The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1868-08-15
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at.
He quotes this from the CARE cirYss-x
Issue new bonds, running thirty or forty yss =,
a. low rate II interest, say four psf csnn 80 -
which 10 take Oh all our outstanding bonds %
fund them With our 6pancial homer 81 r.
such bends will be eonghf after ny ..,s
everyw here. Our iteTcst At four per gent "uu,a
not exceed $sp, OK 900 per year oa'
from customs are double that sat aparl sii.AIns
f,,r two. thiyis II oar annual fhcssrs yscvn
,ns .,5 t6;s afoue sronfd ppg er<vy dottsr e sar
aat;enaf tes,, principal ard iafe set 1.sr5 ~
,aa,,,,;fv 81 oar nesc bonds. This plan the hefrh
liesns viii adopt and carry ons.--late etfF
And ae may f.,nark that that little para
graph contains more common sense, aehhise-
ness aud practicabiiity as financial seleme''
than all tbs twaddle and stuff put forth by
CIaget. on the subject Of finances IN the past
two years.
But Ciagett pitches into this plan IN ia-
rious way. He starts of thus:
What dc the workingme, Of America think Of
this financial scheme OF radicaliem, to doom labor
to perpetual bondage to eaptaif How long would
ii take TO pay national debt Of $2,5oV oov.o oo
out OF such &aiAkia8 iARd- ~ the GATE eiTT
proposes?
Why, the paragraph you quoted answered
your question. We said 'sset apart az sink>
ing fund two-thirds Of our annual income
from customs, and this alone would psy
every dollar Of our national debfi ptiaeipal
and isfeyest, before The maturity a our neso
bonds" And any man that can read figures
knows it. But listen further to this soioS
OF the Constitution-this miracle of financial
wisdom:
Four per cent. interest twenty-five hundred
million doIfars trhe lowest rate proposed by the
sherman funding bifi1 is one hundred millions OF
dollar. a year. Forty years is the shortest time
xed by that bill within which the four per cent
bond. are redeemable. Hence, in forty YEAR,,
by the scheme propoaed by our financial oracle OF
the GATE Cry, the industrial classes OF the coun
try--those who do not hold untaxed bonds aud
who do not own cotton mills and wpolep mills
and iron FORCES, de-, de., win have paid four
thous millions OF dollars Of Interest, and will
also have the inestlmabe privilege Of paying two
thousand five hundred millions Of dollars more OF
principal making the modest aggregate OF six
thousand Eve hundred millions Of dollars.
Clagett puts two exclamation points after
this brilliant assertion. Every reader of it
no. absolutely an IDIOT will be disposed to
multiply his two by thousand. He says
that by sinking fund such as we pro-
pose the people will have to pay one
hundred million dollars yearly in interest
for forty years on the whole e2,bOO. O0O,-
900 Of debt, and at the end of forty years
will have the principal, the $4,000, 00O,-
600 still to pay! Why what use
are you making Of the sinking fund" during
the forty years? You dolt, you blockhead-
no, we Won't call names. Clagett evidently
don't know any better. He doesn't know
what sinking fund is. Well! Thomas, my
boy, wipe your nose, aud come here, and we
will tell you Now. Thomas, Uncle Sam
owes two billion FIVE hundred million dollars.
The interest on that at four per cent. il one
hundred million dollars year. Uncle Sam
hasn't just the money to pay down what he
owes, but he has good income. For one
thing his income on goods imported into the
country, amounts to one hundred and seven.
ty-fve millions year. He has income from
other sources to pay his running expenses,
80 he can use the income from duties to pay
the interest and principal of his debt. Well !!
the fret year he pays the one hundred mill
lion dollars interest, and the other seventy
FIVE million dollars he applies to the dis
charge Of the principal. Now the second year
he won't have quite one hundred million
dollars Of interest to pay, for he has paid off
seventy five million dollars Of the principal.
And what he saves thus as interest, he can
pay on the principal so the second year he
will have more than seyenty-6ve million dol
lars to apply in payment OF the principal.
And so your Uncle Sam will keep dong,
Thomas; each year the interest will be less.
and each year he will havethe more money
to use in paying off the principal. In this
way. Tuomas at the end of fifteen years, or
twenty at the most, we are not trying to be
very precise. your Uncle Sam will have paid
so much of his debt that he won't owe more
than QUE billion Of. dollars: the interest en-
that would only be forty millions instead of
the one hundred millions be started ont with
And if be continued to get the one hundred
and seven'y-fve million of dollars from i'm
ports {as the country grows, however. you
see be would get more), but With that in
come, in the year that be wonld only have
have left one hundred and thirty five nils
lions to apply on the deot, instead Of the
seventy-hy millions he started out with.
AT the end of The forty years your Uncle viii
L i Al. L - 4 IA. ~, L
one hundred million dollars interest to pay
In that year, as you said, but no interest
a, all: aud he won't have any two billion FIVE
hundred million dsllars principal to pay at
the end Of the forty years, as you said, for
the principal will be entirely paid-and that
is what the Sinking Fund and Funding Bill
s for. Thomas.
g But what about the new bondsa-,hey
are not mature until forty years.
Now, don't be stupid, Thomas! To be
sure, the bonds are not mature until forty
years-that is, the holders of them cannot
collect them, but they are always fundsbleby
the Government; it can call them in and pay
them OF whenever it wants. As we have
seen. it will pay off seventy-6ve million dollars
-~arth of them the first year; and so on, q
larger number each year, until, at the end Of
the forty years, by the time the holders could
collect them, they will all be called IN aud
paid off.
Now. Thomas, go and study your lesson in
arithmetic. And unless you study hard, and
learn great deal more than you know now,
you will never be ft to 60 to Congress.
OUR CANDIDATE FOR CIRCUIT
JUDGE.
The Mt. Pleasant Journal has this to say
of Judge DraYer the Republican candidate
for Judge of this District:
We think the nomination of ]. B. Drawer for
Circuit Judge wise selection. He is an old
and respectable citizen. of ten years standing, in
tnis county. and there is aha eenaa.aaas
the respect OF all classes more than he does, He
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