New Ulm weekly review. [volume] (New Ulm, Minn.) 1878-1892, 1879-04-30
AR00d Vv0rk we'll 1One.
Written for the Review BY o. P. CxAMpL1x.

5-2O's which has recently been an.
nOunced The redemption Of these
bonds deserves more than an itemiZed
notice. They were issued in very
dark hour of the Republic. The Sec
rotary of Treasury, under Mr.. Buchan-
an, Mr.. Howell Cobb. had seriously
compromised the credit of the country.
When his administration began the
financial condition was prosperous.
The revenue derived from custom.
house duties not only met all expenses;
but, in addition thereto, furnished a
balance which was applied towards the
liquidation of the national debt. But
hardly had one year expired before
MIR. Cobb was obliged to borrow twenty
million dollars at five per cent; anu
subsequently, in June 1850, he had to
appeal to Congress for a new loan to
meet the interest on the first and the
national expenses. OF the twenty-one
millions he was authorized to raise on
the same conditions as the first only Il
little over seven millions was negotiat.
ed.
sTwo months later" to quote the
historian Comte De Paris" Mr.. Cobb
retired from the department, leaving
its personnel dis0rganized, the public
treasury exhausted and the national
credit impaired, and thus bequeathed
to his successors, against whom he
was about to take up arms, all the diff
culties he had been able to accumulate
in their path"
During the remainder Of Mr.. Blu.
chanan's administration the financial
condition of the country grew worse.
Congress did little more than provide
for the deficit caused by the admin
istratiOn.
Mr.. Lincoln's administration began
with the appointment Of Mr.. S. p.
Chase to the treasury department.
Through his wise measure the conf.
tlence Of capitalists and of the public
was restored. But the troubles at the
South, which eliminated finally in
open hostilities necessitating the en-.
listing Of volunteers, put the treasury
department into extreme difficulty.
The difficulty encountered by the
general Government in borrowing
money was greatly increased by the
several States which were likewise oh.
liged to do the same. In the crisis
which had come upon the people mon
ey was as necessary as men; and Con
gress took hold of the work with ener
~. Millions of dollars were voted and
the means for raising it provided. VIZ
cannot follow, step by step all the f.
nancial measures Of the Government
to the issue of the fiye.tWenties. These
were issued directly to the people II
1862; and at q time when bank loan!
and treasury notes would no longer
meet the needs of the Government
and the people had settled down in the
conviction that the war was to be q
long and serious affair. This new l0a1
was redeemable after FIVE years ant
payable in twenty; hence, their name
/ i've twenties. These bonds bear in
terest at six per cent. in gold. TIL,
people were appealed to to tax,
them on the same ground Of patrioti
duty they were urged to enlist; an,
they nobly responded. There wer
those who said they would never b
worth any thing; and many times i
did seem as though the investment il
them would be lost. But although th
issue Of these bonds does not fall du
until three years hence all have bee
redeemed, principle and interest i
gold. Specie payments were suspend
ed before the first issue; and befOr
z that issue became due we behold speci
. payments resumed. With the reye1
! ues Of tibet Governments and the proceed
, Of the sales Of the new four per cent
S these bonds have been taken up. w,
!, Of later years, who have heard 50 muc
about bloated bondhOld ers will do we
to ponder this early history. Men b
/, came b0ndholders from love Of coul
!. TRY. "a bondhold Ter was certainly q
!, be found to be q patriot. He was the
J 3 self-sacrif cing patriot. Tho Ct
!. against bondhold ers is wicked and d
t patriotic. il they have received an
rate Of interest Tor their investment