The Fremont weekly journal. [volume] (Fremont, Sandusky County, Ohio) 1867-1877, 1868-12-18

5il A
agreed upon four aad four and a half pei
cent, while by many. three per cent is held
J to be an amply sufficient return for the in
] vestment. The general impression as q
the exhorbirancy of the existing rate Of
interest has led 10 an inquiry by the public
mind respecting tie consideration which The
government has actually received for its
bonds, aud the conclusion 3 becoming prev
; alent that the amount which it obtained vas.
in real money, three or four hundred per
! cent less than the obligations which it issu-
ed in return. Il cannot be denied that We
! are paying an extTavsgsnt per centage for
the use of the money borrowed, which pa
per currency greatly deprecisted below The
! value ef coin. This fact IS msde apparent.
! when we consider that Che bOndhOlders
receive from the treasury upon each dollar
they ownin government securities, six per
cent in geld, which is nearly or quite equal
to nine per cent IN CURRENCY; thar the bonds
are converted into capital for the batiOnal
} banks, upon which these institutions issue
, their circulation bearing s < percent interest
: and thst they are exempt from taxation. by
the government ard the states, and thereby
I enhanced two per cent in the hands Of The
) holder. We have an aggregate ef seven
per cent which may be received upon each
] dollar By the owner Of the government
securities. A system that produces such
results is Justly regarded as favITinz the few
. at the expense Of the many, and has led to
/, the further inquiry whether our bondholders
In view of the large profits which they have
eRj yed, would themselves be averse to a
) settlement Of our Indebtedness upon pan
which would yield Them a fair remunera-
] tiOn, and at the same time be Just to the
! Taxpayers Of the nation. Our lhatiObal
; credit should be sacredly observed, bnt ID
making provision for our creditors, Weshould
not forget what is due TO the masses Of the
IpeOple 1t may be presumed that the
holders o. our securities have already
received upon their bonds a larger amount
than their original Investment, measured bv
la gold standard. UpOE this statement Of
facts it would seem Just aud equitable that
the six per cent. interest now paid by the
government shohld be applied 10 the reduc-
ltiOn Of the principal in sCmi-annual INSTALL
ments, which in sixteen years and eight
months could liquidate the entire national
ldebt. Six per cent. in gold would al present
rates be eqnal to moe per cent. in currency.
and equivalent 10 the pay fBentof thel debt
lone and half times in fraction less thar
nineteen years. This, 10 Connection with
all other advantages derived from Their in
vestmsnts would affHd 10 she public credit
ors a fair and liberal compensation for the
use of their capital and With tais they
should be satisfied The lessons Of the past
adm0nish the creditor thai it il not well tn
be over aRxi9usin exacting from The borrow
Ier rigid compliance vi Ihs letter Of his
hortA Nf L.. 4 al
ment Of tie ind bsedns OF the g0vsrum lnt
in the manner suggested, our nation will
rapidly Tscover lis WOnled prosperity. Its
Interests require that some measures be taken
to release the large amount Of capital inves-
ted in the securities 81 the government Il
IS not now merely unpToduetite, but in tax
alton annually consumes one hundred and
fifty millions Of dollars which would other
wise be Us by our euterprising people in
adding 20 the wealth of the patton. Our
lcOmmeFee, which at one time rivalled
that Of the great maritime powers, has rap
IDLY dimini bed, and our industrial interests
are in depressed and langnishiug eondi-
| { on. The development Of our inexhsust-
able resources Is checked, aud the fertile
fields Of the South are becoming waste for
want Of means TO till them. With the re-
lease of capital, new life would be infused
into the parslyzed energies Of our people
and activity and vigor impaired TO every
brauch OF industry. Our people reed en-
enlargement in theireff rts 10 recover from
the effects of the rebellion, and If iniudic-
ious legislation, and il should be the aim Of
the government TO stimulate them by the
pros pect Of an early release from sbe bur
dens which impede their prosperity. If we
cannot take the burdens from their shoul-
ders, we should at least manifest a willing.
ness to help to bear them.
TIE CURRENCY QUESTION:.
Ia referring to the condition OF the circula.
tion medium, l shall merely reiterate, sub
stautially, that portion Of my last annual
message which relates to that sui j-ct, The
proportion which the currency of any coun-
try should bear to the whole value ofthe an.
uual product circulated by its means is
question upon which political economists
bsVe not agreed, nor can It be controlled bY
legislation, but must be left 10 the irreyocs. /
be laws which every here regula COM
merce and trade, The circulating medium
viii ever sirresistibly flow 10 those points /
where it is in greatest demand. The law of |
demand and supply is as uneIripg ss that |
which regu ates the tides Of the ocean, and |
indeed currency. Ike the tides, bas It's ebb |
aud dow throughout the commercial world /
At the beginning of the rebellion The bank /
note circulation Of tie country amounted to |
not much more than two hundred millions /
of dollars. Now the circulation Of the us- |
tional bsnk notes and those known as legal /
tenders is nearly seven hundred millions |
and while It IS urged bg some that this /
amount should be increased, Others contend /
that decided reduction IS absolutely essen
tial to the best interests of the country. IN 4
view Of thase diverse opinions, il nav be- I
veil to ascertain the real value of our paper
issues when cOmTared with metallic or con-
yertible currency. For this purpose let as
inquire how much gold aud silver could be
purchased by the seven hundred millions Of
paper money now in circulation gr /
Probably not more than half the amount
Of ths latter, showing that when cur paper
currency is compared with gold and SILVER,
its commercial value is compressed into
three bundrel and fifty millions This 4
striking fact makes it the obvious duty Of
The government, as early as may be co1sis-
tent with the principles Of sound political
economy, to take such measures as will eDs-
BILE the holder of its notes. and those of the
national banks. to convert them without loss
into specie or its equivalent. A reduction
necessarily follow; this, however, would de-
pend upon the law of demand and supply.
though it should be borne in mind. that 6V
making legal tender and bank notes conVer-
tible into coin or its equivalent their pres
snt specie value in the hands of their holders
would be enhanced one hundred per cest
Legislation Tor the accomplishment of re-
,ult so desirable is demanded by the highest
public considerations. p The Constitution
that the circulating medium Of
be country shall be uniform in quality and
7slue At the time Of the formation Of that
the country had lust emerged +,
rom the war Of the revolutions and was suf. | ,
ering ircm The tffec's of a rsdundspt and !
worthless paper currency. The ssges Of that ,
period were aDxiOus o protect their pastsdtv ,
rom the evils which they themselves had az !
,erienced. Hence, in providing a circuIst- /,
ng medium they conferred upon Congress ,
he poser to cola money aud regulate the
'alue thereof, at theisame time prohibiting !,
he states from making anything but gold :
md silver lender in payment ofdebts. The ]
nnm4lous condition Of O1F currency is 10
triking contrast with that which was origi- J
lally dssigued. Our circulation nOw en-
races, frs, notes Of the national banks, :
which are made receivable for al dues to / !,
he government excluding imports, and by !
II its creditors, excepting in pay ment ofin-
crest upon its bonds and the securities !
themselves. Second, l-gaI tender notes is
ued by the United States snd which the
av requires shall be receiS ed as we'll in. pay
lent OF all debts between citizens as Of al
overnment dues excepting imports; and I
lird, god AID lyer co c. By the opera
IOD Of our present system Of finance, how q
yer, the metallic currency when collected is I
eseTEed only for one class Gf government 3
Teditors, who, holding is bords semi-an- i
lallK receive lheir infaIasf In cnin FINN the =