The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1868-12-18

ness as I'd the propriety and jdstness Of
. reduction In the present rate of inter-
est. The Secretary of the Treasury, i'm
HE report, recommends five per cent.
Congress, In bill passed prior to its
adjournment on the 9th of August,
agreed upon four, and four and hall
per cent, while, by many, three per cent.
has been held to be an amply sufficient
return for the investment. fs o,-t-
The general impression as to the ex-
horbitance of the existing rate of inter.
est has led to an inquiry In the public
mind respecting the consideration which
the Government has actually received
for its bonds and the conclusion is be.
coming prevalent that sthe amount
which 1t obtained was id real money
three or four hundred per cent. less
than the obligations which is paid In
return. 1t can not be denied that VIZ
are paying an extravagant per centagt
for the money borrowed, which was
paper currency greatly deprecated be.
low the value of coin. lao.i,.f,ae
This fact is made apparent when we
consider that bOnd-hOlders receive from
the Treasury upon each dollar they owe
upon the Government securities six pei
cent. in gold, which is quite or nearly
equal to nine per cent. in currency
that the bonds are then converted into
capital for National Banks, upon which
these institutions issue their circulation
bearing six per cent. interest; that they
are exempt from taxation by the Gov
! ernment and States, and thereby en-.
hanced two per cent. in the hands OF
the holders. a.. 4v.. 44l
We thus have an aggregate of sevcn-
teen per cent. which may be received
upon each dollar by the owners of gov
ernmcnt securities. A system that
produces such results Is justly regard.
ed as favoring few at the expense of
the many, and has led to the further in
quiry whether our bOnd-holders, in
view of the large profits which they
have enjoyed, would themselves be
averse to a settlement of our indebted.
ness on plan which would yield them
q fair remuneration and at the same
time be just to the taxpayers of the
nation. Our national credit should be
sacredly observed, but in making pro-
visions for our creditors we should not
forget what is due the masses of the
people. t4.
1t may be assumed that the holders of
our securities have already received up
ON their bonds larger amount than
their original investment. Measured
by gold standard upon this statement
of facts, it would be just and equitable
that the six per cent. interest now paid
by the Government should be applied
to the reduction Of the principal, in
semi-annual installments, which, in SIX
teen years and eight months, would
liquidate the entire national debt. Six
per cent. in gold would at present rates
and equivalent to the payment Of the
years. This, in connection with all the
other advantages derived from theil
Investment would afford the public
creditors fair and liberal compensa.
ton 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 well to be over anx.
ious in exacting from the borrower
rigid compliance with the bond. II
provision be made for the payment Of
the Indebtedness of the Government iii
the manner suggested, our country will
rapidly recover its wanted prosperity
Its interests require that some measures
should be taken to release the large
amount of capital invested in sccuri-
ties Of government. 1t is not now
merely unprOductive, but in taxation
annually consumes $15O,OOO,0O0 which
would otherwise be used by our enter
prising people in adding to the wealth
Of the nation.
Our commerce, which at one time,
maratime powers, has rapidly diminish
ed, and our industrial interests are in a
depressed and lsnguishing condition.
The development of our inexhaustable
resources checked and the fertile fields
of the South are becoming waste for
want of means to till them. With the
release of capital new life would be in
fused into the paralized energies of our
people and activity and vigor impaired
to every branch of industry. Our peO-
pie should receive encouragement in
their efforts to recover from the effect
of the rebellion, and of injudicious leg
islation, and it should be the aim of the
Government to stimulate them by the
prospect of an early release from the
burdens which impede their prosperity.
If We can not take the burdens from
their shoulders we should at least man.
ifest a willingness to help to bear them.
In referring to the condition of the
circulating medium ! shall merely re-
iterate substantially that portion of my
last annual message which relates to
that subject. The proportion which the
currency of any country should bear
10 the whole value of the annual
produce circulated by its means is a
question on which political economists
have not agreed nor can it be control
led by legislation, but must be left to
the irreyocable laws, which, every
where regulate commerce and trade
The circulating medium will ever irre-
sistably flow to those points where 1t is
IN greatest demand. The law of de-
mand and supply Is as unerring as that
which regulates the tides Of the ocean,
and, indeed, currency, like the tides, has
Its ebbs and flows throughout the COM
mercial world. p
At the beginning of the rebellion the
bank note circulation of the country
amounted to not much more than $780,
100000 Now, tho circulation Of the
National nanH notoo aud fhoco En0vun