Part 8

To that security one thing is needed,--simply this: All men must be safe in their rights, so that affairs, whether of government or business, shall have a free and natural course. But there are two special classes still in jeopardy, as in the autumn of 1865,--the National Freedman and the National Creditor,--each a creditor of the nation and entitled to protection, each under the guardianship of the public faith; and behind these are faithful Unionists, now suffering terribly from the growing reaction.

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For the protection of the national freedman a Constitutional Amendment is presented for ratification, placing his right to vote under the perpetual safeguard of the nation; but I am obliged to remind you that this Amendment has not yet obtained the requisite number of States, nor can I say surely when it will. The Democratic Party is arrayed against it, and the Rebel interest unites with the Democracy. Naturally they go together. They are old cronies. Here let me say frankly that I have never ceased to regret,--I do now most profoundly regret,--that Congress, in its plenary powers under the Constitution, especially in its great unquestionable power to guaranty a republican government in the States, did not summarily settle this whole question, so that it should no longer disturb the country. It was for Congress to fix the definition of a republican government; nor need it go further than our own Declaration of Independence, where is a definition from which there is no appeal. There it is, as it came from our fathers, in lofty, self-evident truth; and Congress should have applied it. Or it might have gone to the speech of Abraham Lincoln at Gettysburg, where again is the same great definition. There was also a decisive precedent. As Congress made a Civil Rights Law, so should it have made a Political Rights Law. In each case the power is identical. If it can be done in the one, it can be done in the other. To my mind nothing is clearer. Thus far Congress has thought otherwise. There remains, then, the slow process of Constitutional Amendment, to which the country must be rallied.

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But this is not enough. No mere text of Constitution or Law is sufficient. Behind these must be a prevailing Public Opinion and a sympathetic Administration. Both are needed. The Administration must reinforce Public Opinion, and Public Opinion must reinforce the Administration. Such is all experience. Without these the strongest text and most cunning in its requirements is only a phantom, it may be of terror, as was the case with the Fugitive Slave Bill,--but not a living letter. It is not practically obeyed; sometimes it is evaded, sometimes openly set at nought. And now it is my duty to warn you that the national freedman still needs your care. His ancient master is already in the field conspiring against him. That traditional experience, that infinite audacity, that insensibility to Human Rights, which so long upheld Slavery, are aroused anew. No longer able to hold him as slave, the ancient master means to hold him as dependant, and to keep him in his service, personal and political,--thus substituting a new bondage for the old. Unhappily, he finds at the North a political party which the Rebellion has not weaned from that unnatural Southern breast whence it drew its primitive nutriment; and this political party now fraternizes in the dismal work by which peace is postponed: for until the national freedman is safe in Equal Rights there can be no peace. You may call it peace, but I tell you it is not peace. It is peace only in name. Who does not feel that he treads still on smothered fires? Who does not feel his feet burn as he moves over the treacherous ashes? If I wished any new motive for opposition to the Democracy, I should find it in this hostile alliance. Because I am for peace so that this whole people may be at work, because I desire tranquillity so that all may be happy, because I seek reconciliation so that there shall be completest harmony, therefore I oppose the Democracy and now denounce it as Disturber of the National Peace.

The information from the South is most painful. Old Rebels are crawling from hiding-places to resume their former rule; and what a rule! Such as might be expected from the representatives of Slavery. It is the rule of misrule, where the “Ku-Klux-Klan” takes the place of missionary and schoolmaster. Murder is unloosed. The national freedman is the victim; and so is the Unionist. Not one of these States where intimidation, with death in its train, does not play its part. Take that whole Southern tier from Georgia to Texas, and add to it Tennessee, and, I fear, North Carolina and Virginia also,--for the crime is contagious,--and there is small justice for those to whom you owe so much. That these things should occur under Andrew Johnson was natural; that Reconstruction should encounter difficulties after his defection was natural. Andrew Johnson is now out of the way, and in his place a patriot President. Public Opinion must come to his support in this necessary work. There is but one thing these disturbers feel; it is power; and this they must be made to feel: I mean the power of an awakened people, directed by a Republican Administration, vigorously, constantly, surely, so that there shall be no rest for the wicked.

