The Montana post., 1868-12-11

years. The Secretary of the Treasury
fOrcibiy recommends legislation of
this character. and justly urges that the
longer il is delayed the more difficult |
must become IFS accomplishment. We
should follow the wise precedents estab-
li>hed in l199 and 1916. and without fur !
ther delay make provision for the pay
ment Ofour obligations at as early aperiod
as may be practicable. The fruits of their
labor should lie enjoyed by our citizens.
rather than used To build up and sustain
mOneyed monopolies in our own and other
lands. Our foreign debt is closely COM
puted 10y the Secretary Of the Treasury
al $SJo 900 200. The citizens of foreign
countries receive the interest upon larg-
er portion OF our securities and. Ameri-
can tax PAYERS are made 20 contribute
large sums for their support. The idea
that such debt is to become permanent,
should at all times be discarded As involv-
ing taxation too heavy to be borne,
payment once in every sixteen years, at
the present rate of interest of AN amount
eqnal To the original sum. This vast debt
if permitted to berome permanent and in
crea>ing, must eventually be gathered in-
To the hands of few. and enable them To
exert a dangerous and controlling power
in the affairs Of the government. The
borrowers would become the lenders. and
he masters of the people. We now pride
ourselves upon having given freedom to
( 900 .UO0 ofthe colored race Ii will then he
our shame, that ten millions of people. by
their own tolsration of usurpstion and profit
gacy have suffered themselves To become en-
shaved, and merely exchanged slave owners
tor new taskmasters IN the shape at bond
holders and tax gatharers. Besides, perma-
nent debts pertain tomonarchical governments
and to monopolies. Perpetuities and class
legislation are totally ineconcilable with free
institutions. introduced into our Republi-
sap its foundation and eventually subvert our
gov ernmental fabric and erect upon Its -uins
mouied aristocracy. IL Is our duty To trans
init, unimpaired to our POsteriiy the blessings
of liberty, which were bequeathed to US by
the founders of the Republic, and by our ex
ample teach those who are to follow us, care
fully TO avoid the dangers which threaten n
free and independent people.
Various plans have been proposed for the
payment at the public Gebt. However TIE
may have varied as to the time and moda IN
which IL should be redeemed, there see-as TO
be a general concurrence a 10 The propriety
and Justice oi n reduction on the present rate
Of interest. The Secretary OF the Treasury IN
his report recommends FIVE per cent. Con
gress. in bill passed prior TO its adjournment
of the 21th sof July last, agreed upon tour
and half per cent. while by many three
per cent has been held to be sufficient
return for the investment. The general
impression as to the eXpediency of the
existing rate Of interest, has led TO an
inquir, in the public mind respecting the
consideration which the government ha>
actually received for its bonds, and the
conclusion Is becoming presale that tue
amount which il obtained was in real
money 100 or 400 per cert less than the
obligations which il issued in return. III
cannot be denied that we are paying an
! Far ha tlsn N
money borrowed, which was paper
money greatly deprecated below the val.
ne of coin. this fact Is made apparent
when We consider that the bOndhOlders
receive from the treasury upon each dol
lar they own in gOveMment securities,
six per cent. in gold lch is quite equal
TO nine per cent in Currency; that the
bonds are then converted into capital for
the National Banks, upon which those
institutions issue their circulation bear
ing six per cent interest, and that they
are exempt from taxation by the govern
ment and the States, and are thereby en-
HANGED two per cent. in the hands OF the
holder. We thus have an aggregate OF
seventeen per cent. which may be real
lied upon each dollar by the owners OF
government securities. A system that
produces such results Is justly regarded
as favoring "a few at the expense of the many.
and has led TO the further inquiry whether our
bond lders, in view of the large profits
which they have enjoyed, would themselves
be averse to a settlement of our debts upon
plan which would yield them n fair remune-
ration, and at the same time be just to the
tax payers of the nation. Our national cred
il should b. sacredly observed, but in making
provision for our creditors we should not for
get what is due the masses of the people. IL
may be assumed that the holders of our sscu-
rites have already received on their bonds
lar mt huu hel nFly Q~f m
measured by a gold standard. Upon this
statement of facts, it would seem but just and
equitable that the six per cent. Interest now
paid by the Government should be applied to
a reduction of interest IN semt-annual in-
stallments, which in sixteen years and eight
months would liquidate the entire national
debt. Six per cent. in gold, the present rates,
would be equal to eight per cent. currency and
equivalent to the payment OF the debt one
and halt times in fraction less than seven
teen years. This, in connection with the
other advantages derived from their invest
ment, would afford to public creditors fair
and liberal compensation Tor the
use of their capital. and with this they
sho uld be satisfied. The lessons Of the
past admonish the lender that it Is not
well to l,e over avarici0us in eNactlns
from the borrower. Rigid compliance
should be made for the payment of the in
debtedness Of the Government in the
manner suggested, and the nation will
rapidly recover Its wonted prosperity.
Its interests require that some measure
| should be- taken to release the large
amount Of capital invested in the Govern
ment. Ii IL now not merely unproduc-
tive. but i'm taxation annually assumes
$50 900 900 +, which would otherwise be
used by our enterprising people in addi-
tiOn. Our people need encouragement
in their efforts To recover from the effects
ofrebelliOn and Of inj udicious legislation,
and il should be the will Of the Govern
ment to stimulate them by the prospect OF
an early release from the burdens which
impede their prosperity. II we cannot
take the burdens from their shoulders We
should ut least manifest a Willingness to
help to bear them. In referring to the
condition of the circulating medi ums,
shall merely reiterate substantially what
stated in my last annual message which
relates to that subject. The proportion
which the currency ofany country should
bear to the whole value Of the annual
produce circulated by its means, is ques-
ton upon which political economists
have not agreed, nor can it be controlled by
Legislation, but must be- left to the laws
which everywhere regulate commerce and
trade. The circulating medium will fow to
those points where il Is in greatest demand.
The law of demand and supply is as unceasing
as that which regulates the tides Of the ocean,
and indeed currency, like the tides, has its
ebbs and fows throughout the commercial
world. At the beginning of the rebellion the
bank note circulation of the country amount
ed to not much more than two hundred mil
lions. Now the circulation OF the national
tsnk notes, and those known as legal tenders,
is nearly seven hundred millions. II Is ar
gued BY some that this amount should be IN
creased; others contend that u decided reduc-