Weekly Chillicothe crisis. (Chillicothe, Livingston Co., Mo.) 1878-19??, 1879-04-10
Fsnance Catechisn.

How many varieties of currency did
the government issue during the warp"
Interest bearing and non-interest bear
ing; legal tenders and non-legal tenders.
OF the former, some bore simple, others
compound interest. Of the latter, some
bore intesrest, and others did not There
were eleven different varieties in all, is
sued under as many different acts OF con-
gress.
"What was the act of such conglom-
Grafton of curency?"
To make it as obnoxious as possible to
the public.
''Did the simple or compound interest
notes command an interest over, or possess
a greater purchasing power than those
that bore no INTEREST,"
No; all were received, paid out and ex-
changed at par with one another.
"Did the government use, or pay out,
during the war and in closing it up, any
kind Of money except the currency of its
own creation?"
Not Il dollar, except the gold it paid as
interest to the bondholders.
"How much interest did the government
pay on the interest bearing currcncyF
Prior to the date on which the different
issues were convertible into bonds, the
government paid $jS3,20S, 76l.
"What interest did they bear?"
None less than per cent, some Z 3-l0
per cent. and some Gper cent. compounded
three times.
Would not non-mtcrest bearing green
backs have answered every purpose which
the interest notes served?'
They certainly would, and one-fourth Of
the amount of the public debt, could thus
have been saved.
"For whom were these interest notes is
sued?"
To pay soldiers and others in the en-
ploy of the government service, and for
supplies of various kinds.
"Did any of the immediate creditors, or
employees Of the governmentrcluse to take
the government notes unless interest was
allOwed?"
No, not one of them
"Who, then demanded that they should
draw interest, and for whose benefit did it
accrue?"
The bankers of Boston, New York and
Philadelphia.
"What had they to do with the matter?
Were they supplying the governments
with ships, guns, mules, wagons, grain,
tents, powder, or anything else? Were
they, or did they expect to furnish the
government with anything, or was the
government owing them anything, that
they demanded interest on the notes!
Not thing; but during a few short
years about this time. the ban kcrS sup
piled importing merchants with gold to
pay duties on an immense import trade.
They would give the merchants dollar OF
gold in exchange for two or three dollars
Of grecnbacks. The merchants would pay
the gold INTO the treasury, and the treasu-
ry would pay it back to the banks for in
terest In this way the banks, on 800,
100000 of gold, kept their stock gen
orally well supplied, and by means OF en-
ormous discounts they were accumulating
immense boards Of Grccnbacks. Not sat
isfed with allowing their grecnbacks to lie
idle. drawing no interest, they made raid
on Congress, and induced that body to au-
thorrze the issue of interest bearing notes,
to run year, or two, o. three, bearing
Z $40 per cent. interest, or even clm'
pound interest, Ostensibly to pay the sol
dierS Or the contractors.
But as soon as the notes were ready to
issue, by prC-arranged scheme, the banks
would take them all or nearly so, giving
non-intercst bearing greenbacks in ex-
change, and generally somebody got a
commission for making the sale, as 1t
was termed. During the period of the
maturing Of these interest notes, the banks
exchanged $3.50, 2GG,543 of gold for green
backs, receiving double this amount in
currency, and receiving their gold
back nearly as fast as paid out, be-
sides drawing from the government from
6 to per cent. interest on the full face Of
the grecnbacks they held on deposit;
waiting until the law wou,d allow them to
be converted into bonds.
Thus, in half dozen years, by "bull-
ing gold, and "bearing" the govern
ment, they made anet profit of$l, ,438, ,jG5,.
3O3 out Of the people, and are now strong
enough to command both the old pOliti.
cal parties, and to choose their own presi-
dent.