" "-^^.^^ *^^^\ ^^J^ oV^^^'» -"-^..^^ *- -..^" '^A\ %/ .-^^^ %.^" = -^0^ m^.'Ti ' ^ V ^^-^^^ V O.K ■°^^ *•-»- ^^ RADICAL COMMON SENSE— THE PRES- IDENT AND CONCRESS. n3 SPEECH OF HOF. JACOB H. ELA, OF NEW HAMPSHIRE, In the House of Representatives, December 13, 1867. The House being in Committtee of the Whole on the state of the Union, and having under consideration the President's Mes- sage. Mr. ELA said : Mr. Chairman: — It may be presumptuous in me at this time to address the House ; but the attempt of the President to put this Congress before the country, as he does in his message, as persistent violators of the Consticution, in their measures for the recon- struction of the rebel States, induces me to attempt an examination into the facts. The allegations of the President are that — '"Jo dict;ae what alteriaions shall bo mailo in the coo(-titutioii3 of tho several States; to control tho olectioiis of Stato lugislutors and Stato ofTjcerB, mem- bers of Congress, and electors of President and Vice President, by arbitrarily declaring who shall veto and who shall boixcludod from that privilege; to organ- ize and operatoull tho political machinery of tho Staroa, tlicse are powers noi granted to tho t'ederiil Govero- metit or to any of its brandies. If tho authority we desire to u^e does not como to us through tho Constitu- tion we can exercise it only by uiurpalion, and usur- pation is the mo't dangerous of political crimes. "The acts of Cong oss in question are not only objec- tionable for their assumption of ungrantod power, but many of their provisions are in conllict with the direct prohibitions of the Constitution." What I now propose is to examine the acts both of the President and Congress, and the authority upon which they are based, and see who, in the language of the President, has been guilty of this most dangerous of political crimes — the usurpation of ungranted powers._ The duty and authority of the Presi- dent I find in section three of the second ar- ticle of the Constitution, as follows : • "The President shall from time to time give to the Congress inlorraatioii upon tho State of tho Union, and recommend to their consideration such measures as he shall judge necessary and expedient;" * * * * "ho niay,onoxtraordiDary occasions.ronvenf both nous»s, or cit.icr of them : he "shall take care that the laws be laithfuUy executed." Here is not to be found one word about lec- turing Congress, or lecturing State Legisla- tures, or appointing provisional governors over States, or authorizing ©oaventiona to alter the constitutions of States, or determ- ining who might vote or who might not vote m the several States, or in any manner what- ever authorizing him to exercise legislative duties. Yet since the close of the armed re- bellion the President has done all these things. He has done all, and more than all he charges Congress with having done. USURPATION OF THE PRESIDENT. He issued a proclamation on the 29th day of May, 1865, from which I make the follow- ing extract : "I, Andrew Johnson, President of tho United Stateg .and Commander-in-Chief of th« Army and Navy of tho United States, do hereby appoint William W. Ilolden provisional governor of the State of North Carolina; whoso duty it shall bo at tho earliest practicable period to prescribe such rules and regulations as may be ne- cessary and proper for convening a convention com- posed of delegates to bo chosen by that portion of tha people of said States, who are loyal to tho United States, and no others, for (ho purpose of altering or amending tho Constitution thereof; and with au- thority to exercise within the- limits of said Stato all tho powers necessary and proper to enable such loyal people of tho Stato to restore said Stato to its con- stitutional relations to the Federal Government." And when he issued this proclamation, h© said he did it — " In obedience to the high and solemn duties Impoged on me by the Constitution of the United States." * Tell me, you men on this floor, if any thero be who support the President, where he found the right to exercise legislative powers at all. much more the right to go into a State and appoint over it a provisional governor, an offi- cer unknown to the Constitution. What right had he to order a convention to make a con- stitution for a State in this Union ? What right had he to say who should compose a convention to alter a constitution for a State?