Daily Davenport Democrat. [volume] (Davenport, Iowa) 1864-1874, 1868-12-10

Q fro and Independent people.
Various plans have bssn proposed for
the payment Of the public debt. How
ever they may have varied 90 to the time
and mode in which Il should be redeem
ed. there seems to be . general concur.
renee - 10 the propristy and justice Of
reduction in the present rate Of interest
The Secretary OF the Treasury, in his 10
port, recommends per cent; congress, In
. bill passed prior 10 its adjournment on
the 2;th of July lest, agr"sd upon and
u per cent. while, BY many,
per cent. has been held to be
90 amply sufficient return for the invest
ment. The general impression - to the
exorbitancy Of the existing rate Of inter-
ct has led to an inquiry 10 the public
mind respecting the confederation which
the government hes actually received for
its bosds. and the conclusion 10 becoming
psevaiSht that the aaouat which il OBJ
tained was IL real oseney three hundred
TO four hundred per cent lee than the OBJ
legations which e issued In rseufn. II
cannot be denied that We are paying an
extssvsgant psrceatage for The use OF
money borrowed, which was paper cur
rency, greatly deprecated below the
value of coin. This feet 10 made appar-
eut when we consider that bondholders
receive from the Treasury upon
each dollar that they owe in government
bonds per cent IN gold, which 10 nearly
or quite equal to . per cent in carrency;
that the bonds are then converted into
capital for the national banks, upon
w6ich these institutions issued their cir.
culation, bearing 8 per cent interest; and
that they are exempt from taxation ~
government ard the states, Aod thereby
enhanced per cent. in the hands OF the
holder. We thus have ~ aggregate OF IL
per cent, which may bs realized upon
each dollar BY the owners Of the govern
naeut securities. A system that produces
such results 10 justly regarded - favoring
few, ct the expense Of the many, and
has led to the further inquiry whether
our bondholdeIs, in view Of the large
profits which they have enjoyed, would
themselves be sversc to . settlement Of
our indebtedness upon . plan which
would yield Them . fair remuneration,
add, at the came time, be just to the tax
PAYERS Of the nation. Our national credit
should b sacredly observsd; but in max
ing provision for our creditors, Va
should not forget wLst 10 due
to the masses Of the. people. II
NAV be assumed that the holders of OUT
securities have already received upon thsil
bonds larger amount than their original
| investment, measured BY gold standard
Upon this statemsfs Of facts, IL would seem
but just and equitable that the Q per cent
| interest now paid BY the governments should
be applied 70 the reduction Of the princi
! pal, In semi-supual iustalmsnts, which, il
sixteen years and eight months woult
liquidste the entire national debt. Si1
per cent in gold would, q present rates
DO equal to . per cent. IN currency, ant
equivalent to the payment Of the debt on'
snd . half times In . fraction len thai
seventeen years. This, In connection will
all the other advantages derived from
their investment, would afford to tn,
public creditors fair and liberal compen
cation for the use of their capital; and
with this they should be satisfied. Tn,
lessons Of the past admonish the lender tina
it il not well to bc over anxious in exact
ing from the borrower rigid compliance
with the letter of the bond.
Ifprovision be made for the payment o
the indebtedness of the government in tn
manner suggested, our nation will rapid,
recover it's wonted prosperity. Its int rest
require that some measure should be takel
to release the large amount of capital in
vested in the securities Of the government
it Is not now merely unproductive, but i,
taxation annually consumes $50, 900, O0C
which would otherw wise be used BY GU
enterprising people in adding to tn
wealth OF the nation.
Our commerce, which at 90 time sue
cessfully rivalled that of the great mari
time powers, has rapidly diminished AM
our industrial interests are in depressed
and languishing condition. The develop
ment Of our inexhaustible resources
checked, and the fertile fields Of tn
South are becoming waste for want o
means to till them, With the release o
capital, new life would be infused int,
the paraly zed energies of our people, ant
activity and vigor impaired to ever,
branch of industry. Our people need en-
enlargement in their efforts to recove
from the Effects of the rebellion and Of in
Ijudicious legislation, and it should be tn
aim Of the government to stimulate them
by the prospect Of an earlv release frou
the burdens which impede their prosper
ity. IT We cannot take the burdens fror
their shoulders, we should at least mani
fest Willingness to help to bear them.
THE CURRENCY.
In referring to the condition of the Gil
culating medium, shall merely reiterat
substantially that portion of my last au
nual message which relates to tina
subject. The anomalous condition
of our currency is in striking cor
trast with that which was original
designed. Our circulation now embrace
fret, notes Of the national banks whic
are made receivable for oil dues to tn
government, .xcluding imposts, and b
all Its creditors, excepting in payment q
interest upon its bonds and securitie
themselves; second, legal tender notes il
sued BY the United 6tateA and which ID
law requires shall BE- received - welt i
payment of debts between citissns Is o
all eovernmsat duee, excsptlnG imposts
and. third. gold and silver coin. By th
operation Of our present system Of Hnanc>
how ever. the metallic currency, when col
lectsd, 10 reserved only for. one class q
of government creditors, who, holding Il
bonds ssnai-annuslly recsivs their. inter
/, CT IN coin 1bOm TUG 0oI1OUol tteo0QIy
There 10 NO fsasen, which will b. accspl
cd - satisfsctory By shs people, VII
those WHO defend 10. on the land and pro
i tect ~ on the seas; the pensioner upo
the gratitude Of the nation, bearing tn
scars and wounds received while in il
servics; the public servsnts in the Val
ious departments Of the government; th
farmer who suppties the soldiers of tn
army and the sailors Of the navy th
artisan who tolls In the nations wofh
shops; or the mechanics and laborers wh
bald il edifcss and construct IL fort
and vessels Of war, should, In payment Q
their Just aud hard.eafned dues recsiv
dsprsSiatsd, paper while another class o
their countfymeu, no 1nofs deserving, Or
paid in coin Of gold and oliver. Equs
and exact justice rsquifes that all tb
creditors Of the goveSnmast should b
paid in . currency possessing N uniforr
value. This can only b accomplished B.
the restoration Of the currency to th
standard established. On this Foundation
and by this means, weiwould disown . 'di.
elimination which msy, il it has not 81
ready done 30, create = prejudice tha
may become dsep-rooted aud wide spread
and imperil the national credit.
The feasibility Of making oar currsne
corrsspend with the constitutional stsndar
may BE- seen By fefsrsnce toa few facts d
rived iron our cemmersial statistics. Tn
~~r~>~~tn v,erss,ek ~ nen~iNSse N ata1a Ss N