The Fremont weekly journal. [volume] (Fremont, Sandusky County, Ohio) 1867-1877, 1871-10-06
The Bond Question.

the payment of the 500 bonds in
gold as an imposition upon the peo-
pie, and an evidence OF corruption,
maintaining that legal tender notes
should be paid instead of gold, and
by their sophistical arguments they
succeed in deceiving some very
honestly intentioned people, who un-
wisely conclude that the redemption
of those bonds in legal tender notes
ends the whole matter and releases
the Government from any further
liability. If that was so, then, in
deed, there might be something
gained by adopting that course.
But it is not so, it is only creating
another kind of debt which the Gov
ernment would eventually have to
liquidate in gold, for the time must
come when those notes shall be paid
dollar for dollar in gold, or else re-
pudiation would result-a thing to
be deprecated by every honest and
intelligent citizen.
But looking at the question in
a practical, common-s sense light, how
would the payment of those bonds
in legal tender notes affect the bust
ness interests of the country? This
is question in which all are inter-
ested, and the poorer classes even
more than any other. Gold repre-
sents a par money value the world
over, and IS the basis by which all
values are estimated. Its equiva-
lents are silver and paper money, ex-
changeable for gold. Nothing else
is receivable in its stead, in the mar
kets of the world, except at dis
count proprotioned to the ease and
facility with which it can be con
verted into gold or its equivalents.
This being true, the paper money of
a Government which is not prepared
to redeem it in gold, on presentation,
suffers depreciation; and just in pro-
portion as that paper money is ex-
panded so so as to create doubt
as to the ability of the Government
to redeem it, or extend the time Of
its redemption, does the depreciation
increase, and the purchasing value
of the note decrease? At present,
and for many months, the purchas-
ing value of the legal tender note
has nearly equalled that of gold, and
business has been done upon a more
staple basis than for years before
But suppose, now, that the govern
ment should concede the claim made
by the Democracy, and issue some
h"ndrAds of millions of LEGAL tandAr
notes with which to redeem the 500
bonds, What would be the effect?
Instant depreciation. For the ar
gument would be good Na5 she had
not the gold and wa .bstituting
paper instead. The estion as to
her ability to redeem 4e paper would
recur, and the indef nite prospect of
that redemI ton should undermine
the value of the paper and subject it
to depreciation that would greatly
reduce its purchasing value, and
directly injure those whom the Dem
ocracy are trying to mislead by their
sophistries.
But suppose the Government in
stead of issuing untold millions of
legal tender notes, redeems at once
in gold. Can you not perceive that
that portion of the debt is absolutely
extinguishcd? Not payment defer
red, but absolutely wiped out, as a
man wipes out a debt by paying it,
instead of taking up one note and
giving another in its place. And, as
a mans credit is improved by every
dollar of debt he pays, so the govern
ment's credit is improved by its pay
ments of its debts and confidence and
security impaired in regard to what
it may still owe. That confidence
alone appreciates the value ofits pa
per circulation and increases its pur-
value. Nor is this all. Be
sides reduction of debt, and the saw
ing of interest to the government, |
the volume of gold released from the |
vaults of the treasury, and thrown |
into the channels of trade, aids in in |
creasing the value of the legal ten
der note, by making gold itself avail
able at a lower rate of discount, on
account ofits being more abundant.
These are facts easily understood
and should prevent any from being
nisled.
The government is ready to re-
leem one hundred millions of the
80 bonds, and has given notice
hat on the first of December 1t will
)egin to do so. This is about equiva-
ent to a resumption Of gold payment