* Tell me what right he had to say, as he did, who should vote and who should not vote in the State of North Carolina any more than ho would have the right to go into the State of Pennsylvaniaand say who should vote there? What right had he to tell the convention of North Carolina, as he did in his "executive order" of October 18, 1865— " That every dollar of the debt created in aid of the rebellion against the United States should be repudiated finally and forever ?" Had he any more right to tell North Caro- lina what debts she must repudiate than to tell her what debts she must pay ? Had he not the same right to tell New York what debts sL . might repudiate and what ihe might pay ? What he did to North Carolina he did to South Carolina, Georgia, Alabama, Flor- ida, Mississippi, and Texas. In the case of Virginia, he issued on the 8th day of May, 1865, an " executive order" reorganizing the "^Peirpolnt administration as that of the State of Virginia." Now, where did he get the right to recognize this Peirpoint administration which was an illegi- timate sort of a bantling got up and main- tained over the river in Alexandria. "Where in the Constitution is to be found the author- ity to recognize any twenty men who got up a government after the fashion of old John Brown, for the State of Virginia, by an "executive order?" And where in that Constitution he scattered so profusely did he find the authority to telegraph from the "executive office," as he did to Governor Murphy, of Arkansas, on the 20th of October, 1865, that— "There will be no interference with your present organization of State government?" Not content with what he did himself, he calls to his aid the Secretary of State, who writes on the 1st of November, 1865, to Pro- visional Governor Marvin, of Florida, that the President — " Directs me to say that he regards the ratification by tho Legislature of the congressional amendment oi the Constitution of the United States as indispensable to a successful restoration." URGING COLORED SUFFRAGE. This is not all. He wrote down from his "executive office " to his executive satrap in Mississippi August 15, 1865 : " I am gratified to see that you have organized your convention without difficulty. If you could extend the elective franchise to all persons of color who can read the Constitution of the United States in English and write their names, and to all colored men who own real estate valued at not less than $250 and pay taxes there- on, you would completely disarm the adversary and set an example the other States will follow." Shade of Moses 1 Is this the man who is now filled with horror because Congress, in the legitimate exercise of its constitutional authority, adds to the classes above named the men who had fought beneath the Union flag and earned their right to the ballot, and those who were our allies during the war and 'are now willing to fight andbe taxed to main- tain the Union. Ay, it is the same man who stands self-condemned in the message I am now considering as guilty of "usurpation, the most dangerous of political crimes." Again the message declares: "These acts of Congress totally subvert and destroy the form es well as the substance of republican govern- ment in the ten States to Trliicb they ^ply." West. Kes. The whole message proceeds upon the as- sumption that the rebel States are, and al- ways have been, in the Union, with all the rights, powers, and duties of States. If this doctrine be true, they have now, and always have had, the continuous right to representa- tion in Congress ; and while these States were represented in the confederacy and were rais- ing money and men as States to destroy the Government, they could have kept their rep- resentatives here to aid their allies upon this floor in preventing the raising of men and money to save it. THE MESSAGE VS. THE PRESIDENT. On these points I quote the President against thft author of tliia mesaagc. While the message charges Congress with destroy- ing the form as well as the substance of re- publican government in ten States, the Pres- ident on the other hand declares it was done by some one else, and not by Congress. In the iiroclamations which he issued to the ten rebel States "in obedience to the high and solemn duties imposed on him by the Con- stitution of the United States" — I quote from the one addressed to North Carolina — he said : "Whereas tho rebellion, which has been waged in the most violent and revolting form, has in its revolution- ary progress deprived the people of the State of North Carolina of all civil government, therefore I, Andrew Johnson," kc. Nothing here about Congress. It is the "rebellion" which has destroyed the civil governments in ten States, and made it nec- essary for some power to come to their aid for reorganization. No one has pretended that they were ever territorially out of the Union, or that the people ceased to owe al- legiance to the United States, or to be liable to punishment for crime committed against its sovereignty. I said