Mr. EDMUNDS,] by the Senator from Missouri, [Mr. HENDERson, )and by myself, statistical information that will enable then properly to answer most of the questions that would naturally arise in this debate. It is scarcely worth while at this period of the session to repeat these arguments, especially by those who participated in the foriner debate :

Table A. Five-twenties of 1862, que 1882, bear six per cent. Five-twenties of 1861, due 1881, Five-twenties of 1865, due 1883,5

interest. If these are exchanged for a five-per-cent. bond due thirty years from 1st November, 1868, what will the country gain?

Take $500,000,000 five-twenties, 1862 : From November 1, 1868, to May 1, 1869, it saves one balf of one per cent. gold....

$2,500,000 Interest on ibis at six per cont. from May 1, 1869, to November 1, 1869...


From May 1, 1877, to November 1, 1877.....

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163.927.300 Interest to Nov, 1, 1889, at 3 per cent...... 1,617,8

158,545,13) Interest to May 1, 1890, at 3 per cent...... 4,760,385

163,301,475 Interest to Nov. 1, 1890, at 3 per cent......

169.200,00 Interest to May 1, 1891, at 3 per cent...... 5.66,015

173.25.55 Interest to Nov. 1, 1891, at 3 per cent...... 5,197,25

178,443,650 Interest to May 1, 1892, at 3 per cent........

183,797,259 Interest to Nov. 1, 1892, at 3 per cent...... 5,013,92

180,311.170 Interest to May 1, 1893, at 3 per cent...... 5,679,035

194.920,15 Interest to Nov. 1, 1993, at 3 per cent...... 5,8,9,715

200,940:29 Interest to May 1, 1894, at 3 per cent........


*236.63,45 Interest to Nov. 1, 1894, at 3 per cent......

213.071.39 Interest to May 1, 1895, at 3 per cent........

219,62,51) Interest to Nov. 1, 1995, at 3 per cent...... 6.53,96

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Interest ........


Interest to Nov. 1, 1896, at 3 per cent......

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From May 1, 1870, to November 1, 1870.....

From May 1, 1880, to November 1, 1880.....

Interest to May 1, 1897, at 3 per cent.......

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Interest to Nov. 1, 1897, at 3 per cent .....

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7,801,00 $39.912.469

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88,618,160 From November 1, 1880, to May 1, 1981..... 2,500,000

91.148.160 Interest.............


93,882 605 From May 1, 1881, to November 1, 1881..... 2,500,000

96,382,605 Interest to May, 1882.......


99,264.085 From November 1, 1881, to May 1, 1882..... 2,500,000 Total saving to May 1, 1882, when five-twenties mature..


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Thus by exchanging with the holders of $500,000,000 of five-twenties of 1862 the condtry is saved : 1. Till the maturity of the five-twenties in 1882.

$101,764,05 2. From 1882 till the maturing of a new thirty-year bond..

168.145,375 Total saving till 1898.


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This sum reinvested will, with its interest at six per cent. per annum, amount by November 1, 1898, as computed in table B:

Table B. What will $101,764,085 amount to by November 1, 1898, with compound interest every half year at six per cent, per annum, from May 1, 1882?

$101.764.050 Interest to Nov. 1, 1882, at 3 per cent........ 3,052,925

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$101,817,005 Interest to May 1, 1883, at 3 per cent........ 3,144,510

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It is thus plain that more than half of the $500,000,000 would be self-extinguished by 1898. The other half would be redeemed by the strict application and operation of the one per cent. out of customs receipts, which is stated in the act of 1862.

The same principles and figures will apply to the five-twenties of 1864 and 1865, except that the country would gain two and three years more savings in the diminution of interest.

Mr. SUMNER. The bill before tbe Senate opens the whole question of financial reconstruction. I do not know but that the Senator from Ohio would prefer to proceed with the amendments or the consideration of details

, but if not disagreeable to him at this stage, I should like to proceed with its discussion in some of its more general aspects.

Mr. SHERMAN. I will state to the Sen ator that I shall be very glad to hear him upon the general proposition, but this amendment now offered is the careful result of the ire quent deliberations of the Committee on Fnance, and I do not know that the members of that committee desire to change a single word of it. We desire that the Senate sbali not adopt any amendments to this amendment upless they appeal themselves clearly to their judgmnent, because the amendment, as it is now offered, is the result of our deliberate cousida eration, and the striking out of a word, or st!

