Brownlow's Knoxville Whig. [volume] (Knoxville, Tenn.) 1866-1869, 1868-04-15
The FlYe.TKentY Bonds.

jay Cooke, the eminent banker, has Just pub
shed an interesting letter, giving accurate &C
count of the circumstances under which the five
twenty bonds were offered TO the community, and
presenting conclusive argument that the general
understanding, both on the part of the government
and Of the people 1t he time the loan was taken,
that the principal was to be redeemed in gold A
careful estimate Of the wealth of the United States
is also made, and the opinion expressed that the
country contains at least two hundred and fifty mil
lions Of dollars in gold and and silver more than in
1881. Mr.. Cooke believes that speedy and safe re-
sumption Of specie payments can be effected soon
as the 73o per cent. notes are funded, and that a
day, year or eighteen months hence, can now be
azed when the payment in gold of the successive
series of $40 bonds be commenced with the pro-
eeeds Of a new consolidated five per cent. funding
loan. We quote from Mr.. Cookies letter the fol-
lowing paragraphs ia answer to the allegations so
frequently made by a certain class of politicians,
that the Government bonds are in the hands Of a
privileged class. He says
It is common for public speakers who advocate
the violation of the nations faith by insisting To-
cal taxation of bonds &C. to designate the bond
holders as Erich, "privileged' &C. and also to
stir up the West against because Of the presump-
ton that the East holds undue proportion Of the
( public debt All this is mere demagoguoism and
wilful perveFson Of truth. With the exception Of
banks and savings Institutions, there not many
/ large holders Of government bonds the great bulk
/ being held by the people, not by capitalists. Out
Of three million subscribers 10 the various public
loans, over nine-tenths are of the class called the
people The West took S230,00O,O00 Of the $780,
100000 100 loans and, l doubt not, holds a large
portion OF il now, End this is large proportion
as could be expected from new and enterprising
region, where money always commands higher rates
than at the seaboard. Ohio alone took ovor S90,-
( 00000O, and Illinois over $40, 000 900. The West
was also large taker Of the $50 and other loans
l substantiate these facts, for have taken the
trouble TO anaze each days subscriptions with the
I above result.
Again, how can the bond-holders be considered q
privileged class During the entire sale of these
bonds they were offered freely at par, to any one
Even the owner of fifty dollars was not excluded,
but hundreds If thousands Of these small investors
[ came forward in all parts Of the land, and were
gladly welcomed. The small premium TO which
our bonds have advanced is no impediment in the
way of any who really wish to obtain them, and
even now tho daily demand from this class Of in
vestors is far greater than that OF any other class
What becomes, then, of the assertion that the man
! who holds government bondsi priUiLegeG person
I Cannot any man who has q horse, COW, q town
lot, "a few surplus bushels Of corn or wheat OF any
srticle Of eXchangeable value, or even his labor,
anu Win lhe proceeds kueFeOi purchase an INTEREST
in the public funds If he groans under the taxa
ton Of his town lots surplus lands let him sell
them and invest the proceeds in this favored So
curity. The truth is, that large portion OF those
I who thus argue against the exemption OF the bonds
from State and local taxation, either ignorant
Of the truth Of the matter or we're afraid, during
the war and are now, Of risking their means by an
investment in public stocks. They have no conf
donce in the bonds, and hate the loyal holders OF
them as they batsd the war and all things growing
out Of IT, We arc all witness TO the fact that inyest
ments In real estate, made at the commencement OF
the war; have in many localities, advanced in value
from one hundred 20 three hundred per cent Is
pecially is this So in cities towns and villages. In
. vsstmeuts In real estate at the commencement Of
the war have paid much better than investments in
+. government bonds Yet this clamor for taxation
Of The bonds for local purposes mostly comes from
the class of the community who have gained large
In from advance, jD the vRlue Of real estate