New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-09-20
THE FOLLY OF INITIATION.

BoNDs-FOLLY OF ISSUING MORE IRREDEEMABLH
PAPER MONEY-A UNIVERSAL MEDIUM OF VALUE
To the Editor Of The Tribune
SIR: With the single exception of the United
States there is no country in the world in which the
holders of its securities the objects OF contnmeiy
and denunciatiOn The holders Of United States
bonds corporations and persons who subscribed
10: them in par at currency, when the Government
was in peril. OF who have purchased them since at a
premium. Large amounts of them have changed.
and are daily changing hands, at a considerable adj
vance over their face value in gold. Any one VINO
wants them, and ha4 the money TO pay for them,
purchase them in any OF the chief money markets ut
home or abroad.
THE SUPPORTERS OF REPU DrATfOs.
Our National banks hold them because they ara
compelled to by this means their circulating
notes. Savings banks and trust companies bold
them for the protection Of their depositors Other
corporations and individuals hold them because
they have confidence in the good faith and response
hility of the Government. Under these cirCum.
stances Is it not strange that the bondholders
should be denounced monopolists and cxtoron-
ers What would be thought Of public speakers OF
journalists IN England or France, or Germany or
Italy, or any country with outstanding obligations,
who should endeayor to hold up to public scorn and
contempt the holders thereof Would they
not be regarded publiceneme or lunatics and be
treated accordingly! What, them is the explanation
of the denunciation Of the holders of Government
bonds in so many parts of the United States l. It
not to be found except where is resorted TO to set
class against class for party purposes in the fact that
during the war there was a class Of men small in
numbers for the great body of the people, Demo-
Gratis as well as Republicans, were unfaterng in
their devotion to the Union who, not being in SYM
| pathy with the Government in is great struggle
with gigantic rebellion, not only declined to be
subscribers for the United States bonds but dis
shaded others from subscribing for them Oh the
ground that the war wOuld he failure on the part
of the Government and that its securities would be
worthless, and who now give expression TO their
spite and disappointment by denunciations of those
whom they call blodted boadloIdrs." Ii those who
may take the trouble to read this letter will look
around them they will find, if | am not greatly mis-
TAKEN that not one Of those who are now denOunc-
ing the bOndhOlders was an earnest supporter of the
Government throughout the war. / recollect the
time when the subscribers for United States bonds
were regarded as patriots, and happen to know 10
what class they belonged. With rare exceptions
they were not capitalists; for the capitalists q
class permitted prudence TO take the lead Of patriot
ism and hesitated TO become the purchasers Of what
then regarded doubtful securities. They were
not violent partisans whose opposition TO the Adj
mnstratiOn was stronger than their love of the
Union They were not those who were in sympathy
with the South, for Southern sympathizers knew
that the proceeds of every bond that sold went
to the support Of Federal soldiers and sailors,
were used in other ways for the prosecution of the
war. The purchasers of our bonds the patriotic
men Of all parties, chiefly men Of moderate means.
who were resolved that the Union should be saved,
no matter at what cost of money or blood.
Il have concluded" said an old Pennsylvania
farmer to Government agent, 81 have concluded
to take a couple more of them United States bonds
you are selling (he had already purchased i've OF
81 900 each). My neighbor Jones says that he doesn't
believe they will be good for anything, and that he
puts his money into land, but | reckon that land
won't be worth much if the Union is broken up.
Besides" said he, with slight trcmuousness Of
voice. Il have two boys with Mcclellan in the
Peninsula, and the soldiers shall not want for money
if | can help it, so will take $1,000 more of the
bonds" trust the old farmer has held on to his
bonds, and that he is now of the coupon clip
pcrs" whom Gen. Cary is rOundly abusing il
Ohio There were some Of these neighbOr Jonescs in
all the Northern States, and when any of them are
now found, one will be likely to hear them denounc-
ing the blOated bondholdcrs."
1t is undoubtedly true that most of those who pur
chased United States bonds when the currency in
which they paid for them was worth much less than
III is at present nave since SON IIt III u Idutooilc
premium, thus realizing unexpected profits on their
patriotic Investments but what harm, would ask,
have the purchasers at home or abroad done the
Government or the Taxpayers, by becoming owners
of them, that they should be subjected To denunc-
alton and abuse' But am taking too much time
in abiding to those whose political stock-in-tr.de
largely consists of abuse OF coupon clippers and
"bioatcd bondhoders"
INFLATIoN NO REMEDY.
Intended that this letter should be confined 10 )
consideration of the remedy for existing troubles
will first speak of the policies which advocated.
and which am quite sure will not if adopted, prove
to be the remedy required.
First: The remedy is not to be found in further
issue of rrcdeemabe paper. On this point argument
ought not to be needed. There are now outstanding
between 100000 and $780, 100000 of legal
tender and bank notes, an amount larger than can
be safely or proftably used in healthy trade This
is proved by their depreciation and constantly luc.
tuating value. No matter what estimates may be
made OF the amount required as circulating
medium in the United States by compari.
son with the amount in use in other coun-
tries, it is certainly true that not only il
there no branch of industry in the United States
languishng for want of currency. but there is a
very large amount of currency vainly seeking IN
vostmont. The banks in commercial cities are over
loaded with it-so overloaded that they lending
ION callr at . per cent. and are glad to take com
mercial bills running from three to six months lof
which very small amount is being offered at per
cent per annum. Failing TO find borrowers even Mt
these rates. they investing largely, but, they
hope temporarily, in securities, nearly onchalf Of
fhe interest on which is absorbed by taxes. ThsnI
only indicates great depression in manufacturing and
trade but it establishes the fact that there is more
opdinD than +hpro il lapil fp
for. Still, there men all over the