Year: 1868

millions Of people by their own toleraticn


of abuses and profigacy have suffered


themselves to become enslaved, and


changed the slave owner for new task


masters in the shape of bondholders and


tax gatherers. Besides, permanent debts


pertain to monarchical governments and


tend to nonoEolics, perpetuities and close


legislation, and are totally unreconcilable


with the free institutions introduced into


our Republican system ; they would grad


uallY, but surely, sap its foundations, and |
eventually subvcrt our governmental fab I
ric and erect upon its ruins moneyed |
aristocracy. It is our duty to transmit,


unimpoverished, to our posterity the |


blessings of liberty which were bequeath- |


ed to us by tho founders Of the Republic, |
| and, by our example, teach those who arc |


to follow us carefully to avoid the dangers
which threaten free and Independent
people.
Various plans have been proposed for the


payment Of the public debt. However
| they may have varied as to the time and


mode in which they should be redeemed,
| there seems to be a general concurrence


as to the propriety and justice of reduc-


ton on the present rate of interest Z he


Secretary Of the Treasury, in his report,


recommends five per cent Congress, in


a bill passed prior to its adjournment, on


the 9th of July last, agrees on four and


four and half per cent, while by many
| others three per cent has been held to be


an amply sufficient return for the invest


ment. The general impression as to the


expediency Of the existing rate Of inter-


esi has led to inquiry in the public mind


respecting the consideration which the


Government has actually received for its
Al
prevalent that the amount which it OBJ


tanned was in reality three hundred or


four hundred per cent less than the obli-
cations which it issued in return. It can


not be denied that we are paying an extra


ordinary per centage for the use of the mon


ey borrowed, which was paper currency


greatly deprecated below the value of


coin. This fact is made apparent when


we consider the bondholders receive from


the Treasury upon each dollar they own


in Government securities sig per cent in
; gold, which is quite equal to nine per cent
/ in currency; that bonds are then convert
, ed into capital for national banks, upon


which those institutions issue their circu-


lation, realizing six per cent interest, and
that they are exempt from taxation by


the Government, and thereby enhanced
two per cent in the hands of the holder.
/ We thus have an aggregate of seventeen
t per cent which may be realized upon each


dollar by the owners of Government Sc
e curities


e A system that prodaces such results is
: Justly regarded as fayoring few at the
q expense of the many, and has led to the
J, further inquiry, whether bondholders, In
: view of the large profits which they have
: enjoyek, would themselves be averse to
/ II 1zl.k -
e which would yield them fair remunera-
e ton and at the same time be just to the
z tax payers of the nation. Our national
b credit should be sacredly observed, but in
s making proposition for our creditors We
g should not forget what is due to the mass
es of the people. 1t may be assumed
e that the holders of our securities have al
n ready received upon their bonds larger
If amount than their original investment
f measured by gold standard. Upon this
n statement of facts it would seem but JUS
e and equitable that the six per cent inter
&c est now paid by Government should bt
n applied to the reduction of the principa
st in semi-annual installments, which, in six
5 teen years and eight months, would liqui
is date the entire national debt. Six pc
l. cent in gold would be, at present rates
/ equal to nine per cent in currency-equiv
Of alent to the payment of the debt one AM
SIS half times in fraction less than seven
ID teen years. This in addition to other I'D
h, vantages derived from their investment
e, would afford to the public creditors fai
N and liberal compensation for the use Q
&c their capital, and with this they shoul
.s be satisfied. The lessons of the past &C
ly monish the lender that it is not we'll to
II, over-anxious in exacting from the borrow
e- cr rigid compliance. Provision mu
its be made for the payment of the indebte,
se ness of the Government In the mann,
6, suggested, or the nation will not rapid
on recover its prosperity. Its interests r
as quire that some measures should be take
he to release the large amount of capital i
ed vested in the Government. It is now n
lid merely unproductive, but in taxation
,ur annually consumes 10000, 900, whit
gn would otherwise be used by our enterpr
ta- ing people in aiding those of our peoI
lit needing encouragement in their efforts
er- recover from the effects of the rebelli
GU and iniudicious legislation and it shou
ade be the will of the Government to stimuls
ort. them by the assurance of an early reles
me from the burdens which impede tn
rd- prosperity; five cannot take the burde
be from their shoulders we should at le
cen manifest willingness to help to b,
kes them. In referring to the condition


IF their circulating mediums I shall mer
per- reiterate the relations, as substantial
ally stated in my last annual message. In
and lation to the subject of the RELATE
,on- which the currency of any country sho