Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1878-10-23
JOURNAL WEDNESDAY, OCTOBER
Who are the BOndhOlders ?

Who are the Bondholders?
II is said that single speech of Carl
Schurtz in Cincinnati saved two members Of
Congress to the Republicans. 1t was, to
say the least remarkable speech. We
CLEAN therefrom his graphic description of
the "bloated bondholders." He said 1t
has become the fashion of many politicians
and public agitators to cry out against the
bondholders, aud thus to excite prejudice
against the bond, which is an embodiment
of national faith. The bondholders are rep
residing down East or in foreign countries,
who bought their bonds at thirty.ive or
forty cents on the dollar, and now demand
one hundred cents and high interest in gold.
Thus the bondholder is pictured as sort
of criminal blood-sucker, who, with cold
blooded cruelty, fattens upon the sufferings
OF a down-trodden people. Now supposing
our national bonds were still in the hands
of those who originally bought them, can
you fail to remember that when bonds were
sold at forty cents on the dollar-and the
quantity so sold was not arge--the life of
the nation was threatened by monstrous
rebellion; that the republic seemed to he
in the agonies of death that it appeared
uncertain whether the bond bought at forty
cents on Monday would be worth ten or one
cent on Saturday, and that the purchaser of
ric Oh I 60 th,,
try just as much as the soldier risked his
blood Did the American government not
ask him to take that bond at almost any
price when the public was in extremites
Aud now when he has helped MS by TAX
ing it and giving us his money at the risk
of losing it all, are we, now that every.
thing has gone WELL against the predictions
and expectations of many, are we as a high
minded people to turn around upon him
who helped us in the hour of supreme dis
tress, and tell him You are blood-sucker
and scoundre ?
But who are to-day the bloated bond
holders of our national bonds 1t is no.
torious fact that only an inhntesimal part,
if any, of our national bonds are still in the
hands of the original purchasers. The orig
inal purchasers have long ago realized on
them, and those who hold the bonds now
have almost all bought them at high figures
in large majority of cases, probably at
their par value. 1t is estimated that at one
time about 81 ,000.000,000 of our bonds were
held abroad 1t is stated by the Secretary
of the Treasury, who has the best means of
ascertaining the fact that at present the
amount of bonds held in foreign countries
is less than S250,000.000, probably not over
S200,000,000 The rest of those formerly
held abroad have either been paid off or
come over to this country, so that we find
between eighty.hve and ninety per cent. of
our bonded Indebtedness held by our own
citizens. Nearly Sl5O000OO0 of four per
cent. bonds have within two years been
sold. They are scattered all over the coun-
try, especially in the West, and who owns
them Mostly the people of small means,
who consider the government funds a better
depository for their savings than savings
banks, and who thus invested in small
amounts, from fifty dollars upward. A
very large quantity OF four and half. five
and six per cent. bonds are held by banks,
by insurance companies. savings institutions,
and in trust for widows and orphans. Thus
they form an important part of the securities
upon which these institutions are based.
Probably most of us do not own a United
States bond in the world, but every one of
us who holds a policy in a life insurance
company, or whose house or furniture is
insured against fire, or who has a deposit
in bank or savings institution, or who
has a national.bauk note in his pocket, is
as much interested in the v,lue of our ma
tional bonds, and i'll certain sense as much
II bOndholier. as the owner of bond him
self for if the value of the bonds is at
tackled and impaired. the security for your
investment goes to that extent by the board.
In 1865 our annual interest charge was
Sl50,977, 697 81. In 1873 our interest charge
is S94,55i,i73. Thus we have got rid of
about two-ffths of the annual interest in
the same period of thirteen years. In a
still greater ratio the debt and interest have
been reduced in proportion to population.
Thirteen years ago our debt was S7S II 100
per capita. To-day it is 81 j7-l0O per
capita. Thirteen years ago the interest
vas 81 29100 per capita. 1t is now 81 97-1OO
! per capita. And if our credit remains in
tact the funding process will go on rapidly.
and we shall soon be rid of further tens of
millions of our annual burden. Disturb
that credit by any act or attempt weaken
| ing the confidence of the world at home and
abroad in our ability to pay, or in our hon
est purpose, and the funding process will
cease and with il the benefcent results
| nowino from IL