Congress, by the ex- ercise of its legitimate powers, had regulat- ed the right of sufirage in the rebel States be- cause they occupied the position of States covered by people without any civil govern- ment, and the Constitution had made it the duty of Congress to guaranty to each State so situated a republican form of government. NO ORGANIZATIONS WHEN THE WAR DLOSED. When these States entered the confederacy they destroyed tho old State governments under which they lived within the Union. They made fealty to the Union treason to the confederacy. They declared all who would not swear fealty to the confederacy public enemies. They confiscated their property and drove them outside the rebel lines. As refugees they came to the North by thous- ands, stripped of their property and in desti- tution. They have now returned to the South, and with the loyal men they left behind, black and white, are now reconstructing thoeo ' States iu tihe interests of freodow aad not oi Hist. Soo. slavery, of loyal menand notof rebels, which may accomut for the vindictiveness toward them. The people of the rebel Staes did not go into the rebellion as indi\-iduals in insurrec- tion against the government, volunteering their services and contributing their indi^-id- ual means, so that when the insurrection was put down the government would resume its rightful powers. They acted as organized States, destroying the old State constitutions by changing them to the forms required by the confederate government, and under them using the great State powers of taxation and conscription to raise men and money. And when, under the lead of Grant, we crashed out the rebel armies and the rebel State gov- ernments and the confederate government, the people of the ten rebel States were left vvithout any civil organizations. Now what was to be done in this condition of affairs? THE POWER OF CONGRESS. _ Turn to the Constitution and see what that directs. Article four, section four, says : " The United States shall guaranty to every State in this Union a republi'jau form of government." The question then arises, who are the Unit- ed States, for the performance of this duty and all other legislative duties ? Why, most plainly a majority of Congress, with the ap- proval of the President, or a majority amount- ing to two-thirds of both Houses of Congress without the sanction of the President. If there could be any doubt abov:t the matter it is settled by article one. section eight of the Constitution, which provides that — "CoDgrcfs shall have power to make all laws which shall be neceseary and proper for carrying into exeeu- tion the foregoing powers, and all other powers vested by this Constitution in the Goveramcut cf tho United States, or any department or officer thereof." There stands the constitutional warrant for the action of Congress in the matter of re- construction, clearly defined, and without the shadow of a doubt. Believing the people the source of all political power they have pro- vided that all the people who have not for- feited their political rights by adding perjury to the crime of treason shall have a voice in the creation of the government under which they are to live. In the liberality of their action they have excluded only the "leading enemies of free institutions ;" following the advice of the President when he said to Gov- ernor Morton and the Indiana delegation : " If a State ifl to be nursed until it gets strength, it mast be narned by its friends, not smothered by its en- emies." And again when as military governor of Tennessee — the only way and the only time he ever had any right to govern a rebel State — he said in a speech at Nashville : " I say that the traitor has cea.sed to be a citizen, and ia joining llie rebellion has become a public enemy. Ho forfeited his right to vote with loyal men when ho r«- nouiiccd his citizenship, and sought to destroy our Oo^ ernment, If there be but five thousand men in tb» State of Tennessee loj-al to freedom, loyal to justice, these men should control the work of organization and reformation entirely." But now how changed ! This man has now become the active aider of rebels ; is using the power and patronage of the Government to prevent restoration, and to crush out the men to whom he promised to be a Moses. It is an abuse of language and an insult to com- mon sense totalk about these States during the war as being within the Union and having the rights of States under the Constitution. Andre-sf Johnson did not believe it or act up- on it. Nobody believed it during the war, or at the close of the war. The rebels them- selves did not believe it, and an honest rebel would have scorned to claim such a right. A LARGE WHITE MAJORITY. A