The States and Union. [volume] (Ashland, Ohio) 1868-1872, 1868-12-16


prevalent that the amount which it OBJ
tanned 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 extravagant per centage forthe
use of the money borrowed, which was
paper currency greatly deprecated be-
low the value of coin, This fact is
made apparent, when we consider that
bondholders receive from the treasury
upon each dollar they own in Govern
ment Securities, six per cent in gold,
which is nearly or quite equal to, nine.
FER cent in currency that the bonds;
are then converted into capital for the
National Banks, upon which these in
situations issue their circulation bear
ing six per cent interest, and that they
ore exempt from taxation by the Gov
eminent and the States, and thereby
enhanced two per cent in the hands of
the holder. We have thus an aggre-
gate of seventeen per cent. which may
be received upon each dollar by the
owner of Government securities. A
system that produces such results, is
Justly regarded as fayoring a few at
the expense of the many, and has led
to the further inquiry whether our
bondholders, in view. of the large prof
its which they have enjoyed. would
themselves be averse to a settlement
of Indebtedness upon a plan which
would yield them fair remuneration,
and at the same time be just to the
taxpayers of the nation. Our nation
al credit should be sacredly observed,
but in making provision for our credi-
tors, we should not torgetwhat is due
to the masses Of the people. 1trmay:
be assumed that the holders of Our
securities have already received upon.
their bonds a larger amount than their
original Investment, measured by a
gold standard. Upon this statement
of facts it wouldseem just and equita-
BILE that the six per cent. interest now
paid by the Government should be ap-
piled to the reduction ofthe principal
in semi-annual installments, which in
sixteen years and eight months could
-liquidate the entire national debt.
Six per cent, in gold would at present
rates be equal to nine per cent. in cur
rency, and equivalent to the payment
of the debt n and a half times in a
fraction less than seventeen years.
This, in connection with all the other
advantages derived from their invest
ments, would afford to the public
creditors a fair and liberal compensa-
ton fCr the use of their capital, and
with this they should be satisfied.
The lessons % the past admonish the
lender that it is rot well to be over.
anxious in exacting Fl am the borrower
rigid compliance witt the letters OF
the bond. If provision Le n4>de TOR
the payment of indebtedness OF the
Government in the manner suggested,
our nation will rapidly recover its
wonted prosperity. Its interests re-
quire some measures should be taken
to release the large amount of capital
invested in the securities of the Gov
eminent. IT is not now merely un-
productive, but in taxation annually
one hundred and fifty mil
lion of dollars, which would otherwise
be used.by our enterprising people ina
adding to the wealth of, the nation.
Our commerce, which at n time suc;.I
cessfuny rivalled that of the great
maritime powers, has rapidly dimiQ-
ished, and our Industrial itereststare
in q depressed and languishing condi-
ton. The Development of our mex
haustible resources is sehecked, and
the fertile fields of the South are be-
coming waste for want of means to
till them, =, With the release of eapitI
tai, new life would be infused into the
paralyzed energies of our people and
activity and visor impartod to every
branch o~findustry. Our peopieneed'
encouragement in their efforts to re: /
cover from the effects of the rebellion
and of injudicious legislation, and il
should be the aim Of the Government
to stimulate them by the prospect of
an early. release. from burdensi
impede their future prosper
ity. If we cannot take the
burdens from their shoulders, I
should at least manifest a willing
ness to help to bear them.
THE CURRENCY QUESTION.
In referring to the condition of the
medium. shall merely re
substantially, that portion Of
my last Annual Message which relates
TO that subject The proportion which
the currency of any country should
bear to the value Of the annual pro-
duct circulated by its means is Q ques-
lion upon which political economists,
have not agreed, nor a it be cont
-rolled by legislation, but must be left
the irrcvocable laws which every
where regulate commerce and trade.
The circulating medium will eve If
-esistibly flow to those points where it
s in greatest demand. The law of
demand and supply is as ~unerring as
hat which regulates the tees of the
ocean, and indeed currency, like the
ides, has its ebb and flow throughout
he commercial world. At the Begin
ling of the rebellion the bank motel
circulation of the country amounted !
not much more than two hundred
Millions of dollars. Now the circnlaS 4
ion of National bank notes and tIlose
Known as lega1tenders is nearly seven
hundred millions; and while it isl
by some that this amount should
increased, others contend that a 4
reduction is absolutely essenti- l
] to the best interest of the country. t
view of these diverse opinions, it
nay be well to ascertain the real val $
lie of our paper issues, when compar- S