Bedford inquirer. [volume] (Bedford, Pa.) 1857-1884, 1868-12-18

I ePhaA q isitg5 P0Ill0u UI buE securities, ana
American tax-payers are made TO contribute
large sums for their support. The idea that
suea debt is to become permanent should
0e AZ all times discarded, as involving tax
atDn too heavy to be borne, and payment
obce 10 every sixteen years, at the present
rage OF interest, Of an amount equal to the
! original sum. This vast debt, it permitted
TO become permanent and increasing, must
eventually be gathered into the hands Of a
few, and enable them 20 exert dangerous
ana controlling power in the affairs Of the
60Vernment. The borrowers would become
servants to the lenders-the lenders the
masters of the people. We now pride our
sesyes upon having given freedom to four
( millions of the cOl0red race It viii then be
oar shame that forty millions of people. by
their own liberation of usurpatiOn and prof
igacy, have suffered themselves to become
| enslaved, aud merely exchanged slave-own-
en- for new taskmasters in the shape of
/ boadholders and tax gatherers. Besides,
permanent debts pertain to monaTchical
g0Fernments, and, tending to monopOiies,
perpetulties, and class legislation, are totally
Irreconcilable with free institutions. In
/ troduced into our republican system, they
would gradually but surely sap its founda-
uons eventually subvert our governmental
fabric, and erect upon its ruins a mOneyed
| austocracy. It's our sacred duty to trans
/ mIt unlmpalred to our posterity the bless
lngs OF liberty which were bequeathed to US
by the founders Of the Republic, and by our
example teach those who are to follow us
carefully to avoid the dangers which threat
en- free and Independent people.
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 a general concurrence as to the pro-
priety and justice of a 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 adjournment on the 9th of July last,
agreed upon four and four and half per
cent. while by many three per cent, has
been held to be an amply sufficient return
for the Investment. The general impression
as to the eXorbItaucy Of the existing rate Of
interest has led to an inquiry in the public
mind respecting the consider ton which the
government has actually received for its
bonds, aud the conclusion is becoming
prevalent that the amount which it OBJ
famed was in real money three or four
hundred per cent. less than the obligations
hich it issued in return. 1t cannot be
denied that We are paying an ezuayagaDt
per centags for the use Of the money
borrowed which was paper currency, greatly
deprecated below the value Of coin This
fact is made apparent when we consider that
bondholders receive from the Treasury, upon
each dollar they own in government secu-
rites, 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 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, aud 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 Government secu-
rites. A system that produces such re-
suits is justly regarded as tayoring q few at
the expense Of the many, and has led to the
further inquiry whether our bondhoders,
isI riyvy ef sLe la-sa I1vits hiuh they have
enjoyed, would themselves be averse to a
settlement Of our Indebtedness upon plan
which would yield them a fair remuneration,
and at the same time be juss to the tax
payers Of the nation. 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. Il may be assumed that the holders
/ of our securities have already received upon
their bonds a larger amount than their
/ original investment, measured by gold
standard Upon this statement Of facts 1t
would seem but just and equitable that the
six per cent. interest now paid by the Gov
ernment should be applied 10 the reduction
of the principal in semi-annual instalments,
which IN sixteen years and eight months
would liquida,e the entire national debt
Six per cent in gold would at present rates
be equal to nine per cent. in currency, and
eauivalent to the payment Of the debt one
and half times in a fraction less than
seventeen years. This, in connection with
all the other advantages derived from their
investment, would afford to the public cred
itors a fair and liberal compensation for the
use of their capital, and with this they
should be satisfied The lessons Of the past
admonish the lender that it is not we'll to be
over anxious in exaetiBg from the borrower
rigid conf ance with the letter of the bond
Ifproyision be made for the payment of
! the Indebtedness of the Government in the
manner suggested, our nation viii rapidly
recover its wOnted prosperity. Its interests
re1uire that some measure should be taken
to release the large amount of capital invested
I in the securities of the Government 1t Is
not now merely unproductive, but in taxa
| ton annually consumes one hundred and
/ fifty millions Of dollars, which would other
wise be used by our enterprlslng people IN
/ adding TO the wealth OF the nation. Our
commerce which at one time successfully
rivalled that of the great maritime Powers,
I has rapidly diminished, and our industrial
! interests are in depressed and laDgulshlng
/ condition. The development OF our mex
! baustible resources is checked, and the fertile
! fields Of the South are becoming waste Tor
want Of means to till them. With the re-
/ lease of eauital new life would be infused
into the raIalyzed energies OF our people,
( and activity and vigor impaired TO every
( branch Of industry Our people need en-
/ ronragement in their efforts to recover from
/ the effects of the rebellion and OF Injudlclou5
1 LEGISLATION and it should be the aim Of the
/ Government to stimulate them by the pros
pect of an early release from the burdens
/ which impede their prosperity. Ii we cannot
/ take the burdens from their shoulders, We
should at least manifest a Willingness to hell
to bear them
/ In referring to the condition Of the circu
/ .atIng medium, sEa mercy tetteTSIe, sun
/ stantialy, that portion OF my last annua
message which relates to that subject.
The proportion which the currency of any
/ country should bear TO the whole value OF
the annual produce circulated by its means
is a question upon which political economist!
1 have not agreed. Nor can 1t be controlled
/ By legislation, but must be left to the IT
revocable laws which everywhere regulate
lot q.
lium will ever irresistaby flow TO thost
points where it is in greatest demand. The
/ law Of demand and supply is as unerring a
that which regulates the tides Of the ocean
and indeed currency, ike the tides, has it;
/ ebbs and flows throughout the Commercial
world.
At the beginning ofthe rebellion the banl
note circulation ofthe country amounted t.
not much more than two hundred millions 0
dollars. Now the circulation Of national banl
notes and those known as illegal tenders