The Republican journal., 1869-08-19
THE LESSON IN TENNESSEE.

THE LESSON IN TENNESSEE.
A few weeks ago we took occasion to re-
view the state and tendency of public feelin 9
upon the bond question, and to warn the
holders of these securities OF the growing
danger of reputation. Especially we saw
the cloud rising IL tie Soulh, where the inn
povcrished condition Of the people is unlavor-
able to investments of this kind and where
| indignation exists on account OF the ignoring
Of claims equally binding with those Of the
bondholdcr. And the taxation that is cxactcd
to meet these heavy and unjust claims is felt
there more severely in proportion as the
country is impoverished. This state of things
we hold must produce its natural and newt
able fruit-a determination to ret rid OF this
injustice nj any cost.
As evidence of the correctness Of the
views then advanced let an examination be
made Of the circumstances attending the late
election i'll Tennessee, and the arguments ad-
dressed to the people in Il canvass which re-
suited in an NEUTRALITY-SUSPICIOUS. majority of
10000. The central figure in that contest
was EX-Presidcnt Johnson---the leader whose
presence animated and whose voice eli
couraged the victors. He had appealed from
the condemnation and abuse of the radical
administration and its presses to the pco-
pie of Tennessee. He stood before them up
on the record of his whole political life. But
it may be doubted whether any uttermce OF
his had greater weight with the electors of
that State than the bold assault made upon
the injustice involved in the financial system
Of the country, which formed 4 portion Of
Mr. Johnson's last annual message. We
copy it below
The fruits of their abor~ should be enjoyed by
citizens rather than used 10 build up and sustain
moneyed monopoies in our own and other lands.
Our foreign debt is already computed by the Srerc
tary Of the Treasury AZ $500 900. Foreign
tries receive interest upon large portion of our
securities, and American taxpayers are made to
contribute large sums for their support. The chance
that such a debt is to become permanent should be
at all times discarded as involving taxation too
heavy to be borne and payment once in every six
teen years at the present rate OF interest of an
amount equal to the original sum. This vast debt.
If permitted to become permanent and increasing,
must eventually be gathered into the hands ola few
and enable them 10 exert dangerous and control
ling power in the affairs Of the government. The
borrowers would become servants to the lenders.
the lenders masters of the people. We now pride
ourselves upon having given freedom to four mil
lions of the colorcd race ii Will then be shame
that forty millions of people, by their own liberation
OF uSurpatOn and pro1llga"V, have suffered them
selves to become ensayed and merely exchanged
slave owners for new task-mascr> in the shape Of
bond-holderS and taN-gatherers. Besides, perlna-
nent debts pertain to monarchcal government, and
tending to mOnopoze perpetuities and class legisl-
ton, totally ireconcablc with free institutions
Introduced into our republican system, they would
gradually but surely sap its foundation. eventually
a plt lis
ruins moneyed arstocracy.
| 1t is our sacred duty to transmit unmpaircd to
our posterity the blessings Of liberty which We're
bequeathedtou by the founders Of the Republic and
by our example teach those who are to follow lis
carefully to avoid the dangers which threaten free
and independent people. Various plans have been
proposed for the payment OF the public debt. How
ever they may have varied as to the time and mode
in which ii should be redeemed, there to be
general concurrence as to the propriey and business
of a reduction i'll the present rate of interest. The
Secretary Of the Treasury, in his report. recon-
mends five per cent Congress- in Il bill passed
prior 10 adjournment Oh the 18th OF Juyas agreed
upon and y per cent. while by many 3per cent
has been held to be an amply sufficient return for
the investments. The general impression as to the
eNorbitancy of the existing rate Of interest has led
to an inquiry in the public mind respecting the con-
SderatiOn which the government has actually re-
ceived for its bonds, and the conclusion is becoming
prevalent that the amount which it obtained was in
real money 300 or 400 ier cent. less than the obliga
ton which it issued in return. 1t can not be denied
that we are paying an eXtIavagant per cenage for
the use of the money borrowed which was part
curcncy-greay deprecated below the value OF
coin.
This fact is made apparent when we consider
that bondholders receive from the Treasury upon
each dollar they hold i'll Government securities six
per cent in gold, which is nearly quite equal to
nine per cent in currency: that the bonds then
converted into capital for the National Banks upon
which those institutions issue their circulations
bearing SIX per cent interest, and that they cN
empt from taxation by the Government and the
State, and thereby enhanced two per cent in the
bonds of the holders. We thus have an aggregate
of seventeen per cent which may be received upon
each dollar by the owners Of Government securities
A system that produces such results is Justly re-
garded favorng few At the expense of the many
and has led to the further inquiry whether our
bOndhOders. in view of the large profits which they
have enjoyed would themselves be averse to a set
tlement of our Indebtedness upon Il plan whicl
would yield them fair remuneration and at the
same time be Just to the tax payers of the nation
I Our national credit should be sacredly observed
but in making provision for our creditors SHOULD
not forget what is due to the mass of the people
1t may be assumed that the holders Of our Securi
ties have already received upon their bonds larger
3 amount than their original investment, measured
e by gold standard.
ii Upon the statement of facts it would seem bu
Just and equitable that the six per cent interes
the reduction of the principal in scm-annua pay
0 ments which in sixteen years and eight month
:. would lquidate the entire national debt.
4 Six per cent in gold at present rates would bt
n equal to nine per cent in currency. and cquivaen
to the payment of the debt one and half times il
!. a fraction less than seventeen years.
This, in connection with all the other advantage
public creditors fair and liberal compensation TO
the of their CAN'T and jth fbiS thny oulI H.