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If I could forget the course of the Democracy on these things,--as I cannot,--there is still another chapter for exposure; and the more it is seen, the worse it appears. It is that standing menace of Repudiation, by which the national credit at home and abroad suffers so much, and our taxes are so largely increased. It will not do to say that no National Convention has yet announced this dishonesty. I charge it upon the Party. A party which repudiates the fundamental principles of the Declaration of Independence, which repudiates Equality before the Law, which repudiates the self-evident truth that government is founded only on the consent of the governed, which repudiates what is most precious and good in our recent history, and whose chiefs are now engaged in cunning assault upon the national creditor, is a party of Repudiation. This is its just designation. A Democrat is a Repudiator. What is Slavery itself but an enormous wholesale repudiation of all rights, all truths, and all decencies? How easy for a party accepting this degradation to repudiate pecuniary obligations! These are small, compared with the other. Naturally the Democracy is once more in conjunction with the old Slave-Masters. The Repudiation Gospel according to Mr. Pendleton is now preaching in Ohio; and nothing is more certain than that the triumph of the Democracy would be a fatal blow not only at the national freedman, but also at the national creditor. There would be repudiation for each.

The word “Repudiation,” in its present sense, is not old. It first appeared in Mississippi, a Democratic State intensely devoted to Slavery. If the thing were known before, never before did it assume the same hardihood of name. It was in 1841 that a Mississippi Governor, in a Message to the Legislature, used this word with regard to certain State bonds, and thus began that policy by which Mississippi was first dishonored and then kept poor: for capital was naturally shy of such a State. Constantly, from that time, Mississippi had this “bad eminence”; nor is the State more known as the home of Jefferson Davis than as the home of Repudiation. Unhappily, the nation suffered also; and even now, as I understand, it is argued in Europe, to our discredit, that, because Mississippi repudiated, the nation may repudiate also. If I refer to this example, it is because I would illustrate the mischief of the Democratic policy and summon Mississippi to tardy justice. A regenerated State cannot afford to bear the burden of Repudiation; nor can the nation and the sisterhood of States forget misconduct so injurious to all.

I have pleasure, at this point, in reference to an early effort in the “North American Review,” by an able lawyer, for a time an ornament of the Supreme Court of the United States, Hon. B. R. Curtis, who, after reviewing the misconduct of Mississippi, argues most persuasively, that, where a State repudiates its obligations, to the detriment of foreigners, there is a remedy through the National Government. This suggestion is important for Mississippi now. But the article contains another warning, applicable to the nation at the present hour, which I quote:--

“The conduct of a few States has not only destroyed their own credit and left their sister States very little to boast of, but has so materially affected the credit of the whole Union that it was found impossible to negotiate in Europe any part of the loan authorized by Congress in 1842. It was offered on terms most advantageous to the creditor, terms which in former times would have been eagerly accepted; and after going a-begging through all the exchanges of Europe, the agent gave up the attempt to obtain the money, in despair.”[100]

As the fallen drunkard illustrates the evils of intemperance, so does Mississippi illustrate the evils of Repudiation. Look at her! But there are men who would degrade our Republic to this wretched condition. Forgetting what is due to our good name as a nation at home and abroad,--forgetting that the public interests are bound up with the Public Faith, involving all economies, national and individual,--forgetting that our transcendent position has corresponding obligations, and that, as Nobility once obliged to great duty, (“_Noblesse oblige_,”) so does Republicanism now,--there are men who, forgetting all these things, would carry our Republic into this terrible gulf, so full of shame and sacrifice. They begin by subtle devices; but already the mutterings of open Repudiation are heard. I denounce them all, whether device or muttering; and I denounce that political party which lends itself to the outrage.

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Repudiation means Confiscation, and in the present case confiscation of the property of loyal citizens. With unparalleled generosity the nation has refused to confiscate Rebel property; and now it is proposed to confiscate Loyal property. When I expose Repudiation as Confiscation, I mean to be precise. Between two enactments, one requiring the surrender of property without compensation, and the other declaring that the nation shall not and will not pay an equal amount according to solemn promise, there can be no just distinction. The two are alike. The former might alarm a greater number, because on its face more demonstrative. But analyze the two, and you will see that in each private property is taken by the nation without compensation, and appropriated to its own use. Therefore do I say, Repudiation is Confiscation.