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2,500,000 42.715,810 1.281,475





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material alteration might very seriously change (say which was the worst? Certainly, it is diffithe meaning of the bill. We bave no proposi- cult to distinguish between them. One grew tion to make and no amendinent to offer out of the other, so that they belong together

and constitute one group, all derived ultimately Mr. SUMNER. If I should not interfere, from the rebellion, and directly depending upon then, with the plans of the Senator, I will pro- it. So long as slavery continued in arms, each ceed now.

and all waxed in vastness; and now, so long f Mr. SHERMAN. Very well.

as any of these remain, they testify to this Mr. SUMNER. After a tempest sweeping same unnatural crime. The tax-gatherer, tak- d sea and land, strewing the coast with wrecks, ing so much from honest industry, was born and tumbling houses to the ground, nature of the rebellion. Inconvertible paper, derang: must become propitious before the energy of ing the business of the country at home and man can repair the various losses. Time must abroad, had the same monstrous birth. Our intervene. At last ships are launched again and enormous taxation is only a prolongation of housey are built, in larger numbers and fairer the rebellion. Every greenback is red with .it forms than before. A tempest has swept over the blood of fellow.citizens. us, scourging in every direction; and now that To repair these calamities, political and h its violence has ceased we are occupied in the financial, the first stage was the overthrow of work of restoration. Nature is already propi- the rebellion in the field, thus enabling the Natious, and time, too, is silently preparing the tion to reduce its armaments, to arrest its accuway, while the national energies are applied to mulating debt, and to cease anxiety on account А the work.

of foreign intervention so constantly menaced. h To know what to do we must comprehend Thus relieved, we were brought to a resting d the actual condition of things and how it was place, and the nation found itself in condition brought about. All this is easy to see, if we to begin the work of restoration. will only look.



ir FINANCIAL QUESTION A PART OF THE POLITICAL. Foremost came the suppression of slavery, It is a mistake ottoo constant occurrence to in which the rebellion had its origin. Common

fa treat the financial question by itself, without || prudence, to say nothing of common humanity,

in considering its dependence upon the abnormal

al required this consummation, without which condition through which the country has passed.

tr there would have been a short-lived truce only. The financial question, in all its branches, de- So great a change necessarily involved other po pends upon the political, and cannot be sepa- changes, while there was the ever-present duty rated from it. I might use stronger language. to obtain from the defeated rebels, if not It is a part of the political question, and now indemnity for the past at least security for the that reconstruction seems about to be accom future. It was impossible to stop with the

in plished, it is that enduring part which still suppression of slavery. That whole barbarous

de remains.

sh code of wrong and outrage, whose first article

fo THE REBELLION AND ITS CONSEQUENCES, POLITICAL was the denial of all rights to an oppressed

race, was grossly inconsistent with the new pc Our present respousibilities, whether politi

ha order of things. It was necessary that it should cal or financial, have a common origin in that

I yield to the Equal Rights of All, promised by vast rebellion, when the people of eleven States, ihe Declaration of Independence. The citizen,

wl inaddened by slavery, rose against the Nation. As the rebellion was without example in its rights, civil and political. Loyal governments, lified from slavery, must be secured in all his

It declared object, so it was without example in

NO republican in form, must be substituted for the extent and intensity of its operations. It

fo rebel governments. All this being doue, the sought nothing less than the dismemberment

wl States, thus transformed, will assume once of our Nation and the establishment of a new

is more their ancient relations to the Nation. power with slavery as its quickening principle.

of This is the work of political reconstruction, The desperate means enlisted by such a cause constituting the new stage after the overthrow

im could be encountered only by the most strenu

hu of the rebellion. ous exertions, in the name of country and of Human Rights. Here was slavery, barbarous,

FIXANCIAL RECONSTRUCTION DEPENDS ON POLITICAL, brutal, vindictive, warring for recognition. The

Meanwhile there has been an effort and a wh tempest or tornado can typify only feebly the longing for financial reconstruction also

the ravage that ensued. There were days of dark- sometimes without sufficiently reflecting that ness and despair, when the national existence

there can be small chance for any success in of: was in peril. Rebel armies menaced the Cap- this direction until after political reconstruc: Pa itol, and slavery seemed about to vindicate its tion. Here also we must follow nature, and wicked supremacy.

