The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1868-12-11
Presidents Message.
ICONTINUED.I |

ICONTINUED.I
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
may be redeemed, there seems to be
o general concurrence as to the pro-
priety and business of reduction in
the present rate of interest The
Secretary of the Treasury, in his re-
port, recommends five per cent. !;
Congress, in bill passed prior to
adjournment the 9th of July last.
argued upon four and four and
half per cent, while by many three
per cent. has been held to be an am
ply sufficient return for the invest
ment. The general impression rs to
the exorbitancy of the existing rate
of interest has led to an INQUIRY
to the public mind respecting the
consideration which the Government
has actually received for its bonds,
and the conviction is becoming pre-
valent, that as the amount which it
obtained was in real money, three or
four hundred per cent. less than the
obligations which it issued in return,
it cannot be denied that we are pay
ing an extravigant per centage for
the use OF money borrowed-which
was paper currency, greatly depreci-
ated below the value of coin. This
fact is made apparent when we con-
slider that bond-holders receive from
the Treasury upon each dollar they
own in Government securities 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 the Govern
ment and the States, and thereby en-
hanced two per cent. in the hands of
the holders. We thus have an ag-
gregate of II per cent, which may
be received upon each dollar by the
owners of Government securi-
ties. A system that paoduces such
results is justly regarded as favoring
few at the expense of the many,
and has led to the further inquiry,
whether our bond holders, in view of
the large profits which they have en-
joyed, would themselves bo adverse
to a settlement of our Indebtedness
upon plan which would yield them
q fair remuneration, and at the same
time be just to the taxpayers of the
nation. Our national credit should
be sacredly observed; but..in making
provision for our creditors, we should
not forget what's due to the masses of
the people. It may be assumed that
the holders of our securities have al
ready received upon their bonds a
larger amount than their original in
vestment, measured by gold standard.
Upon this statement of facts, it would
seem but just and equitable that the 6
per cent. interest now paid by Govern
ment should be applied to the reduc-
ton OF the principal, in semi-annual
lnstalments, which in ton years and
eight months would liquidate the
entire national debt. Six per cent.
Il gold would, at present rates, be
equal to nine per cent, in currency,
and equivalent to the payment of the
debt one and half times i'm n froc.
tion less than seventeen years. This
in connection with all the other nd.
vantages derived from their invest
ment, would afford to the public
creditors o fair and liberal compen-
sation for the use of the capital aud
with this they should be satisfied
The lessons of the past admonish
the lenders that it is not we'll to be
over-anxious i'll exacting from the
borrower rigid compliance witt the
letter of the bond. If provision be
made FOR the payment Of the indebt-
edness of the Government in the
manner suggested, our nation will
rapidly recover its wonted prosperity.
Its interests require that some mea-
sure should be taken to,release the
large amount OF capital invested in