The Plymouth weekly Democrat. (Plymouth, Ind.) 1860-1869, 1867-11-07
Who are tho Regulators!

fcrats g regulators. 1t viii be a matte
of some interest to the people of this Stat
to know that the republican party itsel
opened the way to all future Republication
by refusing-immediately after the pas
sage, by congress, of the Il" legal tender
ct,-to pay in gold either the principa
or the interest of our state bonds. 1t i
to be hoped that 'greenbacks" (analogou
to q curses" in some respects will ''com'
home to roost i" on the heads Of the Ma
tional bond-holding aristocrats, as the,
have done, with far less justice. on the
heads of our state bond owners But t.
the article:
g Some thirty years ago Indiana con
tracted large debt for the purpose Of
constructing gigantic system of interna
improvements, or what was regarded such
at that time The financial and CONNER
eial revulsion which followed. during the
period from 1887 to 1910, the result oil
the wild speculations of a few years previ-
Gus which swept over the land like an ep-
idemic, so embarrassed the people of the
state that the payment of the interest OF
the bonds was for several years suspended.
Finally, in 1861 a compromise was ef-
fected between the creditors and the state.
by which the former surrendered the
bonds they held, bearing six per cent. in
terest, for one half of the amount in five
per cent. bonds, payable in twenty years,
and for the other half they took the
Wabash and Erie Canal, with the unsold
lands donated by the general government
to AMI in its construction. For the I'M
paid accrued interest the creditors took
bonds bearing two and half per cent in
terest, payable in twenty years. These
transactions were all upon gold basis,
and from the date of the compromise un-
til the republican party obtained control
of the state government the interest was
paid semi-annually at New York in gold.
When congress passed what is generally
known as the legal tender act, which
made greenbacks the equivalent of gold
each one having printed on its back the
mission it was to fulfill, to-wit: This note
is lcgal tcadc,, .for aH debts puJlic and
prieate, except duties on imports and
interest On the public debt, the re-
publican state administration then in
power compelled the bondholders to
accept 'grecnbacks in payment for the
interest on the bonds. The creditors, at
first, refused to accept this deprecated
currency, upon the ground that it was a
violation Of the contract made with the
state, but finding that the state insisted
upon regulating her faith they accepted
greenbacks in lieu of gold as a matter of
necessity. Was not Indiana under great
er obligations to pay her Indebtedness,
contracted on gold basis to her creditors
in tie same currency, than the general
government to pay her Indebtedness in
gold for which she received greenbacks
and promised to pay in similar kind? As
far as honor and public faith arc concern
ed, that of Indiana is far more involved
than the general government. The debt
of Indiana, contracted under the circum-
stances we have recapitulated, fell due in
January Of this year. The creditors
tuition of six per cent, bonds therefor.
This arrangement failed. A law was then
passed providing for the gradual pay
ment of the debt by appropriation of the
sinking funds, with the proceeds of the
tax levied for that purpose. The Jour
nal charges that this arrangement was
made at tie instance of the creditors
themselves and for the reason that they
could reinyest the proceeds of their five
per celt. bonds In other securities which
would bring them much higher rate of
interest. This was not the argument used
by the Journal to induce the legislature to
pass the law which provides for the ex-
tinguishmcnt of the debt, instead of sub
shutting six per cent. bonds therefor 1t
then had a very distinct idea that public
debt vas not public blessing, and was
sound policy to stop the payment of inter
est, which eateth like moth, by the pay
ment of the debt as rapidly as possible
The State, after compromising its indebt-
edness for one half, and at less rate of in
terest than the original debt, and refusinc
to pay, finally, either interest or principal
oil the compromised debt In gold, accord
ing to its plighted faith, or substitute
therefor six per cent. bonds, tells its cred
itors they must accept greenbacks in pay
ment and at its convenience. What is
this. according to the Journals logic, buI
reputation? Referring to the proposition
to pay the national debt when it becomes
due at its option, in the same currency il
was contracted, the Journal says:
They represent their knavish and ru-
inous schemes as proposition to pay the
nationol debt. 1t is no such thing, but or
the contrary it is grand measure of aon
6scation'
What is Indiana doing? Is it honora
bic in her. to pay debt in 'rreenbacks
in violation of her pledge to pay both in
terest and principal in gold F? If it il
'knavish in the general government ant
grand measure of confscation to pay
its Indebtedness in lawful currency - lie
gal tender notes Just as as contracted
in what position docs it leave the public