The sun., 1878-10-13
Bad Financial Legislation.

In their excess OF power, the Republican
leaders committed many grave blunders,
which are now returning to plague the In
ventors. They are directly responsible, not
only for the present distress and prostra-
tion Of enterprise and industry throughout
the country. but also for the projudices and
the false ideas in regard to the finances
which have taken 50 strong a hold on the
public mind.
Undoubtedly the whole financial legsa-
tion and the executive administration were
In the interest OF what is called the money
power and the bondholdor The 500 bonds,
by the terms of the law authorizing their
issue, were payable In greenbacks, and were
sold on an average at sixty cents on the
dollar. The interest only was payable in
gold When the proposition was first
mooted to raise these bonds to the gold
standard, THADDEUs STEVENS declared in
the House OF Representatives
"i would vote for such swndle upon the taxpayers
Of this country would vote for such spccuauons In
favor Of the large bondhodcrs the monares who took
advantage Of our folly In granting psymen VI
interest"
And JOHN SHERMAN, In his letter Of March
20, 1868, went still further. He wrote
tour iueals mat we propose TO repudiae violate
promise when we offer to redeem the principal In legal
tenders Ihate epudiation. or anything like It, but
We ought not to be deferred from doing what right
fear Of undeserved epithets
II the bondholder legally demand only the kind
ofmoney he paid then he repudator and extortoner
70 demand money more valuable than he gave"
These were the apostles OF the Greenback
party, and thoy planted the seed ten years
ago, which has now produced such an abun-
dant crop of converts. But In few months
after these emphatic declarations were made
an act to strengthen the public credit" was
passed, and was among the very first signed
by GRANT as President. That law provided
that the currency Indebtedness OF the coun-
try should be payable in coin, and II added
nearly five hundred millions to the public
debt, which went into the pockets OF the
bondholders, and had to be added TO the
then existing burdens on the taxpayers
That act was an iniquity which no plausi-
Bile pretences have palliated. and 1t was
driven through the House without debate
under the gag OF the previous question
which served TO confirm the belief that q
Ring OF capitalists stood behind the BILL who
knew that such scheme would not bear
discussion. The Senate finished the work
quickly and the patriots who prospered by
Addition, Division, and Silence went on their
way rejoicing. Ten days after the passage
of this law proposition was offered in the
House to tax the bonds, which the Republi-
cans defeated by unanimous vote ON the
record.
Mr.. BOUTWELL, at that time was Secretary
OF the Treasury. and he became possessed
OF the false idea that the people who had
borne the brunt Of the civil war and had
made the greatest sacrifices TO preserve the
Union, should also pay of the enormous
debt which had necessarily been piled up in
four years OF desperate strife. 70 carry
out this policy, it was Indispensable that
taxation on imports and by internal
revenue should be kept up to the high
est point. Hence the pressure was con-
stantly applied, not only to meet the re-
demption OF bonds twenty years before they
became due, but indirectly TO support great
monopolies, protected by Ring tariff from
which the greater part Of the public revenue
WAS extorted.
Besides these oppressive taxes, the re-
ports Of the Treasury show that it cost
nearly Il hundred millions OF dollars 10
give effect to Mr.. BoUTwELLs scheme Of re-
nucing the public debt from the close of the
war forward. Here are the official figures
fremiums paid on bonds eNtnguished $50 ~ 1917 ~
Expenses on ue pubhc loans ~ 4ls iH2 RI
hsfunding Oi t8e St-l -s 81
S9'-'9t3'
All this vast expenditure was made in the
interest OF bondholders, who under the law
creating the debt. have no legal claim what
ever 10 receive dollar in gold or silver
The exchange from legal tenders TO coin
was the result OF procured legislation. Con-
sequently, not only the five hundred mill
lions which were the direct result OF this
Transformation, went into their pocket, but
the Treasury paid out nearlya hundred mil
lions more to put up their value still higher.
II there Is any other record Of legislation
and administration in the direct interest OF
special class like this, it has escaped our
notice. And with all our strong convictions
for honest and sound constitutional money
as not only just but polite, we are bound to
say that the authors Of this system have
provoked much OF the resentment that is
now exhibited everywhere.