Year: 1868

lions of the colored race; it will then
be our shame that forty millions ofpeo
! pie, by their own liberation of usurpa-
tion and profiigacy, ,have suffered them
selves to become enslaved, and merely
exchanged slave-owners tor new task
masters in the shape of bondholders and
taX-gatherers. Besides, permanent
debts pertain to monarchial govern
mems, ii d, tending to monopolies, and
perpetuating class legislation, are to-
tally irreconcilable with the free insti-
tu.ions. introduced into our republic
can system, they would gradually but
surely undermine its foundations. even
tually subvert our Governmental fabric,
and erect upon its ruins moneyed ar
istocracy. 1t is our sacred duty to
transmit unimpaired to our posterity
the blessings of liberty which were be-
queathed to us by the founders of the
Republic, and by our example teach
| those who are to follow us, carefully to
avoid the dangers which threaten free
land 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 it should be redeemed, there
seems to be general concurrence as to
the propriety and business of a reduc-
ton in the present rate of interest. The
Secretary of the Treasury in his report
recommends FIVE per cent. Congress.in
bill passed prior to adjournment, on
the 9th of July last, agreed upon four
and four and half per cent while, by
many, three per cent. has been held to
be an amply sufficient return for the
inv estment. The general impression as
to the exorbitancy of the existing rate
of interest has led to an inquiry in the
public mind respecting the considera-
ton which the Government has actual
ly received for Its bonds, and the con-
clusion is becoming prevalent that the
amount which it obtained was, in real
money. three or four hundred per cent.
less than the obligation which it issued


in return. 1t cannot be denied that we
are paying an eXtravagant percentage
for the use of the money borrowed.
which was paper currency, greatly de-
preciated below the value of coin. This
fact is made apparent when we consid-
er that bondholders receive from the
Treasury upon each dollar they own in
government securities six per cent. in
gold, which is nearly or quite equal to
nine per cent. in currency; that the


bonas are then converted into capital
for the National Banks, upon which
those institutions issue their circulation


bearing six per cent. interest; and that
they are exempt from taxation by the
Government and the States, and, there
by enhanced two per cent. in the hands
OF the holder. We thus have an aggre-
gate OF seventeen per cent, which may
be received upon each dollar by the
owner of Government securities. A
/ system that produces such results is
Justly regarded as favoring few at the
expense of many, and has led to the fur
ther inquiry whether our bondholders.
in view of the large profits which they
have enjoyed, would themselves be
averse to settlement Of our indebt ed
ness upon plan which would yield
them a fair remuneration, and 1T the
same time be just to the taxpayers of
the nation. Our national credit should
be sacredly observed, but in making
provision for our creditors we should
y,n Of J, flr 70
the people. 1t may be assumed that the
holders of our securities have already
received upon their bonds a 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 the gov
ernment should be applied to the re-


duction of the principal in semi-annual
installments, which in sixteen years
and eight months would liquidate the
entire debt. Six per cent. in gold would,
at present rates, be equal to nine per
cent. in currency, and equivalent to the
payment of the debt one and a half
times in q fraction less than seventeen
other advantages derived from this IN
vestment, would afford to the public
creditors fair and liberal compensa-
ton for the use of their capital, and
with this they should be satisfied. The
lessons of the past admonish the lender
that it is not well to be over-anxious in
exacting from the borrower rigid COM
pliance with the letter of the bond. If
provision be made for the payment of
the Indebtedness of the government in
the manner suggested, our nation will
rapidly recover its wonted prosperity.
| Its interests require that some measures
should be taken to relieve the large
amount of capital invested in the secu-
rites of the Government. 1t is not now
| merely unproductive, but in taxation
annually consumes $150,000,000, which
would otherwise be used by our enter
| prising people in adding to the wealth
of the nation. Our commerce, which
at one time successfully rivaled that of
the great maritime powers, has rapidly
diminished, and our industrial interests
are in depressed and languishing con-
dition; the development of our mex
haustible resources is checked, and the
| fertile fields of the South are becoming
waste for want of means to till them
| With the release of capital new life
wOuld he infused into the Daraly Zel en-
ergies of our people, and activity and
vigor impaired to every branch Of in
dustry. Our people need encourage
ment in their efforts to recover from
the effects of the rebellion and of inju-
dicious legislation, and it should be the
aim of the Government to stimulate
them by the prospect of an early release