The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1870-04-06
The Senate Funding BHl-The Last
BOndhOIding Scheme.

What is called in bondholding parlance
the Funding Bill has passed the United
States Senate, and it is said, will pass the
House also. Its purpose is declared in the
preamble to be for reducing the interest
of the United States debt" This is GER
tainly a very laudable thing, and, if ac-
eomplished would be a great benefit to
the overburdened taxpayer How does
the bill propose to effect it?
The first section authorizes the Secre-
tary of the Treasury to issue new bonds
to the amount of $400, 100000, redeema-
bic IN coin, at the pleasure of the Govern
ment, at any time after ten, and within
forty years from date, and bearing inter
est at the rate of five per cent per annum
payable seml-annually in coin"
The second section authorizes the issue
of another $400,000000 of new bonds, at
Iour and half per cent payable in com
IN fifteen years, and also fully due in forty
years.
The third section is an authority for tie
issue of $4O0000,000 more, at four per
cent interest, payable in coin, in twenty
years, and due in forty years.
Here are 81, 100000, in five-twenty
bonds proposed to be taken up and ex-
changed for the new issues. Let US see
what the Government will make by it
Before doing so, 1t Is proper to state that
section four of the new law declares "that
the bonds and annual income herein au-
thorized by this act shall be exempt from
all taxation by or under National, State,
municipal or local authority" Now, the
81, ,2O0000,00O of old five twenty bonds,
that we are to call in to exchange for
these new bonds, are liable to National
taxation. They are exempted from State
and local taxation, but not from National.
II they were taxed as the Government has
a right to tax them, the same as other
property, there would be an imposition of
two per cent upon them This right of
taxation, which on 81 ,200,000OOO would
amount to S24 100000 a year, we propose
to give away The reader will saw that
there is not much made here, but. on the
contrary, this exchange involves q great
loss to the Government.
Again, under the law as it stands. the
81, 200, 100000 of old bonds are payable in
legal tenders, or in gold at the rate the
legal tenders were worth when the bonds
were purchased This was at the rate of
about 45 cents on the dollar. We have
now the authority under the contract to
discharge the Indebtedness by a payment
OF $540, 100000 in gold Under the new
law 1t Will require 81, ,200,0OO,OOO in coin
to do it.
Here is a loss against us under the new
law Of $960,000,000. But it may be said
that the interest is reduced. Let us look
at that. 1t is now six per cent in gold
The average under the new law is Al per
cent. a half per cent is authorized to be
paid by the Secretary of the Treasury to
such agents as he may select to negotiate
for the exchange. This raises the rate to
five per cent in gold, only ono per cent
less than what it IS at present in interest.
Therefore we should save under the new
law, on the 81 ,2OO,0OOOOO. $12,OOOOOO.-|
This Will scarcely offset the loss of $24-
100000 annually which we give up in the
loss of the right of taxation, and the $500
OOOOOO more of principal that we are to
pay for it.
The fifth section of the acts sets apart
for the payment of the principal and in
terest of the debt $l56,OOO,6OO derived
from the duties upon impost goods" The
tariff must be kept nearly as high as it is
now IN order to obtain that $l50,O0O 900.
1t Is now fifty per cent upen all our for
elgn trade. Thus, as we have said, the
high tariff robber and the bond robber
Ioln teams and agree mutually to plunder
the people. The bonded debt is the ne
,essity for the high tariff taxation. They
are like the Siamese twins. The death of
one IS the death of the other.
These are the main provisions of this
bill Of Nominations bill which could
only pass in a Congress composed of the |
corrupt tools of the moneyed power
When 1t is fastened upon people there
viii be but one alternative, and that is to !
eyery-dollar of the debt, -prinei-
pal and interest. The bondholders have
already received from the Government, in |
interest and IN, exemption from taxation, a |
greater sum than they loaned it, If they |
will not now take back their principal, |
out demand a sum twice that amount, |
let them go without payment at all. 1t is |
better they should lose 4 small sum than |
he people a great one
WeglTe the yeas and nays on the pas
age of the bill in the Senate:
YEAs-Messrs. Chandler, Cole, Conkling,
sdmunds, Fenton, Ferry. Rl)Bler, Gilbert, |
Harlan, Harris, Howard Howeli, Kellogg |
Morrill, of Vermont, Morton, Osborn, Pom |
,rny, Pratt, Ramsey, Revels, Rice, Saw
yer, Schurz, Scott, Sherman, Sumner, Tip
on and Wilson-32
NAYs-Messrs. Bayard, Borenlan, Buck
ngham, Casserly, Corbett, McCreery, Nc
Donald, Sprague, Stockton and Thurman
10.
No Democrat voted in the affirmative.
N the negative they are all Democrats |
ave Boreman, buckingham, of Conn, and
Jorbett