The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-05-27
Another Chapter in the Story Of Bout
wells Blundering.
Are Official Facts Suppressed, Gar
bled and Falsifled
How the Debt is Reduced by
Bleeding the People.
Reduction Of Taxes VS.. Pretended
Reduction of Rates.
Three Thousand Dollars per Nile Tax
for Steel Rails.

-
for Steel Rails.
WASHINGTON, May %, 1871.
The startling exposures made by the HERALD ON
the 26th and 29th ul or the administrations gross
encouragement OF the peoples financial afaIrs have
had an effect, and very remarkable eject It is.
The Treasury on1cials and washington ana New
York administration organs ore making every pos
sibis EFFORT to cover up or obscure the terrible
damaging facts thus exposed. The regular monthly
Treasury statement OF bonds purchased has been
altered and actually falsined for the purpose.
The head lines, asterisks ana marginal notes show
ing the existence OF sinking fund.- and something
of Its operations, which have appeared In oil pre-
vious statements,
ARE SUPPRESSED ) A
In the statement issued on the LIST Of the present
month. Previously they were headed, without ex-
acknowledgment OF bonds purchased BY the
Treasury Department. Special and Sinking Funds.''
In the April statement twelve entries. amounting in
the aggregate to $3.50, $50, are marked with
star ~, and line at the foot reads as folows:-
'Note-The purchases marked ~ are interest pur.
chases being the bonds bought with the proceeds
OF the interest collected on the bonds previously
purchasers IS gagaaa1eZ
In the May statement, though 1t contains every
purchase made by the present administration the
words "sinklng special funds" the asterisks s)
designating .fnterest purchases, and the foot note
quoted above are all suppressed 1t Is headed
statement Of bonds purchased by the Treasury De-
partment which have been cancelled ana de.
stroyed." The foo, note is an out and out
falsehood expressed follows:-''The plpc
bonded debt has been reduced by the amount OF
these bonds, which have been cancelled and
destroyed.p
MOSTLY FALSE.
Excepting as TO the aggregate amount OF bonds
purchased the May statement must be pronounced
actually false II states that 'the public debt has
been reduced by the amount Of these bonds''-
Sl9s s0e 15o-'which have ceased to bear interest,"
Now the truth Is only sl2s 600 OF these bords
have ceased 10 bear interest Precisely $7O,7Tal5o
have been cancelled and turned into the sinking
fund, where rley now are drawing compound in.
terest from the taxpayers OF these United States.
BE 1t understood. then that the compound interest
on these bonds is paid by the Treasury to the Trea
sury from the peoples pockets.
The law OF Congress, approved July II, 1870, pro-
vides that In addition TO other amounts that NAV be
applied to The payment or the public debt, an
amount equal TO the interest on all bonds IN the
sinking sund shall be applied by the Secretary OF
the Treasury to the purchase OF more bonds to IN
crease the fund.- These iuterost purchases" are
from time 10 time added to the fund, where they
draw interest, that paying interest on In
terest. These are the plain facts, however much
the administration may endeavor to hide them.
The long and short OF the whole matter, OF both
principal and interest," is Just this Over $780, 600
has been unnecessarily eItorted from an overbur.
dened people for the ostensiple purpose OF paying
or The public debt; but less than $780, o0o 300 has
actually been paid, and the whole business has been
so mismanaRed by radical administration and
Congress that our interest burden Is, after all this
sacrifice only about seven millions per annum less
than II was twenty-stx months ago. BY good man.
sgcment the reduction should have been fourteen
millions. Through Encouragement II ID only about
seven.
DOCTORS AND ORGANS DISAGREE.
As already stated The Washington and New York
rescue OF their patrep but, acting without any
previous agreement, have cred directly at each
The Washington organ that draws daily inspira-
ton from The White House meets the HERALDs
damaging allegations with nat brazen.Iaced de-
nial-a mere denial without particle Of evidence
On lie 70 inst II published the following false state
ment, which needs no COMMENT
rs,sy prs.P' n pG sni
oogus TO lie ns fund Such no, The fact The bends
cancelled and destroy INN STATELY their
public debt issued Yesterday Win thi, ero
fae pubic bonded deb, has been re uced BY the amour,
Of hese bonds Which ceased to bear interest and havo
The sew York organ admits the truth of all the
charges against the adm Illustration, and impudently
inc pa wn When es4slt .,e Sin m sS ss
claimed 'Yel vot OF i. hey was'.t ducks eggs"
most damaging charge aud endeaSors to pooh pooh a
II away, In the following words:-
BIT then there rinking Certainly; what OF It?
1hs ceany has boagh, up two hnndsed MILLIONS o. it, IN
n SINKING un Who now own. os oas.aiops me-
E2sS Bq ssy dry Yes sa who receive.
9ry psis TO the Treasury every bond In the shaking fund
country. -
Please to observe. The New York organ admits
chat portion OF paid up debt continues TO bear
Interest, n M M
consequence b. saving that every dollar IL paid by
tns e M s Sa
FROM TIE PEOPLES POCKETS.
This is the way to state II fairly and fuy:-Every
dollar OF interest paid on the sinking fund paid
By the tax collector 70 the Treasury from the pockets
OF the people, and is All additional and unnecessary
But let US quote the Eew York organ again. 1t
lays
suppos. our governmsn, owed twenty-five hundred mil.
Ss: Shsrscn annual nssTs. was one hgnasd spa
n.
A. 81; I: I 4 's az
sss:S
s ,s when s'
.P s: e p S the Of adsS with
Now there Is not a sngle particle Of truth in the
above vss quotation 1 o"1 raynsg % q bonds
ins ihsn INTO the sinking fund where they bear
compound interest wonld cost the taxpayefs over
amount OF bonds In the Same time and stop the in.
terest when paid and $i1 900 900 more than TO
s%I Ts; y ~ I, hanoi SISais
aGsssnrs s'' az S lsff R &S
nEIns IND !, .S device 81 a g G5sS NJ
den." There Is nothing like cheek.
WAT RI COSTS r4t rAxpAYIBs.
bonds per year for four years into the sinking fund,
Il would be necessary the FIRST year 70 assess end
81, 200 900 70 pay Mr.. Boutwele lowest premium on
ne purchase Ind foeo, 600 20 pay simple Interest
would need poo pore Tor principal, 200 900
Year number three muit have ir $1,000 ooo for
compound interest. The fourth tear would get