The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1881-12-24
BOND REFUNDING.

Three years ago the democratic majority IN
congress, under the leadership Of Fernando
Wood, insisted upon passing bill TO refund
the national debt as rapidly as the and 6
per cents fell due, at , per cent. The banks
opposed the measure, and as John Sherman,
IN his capacity of Secretary of the treasury
was but the agent of the banks, who from an
impecunious Ohio attorney had made HIM a
millionaire, he opposed the measure tooth
and toe-nail," and insisted that and AZ per
cent was the lowest rate at which he would un-
dertake to refund the bonds and congress pass
ed bill allowing him to refund portion Of
them at that rate. All the bonds authorized
to be issued at that rate were at once gobbled
by syndicate, who sold them ut a premium
of from to II per cent. and cleared half a
million by the operation, of which large
percentage went into John Shermans pocket.
Then congress again passed 3 per cent. bill,
the success of the per cents having demon.
strated that per cents would sell at par. The
banks, however, had bought up Old Hayes,
and he vetoed the DILL, and the last congress
adjourned without any funding measure hav-
ing been adopted. Meantime five or six hun
dred millions of the ) and 6 per cent. bonds
had fallen due, and Secretary Window, with
out any authority of law, proceeded to refund
them at 3l5 per cent, subject to the approval
congress. And now comes this same John
Sherman, through whose procurement every
previous attempt to refund the national debt
at per cent had been defeated, and himself
seeks to steal democratic thunder" by pro-
posing in the senate bill to refund the bonds
at 3 per cent Knowing John Sherman and
his ways however, as the country does, 1t
would be violent assumption to suppose that
matter, ard that IN his action he is not influ.
enced by "a Niger IN the woodpie." The
said niger is found in very innocentlooking
clause in his bill, but which, IN the light of
his agency tor Wall street and the bankers,
is Its very glst and substance. 1t is that
clause which authorizes the Secretary of
the Treasury at any time after few years, TO
pay any or all Of the contemplated bonds al,
his option. Such a power, with the Secretary
under the control of Wall street and the banks,
as Secretary Sherman always was and Secre-
tary Folger now Is, would place the entire
business of the country under the control and
at the mercy of Wall street. To illustrate,
suppose the Wall street bulls desire a plethora
of money and to send the stocks up kitng :;
all they need do Is to order the Secretary of
the treasury to announce that he will pay ten
or twenty millions of option bonds weekly IN
New York. Then having disposed of their
stocks at big figure, let the Wall street bulls
turn bears and desire stringency IN the mo-
ney market to enable them to buy their stocks
back at low figure. The obedient head of
the band of robbers at Washington gives Il
turn to the screw and announces that the next
weekly or monthly payments of twenty mil
lions of option bonds will be omitted. Money
will at once become scarce in the great marts
OF trade, interest will run up like mercury
In the tubes of thermometer, stocks will fall,
embarrassed If not swamped.
There can be no honest issue of bonds with
o 1t specifying the day of their maturity and
paying them on that day, Then the 5usinC IS
community being fully forewarned can DE fore
armed and no syndicate of robbers under the
name of national banks or Wall street stock
jobbers can fleece the community by springlng
upon them these National Treasury traps.