The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1867-11-02

IS question In Wntcn the puOnc are
more or less interested, We viii try to
answer 1t. Indeed, all the questions
bearing upon the finances of the eoun-
try, whether they relate to the tariff,
US. Bonds, National Currency, green
backs, or taxation in its myriad forms,
ought to interest every man, woman
and child of the land; because, in a
correct solution of them, we are all
more or less concerned.
When the war commenced, and for
some six months subsequently, the
Government paid those to whom it be.
came indebted in gold. The soldiers
who first enlisted we're paid offin gold;
and all the supplies were purchased
with gold and silver. But after while
the gold became exhausted and the
Government issued what were termed
"demand notes" These notes gener-
ally passed at par. or nearly so, and
before they were finally retired they
actually commanded a small premium.
But, as the war progressed, the Gov
erpment got tired of these demand
notes." and issued what is called 'le-
gal tenders" or 'sgreenbacks ;" and
Congress passed law requiring that
these legal tenders should be received
in the payment of the ordinary debts
of the country; that whenever man
was indebted his tender of these legal
tenders should be complete acquit-
tance. The courts of the country
sustained the power of Congress to
do this thing, and they decided that
it was legal to thus discharge the in
debtedness ofthe country, even though
an obligation had been given payable
in gold. At that time AIr Chase was
Secretary of the Treasury, After
some hundreds of millions of green
backs had been issued he became
alarmed, and announced that there
was too much currency in the country,
and some scheme must be adopted by
which il could be curtailed
He finally made proposition that
the Government should issue bonds !;
and this was accepted by Congress.
Soon the 5-2O's, 1905 and IO-40's were
thrown upon the market and were
sold. The capitalists who bought
these bonds did not pay gold and sill
yer for them, as some might suppose !;
but they took greenbacks-which on
an average cost them about 40 cents
on the dollaF-and bought these bonds
with them The Government then
took the greenbacks and paid off the
soldiers and liquidated other expenses
of the Government with these green
backs. It was in this way, as we un-
derstand it, that the q. S. Bonds were
issued.
We never could see why it was that
Chase, and Mongrel Congress, were
not content to issue greenbacks as
they were needed-which bore no in
terest-instead of resorting to bonds,
which bore from six to eight per cent.
interest, and even more, according to
the price of gold. They told US that,
If we continued to issue greenbacks,
the volume of currency would be SO
great that the country would be ruin
ed. Their argument amounted simply
to this: That if the Government owed
two billions of greenbacks, drawing
no interest, it would be bankrupt but
ifit owed that amount in bonds, draw
ing six or eight per cent. gold-interest,
the country would get along swim
mingly and all would be WELL We
have seen people humbugged, but we
never before knew a great and intelli-
gent nation SO completely bamboozled
as IN this instance.
The truth is, at the time this system
of issuing bonds was inaugurated, the
people were SO occupied in viewing
the-marching and countermarehing Of
armies, and the fuss, and feathers, and
tinselry of grim-visaged war, that
they had no time, nor no desire to ex
anime this question of finance as they
: would have done under different cir
curnstances. And besides, if any wri
ter, or speaker, dared to discuss it and
place it in It's true light before the
people, he was almost sure to be seized
by some tool of Stanton and incarcer
ated in some of the numerous bastilei
of the land
We have seen that U. S. Bonds
were bought, by bondholders, witt
.greenbacks at par, which cost then
on an average forty cents on the dol
lar. We have shown, in former mum
Bers, that the actual federal indebted