Why did Jefferson oppose full payment of payment of public securities (war bonds) to speculators?
Thomas Jefferson opposed full payment of public securities (war bonds) to speculators for several reasons:
1. Speculation vs. merit: Jefferson believed that speculators who bought these securities at a fraction of their face value during the economic downturn after the Revolutionary War did not deserve to profit from their speculative investments. He argued that the government should prioritize paying off the debt owed to those who had originally purchased the securities based on their merit and patriotic service.
2. Rewarding speculation: Jefferson considered speculators to be profiteers who took advantage of economic hardships and the vulnerability of war veterans. He saw them as individuals who contributed little to the war effort but sought to reap huge profits by exploiting the struggling economy. Paying full face value to speculators would reward and encourage such speculative behavior, which he viewed as detrimental to the republican principles of equality and virtuous citizenship.
3. Wasting public funds: Jefferson believed that paying speculators the full face value of the securities would divert significant amounts of public funds away from more important projects, such as infrastructure development or support for the national credit. He argued that the money could be better used for the public good rather than being given to a privileged few who did not contribute to the nation's welfare.
4. Economic fairness and social stability: Jefferson, along with other Democratic-Republicans, was concerned about the wealth concentration and inequality that would result from paying speculators in full. He believed that such a concentration of wealth in the hands of a few would foster societal divisions and potential instability.
5. States' rights: Jefferson also saw the full payment of speculators as a threat to states' rights and their ability to handle their own financial obligations. He argued that the payment of public securities should be a decision made and executed by individual states rather than the federal government.
Overall, Jefferson's opposition to full payment of public securities to speculators stemmed from his concern for economic fairness, meritocracy, and social stability, as well as his commitment to limiting the powers of the federal government.