Clearfield Republican. [volume] (Clearfield, Pa.) 1851-1937, 1868-12-31

priety and iustness Of reduction in
the present rate Of interest. Tho Sec
retary Of the Treasury, in his report,
recommends five per cent Congress,
10 bill passed prOr 20 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 impres.
sion as to the exhorbitancy Of the
existing rate Of interest has led to an
inquiry in the public mind respecting
the consideration which the govern
ment has actually received for its
bonds, and tho conclusion is becoming
prevalent that the amount which il
obtained was in real money three or
four hundred per cent, less than the
obligations which u issued IN return.
Ii cannot be denied that we arc pay
ing an extravagant percentage 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 Treas
ury, upon each dollar they own in
government securities, six per cont. in
gold, which is nearly or quite equal 10
nine per cent. in currency; that the
bonds are then converted into capital
for the national banks, upon which
those institutions Issue their oiTcula-
ton bearing six per cent. interest, and
that they are exempt from taxation
by the government and the States,
and thereby enhanced two per cent.
in the hands Of the holders We thus
have an aggregate of sevontoon per
cent, which may be received upon
each dollar by the owners Of govern
ment securities A system that pro
duces such results is justly regarded
as iavoring a few at the expense Of
the many, and has led 10 the further
inquiry whether even the bondholders,
in view Of the large profit which they
have enjoyed, would themselves be
averse 10 a settlement Of our indebted
ness upon plan which would yield
them a fair remuneration, and at the
same time, be just 10 the taxpayers
of the nation. Our national credit
should be sacredly observed but, in
making provisions for our creditors,
we should not forget what is due 20
the masses Of the people. 1t may be
assumed that the holders Of our secu-
rites have alread y received upon their
bonds a larger amount than their
original investment, measured by a
gold standard Upon this statement
OF facts it would seem just and equita-
ble that the six per cent. interest now
paid by the government should be
applied 10 the reduction Of the princi.
pal in semi-annual instalmcnts, which,
in sixteen years and eight months,
would liquidate the entire national
debt. Six per cont. in gold would, at
the present rates, be equal TO nine per
cent in currency, and equivalent to
the payment Of the debt one and a hal
times 10 a fraction less than seventeen
years. This, in connection with all
the other advantages derived irou
their investment, would afford to the
public creditors a iair and liberal COM
pensation for this use Of their capital
and with this they should be satisfied
The lessons Of the past admonish the
lender that it is not well 10 be over,
anxious in exacting from the borrow,
ors rigid compliance with the letter o.
the bonds.
If provision be made for the pay
ment of the indebtedness Of the gov
ernmont in the manner suggested, oul
nation Will rapidly recover its wonteC
prosperity. It's interests require that
some measures should be taken e
release the large amount Of capita
invested in the securities Of the gov
ernmont. ltis not now merely unpro
ductive, but in taxation annually con
sumes ono hundred and fifly millionl
of dollars, which would otherwise b.
used by our ontorprising people il
adding 30 the wealth Of the nation
Our commerce, at one time success
/ fully rivalling that Of the great mari
time powers, has rapidly diminished
aud our industrial interests are in !
depressed and languishing condition
/ The Developments o. our inexhaustibl
resources is checked and the feriill
folds OF the South are becomin!
wastes for want Of means 10 till then
with. The release of this capita
would infuso new lifo into the par
alyzed energies of our people, AM
activity and vigor would be impaired
to every branch Of industry. Gu
people need encouragement in thei
efforts to recover from the effects O
the rebellion aud Of injudicions legi'
lation, and il should be the aim Of th
government 20 stimulate them by th
prospect Of an early release from th
tu-dans which impede their prosper
ity. IL We cannot take the burden
from their shoulders, VIC should a
least manifest willingness 70 help 1
bear them.
In reference to the condition Of th
circulating medium, / shall merol
reitorato substantially that portion {
my last annual message which relate
to the subject The proportion whic
the currency of any country shoul
bear 70 the whole valuo Of the annui
/ produce circulated by its means, is
question upon which political ocon'
, misis have not agreed, nor can il b
+ controlled by legislation, but must I
. left 10 the irrovocablo laws whic
, everywhere regulate commerce an
. trade. The circulating medium vi
. ever irrcsistibly flow to those point
/ where it is in greatest demand. III
p law OF demand and supply Is as une
ring as that which regulates the tid,
, of the ocean, aud, indeed, curronc,
{. like the tides. has its Gibbs and flow
, throughout the commercial worlI
r On the beginning Of the rebellion u
T. bank note circulation OF the countr
!. amounted 20 not much more tha
1 5000 .00000 Now the circulation
n national bank notes and those know
q. q Nn mn ma