Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-01-03
DEBTORS AND BoNDHoLDERs.

The Cincinnati Gazette insists
that precedent to q resumption of
specie payments, a law should be
passed by Congress authorizing
parties owing debts to pay only the
amount that greenbacks were worth
in gold at the time the debts were
contracted; that is to say, if green
backs were worth only sixty cents
on the dollar when the debt was
contracted, the debtor shall dis
charge his indebtedness by the pay |
ment of sixty cents on the dollar.
The Columbus (Ohio) Statesman,
makes a strong point on this doc
trine of the Gazttte in regard to
paying off the bonded debt of the
United States, as follows:
"The first bonded debt of the United
States, in amount $G00,000,0O0 was crea-
ted during the year ending July l, 1868,
the average price of greenbacks rang
ing at seventy cents on the dollar In
gold.
''For the year ending July i, 1864,
Government bonds to the amount of $685.
600, 900 were sold, and payment received
in greenbacks, the average price of which
in gold was sixty cents on the dollar.
For the year ending July i, 1865, ST.
nOE Aln 400 - IL onld for
backs, the legal tender currency rang
ing at fOrty-fve cents on the dollar.
HFrom the first sale of bonds, to $780,
100000, the government realized but
| $420,O00,0 00--a loss of $lS0,000,000
'Erom the second sale of bonds, am
ounting to $619,000000, The government
realized but 1871 10000 loss of $247,.
100000
"On the third loan, amounting to ST.
| 035, 100000, the government realized but
| 1865, 10000, loss of $685., 250,0O0.
'0n these three loans, amounting in
the aggregate TO $2,254, 900, 900, the gov
eminent realized but $l,257, $50, 900,
being a loss of 1896, $4,000"
| The bonds thus sold at 20, 60 and
45 cents on the dollar, were, accord
ing to the late Thad. Stevens, who
was chairman of the committee that
reported the bills authorizing the
issuing of the bonds, TO be redeemed
in greenbacks, and Senator Sher-
man, of Ohio, says the government
has the right to redeem these bonds
| in greenbacks. The Cincinnati
Gazette has heretofore, and, no
doubt, hereafter, will, demand that
they be paid in gold. This would
increase the amount to be paid by
the taxes of the people, greenbacks
now selling for seventy-three cents
on the dollar in gold, to 81 ,862, $780,
900, being 81 ,665, 73O more than the
bCndholdcrs paid for them. Now,
says the Stat eSmGn, apply the doc
trine of the Gazette to the bonded
debt of the republic. That sheet
demands that a man owing his
neighbOr a debt, contracted during
the present greenback era, only
pays back the amount that
| greenbacks would cost in gold,
at the date the debt was in
CURED, or specie payments or
dered. This, it argues, should be
done, because it would be equity.
But it refuses to carry out its doc
trine when applied to the bond
holder, although it was cOvenanted
that his debt should be paid in the
currency in which he purchased
the bonds. To pay the bondholder
in gold would s we have shown, in
crease the value Ofthe bonded debt,
on the first three loans, to 81, 1872,
| $50, 900, being 1865, 100000 more
than the government received in
value for the debt thus created, and
being bonus to the bondhOlders
to that amount, who, in the hour OF
the nations peril, took advantage
of its necessities to drive a hard
| barpain.