stranger would suppose from reading the message and hearing the speeches of those who champion the rebel cause on this floor that Congress had deliberately and wantonly stripped the great mass of the whites of the South of the privilege of the ballot to give it to the freedman, when probably not fifty thousand of all the rebels in the South are to-day deprived of the right of suffrage. The c-ensus tables of 1860 show the whites in a large majority in the States that went into the rebellion, while in only two States, South Carolina and Mississippi, are the blacks in a majority. To show this I have given the table : States. Alabama Arkansas Florida Georgia Louisiana Mississippi North Carolina South Carolina. Tennessee Texas Virginia White population. 526, 271 324,14.3 77,747 891, 550 337,456 353, 901 629, 942 291, 300 820, 722 420, 891 1,047,299 5, 427, 122 3,736, 140 Colored popu lation, slave and free, in- cluding III- dians. 430, 930- 111, 307 62, 677 456, 730 S50, 646 4.57, 404 462, 680 412, 408 283, 079 183, 324 5S9, 049 Here is a white population exceeing the black by 1,690,982, and after deducting every disfranched rebel will amount to a majority of near a million and three quarters. And yet, when the surly rebels cling to the '"lost cause" and will not vote, the message talkg about Congress subjecting States to negro domination. It is the fear of a Union ma- jority and not of negro supremacy that stirs the gall. STRANGE FACTS. There is another matter which naight or might not mislead a stranger. It has seemed strange to me that while I have been a mem- ber of this House no measure faTorable to Union men and freedmen has failed to get theuiiited opposition of this side of the House, ■which claims to be Democratic, while every measure bearing against rebels is also cure to get their opposition. During the warthere seemed to be the same fatality, which made them oppose all measures which sent dismay to the ranks of the rebel army, and even the generals seemed to be possessed with it to the extent of catching those who had escaped from work on rebel fortifications and send- ing them back, so the rebels would not get short of help. They all seemed just as de- termined during the v,-ar to keep the negroes inslavery as a commissary departmentto furn- ish feed for the rebel army and cotton to send abroad for clothing and ammunition as they do now to keep them in ignorance, destitu- tion, and servitude to rebels, without the I rights of citizens or a ballot to protect tbem. It I am to make any mistake in this matter I want to make it in favor of oar allies in the fight and not against them. This message is full of the spirit of the re- bellion, wicked in its assumptions, and reck- less in its statements. With unblushing af- frontery it charges on Congress acts of usur- pation of which the Presidentaloneisguilty. In its own language he is guilty of " habitual violation of proscribed rules- "has set at naught the standard of civil duty ; " swung from the moorings of conscience, and yields up to every impulse of passion and interest." He plies the arts of the demagogue with all the skill of an old practitioner; but neither the sophisms or effrontery of the message can save its indorser, if not its author, from condemnation in its own language as guilty of ' ' usurpation, the most dangerous of politi- cal crimes." NEGRO INFERIORITY. Nearly a column of the message is devoted to proving that because the negro has been doomed by slavery to ignorance he must not be allowed the rights which belong to a state of freedom. It ill becomes the man who was himself born to ignorance and poverty to kick down the ladder by which he advanced, and add ingratitude to the crime of usurpa- tion. By law condemned to ignorance while in a state of slavery, the negroes of the South have shown as much aptitude for learning in a «tate of freedom and have made more ad- vancement in education than the poor whites from whom the President sprung. If they are so weak in purpose and inferior in ability surely thirty millions of the strong race need not fear four milliang of the weak. If they have capacity, why not give thera the oppor- tunity to develop it? It may be v.