Year: 1868

DrOtilRacy, nave buuctcu themselves "
become enslaved, and merely exchange
slave owners for new task masters in the
shane of bond-holders and tax-gatherers;
besides, permanent debts pertain to mon.
archial seats, and tending to monopolise
and perpetuate and close legislation, are
totally irreeoncilable with free instltu-
tons introduced into our republican
system. They would gradually but
surely sap the foundations, eventually
subyert our Governmental fabrics, and
erect upon its ruin monied aristocracy.
II is our sacred duty to transmit, unim-
paired, to our posterity the blessings oil
the liberty which were bequeethed to us
by the founders of the Republic, and, by
our example. to teach those who are TO
follow US, carefully to avoid the dangers
which threaten q free and independent
people. Various plans have been pro-
posed for the payment Of the public debt.
However they have varied as to the time
and mode in which it should be redeemed,
there seems to be a general conscious
ness as to the propriety and justness OF
reduction in the present rate OF interest,"
The Secretary Of the Treasury, in his re-
port, recommends three per cent Con-
gress, in a bill passed prior to the sd-
iournment on the 9th OF July last,
agreed upon four aud half per cent,
while by many three per cent. has
been held to be an amply sufh-
cient return for the investment.
The general impression as to the exor-
bitancy of the existing rate OF interest
has led to an inquiry in the public mind
respecting the consideration which the
Government has actually received for
her bonds, and the conclusion is becom-
ing prevalent that the amount which 1t
obtained was in real money three or four
hundred per cent. less than her obliga-
tions. 1t cannot be denied that we are
paying extravsgant per centage for the
money borrowed, which was paper cur
rency greatly deprecated below the
value of coin. This fact is made appar-
ent when we consider that bondholders
receive from the Treasury upon each
dollar they own of Government secu-
rites six per cent in gold, which is quite
or nearly equal to nine per cent. in cur
rency, and that the bonds are then con-
verted into capital for the opening OF
national banks upon which those institu-
tions issue their circulation bearing six
per cent interest that they are exempt
from taxation by Government and State
and thereby enhanced two per cent. in
the hands 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.
As any law that produces such results is
Justly regarded as favoring few at the
expense of the many, and has led to the
further inquiry whether our bondholders,
in view of the large profits which they
have enjoyed, would themselves be averse
to settlement of our indebtedness on
a plan which would yield them a fair
remuneration, at the same time be just to
the Taxpayers of the nation, and our
national credit be sscredly observed; but
in making provisions for our creditors
we should not forget what is due to the
masses of the people. 1t may be as
sumed that the holders of our securities
have already received upon their bonds
larger amount than their original IN
vestment, measured by a gold advance
ment. From this statement of facts 1t
would become just and equitable that six
per cent. interest now paid by the Gov
ernment should be applied to the reduc-
ton of the principal in semi-anaual in
stsllments, which in sixteen years and
eight months would liquidate the entire
national debt. Six per cent. in gold
would, at present rates, equal nine per
cent. in currency, equivalent to pay
ment of the amount in half time-ln
fraction less than seventeen years. This,
in connection with all the other advan.
tsges derived from their investment,
would afford the public creditors fair
and liberal compensation for the use OF
their capital, and with this they should
be satisfied. The lessons of the past sd'
monsh the lender that it is not well to
be over-auxious in exacting from the bor-
rover.


By rigid compliance with the letter OF
the bond Of provision made for the pay
ment Of the Indebtedness Of the Govern
ment in the manner suggested, our
country will rapidly resume its wonted
prosperity. Its interests demand that
some measures should be taken to release
the large amount of capital invested in
securities of the Government; it is not
now mere uuproductive, but in taxation
annually consumes $3.50, 900, 900, which
would otherwise be used by our enter
prising people in adding to the wealth of
the nation and commerce, which at one
great time successfully rivaled that of the
maritime powers; but has rapidly d.
minished, aud our industrial interests
are in depressed and languishing con-
dition, the development of our mex
haustible resources checked and the
fields of the South are becoming waste
for want Of means to till them. With
sufieiency of capital new life would be
infused into the paralyE yEed energies of
our people, aud activity and vigor inn
parted to every branch Of industry. Oar
people received encouragement 10 their
efforts to recover from the effects Of the
rebellion aud Of iDjadicious legislation,
and il should be the ain Of the Govern
meut TO stimulate them by the prospect
of an easy relief from the burdens
which impede their prosperity. II
We cannot take the burdens from
their shoulders we should at least mani
fest q willingness TO help to bear them.
Ii referring 10 the condition Of the circu-
lstine medium, shall merely reiterate
substantially that portion Of my last an
nual message which relates to that sub
;sct. The proportion which The currency
Of any country should bear 70 the whole
value Of commercial produce circulated
hy iis means is q question on which po-
f.s.r.t oennnunfrfn hnwa not auroaf nor