restore by removing the disturbing cause. wh Looking at the scene in its political aspects, This is the natural process. Vain all attempt Th we behold one class of disorders; and look: to reconstruct the national finances while the

apt ing at it in its financial aspects, we behold still

rebellion was still in arms. This must be another; both together constituting a fearful

obvious to all. Vain also while slavery still sum total, where financial disorder mingles

domineered. Vain also while Equal Rights for with political. Turn, first, to the political,

are without a sure defense against the op- tha and you will see States, one after the other pressor. Vain also while the Nation still palrenouncing their relations with the Nation, and pitates with its efforts to obtain security for constituting a new government, under the the future. Vain also until the States are all

aga name of confederacy, with a new constitu- once more harmonious in their native spheres, tion, making slavery its corner-stone; all of like the planets, receiving and dispensing which they sought to maintain by arms, while, light. in aggravation of these perils, Foreign Powers Nothing is more sensitive than credit, which you gave ominous signs of speedy recognition and is the essential element of financial restora- bou support. Look, next, to the financial side, and tion. A breath will make it flutter. How you will see business in some places entirely can you expect to restore the national credit, prostrate, in others suddenly assuming new now unnaturally sensitive, while the Nation is 1 forms; immense interests destroyed; property still uneasy from those rebel pretensions, which annihilated; the whole people turned from the have cost so much? Security is the first con

Firs thoughts of peace to the thoughts of war; vast dition of financial reconstruction; and I am prac armies set on foot, in which the youthful and at a loss to find any road to it, except through opp strong were changed from producers to destroy political reconstruction. All this seems so ers, while iife itself was consumed ; an unpre- plain, that I ought to apologize for dwelling ble cedented taxation, commensurate with the

And yet there are many, who, while unprecedented exigency; and all this followed professing a desire for an improvement in our

and by the common incident of war in other coun: financial condition, perversely turn their backs

the: tries and times, first, the creation of a national upon the only means by which this can be that debt, and, secondly, the substitution of incon | accomplished. Never was there equal folly. vertible paper as a currency. In this catalogue Language cannot picture it. Every denial of B of calamities, political and financial, who shall ! Equal Rights - every impediment to a just ll I vei



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preliminary in character and equally essential There it is; and it must continue unchanged, of Assistant Secretary Harrington of the 26th to boih, through which taxation will be light- except by the consent of the parties, until the May, antedates this adjournment nearly two ened and specie payments will be hastened. I laws of the universe tumble into chaos. months, during which time Congress might reter to the Public Haith, which must be sa- The rogue in Shakspeare exclaims, "What have set aside this explicit representation that credly preserved above all question or suspicion. a fool is honesty! and trust, his sworn brother, a the bonds would be paid in gold." It did no The word of our Nation must be as good as its very simple gentleman!" In equal levity it is such thing, and the sales were proceeded) with. bond; and nobody trust attempt to take a said, tax the bonds, although, by the original | It must not be forgotten that these original tiule from either, Nothing short of universal || bargain on which the money was obtained, sales were mainly to baukers and brokers and wreck can justify any such bankruptcy. Let amid the trials of war, for the safety of the in large ainounts for the purpose of resale to the Public Faith be preserved, and all that you Nation, it was expressly stipulated that these small purchasers seeking investments

. It was now seek will be easy.

bonds should not be taxed. Nevertheless, tax in reply to parties interested in these regales A virtuous king of early Rome dedicated a the bonds. Of course, by taxing the bonds, the that the subsequent letters of Assistant Secretemple in the capitol itself to a Divinity under bargain is brutally broken; and this, too, after tary Field and of Mr. Chase were written, the name of Publica Fides, who was repre. the Nation has used the money. Such a transac- l pledging the Nation to payment in coin. At sented with a wreath of laurel about her head, tion in common life, except where bankruptcy | the date of these important letters Congress carrying ears of corn and a basket of fruit- | had supervened, would be intolerable. A was in session, and although the opportunity typical of honor and abundance sure to follow | proud nation justly sensitive to national honor, was constant, there was 110 protest against the in her footprints. In the same spirit another as the great Republic, through whose example meaning thus authoritatively affixed to these temple was dedicated to the god Terminus, liberal institutions are commended to man- obligations. The bonds were in the market, who presided over boundaries. The stones set kind, cannot do this thing.

advertised and sold daily, with a value estab. up to mark the linits of estates were sacred, The proposition to tax the bonds, in open vio- lished by the representations of these national and on these very stones there were religious | lation of the original bargain, is similar in spirit | agents; and Congress did not interfere to set offerings to the god. The heathen maledic- to that other enterprise, which, under various aside these representations. By subsequent tions upon the violator were echoed also by discordant ensigns, proposes to pay the national acts, similar lonns were authorized and nobody the Hebrews when they said, “Curse be le bonds with inconvertible paper. Here at once protested.

