The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-09-25

speculative class conclude to go into
banking. We have seen in former
paper the astounding inducements Of
fered to capitalists to enter upon this
scheme. They were enabled to buy
bonds with deprecated currency, dol
lar for dollar; the bonds drew interest
IN coin paid quarterly in advance;
there were nine-tenths of the amount
OF the bonds returned to the banker
| to loan out at any rate that he could,
and not infrequently his interest
charges were outrag eous. Thus there
was a double interest paid to the
banker for the same money; one by
the government on its bonds, the other
! by the borrower in whatsoever amount
he might be charged.
| When it became apparent that the
government was willing to carry out
the policy outlined by the Hazard
Circular" in 1862, that is, to contract
! the currency to the lowest possible
stage consistent with the maintenance
of social existence; then to build up a
great bonded Indebtedness which
would be a bonanza for spectators as
means Of getting par value for de-
preciated currency, and coin interest
| for the bonded Indebtedness, which
should be made perpetual if possible,
as permanent leverage for the money
power; with these extraordinary IN
ducements, spectators were encour-
aged to go into the banking business,
and soon there were bonds represent
ing, several hundreds of millions OF
dollars deposited with the treasurer Of
the United States as the basis for
banks. The interest on the bonds
would be paid in advance quarterly
and nine-tenths of the deposit would
be furnished free to the lucky banker.
1t would be to the interest of the banks
to control the volume of money. In
order to do so they must control the
issue of money.
These two things they have done
most persistently, and to the great
injury of the people. TIE money OF
country is its life; and to delegate its
nation to bondage. This is what Re-
publican policy has sought to do. In
season and out of season, it has
wrought to enthrall the people and
enthrone the money power.
Fourth-The fourth feat of Republic
can policy is of such a character as
to unmask its boosted pretensions to
recutude and honor. 1t might be said
that the exception clause" the ma
tional bank system" and the policy of
contraction" were defensible on some
species of financial theory. That men
might be candid and still support such
measures. But no such defense can
be made for the so-called Credit
Streng thening Act" To make it plain
what is here meant, / will say that
many hundreds of millions of bonds
had been issued by the government on
which interest in coin was to be paid,
and they had been bought by specula-
tors mainly, with deprecated currency
worth on an average about AZ cents on
the dollar compared with gold. The
principle of the bonds was payable in
/ lawful money" that is, the currency
for which they were sold. This was
the common understanding, and the
accepted construction of the law, as
attested by the declaration of the most
eminent leaders, such as John Sher-
man, O. P. Morton, Thaddeus Stevens
and many others. Such was the ac-
cepted opinion up to 1867. At this time
we find that the Rothschilds held $780,
900, 900 Of these bonds. Soon a move
ment was started to require their pay
ment in coin which would enhance
their value many millions. Says
Money Wars, page 145, In 1869, when
| the credit strengthening act was
passed, changing the payment of the
bonds from greenback to coin, there
was outstanding $1,000, 100000 of 500
7 bonds, all to become due and payable
within the next twelve years. At that
time the coin resources of the govern
ment were no more than sufficient to
enable it to meet the current interest
obligations. Nevertheless, Congress
obliged it to pay 81, 500, 900, 900 of gold
and silver. This was an apparent i'm
possibility. 1t was intended to be
such. The act was for the express pur-
pose of immortalizing the public debt,
that 1T might never be paid"
1t may be said also that in addi-
ton to the perpetuation of the
debt, there was an immediate object
to be obtained. 1t was the realization
Of an immense profit on the bonds. AS
stated above, the Rothschilds held
S42O, 100000 in $40 bonds. The credit
strenthening act melted them over
$100,000,000 All other bondholders
profted in proportion. 1t is estimated
by good authorities that the people lost
and the bOndholders gained out Of the
transaction over $500 000,0 600. The most
important question, however, in this
discussion is: Was it a species of
craftsmanship that can be endorsed by
intelligent men and women as belong
| ing to Sound financial SYSTEM" No.
1t was just the contrary. 1t was rob
berry. 1t was on March 49, 1869, that
the act was passed raising the pay
HELL VI l4lc O--U JULIUS 1IOul CuTTeIICy
into coin. Only short time previous
the leaders of the Republican party
unanimously condemned such a prop
osition; but they soon became per-
suaded 10 the contrary, as will be
shown in the public records, as fol-
lows:
con the Goth of March, 1868, John
Sherman, from his seat in the senate,
wrote a letter which D. w. Voorhees,
reproduced on January 18th, 1873, in
which Sherman said: I think the
bondholder violates his promise when
he refuses TO take the same kind of
money be paid for the bonds. q
He is q repudiator and eXtortfoner to
demand money more valuable than he
gave In less than ten months after
this letter was written said Senator
Voorhees, John Sherman, then
a senator, advocated and procured the
passage of the act of March, 1869, for
the payment of bonds in coin, which
he had declared payable in currency,
thereby establishing the open repudfa-
ton of a solemn and binding contract,
and fastening an extortion of not less
than five hundred millions of dollars
ON the staggering industries OF the
country as the speculative profits of
the operation. In the whole financial
history of the civilized world no par
allel can be found to this audacious
deed of broken faith, deliberate treach-
cry to the people and national dishon-
esty. 1t viii bear the names of
those who enacted it to distant genera
tions amidst the gToans, the curses and