The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1868-02-01

| try III removing the dread uncertainty that hangs
| over every branch OF business.
The Public Dcbt.-Ee eD adIni ion--'TI,e
! Honor and Life of st,e People.
| We are pleased TO notice thai the question,
how to get rid of the interest-bearing bonded
debt of the United States, without repudating
| il, is being more and more agi'ated. Is promises
| to soon be the main issue before the people of
| the north. We have before Us an excellent arti-
Gle, communicated to the Rochester On. "
| Union, which takes strong ground for paying off
the bonds by an issue of legal tenders therefor
The writer says:
"This debt was created against the people on
an inflated currency, and not on specie basis ;
and hence the right OF the people to pay on an
inflated basis Suppose. before the war; G. had
$4,000 in gold, or the value thereof in other
property. When the war came, the Government
asked &. to loan it the $4,000 in gold, and G.
refused. Now, G. represented the capitalists of
| the country, and Government being refused by
its capitalists the loan of their money was forced
to issue $7OOO00,0 900 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 cur
rency, after which, it is safe to say, it was in
their power to dispose of their gold for double its
amoynt in greenbacks. Now G.. takes advantage
OF this forced market, sells his $4,000 in gold
for $lO0,UOO in green backs, which he invests in
Government bonds at seven per cent. Now he
has doubled his gold il he can only get the Gov
eminent back TO a specie basis. At seven per
cent. before the war, his 500 coo in gold yielded
him an income Of $500, which, at a specie
basis, would just support him for the necessares
/ of life The into StnD
cent. gives an income of $1,000 but under infa-
ted currency prices, the necessares of life being
at least double in value to that of a specie basis
1t takes the whole interest of his 100000 still
to support him, and ne does not yet realize that
he has made any thin. by Inc exchange His OBJ
lect must be to return to specie basis, for then
$4,000 will support him, and no will have $500
left over and above his support ont of his $1,000.
He will then realize that he has doubled his
Now, why should not G.. go in for specie basis
and why should not the people 20 against it? ~
The writer next proceeds to show how terrible
would be tho weight of taxation in ease we re-
turn TO what is called specie basis for our cur
rency, without u corresponding decrease Of the
Understanding debt he says:
81 assume that the rate per cent of tex on
our income must be in proportion to the amount
OF currency il circulation. There is nothing
palmer. If the circulation OF our currency !,
four times that of a specie basis, then products
are four times the value they are on "a specie
basis. Say wool, on an inflated basis, is ST per
pound, at the rate of per cent income tax, one
pound OF wool pays revenue Of cents. But
suppose 1t goes down to specio basis, say %
cents per pound, the Government, to obtain the
Ave cents revenue one pound of wool, must
impose tax of 90 per cent on an inflated basis,
consequently the nearer we approach specie
basis the higher rate per cent. of income tax;
or, in other words the less money we received
for our products, the higher our rate per cent OF
income tax The Government has a stated sum
that must be raised annually. It mus. be raised
from the annual products of the country. Dur
ing war prices. and when wool commanded 5
per pound, and other products in proportion, the
rate per cent. gave an income OF S2j0,O0O. Now
suppose we descend to a specie basis and products
go down one-fourth their war prices, the income
per cent. must be raised to four times it, war
rate on inflated currency prices. 10 proaace the
S25O,OOO,O00. Now, when the currency was in
hated by the 100000, $50 u greenbacks the
people got along very well The act was merely
an edict that property was four times its former
value. Everybodys property vent up pyopor-
tionatoly; everybody Was paid proportora,oly
for services rendered; everybody had plenty of
money; everybody paid his income tax without
feeling it,"
How the thing will work is thus explained:
Suppose to-day We make Il bold ,Jke--+sUe
S2,SO0, 100000 of greenbacks and buy up every
bond outstanding against the Governments, on
peril of repudiationif the bonds are not pre-
sented and greenbacks received IN leu. lnsagcst
is stopped at once. We then have only -FOUR
times the initiation we had with $10O N0,0O0
afoat. Wool only goes TO four dollars per pound,
and other products in proportion, Labor advan-
ces, too, and we all have great plenty OF money.