Eaton weekly Democrat. [volume] (Eaton, Ohio) 1866-1875, 1871-01-12


party and their reconstruction
pOlicy--with the bond business
and the taxation of the many for
j few. II il therefore hoped ev
Jerry one will carefully read the
document, and when
he has done SO pass it to his
neighbor.
Jour Bonded INSTRUMENTATION
It Was Incurred, And How it
Should be Paid.
The object of this communica-
tion is to awaken III inquiry, on
the part OF the people, to- exam
inc In q dispRssionate manner,
the policy of their representa-
tives in Congress-, ouching fnan,
cial measures, in which the pro-
lduetive labor of the nation il
Idceply concerned.
Wneu q nation is free-from in
jebtedness, or comparatively go,
the true policy to be pursued, as
jail will admit, is to maintain o
specia basis, and if for convent
fence, paper money be used, as q
circulating medium, to curtail
Its volume or extent, within such
bounds that il cen be readily
convertod into coin, at par, at
the will of the holder; but when
"a nation is deeply involved in
debt, as we are, md the indebt-
edness incurred, as ours was,
when currency was at a discount
lof nearly three to one, then a
very different question is pre-
sented for consideration. By way
of illustration, let the case be
STATED thus-Suppose that A. B.
then had one thousand dollars i'll
lgold, and desired to invest it in
ponds. He frat sold the gohl
for twenty-five hundred dollars
in legal tenders, and with thtse
purchased $500 bonds, to that n
mount, bearing SIX per cent. in
terest, payable huff yearly, in
gold, and free from assessment
or taxation. In this way the
great bulk of the national in-
debtedness was incurred-say
near sixteen hundred millions Of
dollars.
Now, the question for consid>
eration, is not, a. l frequently
nryed, that such investments
were free and open to all, for,
but few had the gold to exchange,
but rather, how and in what way
shall the bonded dcSt in equity
be paidf II paid in gold, one
Thousand dollars, with ~accruing
Interest would certainly be fair:
but If, twenty-five hundred dol
lars be paid. il should be paid In
legal tenders, in accordance with
the original understanding, when
the Indebtedness was Incurred.
this latter proposition would be
Iexact Justice, "a between the
lbondholders and the people, pro-
vided the volume or amount of
legal tenders, as q circulating
medium, we're maintained up to
the tine of payment. for, it will
be seen at once that in case the
volume or amount of legal ten
ders be depleted, the bonds will
eorrespondingly advance, and
that as soon as q specia basis is
reached tie bonded Indebtedness
will then be worth its full face
as so many dollars in gold.
Upon this point arises the dis
Ipnte, az between productive Ia
Dor and the b~ondholders. The
one class claim that it was not
only the original contract, but
that it il much easier for them to
pay the bonds in legal lenders,
with a circulation equivalent in.
amount to what il was when the
debt was incurred, but the other
class claim that in doing this,
productive labor will lose more,
In using such an inflated curren-
.cy, than it will, by coming to a
specie basis at once, and paying
the bonds in gold. This is the er-
act point On dispate, now between.
labor and capital.
In the argument OF this ques-
ton, all will admit, that of the
two conditions, it is better for
productive labor, TO have some.
what too large q circulating me.
dunn, than too small q one; for.
by the one, labor is greatly slim
nlated, and the prices of produce
tive labor is greatly enhanced;
but by the other, all enter
prises nre chilled and prices.
much Depressed. as pcy Roio are.
With the bonlholder, wAoSeI
amount IS fired, the dearer mon
ely is made, the morevaluable his
bond becomes, aud the more pro
perty he can buy with it in the
market. Hence, the bondholder,
with q view TO- his own interest,
desires that all legal tenders
shall be retired, aud a specie ba-
sis reached as soon as possible;
and to this end the legislation of
Congress hse been shaped, since
IL 49, -oloIl~- H