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A favorite device of Repudiation is to pay the national debt in “greenbacks,”--in other words, to pay bonds bearing interest with mere promises not bearing interest,--violating, in the first place, a rule of honesty, which forbids such a trick, and, in the second place, a rule of law, which refuses to recognize an inferior obligation as payment of a superior. Here, in plain terms, is repudiation of the interest and indefinite postponement of the principal. This position, when first broached, contemplated nothing less than an infinite issue of greenbacks, flooding the country, as France was flooded by _assignats_, and utterly destroying values of all kinds. Although, in its present more moderate form, it is limited to payment by existing greenbacks, yet it has the same radical injustice. Interest-bearing bonds are to be paid with non-interest-bearing bits of paper. The statement of the case is enough. Its proposer would never do this thing in his own affairs; but how can he ask his country to do what honesty forbids in private life?

Another device is to tax the bonds, when the money was lent on the positive condition that the bonds should not be taxed. This, of course, is to break the contract in another way. It is Repudiation in another form.

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To argue these questions is happily unnecessary, and I allude to them only because I wish to exhibit the loss to the country from such attempts. This can be made plain as a church-door.

The total debt of our country on the 1st September, aside from the sixty millions of bonds issued to the Pacific Railway, was $2,475,962,501; and here I mention, with great satisfaction, that since the 1st March last the debt has been reduced $49,500,758. The surplus revenue now accruing is not less than $100,000,000 a year, and will be, probably, not less than $125,000,000 a year, of which large sum not less than $75,000,000 must be attributed to the better enforcement of the laws and the economy now prevailing under a Republican Administration. And here comes the practical point. Large as is our surplus revenue, it should have been more, and would have been more but for the Repudiation menaced by the Democracy.

If we look at our bonded debt, we find it is now $2,107,936,300, upon which we pay not less than $124,000,000 in annual interest, the larger part at six per cent., the smaller at five per cent., gold. The difference between this interest and that paid by other powers is the measure of our annual loss. English three per cents. and French fours are firm in the market; but England and France have not the same immeasurable resources that are ours, nor is either so secure in its government. It is easy to see that our debt could have been funded without paying more than four per cent., but for the doubt cast upon our credit by the dishonest schemes of Repudiation. “Payment in Greenbacks” and “Taxation of Bonds” are costly cries. Without these there would have been $40,000,000 annually to swell our surplus revenue. But this sum, if invested in a sinking fund at four per cent. interest, would pay the whole bonded debt in less than thirty years. Such is our annual loss.

The sum-total of this loss directly chargeable upon the Repudiators is more than one hundred millions, already paid in taxes; and much I fear, fellow-citizens, that, before the nation can recover from the discredit inflicted upon it, another hundred millions will be paid in the same way. It is hard to see this immense treasure wrung by taxation from the toil of the people to pay these devices of a dishonest Democracy. Do not forget that the cost of this experiment is confined to no particular class. Wherever the tax-gatherer goes, there it is paid. Every workman pays it in his food and clothing; every mechanic and artisan, in his tools; every housewife, in her cooking-stove and flat-iron; every merchant, in the stamp upon his note; every man of salary, in the income tax; ay, every laborer, in his wood, his coal, his potatoes, and his salt. Many of these taxes, imposed under duress of war, will be removed soon, I trust; but still the enormous sum of forty millions annually must be contributed by the labor of the country, until the world is convinced, that, in spite of Democratic menace, the Republic will maintain its plighted faith to the end.

People wish to reduce taxation. I tell you how. Let no doubt rest upon the Public Faith. Then will the present burdensome taxation grow “fine by degrees and beautifully less.” _It is the doubt which costs._ It is with our country, as with an individual,--the doubt obliges the payment of _extra interest_. To stop that extra interest we must keep faith.

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As we look at the origin of the greenback, we shall find a new motive for fidelity. I do not speak of that patriotic character which commends the national debt, but of the financial principle on which the greenback was first issued. It came from the overruling exigencies of self-defence. The national existence depended upon money, which could be had only through a forced loan. The greenback was the agency by which it was collected. The disloyal party resisted the passage of the original Act, prophesying danger and difficulty; but the safety of the nation required the risk, and the Republican Party assumed it. And now this same disloyal party, once against the greenback, insist upon continuing in peace what was justified only in war,--insist upon a forced loan, when the overruling exigencies of self-defence have ceased, and the nation is saved. To such absurdity is this party now driven.

The case is aggravated, when we consider the boundless resources of the country, through which in a short time even this great debt will be lightened, if the praters of Repudiation are silenced. Peace, financially as well as politically, is needed. Let us have peace. Nowhere will it be felt more than at the South, which is awakening to a consciousness of resources unknown while Slavery ruled. With these considerable additions to the national capital, five years cannot pass without a sensible diminution of our burdens. A rate of taxation, _per capita_, equal to only one half that of 1866, will pay even our present interest, all present expenses, and the entire principal, in less than twenty years. But to this end we must keep faith.

