Year: 1868

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protection aud preservation, the other is con
lrary to the expressed declaration Of the Con
sti,utiou that a we'll regulated militia, bein'
necessary to the security Of free State, To
right Of the people to keep and bear arms
shall not be iufringed. 1t is believed tha
the repeal Of such laws would be acceptable
BY the American people as at least par'is
return to The fundamental principles Q
the Government, and an Indication tba
thereafter the Constitution is to be made th
nations safe and unerring guide, They cal
be productive of no permanent benefit to to-


country and should not be permitted as 81
many monuments Of the deficient wisdom
which has characterized our recent legisla


ton.


| THE FINANCE.


Tbs condition Of our finances demands th,
early and earnest consideration Of Congress
Compared with tho growth Of our popula
ton, the public expenditures have reached
40 amount unprecedented in our history.


The President here proceeds to give de
tailed history of our national finances from
the close of the War Of Independence down
to the present time, showing the amount o.
the national debt, and expenditures, and
comparing the same With. the population o
the country at different periods With the fol.
lowing result:
These statistics further show that 10 1901,
the annual national expenses, as compared
with the population, were little more than
md ;,, lint
while in 1869 they will reach the extrava'
giant sum Of $978 per capita. 4 x


Tbese startling facts illustrate the necessity
of retrenchment in all branches Of the pub
Iic service. Abuses which were tolerated
during the war for the preservation of the
Nation will not be endured by the people
now that profound peace prevails. 4


One hundred millions yearly are expended
for the military force, large portion Of
which is employed in the execution of laws
both unn ecessary and unconstitutional. One
hundred and fifty millions are required each
yesr to pay the interest on the public debt.
An army Of tax masters impoverishes sha
Nation, and public agents are placed By
Congress beyond the control of the Executive,
and diverted from their legitimate purpose


large sums Of money, which they collect
from tho people in the name Of the Govern
ment. Judicious legislation and prudent
economy can alone, remedy these defects
and avert 40 evil which, if suffered to exhst,
cannot faiI to diminish confidence in the
public council and weaken the attachment
and respect of the people toward their poit'
icsl institutions


After showing the vast and crushing
weight Of our enormous debt the President
proceeds:


Various plans have been proposed for the
payment of the public debt. However they
may have varied as 10 the tins and mode 10
which they should be redeemed, there seems
to be a general concurrence as to the pro-
priety and justice Of reduction on the pre-,
sent rate of interest. The Secretary OF the
Treasury, In bis report, recommends five per
cent. Congress, in bill passed prior 10 its
adjournment on the 9th Of July last, agreed
on tour aud four and a half per cent, while
BY many others three per cent. has been held
to be an amply sufficient return for the i'm
vsstmsnt. The general impression as to the
expedisncy of the existing rate of interest has
led TO 40 inquiry in the public mind respect
ing tho consideration which Government has
actually received for it's bonds, aud the con
cIusion is becoming prevalent that the amount
which il obtained was in real money, three
hundred or four hundred per cent. less than
the obligations which it issued in return.
|. cannot be denied that we are paying an
extraordinary percentage for the use Of the
money borrowed, which was paper currency,
greatly deprecated below the value OF coin.
This tact is made apparent when we consider
that the bondholders receive from the Treas
ry upon each dollar they own in Govern
msnt securities six per cent. in gold, which
is quite equal to nine per cent. in currency;
that bonds are then converted into capital
for National Banks, upon which those insti-
tutions issue their circulation, bearing six
per cent. interest; and that they are exempt
from taxation by the Government and there
BY enhanced two per cent. in the hands of
the holder. We thus have an aggregate of
seventeen per cent. which may be realized
upon each dollar by the owners Of Govern
ment securities. A system that produces
such results is justly regarded as favoring
few at tho expense Of the many, and has led
to the further inquiry whether our bond
holders. in view OF the large profits which
they have enjoyed, would themselves be
averse to settlement of our debts uron
plan which would yield them fair rsnlu.
nerstion, and at the same time be just to the
taxpayers of the nation. Our national credit
should be sacredly observed; but 10 making
provision for our creditors we should not for
get what is due to the masses Of the people.
1t may be assumed that tho holders of our
securities 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 six per cent.
interest now paid by Government should be
applied to the reduction of the principal 10
semi. annual instaIlmsn.s, which, iu sixteen
years and eight months, would Iiquidats the
entire national debt Six per cent. in gold