There was the supplementary that removeth his neighbor's landmark, and and on the threshold Public Faith interposes a clause of 3d Marchi, 1864, for the issue of all the people shall say, Amen." (Deut., ch. summary protest. On such a question debate eleven millions of these bonds to cover au xxvii., v. 37.) In those early Roman and even is dangerous ; the man who doubts is lost. excess subscribed above the amount author. Hebrew days there was no national debt divided The money was borrowed and lent on the ized by the original act. This was debated in into bonds; there was nothing but land. But || undoubting faith that it was to be paid in coin. the Senate on the 1st Marclı, 1864; but you a national bood is as well-defined as a piece || Nothing to the contrary was suggested, imag- will search the Globe in vain for any protest. of land. Here, then, is a place for the god | ined, or dreamed, at the time. Behind all forms | Then came other acts, at different dates, hy Terminus. Every obligation is like a land. of language and even all omissions, this obli- which the loan) was further enlarged to its pres. mark not to be removed without curses. Here igation stands forth, in the nature of the case, ent extent, and all the time these representaalso is a place for that other Divinity, Publica explained and confirmed by the history of our tions were uncontradicted. Against them f'ides, with laureled head, and hands filled national loans and by the official acts of succes- there was no act of Congress, no protest, with corn and fruit.

sive Secretaries of the Treasury interpreting | nothing. If this is not acquiescence," then Public Faith may be seen in the evil which the obligations of the Nation.

I am at a loss to know how acquiescence can springs from its loss and in the good which

be shown. Therefore do I insist that these overflows from its preservation, It is like So much stress is laid upon the language of representations are a part of the contract by honor, and yet once lost, more than dishonor the five-twenties that I cannot let it pass. The which the Nation is bound, is the consequence; once assured, more than terms employed were precisely those in pre- It is said that, in the five-twenty bonds, there honor is the reward. It is a possession sur- vious bonds of the United States where the are words promising interest in coin, but nothing passing all others in value. The gold and silver | principal was paid in coin; some of which are with regard to the principal. Forgetting the in your Treasury may be counted; it stands still outstanding. Had there been any doubt | contemporary understanding and the official recorded, dollar for dollar, in the national about the meaning it was fixed by the general interpretation, and assuming that at maturity the ledger, but the sums which the unsuspected understanding and by special declarations of bond is no better than a greenback, it becomes credit of a magnanimous Nation can command responsible persons speaking for the Nation. | important to know the character of this obligaare beyond the record of any ledger. Public On 26th May, 1863, Mr. Harrington, the Assist- tion. On its face a greenback is a promise to Faith is more than mines of silver or gold. ant Secretary of the Treasury, in an official pay a certain number of dollars. Itas paper, Only from Arabian story can a fit illustration letter, says: “These bonds will, therefore, be and it promises to pay • dollars." Here is an be found, as when, after all human effort had || paid in gold.” On 15th February, 1864, Mr. example which I take from my pocket: "The failed, the genius of the lamp reared the costly Hield, also Assistant Secretary of the Treasury, United States promise to pay to the bearer palace and stored it with beauty. Public Faith writes: “I am directed by the Secretary to say five dollars." Not five dollars in paper, or in is in itself a treasury, a tariff, and an internal that it is the purpose of the Government to pay some other substituted promise; but "five revenue, all in one. These you may lose ; but said bonds, like other bonds of the United | dollars," which can mean nothing else than if the other is preserved it will be only for a States, in coin at maturity.” On 18th May, the coin known over the world with the stamp day. The Treasury will be replenished; the 1864, Mr. Chase, at the time Secretary of the of Spain, Mexico, and the United States, tariff will be renewed; the internal revenue Treasury, wrote: * These bonds, according to being a fixed value, which passes current in will be restored. With Public Faith as an the usage of the Government, are payable in

every zone and at the antipodes. The idol

. unfailing law, the nation, like Pactolus, will coin." Mr. FESSENDEN, while Secretary of the lar' is an established measure of value, like sweep over golden sands, or, like Midas, it will | Treasury, in his annual report to Congress, the five-franc piece of France, or the pound change into gold whatever it touches. Keep, | expressed the same conclusion; and his suc- sterling of England. As well say that, on a then, the Public Faith as the "open sesame! cessor, Mr. McCulloch, in a letter of 15th May, promise to pay so many francs in France, or to all that you can desire; keep it as you would 1866, says: “I regard, as did also my prede. so many pounds sterling in England, you conld keep the philosopher's store of fable, baving cessors, all bonds of the United States as pay, honestly acquit yourself by handing over 3 which you have all. able in coin." There are also numerous ad

