The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1869-11-06
How Boutwell, is Reducing the Nation.
al Debt

"
How Boutwell, is Reducing the Nation
al Debt.
The most monstrous swindle of the age is
the pretenss of Secretary Boutwell, that by
his sale of gold and purchase of United States
bonds, he is reducing the national debt. The
aim of Boutwell, is to bring the credit of the
government up to par, as he calls it. He is
doing this by contracting the issue of green
backs and bulling the bond market, by pur-
chasing bonds (that are now due and redeem
able in greenbacks,) at premium of from 10
to "a per cent Thus every million of bonds
he buys costs the government 100000 more
than the government agreed to and ought
to pay. The effect of the policy is, to raise
the price of government bonds and of green
backs, or. in other words, to depress the price
of gold. Thus gold, which for years past had
stood at about 1876 to l4O, is now down to
l27 What is the result! Property is rap
idly shrinking in value. People who owe
debts are compelled to pay them IN currency
worth so to 80 cents on the dollar that was
worth Is to 70 cents. The real, practical eff
feet is to increase their debt from IL to % per
cent Thus a note for $4,000 when gold
was say 1876, was really worth but $1,000; but
with gold down to 100, (and it will soon be
there if Boutwell, keeps on,) that note is really
worth $780, practical increase of the
mans debt who gave the note, of $1,000.
The effect on the national debt is precisely
the same. Thus when gold was 145 the debt
was $40, 1000 00O, 900, Or worth $2l 10000 900
in gold. Mr.. Boutwell, enters the bond
market as bull and forces up bonds and
greenbacks to 100 in gold The result is, in.
stead of reducing the debt $56,OOO,OOO in s
months, as he, claims he has increased the
debt $5O0,00O,000! When he has worked
gold down to 10, the debt will have grown
two-sevenths, or $6s5,7l4,2S4, and will be
$3,OS5, 7l4,2s4. And when gold falls to 100
or par the debt will have grown to the enor-
nous proportions of s3,423,57l,4 2G.
These are startling figures, but they are
automatically correct; and they show that
the Republican policy of paying the national
debt in coin will cost the people about $685.
7l4,2S4. ,...4
To adjust the national debt at its gold
value, taking gold at 1870 and the portion of
the debt payable in lawful money at 81 $780,
100000, would reduce the debt $45OOO0 900,
making it $3.50, 900, 0O0-whlch is all the
people ought to pay by every principle of
justice. Had the debt been adjusted at
gold value when gold stood at 200, the debt
would now be only about $l,650,00O,0OO.
But the Republican party stands in the
way of this manifest justice. 1t insists that
the debt shall remain at an inflated currency
standard, and be paid in gold which, in prac-
teal effect, adds more than onefourth to the
size of the debt Mr.. Boutwell's policy is the
avowcd one of elcvating the public credit !;
but in absolute truth, it is one to decrease the
power of the people to pay their debt He
boasts--and so far as we know with good
reason--that he has reduced the debt $780,
100000 within the last six months. But he
claims credit for having reduced the price of
gold about ten per cent. which, estimating
roughly, ddds about ten yer cent. (Sl50,000,-
600 to the debt Clearly, then, while this
policy Is entirely acceptable to the creditors of
the people.