-rong to taunt men with a want of that which God de- nied them, but I cannot forget to remember ^7ith what mortification I read of the inter- view between the President and the unce Maryland slave, Douglass, when the marlced superiority of the escaped slave should have made the President, if no one else, forever silent on the subject of negro inferiority. SUFFRAGE In this message and in a multitude of ways the President has made assertions, insinua- tions, and statements intended to excite the prejudices and passions of the foreign-born voters agaiust the native-born voters of the South. If I could speak with a voice to reach the voters of this land I would say to them, beware of being governed by preju- dice. Remember that a blow struck at the humblest voter is a blow aimed at you all. When you require a property qualification of a black man it is a precedent to require it of a white one, and a blo^ aimed at every poor man and his descendants. When you make the test of education for the negro it is a precedent to shut out all not born under favoring circumstances to get knowledge. If you demand that he shall read and write it may be demanded that you shall do it under- standingly before you may have a voice in the Government under v.hich you are to live and which, it may be, owes its very cxistenco to your services. Especially to the foreign- born voter would I appeal. Driven many of you by govermental persecutions from the homes of your ancestors, you come here to enjoy rights and privileges there denied you. Copy not here the oppression and persecu- tions toward the freedmen which drove you from your native land. It may be the means of driving them from their sunny homes in the South to divide with you the scanty loaf which labor now receives at the North. Be- ware how you persecute them lest you driva them from their homes and have to compete for labor with men who know by sad e.^peri- ence how to live upon a peck of corn and two pounds of bacon a week, with a scanty cov- ering of rags. Rather aid them with your votes and keep them where they now are. Elevate labor everywhere. Make it both re- spectable and profitable, that you and your children in this the land of your adoption may enjoy its fruits. CONFISCATION. One or two points more and I have done. The President charges that — " Already tbe negroes are influenced by promises of confiscation and plunder." Vv^ho has promised them confiscation ? On the 0th of June, 185-1, Andrew Johnson, in his official capacity as military governor oi Tennessee, stood up before the people q^ that State, black and white, and declared — " Theee leadsrg ri';st feel th3 power of this OoTern- ment. Tre'.ison miut lie raada odiouai, and traitors must be jvunisbc'd and impoverished. Tm great plantations must be seized and diTlded into small farms. And now, when he undertakes to hold Longrcss responsible Ibr the doctrines which he ta-dght to the negroes of Tennessee, 1 say to him as he said on that occasion to the sur- rounding rebels : " Thou canst not eay, I did it ; never shake Xhy gory locks at me." And I suggest to the gentleman from New YorK [Mr. ChaxlerI and the gentleman from \7isconsm, [Mr. Eldridoe,] thatinstead ot wasting all this thunder at the old com- Tr w^i!-"" Pennsylvania they direct a part of the White House, where they are supposed to tiave some influence. It may turn out Johnson was right The rebel element in the South is now perse- cuting the Union men, and pursuing a course toward the colored men whom they have peeled for generations that would make such a course justifiable. The rebel owners of the land had justly forfeited it by their treason. It had been brought under cultivation by the unpaid labor of the slaves who were our al- ias in the fearful struggle. At the close of the war and since they have been peaceable and thrifty citizens eager to obtain knowl- edge. Without homes and without lands oi tiieir own they have produced from the right- fully forfeited lands of rebels not only°the means whereby they live but the means whereby these unrepentant rebels are able to I live and oppress them. For exercising the I rights of suflrage as independent freemen ' they have been persecuted and driven from ' their humble homes, creating suffering that I would soften the hearts of stone. The evic- I tionof the Irish peasants from the cots of' their fathers by the English landlords was humanity itself compared with the treatment now meted out to colored men in some lo- calities. If it is not stopped we may be com- pelled to adopt the doctrine of the President and take the justly forfeited great plantations of persistent and unrepentant rebels for sol- diers' bounties. It would be wholesome punishment richly deserved. But why follow this matter further ? The President is con- stantly charging upon Congress the acts of which he is himself guilty, and provokes the remarks he so aptly applied to another : " Whenever you hear a m^n praiting about the Con- Ktitnnon, spot him ; he is a traitor." nECKLESS ST.ATEMEXTS. To show how utterly reckless this message IS in statement let me contrast two para- graphs. He says of reconstruction : "It haa cost uncounted millions already, and if per- sisted in it will require a strong standing army