The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1868-08-19
The Payment of the Bonds IN Green,
backs-A Real "Case IN Point"
A great public question was elucidatet

>
transaction itself illustrates the come ctIon
between the Government and large class
of its creditors.
A glass manufacturer from Pittsburgh was
a few days since in the counting room of
Louisville house with which he has done a
large business for twenty years past. In
conversation with his old friend, the Louis
vile merchant, he remarked that he was not
pleased with the nomination of Grant, and
would not support him unless Pendleton
should be the opposing candidate.
''In that case, said he, 81 shall vote for
Grant, because 1 contributed to the support
of the Government in the hour of its distress
and Mr.. Pendleton would compel me to ac-
cept Greenbacks for the bonds which [ hold.
That would be reputation" ....-
'T remember that investment of yours, y
said the Louisville merchant ''You sold
$4,000 in gold at 285 in 1864. and bought
gold bearing United States Bonds, for which
you paid 81 in greenbacls.
Exactly so,'' said the Pittsburgh gentle
man.
''Then," said his friend, ''you exchanged
your $40, 600 in gold for $26, 200 in green
backs, and these you exchanged for $780,
600 in United States bonds. On these bonds
the Government has annually paid you in In
terest 81 800 in gold, which is Is pei cent
per annum on your Investment IN Govern
ment securities. Your interest in four years
has returned INTO your pockets 81, 200 of
your 10, 900 gold dollars, and you claim that
the Government owes you $50, 900 more in
gold If in four years you received S37,-
200 in return for $4,000, your patriotism
will be well rewarded indeed.n
81 am not responsible for the bad man
agement of the Government, F" said the Pitts
burgh gentleman. 81 was financiering for
myself and not for the Government, and l
only ask it to keep its engagements as I keep
mine.n
''But while you were inanciering for
yourself, " said his friend, '.you should have
observed the striking fact that while the
bonds promised gold for the interest, they
did not specify the money in which the prin-
cipal was to be paid. Moreover the green
backs with which you bought these bonds
bore this legend:
"Ihis note is q LeguE tender for all
debts, public and 21riCGte, crceDt duties
on imports, and Interest OH the 212tGLic
debt
'Every one of those notes which has pas
scd through your hands before you bought
the bonds, and since, has been a notice ser
we'd on you by the Government that the
principal of your bonds is payable in green
backs. Accordingly you see the Govern,
ment paying its ether debts in greenbacI1s.
So it paid the soldier for enduring tolls, ant
Drawing dangers. Even the pitiful pension
of the disabled private is paid in greenbacks;
and the widow is paid in greenbacks for the
lost labor of the husband who lies moulder-
ing in a soldiers grave What have yol
done that the Government shall make an ex
ception in your favor 2"
81 hold its bonds, - replied the glass man
ufacturer, ''and, though the bonds may fai
to specify anything of the sort, yet there i
an implied obligation, whenever Govern
ment issues such bonds, that the principa
shall be paid in gold"
'sBut, " replied the gentleman, "that i'm
Piled obligation is directly negatived by tn
inscription ON the greenbacks negativct
also by the wording of the bonds whicl
carefully specifies gold for the interest, an,
carefully omits any specification as to hoy
fI,o ,Dric;,,al ubaO ba ,,oiJ tI,,c Iaoy-i,,r Il,
point optional with the Government. More
over, the greenbacks themselves are notes
bonds, promises to pay which the Gov
ernment Is as much obliged to pay in col
as any other description of bonds whatev
er. If the Government substitutes its green
back notes for its bopds in your possession
you hold against it as valid an obligation q
you held before, and have no right whateI
cr to cry Reputation
''The Government will be able to redeel
the greenbacks in coin as soon as it will /
able to pay your bonds in coin Its neces
stiles compel it to give its creditors PROMISE
instead of PAY. 1t is for you to show VIII
it should give you interest bearing notes an
compel its ether creditors to accept nott
which draw no interest. 1t is fair to sho,
: why the people shall be taxed to pay inte
est on what The government owes yor
while they get no interest on the not
which they hold against the Government
in what respect is your claim more just {
sacred than theirs
''Now, suppose the Government tax,
your bonds at their face, and pays you So
600 in greenbacks. You can exchange th
sum for $2l, 400 in gold. You will receiI
more than double the sum invested fol
years ago, and upon which the GOvernmeI
has paid you usury at the rate of l s per Gel
per annum. My good friend, you have I
= good reason for calling this 'rcpudiatiOn -
l When so liberal settlement is proposed yC
have no right to demand So, 600 more go
than is nominated in the bond shall
wrung from the labor of your country fl
1 your private emolument. AS just busine
man you should not set up such a clai
against private individual, and you cou
5 not legally collect it. The obligation
OtA4 bO-AN's3 OAl NOAAokL II, oell4Aob u
public, would>conYert them, and the Go
: eminent itself, into instruments of extortiC
: and inordinate suppression.
4 ''Fhis implied obligation with which y,
= propose to piece out the actual obligation
' the Government, applies with far more for
5 and justice to the claims of the soldiers WI
J. rendered personal service, and devoted the
. lives to the public defense. But You, al
i the party with which you act do not call
repudiation to pay THEM in greenbacks +
n the blood they shed and the limbs they 10:
- You prefer the least meritOrious class of t
public creditors; and for those who ha
already grown rich off the necessities of t
Government, you demand eXorbitant adj
tional premium. The scant wages and, ]
wards of the poor who have toiled for
Government, and who have bled and suff'
oil for II Won wOuld nav in orrppnhackS ~