scrap of printed paper, inconvertible in value. And yet, in the face of this plain command- vertisements from the Treasury and from its This could not be done. The promise in our ment, on which bangs so much of all that is business agents, all in the same sense. greenbacks carries with it an ultimate obliga most prized in national existence, we are Here is a succession of authorities embracing tion to pay the silver dollar, whose chink is so called to break faith. It is proposed to tax high functionaries of the United States, alí familiar in the commerce of the world. The the national bonds, in violation of the ori concurring in affixing upon these bonds the convertibility of the greenback is for the present ginal bargain on which the money was lent. | obligation to pay in coin. As testimony to the saspended; but when paid, it must be in coin, Sometimes the tax is to be by the Nation and meaning of the bonds, it is important; but con- To pay with another promise is to renew, and sometimes by the States. The power to do this sidering that all these persons represented the pot to discharge the debt. But the obligation wrong you may possess; but the right never. national Treasury, and that they were the in our bonds is to pay ** dollars" also, whenever Do what you will, there is one thing you cannot agents of the Nation for the sale of these very the bonds are paid ; it may be after five years, do: you caunot make wrong right. Itis in vain | bonds, their representations are more than or, in the discretion of the Nation, not till that you undertake to set aside the perpetual testimony. Until their authority is disowned twenty years. But when paid it must be ja obligation which you have assumed. Against by Congress and their representations dis- dollars." Sach is the stipulation; nor conlod every such pretension, whether by speech or carded, it is difficult to see why their language the addition of coin" or "gold" essentially vote, there is this living duty, which will survive must not be treated as part of the contract, at change this obligation. It is contrary to redCongress and politician alike. Pany as the land least in all sales subsequent to its publication. son that a bond should be paid in an inferior of a child is the effort to undo this original bar- The Senator from Ohio, [ Mr. Sherman,) ap: obligation. It is dishonest to force inconvert: gain. The Nation has promised six per cent. parently feeling the pressure of this argument, interest, payable semi-annually in coin, nor explicitly says that Congress never acqui interest-bearing obligation. The statement of more nor less without any abatement, and then esced," thus admitting the force of acqui- the case is enough. Such an attempt disturbs having bound itself, it proceeds to guard against escence, if it could be shown, and he then the reason and shocks the moral sense. the States by declaring specifically, that the adds that Congress " was not in session when

Between the bond and the greenback, there bonds shall be "exempt from taxation by or any portion of this loan was sold." Congressad

is an obvious distinction, doubly-attested by under State authority.' Such is the bargain. Il journed on the 17th of July, 1863 ; but the letter

the act of Congress creating them botb; for



they were created together. This distinction every legislator I would address those incomappears, first, in the title of the act, and, sec- parable words of Milton in his sonnet to Fair.

fax : ondly in its provisions. According to its title it is "An act to authorize the issue of United "O, yet a nobler task awaits thy hand,

(For what can war, but endless war still breed?) States notes, and for the redemption or fund

Till truth and right from violence be freed, ing thereof and for funding the floating debt

And Public Faith clear'd from the shameful brand of the United States." In brief, greenbacks Oj public fraud." were made a legal tender, and authority was given to fund them in these bonds. This ap

The proposition to pay bonds in greenbacks pears in the very title of the act. Now the

becomes futile and fatuous, when it is considobject of funding is to bring what is uncertain

ered that such an operation would be nothing and floating into a permanent form ; and ac

more than the substitution of greenbacks for cordingly greenbacks were funded and placed

bonds, and not a payment of anything. The on interest. The bonds were a substitute for form of the debt would be changed; but the the greenbacks; but the new theory makes the

debt would remain. Of the twenty-five hungreenbacks a substitute for the bonds. To

dred millions which we now owe, whether in carry forward still further the policy of the act,

greenbacks or bonds, every dollar must be paid, it was provided that the greenbacks might be sooner or later, or be ignobly repudiated. By exchanged at once for bonds; and then, by

paying the interest of the bonds in coin, iustead the act of 11th July, 1862, it was further pro- of greenbacks, the annual increase of the debt vided that these very greenbacks 6 may be paid to this extent is prevented. But the principal in coin," at the direction of the Secretary, remains to be paid. If this be attempted in instead of being received in exchange for | greenbacks, it will be by an issue far beyond bonds ;--thus treating the bonds as the equiv. all the demands of the currency. There will alent of coin. The subsequent repeal of these be a deluge of greenbacks. The country must provisions does not alter the testimony to the

suffer inconceivably under such a dispensation. character of these bonds. Thus, at every turn, The interest on the bonds may be stopped by we are brought to the same conclusion. The

the substitution; but the currency will be dedishonor of these obligations, whatever form

preciated infinitely beyond any such dishonest it may assume, and whatever pretext it may

saving. The country will be bankrupt. In: adopt, is nothing but repudiation.

