The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1868-12-17

ernment in 1860, just prior to the out
break of the rebellion. In the spring
of 1861 our civil war commenced.
Each year of its continuance made an
enormous addition to the debt, and
when, in the spring of 1856, the nation
successfully emerged from the con-
flict, the obligations of the govern
ment had reached the immense sum OF
| $2,873- -992, 800. The Secretary of the
Treasury shows that on the 1st day OF
November, 1867, this amount had been
reduced to S2,491, 704, ,450, but at the
same time his report indicated an in
crease during the past year of S35, 5,625,
902, for the debt on the 1st day of No
vember last is stated to have been
$2,529, 1862 1t is estimated by the
Secretary that the returns for the past
month will add to our liabilities the
further sum of S11, 100000, making a
total increase during thirteen months
of SAG, 100000.
In my message to Congress Decem-
ber 4 1866, it was suggested that the
policy should be devised which, with
out being oppressive to the people,
would at once begin to effect reduc-
ton of the debt, and if persisted in,
discharge it fully within definite
number of years. The Secretary OF
the Treasury forcibly recommends leg
islation of this character, and justly
urges that the longer it is deferred the
more difficult must become its accom-
plishment. We should follow the wise
precedents established in 1889 and
1916, and without further delay make
provision for the payment of our OBJ
legations at as early period as may
be practicable. The fruits of their
labors should be enjoyed by our citi-
zens rather than used to build up and
sustain moneyed monopolies in our
own and other lands. Our foreign
debt is already computed by the Secre-
tary of the Treasury at S850,000, 600.
Citizens of foreign countries receive
interest upon large portion of our
securities, and American taxpayers
are made to contribute large sums for
their, support. The idea that such a
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.
The vast debt, if permitted to become
permanent aud increasing, must event
ually be gathered into the hands of q
few, and enable them to exert danger
Gus and controlling power in the af-
fairs of the government. The bor-
rowers would become servants to the
lenders, the lenders the masters of the
people. We now pride ourselves up
on having given freedom to four mil
lions of the colored race. 1t will then
be our shame that forty millions of
people, by their own liberation of
usurpation and profigacy, have suffer-
ed themselves to become enslaved, and
merely exchanged slaveowners for
new taskmasters in the shape of bond
holders and tax-gatherers. Besides,
a permanent debt pertains to monor-
chial governments, and tends to
monopolies, perpetuities and class leg
islation, and is totally irreconcilible
with free institutions. Introduced
into our republican system, they would
gradually but surely sap its founda-
tions, subvert our governmental fabric
and erect upon its ruins moneyed
aristocracy. 1t is our sacred duty to
transmit unimpaired to our posterity
the blessings of liberty which were
bequeathed to us by the founders of
the Republic, and by our example
teach those who are to follow us care
fully to avoid the dangers which
threaten free and Independent peo-
pie. ,a
INTEREST ON BONDS.
Various plans have been proposed
for the payment of the public debt.
However they may have varied as to
time and mode in which it should be
redeemed, there seems to be a general
concurrence as to the propriety and
| business of reduction in the present
rate of interest. The Secretary of the
Treasury, in his report, recommends
! five per cent. Congress, in bill
passed prior to the adjournment on
the 9th of July last, agreed upon four
| and four and a half per cent, while by
many three per cent. has been held to
be an amply sufficient return for the
investment. The general impress
| sion as to the exorbitancy OF
the existing rate of interest has
led to an inquiry in the public
mind respecting the consideration
which the government has actually re-
ceived for its bonds, and the conclu-
sion is becoming prevalent that the
amount which it obtained was in real
money three or four hundred per cent.
less than than the obligations which il
| Issued in return.
1t cannot be denied that we are pay.
ing an extravagant per centage for the
use of the money borrowed, which
was paper currency greatly deprecated
below the value of coin. This fact il
made apparent when we consider thai
ibondholders receive from the treasury
upon each dollar they own in govern
tment securities, six per cent. in gold
which is nearly, or quite, equal to nine
per cent. currency; that the bonds are
then converted into capital for the ma
tional banks, upon which these insti
tutions issue their circulation, bearing
lsiEper cent. interest, and that they arr
exempt from taxation by the govern
ment and the States, and thereby en-
hanced. two per cent. in the hands O
the holder. We thus have an aggre
gate of seventeen per cent. which may
be received by the owner of govern
ment securities.
I A system that produces such result
- justly IOSdIuOu DIS 1dfOIIHS u IOW d
the expense of the many, and has lee
to the further inquiry whether oul
bondholders, in view of the larg
|, profits which they have enjoyed, would
themselves be averse to sett1emen
of. our Indebtedness upon plan cl
. would yield them fair remuneration
and at the same time be just to tn
taxpayers of the nation.
Our national credit should be sacred
ly observed. But, in making provis
ion for our creditors, we should no
forget what is due to the masses of tn
, people. 1t may be assumed that tn
holders of our securities have alread
: received upon their bonds q large
| amount than their original Investment
: measured by gold standard. Upo
this statement of facts it would seer
I just and equitable that six per cent. in
| terest, now paid by the government
/. should be applied to the reduction o
: the principal in semi-annual install
: ments, which, in sixteen years an