The National tribune., 1892-12-29
MoNnY-LENDEas VERSUS VETERANS.

\
it money is startling demonstration of
how the blood and vslor of the soldiers
coined money for the bondholders.
| The first of what might be termed the
war loans was that authorized Feb 8, 1861.
The Treasury was then on the verge OF
| bankruptcy, and so low had the credit oil
| the United States fallen that the Secretary
of the Treasury, John A. Dix, recommended
| that the Stale which remained loyal be
asked TO indorse the United States bonds,
in order TO get money enough to pay the
debts of the outgoing Administration, and
carry on the Government until that OF Mr.
Lincoln could come in. Congress author
lied a loan of S25 900 600 for this purpose,
| with interest at six per cent.-principal and
interest payable in gold. But only $1s,-
415,000 could be borrowed by the utmost
efforts of the Treasury, and on this the
shave" of S2,019, 776 10-thus getting only
S89.G3 on every S100-bond At six per cent.
on the face of the bond, this made an annual
interest of nearly seven per cent
The extra session of Congress, convened
by Mr.. Lincoln, authorized the Secretary
to borrow money at 730 in gold. and
S139 999,750 were actually issued at this
enormous rate of interest.
The splendid response of the loyal men of
the country to President Lincoln's call for
volunteers convinced the timid money
lenders that the Union stood a fair chance
of being maintained, and they lent the
Government $3.50, 221 $50 at six per cent.
in gold.
In the subsequent loans to the Govern
ment the interest was in nearly all instances
six per cent in gold, but the bonds were
bought in greenbacks, the gold value of
which steadily declined until in July, 1854
after the murderous Wilderness campaign,
and the terrible battles before Atlanta, the
gold value of a greenback dollar was but 38.7
cents Thus man having 500 in green
backs-ihe gold value of which was but
S3o 70-could buy with them $10O-bond,
on which he would receive Sc a year inter
est in gold. This, at that time. was equal
to S15.48 in greenbacl1s.
But even this enormous interest did not
satisfy the greedy money-lenders In the
last part of 1864, when the Government was
putting forth immense efforts to give the
tottering rebellion the final blows which
would seal its doom, the Secretary of the
Treasury-Mr. Fessenden-made the most
persistent efforts to get the great money
owners of the East to take 100000 more
bonds to help the Government in its final
effort. 1t was all in vain. After narrating
his fruitless appeals to the bankers and heads
Of great moneyed corporations in Boston,
New York, and Philadelphia, Secretary Fes-
sender says. in his rep 1T Of Dec. 6, 1864:
nary mode. and urged by the conviction that the
large amount Of suspended acquisitions swollen to
more than $3.50, o00. 600. should be reduced, the
Secretary resolved to all the at his COM
mand 10 pay much. at least, as was due to our
brave soldiers who were suffering from the long
delay in satisfying their just claims but still con-
tnufng TO serve their country with unfiinching
courage and uncom planning devotion. To effect
this object lie compelled TO replace the whole
amount of FIVE per cent. notes which had been cam
celed, amounting to more than Sso.ooo.0Oo and even
slightly to exceed that sum. More fully to accom-
plish his purpose the Secretary resolved to avail
himself of wish expressed by many officers and
solderz, through the Paymasters, and offered TO
such as desired receive them 730 notes of small
denominations. He grstified 10 find that these
notes were readily taken In payment to large
amount; our gallant soldiers. in n1anv instances.
not only receiving them with alacrity. but express
ing their satisfaction at being able to aid their
country by loaniBg money to the Government
The whole amount of notes thus disposed of er-
ceeded $4,000 600 and the Secretary has great
satisfaction in stating bis belief that the disposal
thus made was not only relief TO the Treasury.
but proved a benefit to the recipients, in affordng
them a safe and valuable Investment and an easy
mode OF transmitting funds TO their families.
The 730 notes referred to carried an in
terest Of 10 per cent. in currency, or less
than one-half the currency value of the
interest received by the bondholders.
There is an immense significance in this.
The money lenders, appalled, at the slaugh-
ter and the expense of the war, refused to
lend another dollar, though to stop the war
then meant the loss Of all that had been
gained by over three years of bloody bat
ting. 1t meant the recognition of the
Southern Confederacy, the perpetual dis
ruption Of the Union, the destruction of the
entire value of the bonds and greenbacks.
and untold miseries to the country, North
and South. But the selfish money-lenders
would not risk another dollar to prevent all
this. Fortunately the men who were doing
the fighting were more far-sighted and more
patriotic. They were not only willing TO
20 on expanding their blood To gain the
triumph which they felt was in sight. bat
they were willing to lend the Government
their slender pay at less than half the rate
of interest the greedy money-lenders de-
manded. What a contrast between the