The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1878-10-03
BONDS AND RESUMPTION.

From its very inception to the present
LAY, TIE republican party has most close
" cherished the interests of the wealthy
classes, anu ID the matter of legislation
has drawn line Of demarkatiOn between
those who represented the wealth of the
county,, ana those who are simply the
bone and muscle. Under the name of
Federalists It was party which was de-
cidedly monarchical in its notions, and
It's principles commanded the allegiance
Of those who were willing to see eatab-
lished a moueycd aristocracy. Through
its whole career It has Disseminated
against labor il the interests Of capital.
It is the party Of protection which builds
mp monopolies. Though national banks
lave served a good purpose they have
been so organized by the republican
party as to enrich the stockholders at the
expense Of the people 1t is well es-
tablishcd principle OF politca! economy
That tho profits Of circulation belong to
tile people. But national banks together
with exchange. discount, and interest on
bonds deposited as security, have the in
terest on their own promises to pay. The
bank Of England pays 81 per cent Of the
profits Of its circulation to the govern
ment Honesty has no sympathy with
this cry against 'bloated bondholders, >
but it cannot be denied that the bond
holder has been the special pet OF repub-
lican legislation and of republican adj
administration. Daring the year 1871 when
tle 6 per cent $40 bonds were being
funded in bonds which bore ; per cent
interest a republican secretary 50 man
lpulatcd the matter as to pay II per
cent interest to bond holders. The $40
bonds were deposited with the govern
1nent as security by those who were to
subscribe for the new bonds. At the
time Of the deposit, there was placed to
the credit Of the subscriber, an amount
Of ) per cent bonds equal to the per
cent bonds deposited. Three months
after the deposit Of the per cent bonds
they were cancelled, but the owner drew
interest on the bonds for those three
months. He also drew interest on the 5
per cent bonds from the time they were
placed to his credit. He thus had IL per
cent interest on the face Of these bonds.
fla national bank were the subscriber it
had that high rate Of interest together
with the interest on It's circulation.
This IS but Il sample OF the corrupt
administration of the finance of the coun-
try by the republican party. They pirate
of population while laying on burdens
which suggest this means of relief. Ii
- a difficult matter to justify, Reputation
in part or III whole, but it is fully as
difficult to justify that lavish liberahty
toward bondhollers, which gives them
more than even 4 partial law contem-
years after The close OF the war, boh5ds5
should be issued solely for the purpose
Of merging those which bear high rate
OF interest into others drawing a lower
rate. But the Secretary to-day is issuing
interest bearing bonds for the purpose OF
raising revenue to meet certain obliga.
fions Of the government. Tor the last
four years a time has been fixed for the
redemption Of these Obligations The
government pledged itself to be fully
prepared when the time arrived and gave
40 further attention to the matter until
ii became apparent that the entire ne
glect Of preparation would result ii It's
lgnominious failure This state OF cir
cumstanea gave rise to q new party and
convinced many that resumption at
the time fixed Yves impossible. Sher-
man himself says, my predecessors
had done nothing toward preparing for
resumption. The law stands on the
statute book and the only way in which
t can BE observed IS by adding to the
public debt by the issue of interest
bearing bonds. The repeal of the re-
sumption act will be iraught with mis-
chief, in view Of the demands for an IT.
redeemable currency. Here lies the dan,
ger,-the loss Of prestige from the repeal
of a law, whose enactment was unwise.