The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-03-30

The temporary loans were represented
by certificates. issued in denominations of
not less than 500. for greenbacks depos-
ited with the government. They were is
sued solely for the purpose OF supplying the
temporary needs Of the government. AMI
hence their name. They bore not to ex-
coed per cent. interest and were payable
In thirty days from time of deposit, after
. notice Of ten days.
The certificates Of indebtedness, instead
Of being issued to those who had loaned
money to the government, were issued 10
public creditors who desired to receive
them in satisfaction Of settled and audited
claims. They were isaued for the whole
amount due. or parts thereof. not less
than $1,000. and were payable one year
from date. or earlier. at the option of the
government. They bore per cent. inter
est, and matured at various times betwe N
August. 1866, and May. 1867.
Tho 7-30s became due in 1857 ana 1865 and
were convertible at maturity. at the option
OF the holder. into bonds.
The compound interest notes became due
in 1867 and 1868. According to the report Of
the comptroller Of the currency for 1855 o.
the greater part Of them were held by In
surance companies and other financial in
stitutions as investments. The interest
was compounded semi-annually.
The per cent. notes were all due by
December ]. 1860.
All these temporary Understanding
debts Of the government were payable IN
lawful money.
In addition to these debts sls4l5 900 Of
the funded debt became due in three years.
| Thus it will be seen that, taking no ac-
count OF the greentacks. if the credit OF
the government was TO be kept good, and
its word preserved inviolate as it had been
even during the darkest days Of the war.
1t would not .only have to pay the ordin-
airy running expenses OF the government
and the enormous interest on the public
debt. but would also be compelled to pay
or fund nearly 1900 100000 Of the principal
Of the public debt by October. 1865.
Populist leaders go assert that all the
items except the first three in the public
debt statement for August 81, 1865, were
money and in general use among the peo-
pie They charge that the Republican party.
under the influence of the money power.
for the purpose of impoverishing the
masses and enriching the few, destroyed
the greater part Of this money. The
truth is that what Populist leaders call
contraction Of the currency was, for the
most part, simply the honest payment of
government debts-these debts being in
the form CT notes that never were intended
as money and never were used as money.
By the law OF March g. 1865. "a which had
the hearty approval Of President Lincoln,
authority was given to the secretary Of
the treasury TO exchange bonds for treas
ury notes, certificates Of deposit or other
Representatives of value which have been
or may be issued under any act of con-
gress" On August 81, 1865, the temporary
interest notes of the government amounted
to 81, 273. 600, 900. Under this law the secre-
tary had power to fund all of them; in
other words, to exchange longtime notes
of the government for short-time notes.
In the fall of 1866 the secretary proceeded
to.retire legal tender Understanding not -
at the average rate of several million dol
lars month 90.
| But the secretary wished not only to
lay or fund the Understanding notes.
but also to decrease the volume of green
backs-the currency as he understood the
term. Accordingly he asked congress for
increased authority.
The members Of the lower house are in
close contact with the people. and almost
invariably seek TO carry out the wishes OF
their constituents. That the people were
in favor of the financial measures pro-
posed by the secretary is shown by the re-
solution that passed the house December
IS. 1865, by the overwhelming vote Of IA to
s-"Resolved. That this house cordially
concurs in the views of the secretary OF
the treasury In relation to the necessity Of
the contraction of the currency. with a
view to as early resumption OF specie
paymen,s as the business interests of the
country will permit 90. Among those
who voted in the affirmative was William
D.. Kelley of Pennsylvania, who seems to
have been one of the few men in pnbIic
life at that time now deemed worthy the
| good opinion of Populists %. The money
power must have had a fearful grip on
that congress. Usually. when ii has to
resort its peculiar influence 10 secure
legislation it is content with Ii bare ma
jorlty. In this case 1t must have been in a
generous mood. and so bought up the en-
tire house. In furtherance of this resolu-
ton, though in opposition to the votes OF
many leading Republicans, the law or
| April -. 1865. passed. giving the score
tary authority not only to fund interest
| hearing notes. but to retire greenbaeks as
we'll But n provided that not more than
| sleeHaego Of greenhacks should be retired
| within six months from the passage OF the
| act, ard thereafter not more than s4.uo."o
| in anv one month 80.
Under these laws let US see what was
| done with the great war debt.
| When the per cent. notes became due
| the government; paid those that were pre-
| scented FOR payment, just as an honest
| and solvent man pays his notes when they
| become due. They we're paid In green
| backs The temporary loans matured and
| were paid in like manner So 1t was with
| the certificates OF Indebtedness. This was
| Tart OF the infamous crime with which
| Populist leaders charge the Republican
| party. Bat after paying these debts and
| all the running expenses of the govern
| ment, there was not enough money TO pay
| the compound interest notes and the I-SJs
| when they became due, And. besides, most
| Of the holders of ehe 1-S0s demanded bonds
| far them in accordance with the law. and
| the stipulation on the back OF every note
II would have been an absolute and shame
| less breach Of contract for the govern
| nlent 10 refuse 20 permit the holders Of
| the 7-ses 10 exchange them for bonds
| Neitn.r could the government have honor
| ably refused 10 ray the compound interest
| notes when they nnagured or else give the
| owners OF them satisfactory securities IN
| their place. SO il was by the issuance OF
| bonds that the most OF these notes weTs
| retired However. in place OF part OF the
| retired compound interest notes the sos-
| eminent issued per cent certificates. paw
| able on demand. y hich wers. IN turn. grad
| rally paid or by 1873. A large amount OF
| sr~erhacks were called IN. but on Fehrl-
| srv 4 1855, their further retirement was
| prohibited.
| The mos; OF the decrease in the temper
sry debts OF the government. Including
| greenbecks and fractional currency. had
| been accomplished by July !. 1867 AMI,
| according to Popgllst Writers, the eontrsc-
| ,fon Of the currency after fsss DID not
| anrcun. 20 much. Their published tables -
circulation 90 show that from istSs 10 lssi q
| neriod OF six years the currency vas con
| ;rac:ef only IS 90 80 Therefore. q gen
| .rsl summing VI OF the situation on july