The National tribune. [volume] (Washington, D.C.) 1877-1917, 1890-09-04
"UNEARNED INCREMENT" OF BLOOD
AND VALOR.

| NaNAAAStAN Va 1tRaiu NeAuNo. AhNN Aos "hNN''NA
it is right and Just for men who have &C.
quired land and done nothing for its develop
ment TO enjoy the immense increase in It's
value which comes from the labor, the enter
prise and the skill of othersP
But the swollen profits of the most sue
cessful real estate operations are put TO the
blush by those reaped by the men who lent
money to the Government during the war,
and specialized on its necessities in its hour
of trial. There was an increment" indeed,
which was learned by the men who fought
for four bloody years, and enjoyed" by
In the Winter of 1860, 81, when the
Government was in sore straits for money,
it was compelled to pay 81 per cent interest
for one loan of $4,000; 81 per cent. for $1O,-
600; . per cent. for one of $4,000; 9i per
cent for one of $4,000; 81 per cent. for one
of 100000; % per cent. for one of $1,000;
10 per cent. for one of SI027,500; 101 per
cent. for one of S2G6,OO0; 1OI per cent for
one of $G23,OOO; 1O} per cent for one of ST.
$4,000; II per cent. for one of 81 ,432, 70Oi
and u per cent for Que of S4,siOOO0.
Other money-lenders asked from Is to SO
per cent These were the class of money
grabbers of New York and other Eastern
cities who are now so vociieTous against the
exorbitant pension demands" They would
not lend to the Government then for longer
than one year. They did not believe that
anybody would fight for it and maintain it,
and they did not propose TO risk loan to it
for longer than twelvemonth.
A little later the Government tried TO
borrow S25,OOO000 at per cent. in gold. 1t
talked of having the loyal States 20 its
security, and resorted to other measures TO
bolster mp its credit, but it only succeeded
in getting $16,395,224 by agreeing to call it
S1s,415, 600. That is, it stood a shave" of
S2,O19,776, and agreed TO pay back 81 for
every 50 cents it received, and pay cents
interest," per cent The victorious termi-
nation of the war enabled it to do this, so
that in this instance alone the splendid
fighting of our soldiers earned an mere
ment" Of $2,019,776 for those thrifty busi-
ness men. They would be glad now to lend
the Government money at per cent
The grand ontburst of patriotism which
followed the firing on Fort Sumter induced
the money-lenders TO believe that probably
the Government was going to continue
business, so that it would be fairly safe to
lend it money.
In the course of the next three years they
bought $500, 100000 of its per cent bonds.
These paid per cent. interest in gold They
were paid for in currency at rates which
rose and fell as the Union prospects bright
ened or darlsened. In the Fall of 1861, when
everything looked very dark, they sold as
low az IS cents. They recovered under the
influence OF the victories at Fort Donelson
and elsewhere, but the disasters on the
Peninsula and in front Of Washington, and
the race of the Army of the Ohio from
Northern Alabama to head off Bragg and
Kirby Smith at the gates Of Louisville and
Cincinnati, sent them down like lead. The
splendid response Of the 600, 600 more to
LiDcoln's call; the victories at Antietam, Cor
NTH, PerryylIe and Iuka doomed them
again, but they closed al 70 cents As the
greenback was then worth rs cents, the gold
value Of Sl0O-bOnd, which cost $7S in
currency, was $3.50, so that per cent in
terest was really nearly l0per cent The vic
torious termination Of the war ran the value
Of these bonds up TO $121 in currency, then
worth 92.5 cents in gold. That il, each 800
bond was enhanced in value from $3.50 to
Sl1192, or more than doubled in value.
Multiplying the whole $30O0OO,0OO by this
difference Of $5G42, we find that the sin
cremcntD earned for this class of bond
holders alone by the men who fought and
died at Gettysburg and Chickamauga, in the
Wilderness and on the Atlanta campaign
amounts to the astounding figure Of $780,
2G0,O00l
That u.s. these men, specializing on the
courage and iDdomitable resolution of the
soldiers who were fighting and dying for
the Nation, taking no risks except that Of
their investments, enduring no hardships,
encountering no danger, doing absolutely
no service, not only received an enormous
interest upon the money loaned, but saw il
more than doubled in value.
VIII Mr.. George please turn his attention
70 this striking instance OF an uncarned
increment?
A still better illustration are the six per
cents, which sold in the i'all Of 1861 as low
as s. cents in currency, aud in 1863 at OF in
currency. At the latter period the green
back was worth but GG2 cents, so that a 500
bond, for which the buyer paid SOL in green
backs, was really worth but 500. 1863 in gold.
/ On this the Government maid s9 infereef +,