Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1867-12-07
The Bond Holders New Move.
ment -r--

41OAA~A
. Lotto ..- ment. ..rr
Senator SHERMAN, OF Ohio, as we learn
from Washington kilograms, has prepared
a financial plan of his own and the brokers,
intended to cover the whole ground of
bonds and currency. 1t provides for six
per cent. bond, to run thirty years. princi-
pal and interest payable in coin, at the
pleasure of the Government, after ten
years. OF the interest, five per cent. is to
be paid to the holder, and one per cent. re-
tanned in lieu of National and State taxes.
The halt of the one PER cent. is to be paid
to the States in proportion to population,
and the other half to create sinking fund
for the pay ment of the principal OF the loan.
The holders of legal-tender notes are to
have the right to convert them into these
bonds, and afterward convert the bonds in
to legal-tender notes, as currency may be
needed. Holders of five-twenties, after the
expiration of the first five years, are to be
required to exchange for the new bonds
under the penalty of having interest
stopped. This measure is intended to de-
prive the Secretary of the Trt asuTy of very
nearly all discretionary power, and, with
some amendments putting limit to the
balances carried in the Treasury, it is al
legged, will be acceptable to the majority In
Congress.
The half per cent. to be paid to the
States out of the interest, is in the nature
of bribe to make the project acceptable,
in order that the bondholders may in the
end, change these bonds for gold. They
now claim that these bonds cannot lie
taxed, and the United States Courts sus-
tain them, so far as State, county and mu-
nicipal taxes are concerned, but allows the
National Government to do that indirectly
which they refuse to the State directly,
when they tax the holders or their income
derived from bonds.
Alarmed at the recent demonstration Of
public opinion in favor of paying off the
vast Indebtedness in the same kind of cur
rency in which it was created, the Radicals
who, but few months since, charged ev-
cry man who would not be willing to coz
tinue the present system, to the injury OF
the country, with being repudiator, now
are anxious to take 5 per cent. where they
claimed and 1Oths, and of that amount
to give one-sixth of the amount back to
the States and to the Government, provided
the principal be paid in gold.
The bond holders, assert that they base
their claim upon the contract with the
Government. That contract should under
no circumstances be violated. Greenbacks
are legal tenders by law and all debts are to
be paid in that kind of currency. In the
contract, the interest on certain bonds was
to be paid in coin-the principal, it was un-
derstood, was to be paid in legal tender cur
rency. To that contract We propose to
hold the owners Of this national indebted
ness. They made their election to stand
by it, and now, when ir is understood that
the bonds must be paid in Greenbacks, that
it is no reputation of public faith to do so,
but on the contrary that is in the contract,
and now, when they seem willing to back
down, and to make new bargain, we think
they should be held to the letter of their
bond, even if proved as disastrous to them
as was that of the original SHYLocK.