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The attempt is aggravated still further, when it is considered that Repudiation is impossible. Try as you may, you cannot succeed. You may cause incalculable distress, and postpone the great day of peace, but you cannot do this thing. The national debt never can be repudiated. It will be paid, dollar for dollar, in coin, with interest to the end.

How little do these Repudiators know the mighty resisting power which they encounter! how little, the mighty crash which they invite! As well undertake to move Mount Washington from its everlasting base, or to shut out the ever-present ocean from our coasts. It is needless to say that the crash would be in proportion to the mass affected, being nothing less than the whole business of the country. Now it appears from investigations making at this moment by Commissioner Wells, whose labors shed such light on financial questions, that _our annual product reaches the sum of seven thousand millions of dollars_.[101] But this prodigious amount depends for its value upon exchange, which in turn depends upon credit. Destroy exchange, and even these untold resources would be an infinite chaos, without form and void. Employment would cease, capital would waste, mills would stop, the rich would become poor,--the poor, I fear, would starve. Savings banks, trust companies, insurance companies would disappear. Such would be the mighty crash; but here you see also the mighty resisting power. Therefore, again do I say, Repudiation is impossible.

Mr. Boutwell is criticized by the Democracy because he buys up bonds, paying the current market rates, when he should pay the face in greenbacks. I refer to this Democratic criticism because I would show how little its authors look to consequences while forgetting the requirements of Public Faith. Suppose the Secretary, yielding to these wise suggestions, should announce his purpose to take up the first ten millions of five-twenties, paying the face in greenbacks. What then? “After us the deluge,” said the French king; and so, after such notice from our Secretary, would our deluge begin. At once the entire bonded debt would be reduced to greenbacks. The greenback would not be raised; the bond would be drawn down. All this at once,--and in plain violation of the solemn declaration of both Houses of Congress pledging payment in coin. But who can measure the consequences? Bonds would be thrown upon the market. From all points of the compass, at home and abroad, they would come. Business would be disorganized. Prices would be changed. Labor would be crushed. The fountains of the great deep would be broken up, and the deluge would be upon us.

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Among the practical agencies to which the country owes much already are the National Banks. Whatever may be the differences of opinion with regard to them, they cannot fail to be taken into account in all financial discussions. As they have done good where they are now established, I would gladly see them extended, especially at the South and West, where they are much needed, and where abundant crops already supply the capital. It is doubtful if this can be brought about without removing the currency limitation in the existing Bank Act.[102] In this event I should like the condition that for every new bank-note issued a greenback should be cancelled, thus substituting the bank-note for the greenback. In this way greenbacks would be reduced in volume, while currency is supplied by the banks. Such diminution of the national paper would be an important stage toward specie payments, while the national banks in the South and West, founded on the bonds of the United States, would be a new security for the national credit.

In making this suggestion, I would not forget the necessity of specie payments at the earliest possible moment; nor can I forbear to declare my unalterable conviction that by proper exertion this supreme object may be accomplished promptly,--always provided the national credit is kept above suspicion, or, like the good knight, “without fear and without reproach.”

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Thus, fellow-citizens, at every turn are we brought back to one single point, the Public Faith, which cannot be dishonored without infinite calamity. The child is told not to tell a lie; but this injunction is the same for the full-grown man, and for the nation also. We cannot tell a lie to the national freedman or the national creditor; we cannot tell a lie to anybody. That word of shame cannot be ours. But falsehood to the national freedman and the national creditor is a national lie. Breaking promise with either, you are dishonored, and _Liar_ must be stamped upon the forehead of the nation. Beyond the ignominy, which all of us must bear, will be the influence of such a transgression in discrediting Republican Government and the very idea of a Republic. For weal or woe, we are an example. Mankind is now looking to us, and just in proportion to the eminence we have reached is the eminence of our example. Already we have shown how a Republic can conquer in arms, offering millions of citizens and untold treasure at call. It remains for us to show how a Republic can conquer in a field more glorious than battle, where all these millions of citizens and all this untold treasure uphold the Public Faith. Such an example will elevate Republican Government, and make the idea of a Republic more than ever great and splendid. Helping here, you help not only your own country, but help Humanity also,--help liberal institutions in all lands,--help the down-trodden everywhere, and all who struggle against the wrong and tyranny of earth.