The weekly North-Carolina standard. [volume] (Raleigh, N.C.) 186?-1869, 1868-12-16

lions. In my message to Congress of De-
cember 18th, 1865, it was suggested that a
policy should be devised Which, without
being oppressive to the people, would at
once begin to effect a reduction of the debt
and, ii persisted in, discharge it fully within
definite number of years. The Secretary
OF the Treasury forcibly recommends legis-
lation of this character. and justly urges
that the longer it is deferred the more diff
cult must he the accomplishment. We
should follow the wise prccedents estab-
lisled in 1889 and 1876, and without further
delay make provision for the payment of
our obligations at as early period as may
I've practicable. The fruits of their labors
should he enjoyed bv our citizens, rather
than used to huld up and sustain moneyed
monopnlies in our own and other lands.
Our foreign debt is already computed by
the Secretary of the Treasury at eight hun
dred and fifty millions. Citizens of foreign
countries receive interest upon large por-
ton of our securities. and American tax.
payers are made to contribute large sums for
their support. The it.ea that such a debt is
to become permanent. should be at all times
discarded. as involving taxation too heavy
to lie borne, and the payment once in sixteen
years. at the present rate of interest OF an
amount equal TO the original sum. This
vast debt, if permitted to become pcrma-
ncnt and increasing. must eventually be
gathered into the hands of few, and ena-
hle them to exert dangerous and contro-
ling power III the affairs of the government.
The borrowers will become servants to the
lenders-the lenders the masters of the peo-
pie. We now pride ourselves upon hay
ing given freedom to four millions of the
colnred race. 1t will then be our shame
that forty millions of people, by their own
liberation of nsurpation and prof1igacy, have
suffered themselves to become enslaved, and
merely exchanged slave-owners for new task
masters in the shape of bond holders and
tax gathercrs Besides, permanent debts
pertain to monarchial government and ten
ding to monopolies, perpetuities and class
legislation, and are totally irreconcilahle
with free Institutions Introduced into our
republican system, they would gradually hut
surely sap its foundations, eventually sub
vert our governmental fabric and erect upon
its ruins moreyed arstocracy. 1t is our
sacred duty to transmit unimpaired to our
posterity the blessings of liberty which were
bequeathed to us by the founders of our Re-
public, and by our example teach those who
are to follow us, carefully to avoid the dan
gers which threaten 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 I've redeemed, there seems
to be n general concurrence as to the pro-
priety and business of reduction in the
~ Of
the Treasury, in his report, recommends five
per cent. Congress in bill passed prior
! to,the adjournment on the 9th July last
agreed mp. four and four-and-a half per
cent. While by many three per cent. has
been been held to he an amply sufficient re-
turn for the investment. The general i'm
preston as to the exhorbitancy of the exist
ing rate of interest has lei 10 an inquiry
in the public mind respecting the consid-
/ Grafton which the government has actually
received for its bonds, and the conclusion
is becoming prevalent that the amount it
obtained was in real money three or four
! hundred per cent. less than the obligations
which it issued in return. 1t cannot be de-
MED that we are paying an extravaganza
per centage for the use of the money Dor.
rowed which WAS paper currency, greatly
deprecated below the value of coin This
fact is made apparent when we consider
that bnndholders receive from tho treasury
upon each dollar they own in government
securities six per cent. in gold which is near
| ly or quite equal to nine per cent. in curren
cy; that the bonds are then converted into
capital for National Banks, upon which
those institutions issue their circulation
hearing six per cent. interest, and that they
are exempt from taxation by the govern
ment and the States, and thereby enhanced
two per cent. in the hands of the holders
| We thus have an aggregate of seventeen pei
cent. which may lie received upon each dol
lar 10y the owners of the government Sc
curities. A system that produces such re
suits is Justly regarded as favuring a few
at the expansc OF the many, and has lef
to the further inquiry whether our bond
holders, in view Of the large profits which
they have enjoyed, would themselves b'
averse to settlement of our indebtedness
upon plan which would yield them ,
fair remuneration. and at the same time b'
just to the taxpayers of the nation.
Our national credit should he sacretll,
observed, but in making provision for on
creditors We should not forget what is du
To the masses of the people. 1t may he as
sumed that the holders of our securitie
have already received upon their bonds
larger amount than their original invest
ment, measured by gold standard. Upol
this statement of facts it would seem bu
just and equitable that the six per cent in
terest now paid by the government should
nc applied to the reduction of the principa
i'll semi-annual instruments, which, in sixteel
years and eight months. would liquidatc tin
entire national debt Six per cent. IN golt
would, at present rates, he equal to MIN
per cent. in currency, and equivalent to tin
payment of the debt one and half times
in fraction less than seventeen years. Thi
in connection with all the other advantage
derived from their investment, would aff0rt
to the public creditors fair and liberia
compensation for the use of their capital
and with this they should be satisfied. Tn
lessons of the past admonish the lender tina
it is not well to be over anxious in exactin:
from the borrower rigid compliance witt
the letter of the bonds
If prnvisinn is male for the payment O
the Indebtedness of the government in tn,
manner suggested. our nation will rapdl,
recover its wonted prosperity. Its interests
require that some measure should b,
taken to release the large amount of capita
invested in the securities of the government
1t is not merely unproductive. byt in taxa
tions annually consumes $4,000, 900 which
would otherwise be used 10y our entcrprisns
people in adding to the wealth of the nation
Our commerce, which ut one time success
fully rivalled that of all the maratine powers
has rapidly diminished and onr industrial
interests are in depressed and anguishina
condition. The Development of our mex