Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1868-12-09


tries receive interest upon large portion OF
our securities, and American taxpayers are
made to contribute large sums tor their sup
mort. The idea that such q debt is to become
permanent should be at all times discarded, as
involving taxation too heavy to be borne, and
payment once in every sixteen years, at the
present rate Of interest OF an amount equal to
the original sum- This vast debt, ii permit
ted to become permanent and increasing, must
eventually be gathered into the hands OF lew,
and enable them to exert dangerous and con-
trolling power in the affairs ofthe Government.
The borrowers would become servants to the
leuders-the lenders the masters OF the people.
We now pride ourselves upon having given
freedom to four millions of the colored race 1t
will then be our shame that forty millions OF
people, by their own federation OF usurpauon
and profigacy, have suffered themselves to be-
come enslaved, aud merely exchanged slave
owners for new taskmasters in the shape OF
| bondhoders and tax-gatherers Besides, per-
manept debts pertain to monarchical govern
ments, and, tending to mOnopolies, perpetul-
ties. and class legislation, are totally irreconcl-
able with free institutions. introduced into
our republican system, they would gradually
| but surely sap its foundations, eventually sub
| vert our governmental fabric, and erect upon
its ruins a moneyed aristocracy. 1t Is ouE
sacred duty to transmit unimpaired to our pos
| terity the blessings of liberty which were be-
queathed to US by the founders OF the Republlc
and by our example teach those who are tC
follow us carefully to avoid the dangers which
threaten tree and Independent people.
Various plans have been proposed tor 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 q
general concurrence as to the proprcty ano
business of a reduction III the present rate OF
interest. The Secretary Of the Treasury II
his report recommends five per cent. Con
gress in bill passed prior to adjournment OF
the 9th of July last, agreed npoa Hour anc
four and half per cent. while by many, three
per cent. has been held to be amply suthclent
return for the investment The general IN
preston as to the exorbltancy Of the existing
rate Of interest has led to an inquiry in the
public mind respecting the consideration Whicf
the Government has actually received for it,
bonds, and the conclusion IS becoming preVa
lent that the amount which 1t obtained was II
real money three or four hundred per cent. les;
than the obligations which it issued in return
1t cannot be denied that we are paying an eX
travagant per centage for the use OF the money
borrowed, which was paper currency, greatly
depreciated below the value OF coin. This
fact is made apparent when we consider tha'
bondholders 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 currency that the
bonds are then converted into capital tor the
national banks, upon whi:a those institutions
issue their circulation, bearing six per cent IN
terest and that they are exempt from taxa.
ton hv the Government and the States, and
thereby enhanced two per cent. in the hands
of the holders, We thus have an aggregate
of seventeen per cent which may be received
upon each dollar by the owners OF Govern
ment 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 en-
loved, would themselves be averse to settle
ment of our indebtedness upon a plan which
would We'd them a fair remuneration, and at
the same time be just to the axpayers OF the ma
ton. Our national credit should be sacredIy
observed; but in making provision for our
creditors we sholld not forget what u due to
the masses of the people 1t may be assumed
that the holders of our securities have already
received upon their bonds larger amount
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 interest now paid by the Government
should be applied to the reduction OF the prin-
cipa in semi.annual instruments, which in SIX
teen years and eight months would Ilquldatc
the entire national debt Six per cent IN gold
would at present rates be equal to nine per
cent III currency, and equivalent to the pay
ment of the debt one and half time In
fraction less than seventeen years. This, IN
connection with all the other advantages deriv-
ed from their Investment, would afford to the
public creditors fair and liberal compensation
for the use of their capital, and with this they
should be satisfied. The lessons OF the past
admonsh the lender that 1t is not we'll to be
over-anxicus in exacting from the borrower
reid compliance with the letter OF the bond
If provision be made for the payment OF the
Indebtedness of the Government in the manner
suggested, our nation will rapidly recover It's
wontcd prosperity. Its interests require that
some measure should be taken to release the
large amount of capital invested in the securi-
ties Of the Government. Its not now merely
unproductive, but in taxation annually CON
sumcs one hundred and fifty millions OF dol
lars. which would otherwise be used by our
enterptising people in adding to the wealth OF
the nation. Our commerce, which at one time
successfully rivalled that of the great maritime
Powers, has rapidly diminished, and our indus
trial interests are in depressed and anguish
ing condition The development of our mex
haustibIc resources is checked, and the fertile
fields of the South are becoming waste Tor
want of means to till them. With the release
of capital, new life would be infused into the
paralyz energies OF our people, and activity
and vigor impaired to every branch of indus
try Our people need encouragement in their
efforts to recover from the effects Of the rebel
lion and of njudicious legislation and it
should be the aim of the Government to
stimulate them by the prospect Of an early re-
lease from the burdens which impede their
prosperity. If We cannot take the burdens
from their shoulders we should at least mani
fest willingness to help to bear them.
In referring to the condition Of the circulat-
ing medium, | shall merely reiterate substan-
italy, that portion of my last annual message
which relates to that subject.
The proportion which the currency Of any
,Lo,Id boor 10 no bcln ,n If hn