and probably more than two hundred million dollars per annum to maintain the supremacy of negro goverments after Ihcyare established." With every probability that these States will be reconstructed upon the congressional plan by the 1st of July ne2;t he deliberately makes up liis estimates of the wliolo expen- se of the War Department for every and all purposes for the year following that date, as follows : ^'' J^,V°'*.' estimafes for military appropriations are $77,1^4., 07, m-ludjiig a deficiency in tho last year's an- propnatioiis of 13,000,000." j-^iu o ap Was ever a reckless statement more clearly shown up tnan one statement from this message shows up the falsity of the other? I have not been able to find the items of ex- pense of reconstruction in the rebel States. Ihel'reedmen's Bureau for eleven months expended $3,597,397. In the first military district about$250,000 were expended by mili- tary, registration., &c. In the third, $162,326 were expended for registration and matters connected therewith. In the other districts I do not find the amounts. But take the lar- gest sum for eaeh district and double it, and • add the whole cost of reconstruction, with the Freedmen's Bureau included, and it is less than eight million dollars for the year, making the whole cost of reconstruction by Congress less than the amount turned over to rebels by the President, almost without consideration and without law. freedmen's bureau. The expense to the nation of the Freed- men's Bureau has always been a fruitful theme with the President, with rebel sympa- [ thizers, and all the friends of slavery. The I report of General Grant makes its whole cost for eleven months ending the l.st of Septem- ber last $3,597,397 Go. For the full year at that rate it would amount to $3,924,423 80. The compensating advantages of the bureau, apart from its aid[ to education and furnish- ing the destitute of all colors, inconsequeace of the small crops of last year in the South, was that it answered the purposes of capital, ihe clo?e of the war found the South with its capital invested in the confederacy destroyed, and desolation in the track of the armies. The planters had land, but no money to pay for labor. The negroes had labor, but no money to buy land. The planter had no faith that the freedmen would give him constant labor. The freedman had no faith in getting his pay if he trusted the planter. The course of the rebels toward immigrants kept out capital, and it seemed as though that whole section was doomed to lay waste. In this state of affairs the Freedmen's Bureau was established. It said to the freedmen, go to work on shares or trust, and we will see that you get your pay. It said to the planter, employ the freedmen and they shall not leave you when you most need their labor to save. the crop. What was the result? The world was astonished .it the amount of our cotton crop. We drove China and Japan cot- ton from the English market. Egypt next back to raising grain, and Brazil to raising coffee. The Royal Bank of Liverpool, which was holding up the India eotton merchants, failed for $10,000,000, and cotton cloths went from fity to fifteen cents a yard. We raised at least seven hundred and fifty thousand bales of cotton more in consequence of the confi- dence established between the planters and the freedmen, worth more then than a hun- dred million dollars, and the tax upon which, at three cents a pound, amounted to more to the Government than the whole cost of the bureau, saying nothing of the benefits to the people, to manufactures, and to trade both foreign and domestic. CONCLUSION. One item more and I am done. This us- urper, who has been dictating to States how they shall organize and whom they shall al- low to vote ; who has seized the revenues of the State and passed it over to the rebels ; whose hands are red with the blood of patri- ots shed at New Orleans by rebels with whom he was in correspondence and sympathy, now suggests what other dreadful things the Ex- ecutive may be compelled to do if Congress should pass some act against his sovereign pleasure, coupled with iife and buts, which in- sinuate what he dares not utter. I have heard before of his feelers thrown out to get the pulse of the people ; how in 1866, when swinging round the circle, filled with the spirit of conservatism, he declared " Congress was a revolutionary body hang- ing on the verge of the government, and as- suming to be a Congress of theUnited States;" how his New Hampshire adviser and coun- selor (Burke) declared, in the spirit of his master, "they should expiate their mon- strous crimes upon the scaffold." Sir, I come from a State the bones of whose soldiers are buried beneath most of the