Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1868-12-10


several States, on condition that il should ho
returned them when required by the public
wants. fN
In 1910, the year after the termination oe n,
expensive war with Mexico, we found ourselves
involved in debt Of $0i 900 900, and thiS was
the amount owned by the Government In 1850
just previous to the outbreak Of the rebellion
IN the spring OF 1861. Once civil war com
menced, each year of It's continuance made an
enormous addition TO the debt, and when in
the spring Of 1865 the nation successfully
emerged from the conflict, the obligations II
the Government had reached the immense aim
Of 81, s73, 900, 800. Gum
The Secretary Of the Treasury shows that nm
the first day of November, 1867. this amount
has been reduced to 81 49l 500, 45O, but al the
same time his report exhibits an increase du-
ring the past year Of 1886, OPS, l02, for the
debt ON the first day Of November last Il stated
10 have been 81 SCI, 1919 $50. II il estimated
BY the Secretary that the returns for the past
month will add 10 our liabilities the further
sum of gil 100000, making n total increase
during the thirteen months Of forty-six and n
half millions dollars. In my message 10 Con-.
grcss Of December 4th, 1865, il was suggested
that n policy should be devised which. with
out being oppressive to the people, would at
once begin to effect reduction of the debt
and, II persisted In, discharge it fullN within
The Secretary Of the Treasury forcibly rec
ommends legislation Of this character, and
justly urges that the longer il is deferred the
more difficult must become its accomplishment
We should follow the wise precedents estab-
lished in 1889 and 1915, and, without further
delay, make provision for the payment Of our
obligations at "a early period as may be
practicable. The fruits of their labors should
be enjoyed by our citizens rather than used 10
lstt AZ.
our own and other lands Our foreign debt i
already computed by the Secretary of the
Treasury at 1865 900 900 The citizens of
foreign countries receive interest upon large
portion of our securities, and American tax
payers are made TO contribute large sums for
their support. The idea that such debt is 10
become permanent should be at all times dis
carded as involving taxation too heavy to he
borne, and the payment once in every sixteen
years, Mt the present rate of interest. of an
amount equal 10 the original sum This vast
debt, IL permitted 10 become permanent and in
creasing, must eventually be gathered into the
hands Of the few, and enable them 10 exert a
dangerous and controlling power in the afhirs
of the Government
The borrowers would become servants 10 the
lenders, and the lenders masters Of the people.
We now pride ourselves upon having given
freedom to four millions Of the colored race.
~ WIZ tnen % our stlInc that fOrty millions
of the people, by their own liberation Of usur-
patton and prohigacy, have suffered themselves
to become ensayed, and merely exchanged
slayc-Owners for new task-masters in the shape
OF bondhoders and tax-gntherers Besides,
permanent debts pertain TO monarchical gov
ernments, and tend 10 monopolies These per-
petuities and class legislation are totally ire
oonciahle with the free institutions introduced
into our Republican system. Taey would
gradually but surely sap its foundations, event
ually subvert our governmental fabric and erect
upon its ruins moneyed aristocracy II is
our sacred duty 10 transni. unimpaired 10 our
posterity the blessings Of liberty, which were
bequeathed to us by the founders of the Re
public, and by our example teach those who
are 10 follow us carefully TO avoid tho dangers
which threaten free and Independent people.
Various plans have been proposed for tho
payment Of the public debt. However they
may have varied rs to the time and mode in
which it should be redeemed, there seems TO
be a general concurrence as 10 the prUpriety
and business Of reduction in the present rate
OF interest. The Secretary Of the Treasury in
his report -ecommends per oent. Congress,
in bill passed prior ~ the adjournment. ON the
9th Of July last, agreed on and A per cent,
while by many per cent. has been held 10 he
amply sufficient Cor Investment.
The general impression as to the exorbitan-
cy OF the existing nte Of interest had led to
the inquiry in the public mind respecting the
consideration which the government has usn-
ally received for its bonds, and the conclusion
is becoming prevalent that the amount which
II obtained was in real money three or four
hundred per cent. less than the obligations
which il issued in return.
Ii cannot be denied that we ere paying an
extravagant per centage for the use of the
money borrowed, which was paper currency,
greatly depreciated below the value OF coin.
This iact Is made apparent when we consider
that b0ndhoders receive, from the Treasury,
upon each dollar they own In Government ~
curities, 0 per cent.in gold, which is nearly or
quite equal 70 per cent. in currency that
the bonds are then converted into capital for
the National Banks, upon which those insti-
buttons issue them for circulation bearing
per cent. interest, and they are exempt from
tax by the Government and the States, and
thereby enhanced , per cent. IN the hands Of
holders. We thus have an aggregate of II
per ccut., which may be received upon
each dollar by the owner Of Government Sc
cIrities.
A system that produces such results Is just
ly regarded as favoring a few at the expense
Of the many, and led 70 the further inquiry
whether our bondhoders, in view Of the large
profits they have enjoyed, would themselves
be ayerse TO q settlement Of our Indebtedness
IN plan which would yield fhir remunera-
ton, and at the same time be Just TO the tax
payers Of the nation. Our national credit
should be saeredly observed, but in making
provision for our creditors we should not for
get what is due to the masses Of the people.
1t may be assumed that the holders Of our Sc
curities have already received upon their bonds
larger amount than their original investment,
measured By gold standard
Upon this statement Of facts it would seem
but just and equitable that the 0 per cent. in
terest now paid by the Government should be
applied to the reduction OF the principal in
semi-annual instalmcnts, which in sixteen
years and eight months would liquidate the
eDtire national debt.
Six per cent. in gold would at the present
rates be equal to o per cent, in currency, and
equivalent to the payment Of the debt one and
half times in Traction less than seventeen
years. This, in connection with other adj
ynntages derived from the investment, would
afford to public creditors fair and liberal COM