Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-10-16

marshall, but urgently recommended by
John G. Calhoun in his mastery speech in
the Senate eff the United States Oct. 8, 1887.
The greenback was first isued full legal
tender and, as I have before stated, passed
as equal to gold, until the bankers and cap
ltallsts had power enough against the urgent
protests of Thaddeus Stevens, the Hon. E.
G. Spaulding, Mr.. Chase and others, to drive
the Senate into repudiating them, so far as
J have heretofore shown.
The reason for the reputation was this:
The bankers insisted that unless the interest
on the bonds to be issued by the United
States was made payable in gold, they could
not be negotiated, and that there was no
gold resource for the government but its
revenue duties. If duties could be paid in
greenbacks there would he no gold to raw
interest, and therefore the greenback must
be marked repudiated for duties and for in
terest. This having been accomplished, the
next step was to provide that the purchasers
of bonds could pay for them in any of the
bills or treasury certificates which might at
any time be or might have been issued by
the government
These provisions having been incorporated
into the law, the next move of the capital
lists was to demand that the bonds to be
issued should be made the basis for banking,
SO that any man, or set of men buying
100000 in bonds, bearing interest payable
in gold, should also get $780, 900 in bills in adj
dition to his bonds, guaranteed by the
United States, with all the privileges of
banks, to loan on compound interest, sell
exchanges, receive deposits, etc. When this
bill was passed the government was in its ex-
tremest hour of peril. Capital had held back,
had Illuminated suspicious, created doubts,
and was everywhere questioning the ability
of the United States to conquer its enemies
or sustain its credit The greenback was the
target at which the whole horde of Shylocks
centered their shafts of ridicule and discredit.
They refused to lend, knowing that lust in
proportion as they did SO the government
would be forced to issue its greenbacks and
its treasury certificates, and that they would
be deprecated in value as repudiated cur
rency, just in proportion to the quantity
issued.
This game was played till gold went up to
285. Bonds down to 50, 40, ~, As, so.
Then these gentlemen, who were so fearful
the government would kill its credit by issn-
ing its paper, commenced buying it's gold in
terest-bearipg paper, and paying for it in it's
Notwithstanding greenbacks. The rag
baby Ill the shape of Understanding bonds
for shylocks was the pet creature of capital,
but 1t cursed the non-interest rag baby as a
vagabond only fit for the 'swineish herd -
The result was that, while the government
issued over $2,G00,0O0,0OO in its gold bear
ing bonds and certificates, instead of issuing
Its full legal tender greenbacks, as it COM
menced doing, it realized less than ST ,1OO,-
100000 for all the bonds it issued from Jan
uary 2, 1863, to January l, 1876, having paid
as usury, or as bounty, more than SO per
cent. for all the bonds so negotiated. In
deed, if greenbacks had been kept full
legal tender, and we had kept and used what
gold we paid for interest, the debt or out
standing currency and treasury certificates
would not have exceeded 81, 3OO.OOO,OOO at
the end of 1868.
Robert j. Walker, as agent of the govern
ment, negotiated, in 1864, $4OO,OOO,OOO of
our bonds for which the treasury received
just Al a cents on the dollar, or $165, OOO,-
wv, giving to the purchasers at one stroke of
the pen 1926, 100000, every dollar of which
has to be paid out of the hard toll and pro-
ductive industry of the over taxed people. ]
state this single fact of the negotiation by
Mr.. Walker, one of the ablest men of the
time, to show that the government, having
committed itself to the bond system, did the
best it could, at that time, in getting ALL
cents on the dollar. Our 81 600, OOO, 900 Of
bonds were issued in the United States be-
tween the first of July, 1868, and the first of
July, 1865, at rates ranging from 80 to 60
cents, the averagelbeing less than so cents on
the dollar.
The Bank association leaders imposed the
sWindle Of reputation on the back of the
greenback. They did it to depreciate its
value as currency. They deprecated the
currency and then bought it up to pay for
bonds. For every 300 of currency they had
purchased at from 40 to so cents on the dol
lar, they got back United States bond for
800, and 500 in bills guaranteed by the
United States.
They got back four tim ss as much as they
gave. They paid $42 in gold. They got fol
it United States bond, with gold-bearinn
interest, for 500, and 800 in bills guaran-
teed by the government.
The bank association have not only defed
the government, but they are directly re-
sponslble for the contraction which has
spread wide-cast ruin over the land. They
demonetized silver. They passed the act to
strengthen our credit" They declared
bonds to be payable in gold, which were is
sued payable in lawful money. They forced
upon Congress the resumption act, and thew
have left no effort untried to place the labor
business, and finances of the country under
their exclusive control.
Yes, the bond luxury has cost US for in
terest alone more than $2,798,316, 4S1 Al
and we still owe. according to official report
on the bonds $1.81S,670,5 800, which makes
the cost of interest bearing bonds $4,616,-
9S6,9sl.41, for which the government never
received to exceed 1,3OO,OOO,OOO.
STEPHEN D. DILLAYE
TRENTON, N. j.