battle-fields where freedom was won and nationality secured — a State whose flag has never yet been disgraced by cowardice — and I say to the President and his tools that her representatives are not to be intimidated by his implied threats. I tell him further, if the day shall ever come when he attempts what he insinuates, but dares not utter, that if the chief of rebels goes unhung, the chief of us- urpers will not. I know not what further trials God in His Infinite Prvoidence may have in store for this nation, but whatever they maybe I have an abiding confidence that He will give us strength and courage to meet them as shall become freemen and the representatives of freemen. A NEW LOAN. On Monday, Dec. 2, 1867, Mr. Ela intro- duced the following resolution, which was read, considered and agreed to : Resulved, That tho Committee on "Ways and Means be instructed to inquira into tlw exp«diene7 cf a new loan, payable after ten yeari, and redeaiaable after thir- ty year* iu coin, by the issue on bonds bearing five p«r cent, interest, in coin, payable semi-annually, and taxa- ble at tho rate of one per cent,, to be deducted from th« interest whenjiaid, the tax to be distributed to the seT- cral States in proportion to their Representatives In Congress, in lieu of local taxation; and also of providing for a notice to holders of Government obligations now or hereafter to become due, that they may receive said bonds in exchange or payment, according to the tenor of their obligations, witliout interest after notice ; said notice to be given from time to time whenever the con- dition of tho Treasury will allow the redemption with- out increasiug tho floating obligations of the govern- ment beyond the amount now in circulation, and report by bill or otherwise. There is no mistaking the fact that the great and difficult question for the consider- ation of Congress is Finance. How to raise the money necessary to meet the expenses of the government and the interest on the public debt, with the least burden to business and labor, is no easy task ; and how to lay taxation equally and justly is very difficuft, as all who have ever tried it know. The re- duction of expenses already inaugurated by Congress, and for which measures are in the course of preparation will reduce the ex- penses of the government about twenty-five per cent, below last year, which was a great rcQuction from the year preceding. The debt bearing interest above the cadh on hand is about $2,000,000,000, which, at six per cent, interest, would amount to $120,000,000.— This ought to be reduced, and must be, and that is what is sought to be accomplished by the resolution above. It is confidently believed that capital in- vested in business for the last year has not yielded an average return of five per cent. : and there is no good reason to believe it coula yield a greater return in business than it now does while we are contracting to specie pay- ment. The chances are that it will be less. Loans permanent and safe, and which re- quire no attention, ought always to be made at least one per cent, below the average returns of business. It is a matter which will gen- erally regulate itself, and when the rates of interest are kept above the average returns of business, convulsions and jjanic are sure to follow, and strew their wrecks on every hand. The rates of interest must be reduc- ed to the nation, the state, the towns, and the individual, and the burdens resting on business and labor reduced to the utmost possible extent. Communities can pay in- terest in proportion to the profits and amount of their capital. When the capital is small and the profits large, a high rate may be paid and not be oppressive. But not so in com- munities where capital is abundant aoa prof- its small. Before the war six per cent, was the common rate at which capital was loan- ed. We have, dtiring the war and since, ad- ded to the capital which drew interest, an equal amount of debt which draws interest, and v.-hich stands as capital to tho holders, and is used and treated as such. This has so increased the amount upon which interest is paid, that the rates must be reduced or business and labor must sink under its de- mands, and suffering and want follow with their attendant evils. When the government. which is the great borrower, shall reduce the rates of interest paid, states, municipalities and individuals will find relief, and taxation for state and local purposes will be lessen- ed. If this is not done, stagnation and stop- page of business will leave capital idle and the eame result will be reached ultimately through business reverses and financial dis- aster. There is no downy roiiJ *o specie payment. It is onl)'- to be