convertible paper will overspread the land, to ALL REPUDIATION DISHONORABLE.

the exclusion of coin or any chance of coin The word repudiation, now so generally for some time to come. Farewell, then, to used to denote the refusal to pay national ob- specie payments. Greenbacks will be every: ligations, has been known in this sense only where. The multitudinous mice that swam recently. In the early dictionaries of our lan- the Rhine and devoured Bishop Hatto in his guage, it had no such signification. According tower were not more destructive. The cloud to Dr. Johnson, it meant simply “divorce, of locusts described by Milton as “ warping “ rejection, as when a man put away his on the eastern wind” and “darkening all wife. It began to be known in its present the land of Nile," were not more pestilential. sense when Mississippi, the State of Jefferson Davis, dishonored her bonds. From that time the word has been too familiar in our public

I am now brought to the practical question,

to which I have already alluded, how the pubdiscussions. It was not unnatural that a State

lic burdens shall be lightened. Of course, in mad with slavery should dishonor its bonds. Rejecting all obligations of humanity and jus.

this work the Public Faith, if kept sacred, will

be a constant and omnipresent agency, pow. tice, it easily rejected the obligations of Public Faith. Slavery was in itself a perpetual repu

erfolin itself and powerful also in its reënforcediation, and slave-masters were unblushing

ment of all other agencies.

ECONOMY. repudiators. Such an example is not fit for our Nation at this great period of its history.

It will not seem trivial if I insist on systemIt is one of the calamities of war, that, while

atic economy in the administration of the it compels the employment of large means, it

Government. All needless expenditure must blunts the moral sense and breeds too fre

be lopped off. Our swollen appropriations quently an insensibility to the obligations in

must be compressed. Extravagance and reckcurred. A national debt shares for the time

lessness, so natural during a period of war, exceptional character of war itself. Con

must give way to moderation and thrift. All tracted bastily, it is little regarded except as

this, without any denial of what is just or be. 3 burden. At last when business is restored

neficent. The rule should be economy without and all things assume their natural proportions

niggardliness. Always there must be a good it is recognized in its true character. The

reason for whatever we spend. Every dollar, country accommodates itself to the pressure.

as it leaves the national Treasury, must be able This time is now at hand among us, if not

to exhibit its passport. Doubtless, the Army arrested by disturbing influences. °Unhappily and Navy can be further reduced without det the demands of Public Faith are met by hig

riment to the public service. Beyond this great gling and chaffering, and we are gravely re

saving there should be a constant watchfulness minded that the “ bloated bond-holders" now

against those schemes of public plunder, great expect more than they gave ; forgetting that

and small, from which the Nation has latterly they gave in the darkness of the war, at the

suffered so much. All these things are so appeal of the Nation, and to keep those armies

plain as to be little more than truisms. in the field through which its existence was preserved ; forgetting also that among these

Another help will be found in the simplifibond-holders, now so foully stigmatized, were

cation of our system of taxation, so that it shall the poor, as well as the rich, all giving accord

be less complex and shall apply to fewer objects. ing to their means. It was not in the ordinary | In Europe taxation has become a science, ac spirit of money-lending that those contribu. cording to which the largest possible amounts tions were made. Love of country entered

are obtained at the smallest possible inconveninto them and made them more than money. ways and by ways of life, leaving no single thing

ience. Instead of sweeping through all the highIf the interest was considerable, it was only in proportion to the risk. Every loan at that time unvisited, the English system has a narrow was a contract of bottomry on the Nation, like range and visits a few select articles only. I money lent to a ship in a strange port and con- see no reason why we should not profit by this ditioned on its arrival safe at home; so that it example, much to the convenience of the Govfailed entirely, if Slavery, by the aid of For:

ernment and of the citizen. The tax-gatherer eign Powers, established its supremacy. God

will never be a very welcome guest; but he may be praised! the enemy has been overcome.

be less of an intruder than now. It remains now that we should overcome that tax on two articles, whisky and tobacco, with other enemy, which hardly less malignant than proper securities for its collection, would go war itself, would despoil the Nation of its good far to support the Government. name and take from it all the might of honesty. And bere to every citizen, and especially to Still another agency will be found in some


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exalted. Why should not the Nation, with its mended itself on careful examination. On its sell or buy a farm; nobody can build or mortinfinite resources, surpass Massachusetts ? face it provides for a system of conversion and gage a house, except at au unnatura) hazard.

