The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1867-07-02
The Public Observation-Disclosures
The Honor and Life Of the PeO-

we are pl6aSeO TO n0tlce tnat tno queS
tion, how to get rid of the interest bear
| ing bonded debt of the United States
without reptdiating it, is being more ant
more agitated. 1t promises to soon bt
the main issue before the people Of the
North. We have before us an excellen
article, communicated to the Rochester
On. Y) Union, which takes strong grount
for paying off the bonds by an issue O
legal-tenders therefore. The writer says
"This debt was created against the peo
lple on an inflated currency, and not on ,
specie basis; and hence the right of til,
people to pay on an inflated basis. Sup
pose, before the war, G. had $50, 900 il
gold, or the value thereof in other prop
erty. When the war came, the Govern,
ment asked G. to loan it the 500. 600 in
gold, ,and G. refused. Now, G.. represents
the capitalists of the country, and Gov.
ernment being refused by its capitalists
the loan of their money, was forced to
issue S700,000,000 of currency. We
then had at least four times the amount
of currency in circulation that we had
before the war, and the result was that
property advanced nearly, if not quite, in
the same ratio. The capitalists of our
country, by refusing to loan their money
to the Government, had forced an imitation
of the currency, after which, it is safe to
say, it was in their power to dispose of
their gold for double its amount in green
backs. Now G.. takes advantage of this
forced market, sells his $50, in gold
for 500, geo in greenbacks, which he In
vests in Government bonds at seven per
cent. Now he has doubled his gold if
he can only get the Government back to
specie basis. AT seven per cent. before
the war, his $4,000 in gold yielded him
an income of s3,50e, which, at specie
basis, would just support him for the me-
cessaries Of life. The interest on $780,
000 at seven per cent. gives an income of
81, GOO, but under inflated currency pri-
ces, the necessaries of life being at least
double in value to that of specie basis,
it takes the whole interest of his $780,
600 still to support him, and he does not
yet realize that he has made anything by
the exchange. His object must be to re-
turn to specie basis, for then SO, 500 will
support him, and he will have So, 500 left
over and above his support out of his
$1,000. He will then realize that he has
doubled his $4,000 in gold at the ex-
pense of the taxpayers. Now, why.
should not G. go in for specie basis, and
why should not the people 60 against it?"
The writer next proceeds to shew how
terrible would be the weight of taxation
in case we return to what is called ..spe-'
Gle basis for our currency, without cor
responding decrease of the interest bear
ing debt. He says:
II assume that the rate per cent. of tax
on our income must be in proportion to-
the amour. of currency in circulation -
There is nothing palmer. If the circu-
lation of our currency is -four times that
of specie basis, then products are four
times the value they are on specie ba-l
sis. Say wool, on an inflated basis, is 81
per pound, at the rate Of 5 per cent. in
come tax, one pound of wool pays rev.
enue of 5 cents. But suppose it goes
down to specie basis, say 25 cents per
pound, the Government, to obtain the FIVE
cents revenue on one pound Of WOO, must
impose a tax of 20 per cent. on an infa-
ted basis, consequently the nearer we ap-1
proach specie basis the higher our rate
per cent. of income tax; or, in other
words, the less money we receive for our
products, the higher cur rate per cent. of
income tax. The Government has a sta
ted sum that must be raised annually. It
must be raised from the annual products
of the country. During war prices, and
when wool commanded 81 per pound, and
other products in proportional rate per
cent. gave an income Of $250, ,000, ,000.-
Now suppose we descend to specie ba-
sis and products go down to one-fourth
the war prices, the income per cent. must
be raised to four times its war rate on in
fated currency prices, to produce the
$3.50, ,0G0, 900. Now, when the currency
was inflated by the $7OO, 100000 Of green
backs, the people got along very well.-
The act was merely an edict that property
was four times its former value. Every
body's property went up proportionately;
every body was paid proportionately for
services rendered; every body had plenty
Of money; every body paid his income
tax without feeling it,
How the thing will work is thus ex-
planned:
Suppose to-day we makea bold stroke
issue $4,000, 900, ,0OOof greenbacks and
buy up every bond outstanding against
the Government, ON peril of repudiation
IF the bonds are not presented and
greenbacks received in lieu. Interest Is
stopped at once. We then have only four
times the imitation we had with $780,
100000 afoat. Wool only goes to S4
per pound, and other products in propor-
tion. Labor advances, too, and We all
have great plenty of money. The Ia.
borer, instead of 81, gets from S4 to S8
per day. 4 x We now have a ba-
sis on which to work. Say at the highest
war prices, raised ], 6C0pounds of wool.
The assessor comes round and demands
my income return, ] 500 pounds of wool
lat 81 per poud. equal to $1,000; deduct
ling $500, exempt by law, leaves $1,000 to
be assessed at 8 per cent, producing $50.
At that ratio the internal revenue OBJ
tanned was $3.50, ,OoO, 600 yearly which was
nearly all expended in paying interest on
our war debt. Now, suppose we are on
a specie basis and the assessor comes
with his yearly demand-your income,
sir; 1000 pounds Of wool at rs cents pei