The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1868-05-05

UHlU. MA / 0 800
From the Cincinnati Enquirer,I
The Greenback Issue--Thc Gold
SwindIe,
The Chicago Tribune, bondholding
organ, puts the following questions to us,
which we will answer in their order:
81. What greenbacks does it propose
shall be used to pay the fye-tventy
bonds--those now issued, or new batch
to be manufactured for that purpose2'
They can be paid with the greenbacks
now in use, and by the retiring Of the Ma
tional Bank circu1ation-supplying its
place with greenbacks, without adding a
dollar to the circulation. This has been
shown by Mr.. Pendleton in his Milwau-
kee speech. He said:
''Now, gentlemen. I maintain that. the
500 bonds should be paid "a far as it IS
possible to do so, without initiating the
currency beyond a safe and just point
And it is my business now to show you
how rapidly that can be done. The un-
|liquidated debt Of the United States con-
|sists Of grsenbacks and claims which have
not been adjusted, and amounts to $780,
000,000. 1t pays no interest.
"Three hundred and thirty y-eight mil.
lions Of these bonds are, by the report Of
the Secretary Of the Treasury, deposited
to-day as security in the vaults Of the
Treasury. Three hundred millions Of
bank paper is issued on the faith of these
bonds. Now, gentlemen, maintain that
this circulation ought to be called in;
that these bonds ought to be redeemed
with legal-tenders, which will take the
place of that bank circulation. FAp-
plause. ~
aWhat would be the effect Of this?
The 81, zoo, ,0O0,eo0 of interest," bearing
bonds would be reduced to ST 400 ,00e, 600;
and $20,000,0 600 would be saved to the
Government from the interests which is
paid to the bankers from bonds which
they have deposited. TCheers.
eNow, then, suppose you takethis $40
900, 600 of interest which is saved, and
additto the s4S,000,00o which these gen.
tlemen say they can pay from the current
revenue, and you have S6S, ,00O, 900 year
by year, and if you convert that sum into
greenbacks, at 40, you have s10o,000,-
000a year, and if this is appropriated as
a sinking fund, you can pay the whole
debt off in less than fifteen years, without
adding one dollar to your taxation or one
dollar to the circulating medium Ap-|
plause.l y
This is upon the supposition that the
of the Government are not
reduced, but are maintained upon their
present monstrous basis. With the De-
mocracy in power, their reduction one
half is certain, and the payment Of the
debt would be correspondingly facilitated.
We may and do say that the currency of
the country could be very pro6tably in.
creased, with benefit to its business and
industrial interests. Money is now too
scarce and interest is too high. The
whole South is destitute of currency, i
and hundreds Of millions of dollars are
necessary for permanent improvements
which have been destroyed by the war in
that section. Without too great an In.
hation, millions Of new greenbacks could
be issued to advantage, and be employed
in taking up the bonds.
We now give the second question Of
the Tribune: IS
sts2. Does it advocate an increase ofl
taxation to procure geenbacks with which
to pay the bonds; or does it propose to
obtain them by means of the printing!
press2'
Our reply to the frst question neces-
sarilyianswers the second, which is but . |
repetition Of it. It's remaining questions
are as follows:
ss3. Is not a green5aek an order on the |
Treasury to pay the bearer as many dol
lars as are expressed on its face, and does
that mean gold dollars2
"4. In what way can greenbacks be.r
deemed except in gold?
So. Would the debt be paid by givingI
the people greenback orders on the Treas
ury in lieu of the bonds? s
sc. Would not the Government stillbe
in debt as deeply as before its notescalled
bonds were changed into orders on the |
Treasury called greenbacks?'
These questions are superlatively fool
ish. The fve-twenty bonds, and there
are now nearly two thousand millions of
them, bear interest at six per cent, ,:or
$120, goo, 600 in gold annually, which is
equal to S168, ,000, ,000 in legal-tenders.-l
The greenbaeks bear no interest. Which
is the easiest paid, nonsinterest- bearing
greenbacks or interest t-bearing bonds?I
The interest alone that We pay on the |
bonds would redeem all the greenbacks in
fifteen years. But if the debt is kept in
bonds, the payment Of that interest would
not reduce the debt one cent? Suppose
the editor of the Tribune had debt of |
s100,0O bearing interest at six per cent,
and he was enabled to change it into a
debt that did not call for $4,000 year
would he consider himself as |
greatly in debt as he was before he made |
the changer
Having thus frankly answered the in
terrogations of the Tribune, will it in re-
turn respond to these questions?
1. If the fye-twenty bondsare payable
in cein, why was 1t not expressed 10 the
law authorizing their creation, as it was
in the ten-forty bonds? IF the editor of
the Tribune should draw two notes, onel
payable esexpressly in coin. and the other
not containing those words, would he
consider the latter the same as the for-I
mer hssH @
g. Legal-tender greenbacks have been
declared legal by the courts, and have