The Conservative. (M'connelsville, Ohio) 1866-1871, 1870-04-08
PARAGRAPHS.
o and Political.
BY 4 xTRIBUToR R.

IN our last paper we had something
to say in regard to the BondhOlder's
scheme for funding the National debt.
In that paper we stated that the FIVE
twenty Bonds amounting to 1000 mill
lion dollars were to be funded as fol
lows: 400 million dollars, one-third of
the whole, payable in 10 or 40years
hence, at 5 per cent. interest, both
principal and interest payable in coin ;
400 million dollars, another third, pay
able in gold Is or 40 years hence, at
4l>2 interest ; and 400 million dollars,
the third and last batch, in 20 or 40
years hence, payable in gold, at 4 per
cent. interest.
Now, let US see how this scheme will
work, and who will be benefited and
who damaged thereby. The first $780,
10000 running 40 years at 5 per cent.
interest viii foot up, principal and in
terest, the enormous sum of 200 mil
lion dollars, just the amount of the
whole indebtness. The second $400,
100000 running 40 years at 4 IL per
cent. interest, will pile up, in principal
and interest, the sum of 1,120 million
dollars; the third and last 100000
900 running 40 years q taper cent. in
terest viii foot up, principal and inter
est, 1,o40 million dollars, making a
grand total, at the end of 20 years,
principal and interest, of 1860 million
dollars
The reader must bear in mind that
this m sum of :, 800 million dol
lars rows out ofthe fVe-twenty Bonds
now payable in legal tenders, dollar
for dollar. ALI of which might be ia
ken up by the Government within the
next ten years, thereby gradually re
ducing the gold interest paying debt,
both in principal and interest, and put
ting in its stead an Indebtedness upon
which no interest will be payable
Besides, from this gradual process of
reduction, q great relief for the pres
ent hard times will be granted, by re-
viving commerce, trade and all kinds
of business; and it will greatly reduce
the taxes o imposed upon the labor
of the country. 1t will be seen that
the Bondholder will be greatly bene-
flied by this proposed funding scheme,
in this, instead of the principal of his
Bonds being paid in legal tenders, as
his Bonds ca Is for, he will get his
principal in gold he is made entirely
exempt from all taxes whatever he,
in the beginning, bought his Bonds at
an average of As cents on the dollar,
and, by a partial calculation, he makes
at the end OF forty years at least 500
per CT. on his original investment-saI-
ing nothing of the advantage he has
over other investments in the exemp-
ton from taxation, which is two per
cent. yearly for 40 years. And he re-
ceiyes his interest upon his Bonds semi
annually in gold, which will always
bear q premium at not less, perhaps,
than ten per cent. Therefore, what
yer the Bondholder makes by this
funding scheme, comes from the pock-
cts of the laboring and producing cIas-
ses of the country. For the interest
money to pay the Bondholder is deriv-
ed from a gold tax, levied and collect
ed upon our foreign import trade, and
TO the amount:of that tax, the laboring
and consuming classes are burthened,
no difference whether he consumes
the foreign or domestic article, for the
domestic article is increased in cost to
the consumer Q the amount of the tax
levied and collected upon tie like for
eign article.
The question now comes up and
stsres everybody in the face, except
the exempted Bonded Aristocracy,
how long can the country stand such
an imposition and drain upon its res
sources, when, at the same time, no
measures of relief are proposed
One scheme If the Bondholder and
ACKNOWLEDGMENT begets another. An
established National debt, as that now
proposed by this funding scheme, is
the foundation upon which other plum
dering schemes are based. The exis-
lance of q large National debt produe.
ces the necessity of high and aever-let-
ing-up taxes, getting into the pockets
ofthe people in the shape of internal,
income, and tariff demands. A Ma.
tional debt is a pretense for the crea-
ton of an overgrown, profitable and
perpetual system Of Banks, by means
ofEuch institutions gold and silver coin,
the only kind of money recognized by
the Constitution, is banished from use
and circulation. Then, with a perma-
nent National debt, National Banks,
and e~xhorbitant taxes the monied
power of the country is concentrated
in the hands of the few lording it over
the many /; and, after that, a free, in
dependent expression of public opin'
ion 6 v be had, or, if ever ex-
pressed, win not be potent for any
good, for money is power and its cor,
rupting influence will rule in high pla.
ces, as it has done in all Governments
where it has exercised a controlling in.
fuenee yer its financial policy. 1t is