The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1870-05-07
How the Debt 10 being Paid.

In speech in the United States Senate
few days ago, Senator Morton put forth the
following claim for the radical party:
"During the first eleven months Of Grants
administration, the public debt has been paid on
to the amount of $50, 64997l. which was done
by the application of surplus revenues to that
purpose while, during the last year of Mr.. John.
sons administration, the debt was only reduced
-$5,959,7lS, although the taxation was greater
than it is now"
Were this true, it is hard to say how 1t re-
bounds greatly to the credit of the admins
tration The last years of Johnsons admins
tration paid hundred millions of remaining
war claims, of which Grants administration is
relieved; besides which the revenues, instead
of being diminished, have enormously in
creased. No people on the face of the earth
are taxed as the American people are to-day.
Commissioner Wells shows, in his report, that
while Great Britain, commonly believed to
be the most heavily taxed country in Europe,
pays an average tax of less than one per cent.
on the value Of all her property, the United
States pay over 3 per cent. Is there any merit
in paying a debt when such boundless re-
sources are placed in the hands of the admin
istration to do it with 4!
But how were these $S0,000,0O OF bonds,
as Senator Morton claims, redeemed Were
they paid according to contract! The gov
eminent agreed to redeem these bonds in
greenbacks. The secretary Of the treasury
boasts that he paid them in gold, worth 20
per cent more than greenbacks. The people
were thus robbed of sixteen millions to tatten
the bondholders, with no more law to justify
the robbery than there is for an act of piracy
at sea
But worse feature of the transaction still
remains. On the first of March, 1869, the sec
rotary Of the treasury reported the total inter-
est bearing debt to be s., 0G7 100000. On the
first of March, 1870, the same secretary reports
the debt bearing interest in coin to be 49,
1O7 ,939 $3.50. Thus, then, while the people
have paid off, according to Morton and Bout
well, during the last year, out of the super
abundance Of the revenue wrung from an
ovcrtaxed people, $S0,000,000 of the public
debt, the gold interest bearing part of that
debt has actually been increased some $780,
100000. A debt bearing no interest is no
burden to the people. On the contrary, such
a debt, in the form of grecnbacks. to the
amount OF thousand millions, accompanied
by the withdraw of the National bank circu-
lation, would be hailed by all but the bond
holders and bankers, as an unmiXed blessing
But instead of this, the government buys
bonds payable in greenbacks at Il premium of
90 per cent. to pay them in gold, and then
uses these bonds to pay the non-interest bear
ing debts of the government!
1t is a hideeus injustice and mockery. Our
whole financial system is conducted in the
interests Of the money lords and bankers, to
the robbery and oppression of the laboring
and producing classes. A hundred millions
year are wrung from the people to pay the
debt, and yet the drain Of interest. which is
the blood-drawing feature of the debt, not
only remains unreduced, but Is actually in
creased.