The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1870-02-03
Swindling OF Taxpayers.

question oi reputation. Mr. GoliadaY, OF
Kentucky, made speech in reply to the
one made on Friday by Norhees on the
national debt, in which Vorhee. proved
that the government had not received from
the bondholders half of the amount of the
debt
Taking the facts stated by Norhee. as
the basis of his argument, Golladay pro.
nounced for an entire and full repudistion
of he debt, claiming that the government
had already paid more than was justly due,
and that the funded debt, as it stands to
to-day, is the creation of usury, extor:ion,
and swindiing legislation, and that the item
of value received cannot be found in it.
Messrs. Mungen and Gollsday are the
only members of the house who take this
position. They are men Of ability, and the
speech Of the former on this question was
ad United to be, hy the house, which unsni
mously condemned his doctrine, admirable
for its research and the compaciness OF lis
logic. Msssrs. Mangen and Gollsday are
somewhat presunpluous, however, IN
charging Inconsistency upon the other
democratic members The facts present
ed 10y Voorhees, prove that tbs people have
been grossly cheated in ths management Of
the debt, but this does not relieve them
from the obligation to pay it according to
the original contract.
Had Scheock's public credit bill not
passed, and had Secretary Boutwell, paid
for the ive>twenty bonds he has purchas>
ed in treasury notes, dollar for dollar, in
stead Of paying premiums on bonds "a hch
have cost the people SIS. 600, 600, or more,
the taxpayers then would have been swim
died The contraction Of the currency has
greatly increased its value The govern
ment received from the bonihoiders cur
rency worth about sixty cents on the dollar
Were the bonds paid in treasury notes 70
day the bondholders would receive, as
principal on their bonds, one third more
than they lent the government.
Considering the high rate OF interes,
va;.p he bondholders have been paid and
arc nor receiving, in gold, what ground OF
complaint would they have should the vol
ume of currency be increased to an extent
which would bring i: to the same value it
possessed at the time the bond. we're put in
market? The letter and the spirit OF the
contract would be carried ont by such a
policy, and 10y it tho lights Of tiIo poosl-
would be protected II is as unjust to re
Qui:s the payment of the bonds in eur
rency at par with gold, as to require the
payment Of them in coin The nearer the
currency be made to approach gold IN
value, tie greater the injustice IN requlr-
, ing the payment Of debts contracted by
Borrowing the same currency when 1t was
gre tly Deprecated. Should the currency
be expanded until the premium on gold
should reach far above what it was when
the bonds were put in market, and redemp
ton of them be made in treasury notes,
would not the bondholders complain?
The question of currency redemption is
NOT settled for all time, as the ooudhodsrs
aud their advocates proclaimed when
Schenck 5 public credit bi. vas signed by
the president. ln the debate in the house
on Saturday, the democrats had decidedly
the advantage, The iniquity Of pavi's the
fivetweuties in coin has no, recen ed the
sanction Of the majority Of republicans in
the western states, and their represents
tives in congress know it. In the west,
the larger number Of republicans have not
thought the question one Of sufficient i'm
portsnce TO overbear other party issues, but
as the rec instruction infamy is about to
close its foul life 10y an ignoninious death,
we may expect republican taxpayers to
look with more interest upon financial
questions. A s,ripgen, money market and
heavy taxation will bring common sense to
the surface on the bond question. = Chicago
Times.
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