reconversion. The holder of lawful money to Salaries and all fixed incomes suffer. The pay The bill before us proposes a new issue of

the amount of $1,000, or any multiple of of every soldier in the Army, every sailor in bonds redeemable in coin after twenty, thirty, || $1,000, may convert the same into the funded the Navy, every office holder from the Presiand forty years, with interest at five per cent. debt for an equal amount; and any holder of dent to the humblest postmaster is brought four and one half per cent., and four per cent.

the funded debt may receive for the same at under this tyrannical influence. Harder still, in coin, exempt from State or municipal tax- the Treasury lawful money, unless the notes innocent pensioners, wards of the Nation, must ation and also from national taxation, except then outstanding shall be equal to $100,000,000. bear the same doom. Maimed soldiers, be. the general tax on income; these bonds to be If bonds in the funded debt shall be worth reaved widows, helpless orphans, whose cup is used exclusively for the conversion of an equal more than greenbacks, the latter would be already full, are compelled to see their scanty amount of the interest-bearing debt of the converted into bonds, according to the ordi- dole shrink before their sight till it seems ready United States, except the existing five per cent.

nary laws of trade. The latest relation of to vanish in smoke. bonds and the three percent. certificates. These these two is as follows: $100 greenbacks equal A greenback is a piece of paper with a proposed bonds have the advantage of being seventy-one dollars gold; $100 five per cent. promise on its face and green on its back, explicit in their terms. The obligations of equal seventy-six dollars gold. If the green- declared to be money by act of Congress, but the Government are fixed clearly and un

backs are convertible into the five per cent., which the Government refuses to pay. It is changeably beyond the assaults of politicians. they will, of course, be converted while the “ failed paper" of the Government. The mis.

A glance at the national debt will show the above relation continues. This must be so long chief of such a currency is everywhere, envelopoperation of this measure. The sum total on as the national credit is maintained abroad and | ing the whole country and penetrating all its the 1st of February, 1868, according to the l the demand for our securities continues there. parts. It covers all and enters all. It is a dis. statement from the Treasury was $2,504,845,- By this process our greenbacks will be gradually credit to the national name, from which the 373, being in round numbers twenty-five hun- absorbed and those that are not absorbed wirt Nation suffers in whole and in detail. It dred millions. Out of this may be deducted be lifted in value. It would seem as if bonds weakens the Nation and hampers the citizen. legal-tender and fractional notes, as currency,

and greenbacks must both gain from this busi- There is no national enterprise wbich it does amounting to $388,405,565, and several other ness, and with them the country must gain also. not impede. The Pacific railroad feels it. smaller items. The following amounts repre

Here would be a new step to specie payments. There is not a manufacture or business which sent the portions of debt provided for by this The bill closes with a provision authorizing does not feel it also. There is not a town, or bill:

contracts in coin, instead of greenbacks, accord- village, or distant place, which it does not visit. Six per cent., duc 1881...

$283,766.600 ing to the agreement of parties. This authority A practical instance will show one way in Six per cent., & ve-twenties.

1,398,188,850 is in harmony with the other provisions of which individuals suffer on an extensive scale. Seven and three-tentbs Treasury notes the bill, and is still another step toward specie being generally those who are least able

. I convertible into five-twenty bonds at maturity.............. 214,953,850 payments.

follow an ingenious merchant, Mr. Atkinson,

of Boston, whose figures sustain his conclusion, $1,897,203.300 I am now brought to the last branch of this when I insist that our present currency, from its

discussion, in which allthe others are absorbed; This considerable sum may be funded under

unstable character, operates as an extra tax of I mean the necessity of specie payments, or, in more than one hundred millions annually ou the proposed bill.

other words, the necessity of coin in the place the labor and business of the country; and this

of inconvertible paper. Other things are means vast sum is taken from the pockets of the peoIf this large portion of the national debt, to this end. This is the end itself. Until this | ple, not for the support of the Government, but with its six per cent. interest in coin, can be ) is accomplished financial reconstruction exists to swell the unreported fund out of which the fuuded at a less interest, there will be a corre. in aspiration only and not in reality.

excesses of the present day are maintained. sponding relief to the country. But there is The suspension of specie payments was ori- There are few business men, who would noi put one way only in which this can successfully be ginally a war measure, like the suspension of the annual loss in their afairs, from the factnaaccomplished. It is by making the Public the habeas corpus. It was so declared by my. tion in the currency, somewhere from one to fire Faith so manifest that the holders will be in- self at the time it was authorized. Pardon me

per cent. One per cent is the lowest. Mr. duced io come into the change for the sake of if I quote my own words in the debate on the Hlazaril, of Rhode Island, potsitatopererat. the longer term. All that is done by them

