Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1875-10-01
The 1855 Bond.

A number Of persons believe that the
Government should issue bond bearing
interest in greenbacks at the rate of 800
per cent. a year, and eXchangeable for
greenbacks at any time. The owner of
would have the right to pre-
sent 800 of them at any time and receive
in exchange therefor 3.65 bond to that
amount, and he could then hand over the
bond whenever he wished to do so and
get his greenbacks back again. This is,
we believe, perfectly fair statement of
the case Probably no believer of the in
terconvertible bond scheme will take the
slightest exception to it. Is II a wise
scheme9 1t is declared to be of especial
value for the laboring classes. We pro-
pose to examine whether this is so.
There are about 10000 depositors in the
savings banks of this city. They have an
aggregate deposit of some $40, ,000,0 900.
Suppose the 3.65 bonds are issued 1t is
not probable that the poor would invest
in them. For the poor who have money
to spare can get per cent. compound in
terest at the savings bank, with the privi-
lege of adding or subtracting the smallest
sums from their accounts whenever they
wish. They would not be likely to draw
out the money that now yields them 6 per
cent. for the sake of getting 1855 per cent.
for it. And if they would thus make no
use of the bonds, the bonds would be Of
no use to them.
But suppose they did withdraw the
| SIC, 600 900 and put it into bonds. Instead
| of getting an annual income OF 5000, ,OOO
from it, they would receive only $3.50 900
Their loss would be $235, 900. 1t would
be more than this, too. For the Govern
ment would have to pay 1865, 600 interest
| in addition to the amount it pays now.
This sum would have to be raised by extra
taxation, and good part of this would
have to fall upon the working-classes
Thus the men who were paid by the Gov
ernment would have to contribute part OF
the very sum they receive. They are now
getting 5000, 900 from other people. Under
the bond system they would get only
$365. 600, and would pay part of tina
themselves. If the Government could USE
The greenbacks received for the 3.65 bonds
to buy gold and use the gold to redeem
the 5 and per cent. bonds, there woult
he a saving in interest that would decreas'
taxation and thus partly-only partly
make up the deficit in the profits OF thu
thrifty poor. But the Government cannO
do this. If it pays out the money to bu.
the 5 and per cent. bonds, 1t must sci
these bonds again in order to get currenc'
with which to redeem the 1855 bonds tina
will be constantly presented for redemE
tion.
But the worst consequence would be tn
withdrawal of $10,O00,00O of the loanabl
funds of this city. Part of this money |
loaned 10 laborers to enable them to bull
homes. Part of it is in the hands of al
; manner of manufacturers, who use 1t
employ labor. Still another part assists
moving crops here and so secures a
, abundant supply of food at low prices
) 1t is probably far below the mark to 50
that the $40, 100000 directly employs b,OI
men, besides cheapening the living e.
, penses of many thousands more Wit
, drawing this amount of loanable capit'
,, from Chicago would thus throw Thousand
q a of the poor out Of employment, woul
: make living dearer and would embarra
Z every line Of business. If the same wit
q drawal should take place over the who
country there would be panic that wou
4 be ten times, hundred times, worse thi
/, that of 1873.
Calmly reviewing these facts we ask u
' honest advocates of interconvertible 3.
bonds; "Arc you not mistaken IN go
,s ideasg Is the scheme you believe IN
!. really wise OneW--O Chicago Tribune,