These concessions were much needed, for the producers of cotton were crippled by the condition of their States, and manufacturers found that prices did not justify the payment of these war charges.
In his annual message to Congress in December, 1868, President Johnson argued "that the holders of our securities have already received upon their bonds a larger amount than their original investments, measured by the gold standard.

Upon this statement of fact it would seem but just and equitable that the six per cent interest now paid by the Government should be applied to the reduction of the principal, in semi-annual installments, which in sixteen years and eight months would liquidate the entire National debt." This bold and shameless advocacy of repudiation was less mischievous than it would have been if Mr.
Johnson had held a longer lease of power, and if the people had not in the Presidential election pronounced so clear and positive a verdict in favor of the maintenance of the National credit.

The Senate deemed it worth while to put on record a resolution condemning this part of Mr.Johnson's message.

Mr.Hendricks of Indiana moved a substitute indorsing the statement in the message, and closing with the words of the Democratic National Convention in favor of paying the bonds in _lawful_ money.

Only seven senators supported his substitute, while forty-five opposed it; and President Johnson's proposal for repudiation was, by the action of the Senate, "utterly disapproved and condemned," -- _ayes_ 43, _noes_ 6.