The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1868-12-26

was one of the great events Of Pfesi-
dent Jacksons Administration. AZ
ter its redemption, q large fund re-
in the Treasury which was
deposited for safe-keeping with the
several States, on condition that it
should be returned when required by
the public wants. In 1849--the year
after the termination of an expen-
siye war with MeXico-We found our
selves involved in a debt of S64 ,000,-
900; and this was the amount owed
by the Government in 1860, just pri-
or to the outbreak of the rebellion.
In the spring of 1861 our civil war
commenced. Each year of its eop-
tinuan9e made an enormous addition
to the debt and when, in the spring
of 1865, the nation successfully
emerged from the conflict, the obli-
cations of the Government had
reached the immense sum of $2,S73,-
992, 800. The Secretary of the Trea-
sury shows that on the lst day of
November, 1867, this amount had
been reduced to 50, ,49l ,504A50; but
at the same time, his report eXhib-
its an increase during the past year
of $35, ,625, ,l02 for the debt on the lst
day Of November last is stated to
have been 81, ,527, 129,552 1t is esti-
mated 10y the Secretary that the re-
turns for the past month will add to
our liabilities the sum of $l1 100000
making total increase, during
thirteen months, of $46, ,500,008.
In my Message of December 4,
1865, it was suggested that policy
should be devised, which, without
being oppressive to the people would
at once begin to effect a reduction Of
the debt, and, if presisted in, dis
charge itfully within definite num-
Der Of years. The Secretary Of the
Treasury fOrcibly recommends legis-
latioT of this character, and justly
urges that the longer it is delayed
the more difficult must become its
accomplishment. We should follow
the wise precedents established in
1889 and 1916, and without further de-
lay make provision for the payment
of our obligations at as early a peri
cd as may be practicable. The fruits
of their labor should be enjo we'd by
citizens rather than used to build up
and sustain monopolies in our own
and other lands. Our foreign debt is
already computed by the Secretary Of
the Treasury at $3.50, 900 dollars. Git
liens Of foreign countries receive in
terest upon larger portion of our
securities, and American taxpayers
are made to- contribute large sums
fOr.their support. The idea thatsueh
a debt is to become permanent should
at all times be discarded, as involv-
ing a burden too heavy to be borne,
once in every sixteen years,
at the present rate of interest, of an
amount equal to the original sum.
This vast sum, if permitted to be-
come permanehtan increasing, must
eventually be gathered into the
hands OF few, and enable them to
exert a dangerous and controlling
power in the affairs of the Govern
ment. The borrowers would become
the servants of the lenders the len
ders be masters of the people. We
now pride ourselves upon having
given freedom to four millions of the
eolored race. Tt will then be our
shame that forty millions of people,
by their own toleratioh Of usurpa-
tion and profigaey, have suffered
themselves to become enslaved, and
merely exchanged shareholders for
new taxmasters in the shape Of bond
holders and taXgatherers.
Various plans have been proposed
for the payment of the public debt.
However they may have varied as
to the time and mode in which it
should be redeemed, there seems to
be general concurrence as to the
propriety and justice of a reduction
in the present rate of interest. The
Secretary Of the Treasury, in his re-
port, recommends per cent. Con-
gress, in a bill passed prior to its adj
journment on the 9th of July last,
agreed upon 4 and IL per cent. !;
while, by many, 3 per cent. has been
held to be an amply sufficient return
for the investment. The general inn
preston as to the exorbitaney of the
existing rate of interest has led toan
inquiry in the public mind respect
ing the consideration which the
Government has actually received
for its bonds, and the conclusion is
becoming prevalent that the amount
which it obtained was in money 300
or 400 per cent. less than the obliga-
tions which it issued in return. 1t
cannot be denied that we are paying
an eXtraYagant percentage for the
use of the money borrowed, which
was paper currency, greatly depreci-
ated below the value of coin. This
fact is made apparent when we con-
slider that bondholders receive from
the Treasury upon each dollar they
own in Government bonds six per
cent. in gold, which is nearly or
quite equal to nine per cent. In cur
rency; that the bonds are then con-
verted into capital for the National
banks, upon which those institutions
issue their circulation, bearing six
per cent. Interest ; and that they are
exempt from taxation by Govern
ment and the States, and thereby en-
hanced two per cent. in the hands of
the holder. We thus have anaggre-
gate Of seventeen per cent. which
may be realized upon each dollar by
the owners of Government securities.
A system that produces such results
is justly regarded as favoring 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 enjoyed,
would themselves be averse to a set
tlement of our Indebtedness upon a
plan which would yield them a fair
remuneration and, at the same time
be Just to the taxpayers of the ma
ton. Our national credit should be
sacredly observed; but, in making
provision for our creditors, we should
not forget what is due to the masses
of the people. 1t may be assumed
that the holders of our securities
have already received UPON their
bonds larger amouht than their
original Investment, measured by a
gold standard. Upon this statement
Of facts it would seem but Just and
equitable that the six per cent. inter-
est now paid by the Government
should be applied to the reduction of
the principal in semi-annual INSTALL
ments, which in sixteen years and
eight months, would liquidate the
entire rational debt. Six per cent.
~ MANA "a 4 l. !.