The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1878-03-28
backs.

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By an additional act, March 3, 1865
the Secretary was authorized to Dor.
row any sums not exceeding 5000, OOO..
600, and issue therefore bonds, and
he states what he did under that act,
in the following words:
"Under this act there was issued
during the month of March, $4,000.
600 OF notes payable three years after
date, and bearing an interest payable
semi-annually in currency at the rate
of seven and three-tenuhs per cent.
per annum, and convertible at maturi-
ty, at the pleasure of the holders, into
five-twenty gold bearing bonds.
"Upon the capture of Richmond
and the surrender of the confederate
armies, it became apparent that
there would be an early disbanding of
the forces of the United States, and
consequently heavy acquisitions from
the War Department for transporta-
tion and payment of the army includ-
ing bounties. AS it was important
that these acquisitions should be
promptly met, and especially import
ant that not a soldier should remain in
the service single day for want of
means to pay him, the secretary per-
ceived the necessity Of realizing as
speedily as possible the amount $780,
OO,OOO) still authorized to be borrow
ed under this act. The seven and
three-tenths notes had proved to be a
popular loan, and although security
on longer time and lower interest
would have been more advantageous
to the government. the Secretary con-
sIdered it advisable, under the circum-
stances. to continue to offer these
notes to the public. These notes were
distributed inevery part of the north
ern and some parts Of the Southern
states. and placed within the reach of
every person desiring to invest in
them. Before the first of August the
entire amount of $3.50, ZOO. 900 had
been TAKEN
These notes were of the denOmina.
ton Of $40 and upwards and were in
circulation as money as much as the
greenbacks. and could be used at all
times to pay debts until they were
funded into 500 bonds, then their
function us money ceased. Because
they were legal tenders they were of
the volume OF the Currency. Because
they were legal tenders their sum to-
tai, with the other legal tenders,
made up the number of units of value
by which all the debts and property
OF the country were measured. When
the 7-3Os were funded into 5-2Os. one.
half OF the dollars or units of measure
were blOtted out aud the value of the
other half doubled by the consequent
shrlnkage of values that crippled ev-
cry industry in the country. When
more than half of the currency had
been funded into 500 bonds there
came the crash of 1873, which has
grown worse ever since because every
financial act of congress since, except
the act just passed over the Presi-
dhnts veto. has had this object in
vlew-tO decrease the number of dol
lars or units of measure. and thus re-
qulre of the debtor more hours of toll
to pay the dollar he owes. and give to
the creditor better dollar than he
loaned.
There is hope of relief. Congress
has begun to take backward steps.
but 1t Is uphill work. for every step
has got to be carried over a Presi-
dent't veto. We can hardly hope for
any more legislation in favor of the
people until our friends in congress
are strengthened by votes in the fall
elections.