Now,the aggregate sales in the fiscal year ending must be voluntary. Every holder must be free "It is a discretion kindred to that under which tho June, 1867, were over eleven thousand millions to choose. He may prefer his short bond at habeas corpus bas been suspended so that citizens have been arrested without the forms of law; kin

($11,000,000,000) in currency, excluding sales six per cent. or a long bond at five per cent. dred to that under which an extensive territory has

of stocks or bonds. One per cent on this or a longer at four and a half per cent., or still been declared to be in a condition of insurrection, so prodigious amount represents a tax of one bun. a longer at four per cent. This is his affair. that all business with its inhabitants is suspended; kindred to that which unquestionably exists, to ob

dred and ten millions, paid annually by con: There must be no compulsion. Any menace

tain soldiers, if necessary, by draft or conscription sumers, according to their consumption and of compulsion will defeat the transaction. It instead of the freo offering of volunteers; kindred to not in any degree according to their ability, will be nothing less than repudiation with a that under which private property may be taken for This is one instance only of the damages an:

public uses; and kindred, also, to that undoubted certain loss of credit, which no saving of indiscretion which sanctions the completest exerciso

nually paid on account of our currency. If we terest can repay. You must continue to borof the transcendent right of self-defense.'

estimate the annual tax at more than one per row on a large scale; but who will lend to the

As a war measure, it should cease with the cent. the sum total will be proportionally larger. repudiator, unless at a destructive discount?

war, or so soon thereafter as practicable. Even at the smallest rate, it'is many millions Any reduction of interest without the consent should not be continued a day beyond positive more than all the annual expenses of our Govof the holders will reduce your capacity to bor- exigency. While the war lasted, it was a neces- ernient immediately preceding the rebellion.

A forced reduction of interest will besity, as the war itself. Its continuance now Fluctuations in the measure of value are as like a forced loan. While seeming to save prolongs into peace this belligerent agency

inconvenient and fatal as fluctuations in the interest, you will lose capital. Do not be de

and projects its disturbing influence into the measures of length and balk. A dollar which ceived. Any compulsory conversion is only mnost distant places. Like war, whose greatest

has to-day one value and to-morrow another is another form of repudiation. It is tantamount engine it was, it is the cause of incalculable no better than a yard, which has to-day one to this declared crime. It is the same misdeed, evil . Like war, it troubles the entire nation, length and another to-morrow, or a bushel

, taking still another shape-as Proteus was the deranges business and demoralizes the people. which has to-day one capacity and another to: same Heathen god in all his various transform. As I hate war, so do I hate all its incidents and

It is as uncertain as ** Equity," ations. It is repudiation under an alias. long to see them disappear. Already in these measured by the varying foot of successive chan

Happily the bill before us is free from any remarks I have pictured the financial anarchy / cellors, sometimes long and sometimes short, such damning imputation. The new bonds are of our country, the natural reflection of the according to the pleasant illustration of Selden authorized; but the holders of existing obliga- | political; but the strongest illustration is in a in his Table-Taik. Such fluctuations are more tions are left free to exercise their judgment in disordered currency, which is present to every- than a match for any prudence. Business is making the change. I am assured by those, | body with a dollar in his pocket.

turned into a guess, or a game of bazard, who, from practical acquaintance with busi- The derangement of business may be seen at where the prevailing anarchy is overruled by ness, ought to know, that these bonds will be home and abroad. It is not merely derange- accident: rapidly taken for the five-twenties. ment; it is dislocation. Everything is out of

"Cbnos umpiro sits. joint. Business has its disease also, showing

And hy decision more embroils the fray,

By which ho reigns: next him high arbiter The same bill, in its second section, sets itself in opposite conditions; shrunk at times, Chance governs all." apart $135,000,000 annually to the payment as with paralysis; swollen at times to unhealthy In such a condition of thing, the gamblers of the interest and the reduction of the prin proportions, as with elephantiasis. The first liave the advantage. The stock exchange cipal of the national debt; and this is to be in condition of business is stability, which is only becomes little better than a furo-bank. security. It is another assurance of our determ- when nobody can tell from day to day the value temptation of excessive gains leads from the ination to deal honestly.

of the currency. It may change in a night. beaten path of business. Speculation, with The third section of the same bill is newer The reasonable contract of to-day may become

out money, takes the place of honest industry, in its provisions, and, perhaps, more open to onerous beyond calculation to-morrow. There extending from the stock exchauge evening doubt. But, though uncertain with regard to

where. T'he failed paper of the Government it in the beginning, I have found that it com- ll sell; the buyer afraid to buy. Nobody can teaches the lesson of bankruptcy. T'he Gor





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