Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1868-12-11

be redeemed, there seems to be q general concur
renee as to the prcpriety and business of reduc-
ton in the present rate Of interest The secreta-
RI 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 f1ur-and- a-half per cent While
by many three per Ccut has been held to be an
amply sufficient return for the investment. Tho
general impression rs 10 the exhorbitancy of the
existing rate OF interest has led to inquiry Il
the public mind respecting the con
sideration which the Government has
actually received for it's bonds, and the oon-
clusion is becoming prevalent that the amount
dred per cent less than the Obligations, which 1t
issued ia return. 1t cannot be denied that We
arc paying an extravagant percentage Tor the
use OF the money borrowed which was paper cur.
rency, greatly deprecated below the value or
coin. This fact is made apparent when we con-
slider that bondhOlders receive from the treasury
ties six per cent in gold which is nearly OF quite
equal to nine per, cent in currency thas
the bonds are then converted INTO eapl-
tai for the National Banks, upon which
those institutions issue their circulation, bearing
six per cent interest, and that they ae exempt
from taxation By the government and the stases,
of the holders. We thus have an aggregate OF
seventeen per cent. which may be received upon
each dollar by the owners OF government Securl-
ties. A system that produces such results ID
Justly regarded as favoring few at the expense
of the many, and has led to the farther inquiry
whether bondholders, IN vie" OF the large
profits which they have enjoyed. would thenl'
selves be ayerse to settlement OF our lndeoted-
ness upon plan which would yield them talr
remuneration, and at the same time DC Jus1 10
the taxpayers Of the nation.
Our national credit should be sacredly OBJ
served, but in making provision for our creditors
we should not forget what is due to the masses OF
the people. 1t may be assumed that the holders
of cur securities have already received upon their
bonds larger amount than their original invest
nent, measured by gold standard. Upon this
statement of f,cts it would seem but just and
equitable that the ak per cent. interest low paid
by the government should be applied to the re-
duction of the principal in semi annual install
ments, which, in sixteen years and eight montHs,
would Iiq nidate the entire national debt. Blk per
cent III gold would, at present rates, be equal to
nine per cent i'll currency, and equivalent to the
payment Of the debt one aAd half times, IN
fraction less than seventeen years. This III m
nectiOn with all the ether advantages derived
from their investment, would afford TO the public
Gre ditOrs fair and liberal compensation for the
use OF their capital, and with this they should EG
satisfied. The lessons of the past adrlOnish the
lender that it is not well to be anxious in ex
acting from be borrower rigid compliance With
the letter of the bonds.
Ii provision be made for the payment Of the in
debtedness of the government in The manner
wonted prosperity. Its interests require that
some measure should be taken to release the
large amount of capital i,vested in the
; securities OF the government 1t is not
now merely uuproductive, but in taxation
annually consumes $4,000, 600, which would
| otherwise be used by our enterprieinG
people III adding to the wealth Of the nation.
Our commerce, which at one time successfully
rivaed that of the great maratiue powers. has
rapidly diminished and our industrial interests
are in a depressed aud languishing condition.
The development of our ineXhaustlble resources
s checked, and the fertile fie lbs of the South arc
becoming waste for want Of means TO till them.
With the reaase of capital, new life would be IN
fused into :he paralyzed energies Of our people.
and activity and vigor impaired to every branch
of industry. Our people need encouragement
in their efforts to recover from the effects OF the
rebellion, and Of iDjudicious legislation, and 1t
8 should be the am of the government to stima-
late them by the prospect Of an early relies se
from the burdens which impede their prosperity
If we cannot take the burdens from their sh0ul-
ders, we should st least manifest Willingness
to help to bear them.
In referring to the condition of the circulating
medium, l shall merely reterate substant ally
that portion of my last annual message which re-
lat to that subject. The proportion which the
| currency OF any country should bear to
t circulated by It's means is 8 question
t upon which political economists have
not agreed, nor can 1t be controlled by leg1sla-
ton, but must be left to the irrevocaole laws
which everywhere regulate commerce and trade
The regulating medium will ever irresstibly flow
| to those points where it is in greatest demand.
The law OF demand and supply is as unerrng as
= that which regulates the tides Of the ocean, and
indeed currency like the tides, has its GIBBS and
flows throughout the commercial world
| At the beginning OF the hcpelllOn the psDA not
circulation of The country amounted to not much
more than two hundred millions of dollars No"
the circulation of National Bank notes and those
3 known as illegal tenders is nearly seven hun
dred million. While it is urged by some that this
amount should be increased, others contend thaF
a decided reduction is absolutely essential to the
9 best interests Of the country. In view of These
/ divers opinions it may be well to ascertain the
real value of our paper issues, when compared
f with metallic or convertible currency. For this
purpose, let US inquire how much gold and silver
| laY che hxfI hos
of paper money now In circulation. Pro
badly net more than half the amount o
, the latter showing that when our paper currency
= is compared with gold and silver, Its commercial
value is compressed into three hundred and fifty
millions. This striking fact makes it the obvious
duty of the government, as early as may be con
t sistent with the principles CT sound pOilt1ca
t economy, to take such measures as will enable
the holder of Its notes and those OF tbs Nation.
Banks to convert them without loss into specie o.
! its equivalent. reduction OF our paper clrcula
: ting medium need not necessarily follow. This
: however, would depend upon! the law o
demand and supPy though it sho S, be
e der and bank notes convert able into coin o.
its equivalent. their present specie value i'll the
: hands OF their hoderswoUld be enhanced one hun
dred per cent Legislation for the accom- pilsa
4 ment of result so desirable Is demanded by the
: highest public considerations. The constitution
t cOntempates that tho circulating medium OF the
C country shall be uniform Ill quality and value
q At the time of the formation of that lnstrumen
: tho country had just emerged from the war o
, the revolution aud was suffering from the effects
: of redundant and worthless paper cur
# rency. The sages Of that period anx
r iOus to protect their posterity from the evir
g which they themselves had experienced
Hence, In providing a circulating medium
Y they Conferred upon Congress the power
9 to coin money and regulate the value thereof, d
+ the same time prohibiting the States from making
= anything but gold and silver tender in paymen
, of debts. The anomalous condition OF our cur
rency is in striking contrast with that which wa
t originally designed. Our circulation now EN-
r braces. first, notes of the National Banks which
y are made receivable for all dues to the govern
;. ment, excluding jmposts and by all its creditors
g excepting in payment of interest upon its bond
Q and the securities themselves. Second, loga
l. tender notes, issued by the United states. ant
a which the law requires shall be received wei
in payment OF all debts between citizens of al
a government dues, excepting iI.posts. And
e third, gold and oliver coin. By the operation O
g. our present system of finance, however, the me
if talic currency, whom collected is reserved only
a for one class of government creditors, VIII
holding its bonds, annually receive their in
is terost in coin from the National Treasury. Their
is is no which will be accepted satisfacto
c. ry to the people, why those who defend US on til
g. land and protect the seattle pensone
1t upon the gratitude Of the Nation bearing tn
Of scars and wounds received while in it's service
DO the public servants in the various departments
the government; the farmer who supplies the sol