The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-11-14

eminent, which is backed for the present
by the entire strength Of the army. We
have on the other side and in favor of q
republic the entire democratic party, assisted
by the Church and the Carlists. On the
superstition that both parties and the whole
rank and file of both parties were equally in
earnest it could not for moment be doubted
which should come Off victorious. Such sup
position, however, Is not permissible. We
know that the Church party is not in earnest.
We know that the Carlists equally With the
Church party have joined the republican
ranks with lie in their right hand. l, is the
object Of both these allies of the democracy to
create confusion, and thus, by an apparent de-
votion to the cause of the people, to advance
the cause of absolutism. The Catholic Church
is skilful in the use of means beyond any other
body of men in existence. They are not,
however, always successful. They sometimes
miscalculate. They sometimes fail. would
not at all surprise us if by lending their power
full help to the republican cause they created
power which they could not control--a power
which would hardly be grateful and which
might prove neither submissive nor tolerant.
The situation thus becomes lively; interests
begin to conflict; fierce passions threaten to
break loose, and much hard fighting may have
to be gone through before it can be known
what is to be the character Of the Spain Of the
future. A telegram received late last night
and printed in this mornings HERALD, to the
effect that the political clubs in Madrid had
unanimously agreed to accept monarchical
form of government, leaves the situation pre-
cisely as it was; for the simple reason that
Madrid is not Spain, as Paris is France.
Ono Measure for tho Bondholders and the
People.
The bondholders and their organs never
cease reiterating the plea that the government
should pay the full face of the bonds in gold,
whether the obligation to do so is expressed or
not and whether the trainers of the laws con-
templated payment to be made in gold or cur
rency. 1t is urged that the government
would be dishonest and disgrace the country if
it should not pay specie in full. The foreign
press, and particularly the British, makes the
same argument, because there is large
amount of our bonds held abroad. BY foring
specie payments or by the government declar-
ing that all its bonds shall be paid in gold the
property of the bondholders would appreciate
in value something like thirty per cent. These
highly virtuous individuals may well clanor
for the full face of their bonds in specie, as tlcr
property would be increased so much in
value. 1t is the virtue and honesty of Shybck
over again. They will not listen to any ab.te-
ment or compromise, however much the ccun-
try may suffer or the burdens of the people be
augmented. p. ~.*t>
Let us examine the exacting claims of the
bondholders. First, then, it Is well known
that not more than sixty per cent in specie, on
an average, was ever paid for the bonds. A
large portion was obtained for less. More than
half the capital invested in them has already
been returned in interest. Then nearly all the
bondholders have had their other property
vastly augmented in value through the appre-
citation of gold aud the effects of the war.
There is scarcely real estate owner, for
example, whose property has not doubled since
the war commenced. In many cases it has
been appreciated moro than that. In fact, the
Northern capitalists and property holders have
become much richer from the war; while the
mass Of the people have become poorer and
more heavily burdened. Had they suffered as
the property holders Of the South have their de-
IL. ho h,xtkh
have been made rich and ought to be salts
fed, without wishing to increase their bond
holding wealth thirty per cent at the expense
OF the overburdened industrious classes.
As to the fino fourishes about national
honor and integrity, such as Mr.. Reverdy
johnson, the British press and the bondholders'
organs here indulge In, they are all bosh. No
great modern nation, except the United States,
has ever paid its debt in specie. Hardly any
have paid 1t at all. Even England, with oil
her pretence Of honesty, reduced the interest
on her debt from five and six per cent to three
and three and half She never can hope to
pay the principal, and whenever the British
government has any surplus funds to apply to
the liquidation of the national debt 1t does not
feel bound to pay hundred for stocks nomi-
nally issued at q hundred. The National Debt
Commissioners buy at the lowest rate they can
and give only from eighty to ninety for consols,
according to the market. Is that dishonest
Why, then, should the heavily burdcned peo-
pie Of this country be required to pay the full
face Of the bonds in gold? Why should there
be deprecated national bank notes for the
people and specie for the bondholdersp Justice
and common sense call for the same currency
one measure-for both.
But this agitation Of the bondholders and
their powerful allies (the national banks) for
gold payments keeps the national currency de-
preciated. II makes it appear, in effect, that the
legal tenders, though based on the credit of the