re ■ ';;■ I-i'irrMjgh a contraction of currency and a /" values, and lessening the cos. s of all articles, so that our )uurket. cheap to buy in, instead of hich mai sell in. So long as our markets :■'•': *' in which to sell the surplus of other i. just so long will gold leave the country to ^^ , for imports. When the nation was in the perils of war and must have money to pay and equip sol- diers, or go down in disgrace, there was a f;reat party in the country constantly declar- ng the rebels could never be subdued, and that whoever lent the Government their money would never get their pay. The re- sult was, the Government was compelled to offer large inducements to lenders to over- come this democratic carping at its credit. At first, the money came with great difficulty, and soldiers had to go for months without their pay. Then, as confidence increased, and democratic clamorers were silenced, it came more freely. One great inducement oflfered was exemption from taxation. The «normous debt and its exemption from taxa- tion were largely caused by the encourage- ment the rebels received from the Demo- cratic party by discouraging enlistments and loans. It was a critical position in which the Administration then stood, fighting rebels on one side, and their practical allies on the other; and one of its greatest trials was to get the money. They took the precaution to borrow on short time and reserved the right to pay after five years, if they could get money on better terms, which is the object of the proposed new loan. Equal taxation is what all want, and lo- cal taxation would be most desirable, if it could be made to reach all bondholders. But the foreign bondholder could not be reached, and the tendency would be to send all our bonds abroad. Besides, one half the local bondholdeis would manage to avoid taxation on bonds as they always did on interest money. It is for the interest of every tax- payer to have the bonds kept at home, at low rates, bo the interest will go back into the communities from which it was drawn. It may, perhaps, be said, that the rates of taxa,- tion were more than one per cent. That is true, now ; but as the local debts are paid, that rate is declining. Then, again, other property is not rated at more than two thirds its cash value for taxation. And, besides, the proposed rates of interest are at present low. By having the Government lay and collect the tax, it is equal everywhere, and no bond escapes ; and there is no embarrass- ment from hostile local taxation. When the Sintes receive it, it may be distributed aa the people direct. The tables prepared by the Secretary of asary based upon the ratio of popu- hows what each state would receive, . ... ^anks were taxed at the rate of ona per cent, as follows : Maine Massachusetts... 748,378 4 i New Hamp 194,411 17 Vermont 186,026 09: Connecticut 282,418 01 ( Rhode Island... 10-,174]6 1 New York 2,381,825 89 i New Jersey 412,466 92 1 Pennsylvania.... 1,783,647 12 " Ohio 1,449,559 58^ Indiana 838,727 81 ! Michigan 472,909 32;] Illinois 1,300,892 56 Kansaa 156,662 80 Wisconsin 621,554 49lNebraska 33,716 86 Iowa 493,159 19 California 283,75314 Minnesota 177,840 9l|Nevada 24,048 73 Missouri 773,8;vl 79 Oregon 46,000 76 Kentucky 709,308 45 • Tennessee 681,147 55 20,000,000 00 Arkansas 267,259 98 = The advantages to be derived from this plan are so obvious as not to require discus- sion. It would secure a distribution of the bonds throughout the states and counties and cities. It would create an interest in the bonds in states the people of which are just- ly responsible for the debt, but whose early and complete restoration to the Union is so desirable and important, and would give to them needed aid in their efiorts to build up again their own prostrate credit. It would put an end to all discussions and doubts in regard to the kind of currency in which the bonds are to be paid, to all complaints of ex- clusive privileges, and place the public credit on a basis worthy a nation whose resources are second to those of no other nation, and of whose future resources the present are but an indication. $385,609 TCjr.ouisiana $434,540 7T Texas 529,772 40 .\labama. 580,512 53 I Mississippi 471,792 28 Georgia 648,915 98 Florida 90.290 60 I S. Carolina 431,905 13 N.Carolina.... 626,634 23 : Virginia 730,662 50 I West Virginia. 249,088 11 Maryland 421,680 63 ijDelawaro 68,873 42 . . _ LI JIIUiWK^'M*'******'*^" PRINTED AT THB GREAT EHPtTBLIO OFyiOB, WABHUfGTON, J>. <3s •i §4 W ^' ^^ ■i>^ . O^ « iK\ '^^• .♦^ ;^«<*^ ,^ 'X ^ .v^f^;^ CD hkii-k:^ '% :^*^;* ^ ^^^^ '^' -^ .V c o - » '^i^^-^^* .^" . '^o' .^*' iOv. v^"^' ^^<^' '^^c,^' ■-^^ .^ **ff§lK^ >. .^^ *>V/).\ ^^ A^ -'fSi^'. "^^n A^ *: ^^^^ •^^^^ ;»' Ap 1