The Penn's Grove record., 1900-03-09
The PENIS Grove Record

The Penn'S Grove Record
FRIDAY. MARCH 9, 1900.
BONDS, BONDS, BONDS.
Bondage Forever Under the Gold
Standard.
A Government OF For and BY Banks.
The real reason for the passage of the
gold standard law is to keep the nation
In perpetual debt for the benefit of the
national banks, whose foundation is U.
s. bonds.
The national banking act was passed
in 1868 to give existence to banks for
90 years. In 1882 a law was passed re
newing the privilege of their existence
for 20 years more. That law will ex-
pire In 1902. For fear that the next
President or n branch Of Congress
may be hostile, the bill now before
Congress will be passed.
Previous to C~leveland's issue of bonds
to maintain the gold standard the ma
tional bonded debt had been reduced to
about $500, 600, 600. Previous to 1890
the government was reducing this at
the rate of about 500, OOO. 900 a year.
No bonds have been paid for 12 years.
The bankers saw that under the coin
age Of silver dollars that the public
debt would soon be extinguished and
they would have no bonds on which to
issue bank notes. Consequently, the
bankers organized the panic of 1893, to
force the repeal of the Sherman pur-
chasing (silver) act. Previous to that
VI were paying off nearly 500. O00, 600
q year. and the nation would be prac-
tically out of debt, the time they were
all due.
When President Cleveland went to
enforcing the gold standard contrary to.
the intention Of the law, more bonds
had to be issued to maintain it, and he
run the nation $262, 1926. 600 in bonded
debt for the benefit of the bankers.
The second section of the conferees
bill says the ssSecretary of the Treasury
shall issue bonds bearing interest not
exceeding 3 per cent. to maintain a
gold reserve when the gold in the treas.
ury falls below 500, OO0, 900.
BONDAGE FOREVER.
Senator Teller on Monday said,
"This reserve is never to be allowed to
fall..below $3.50, 600, 900. The result will
be that at all times $3.50, 0O0, 900 of our
circulation will not do money duty. If
a million dollars must be put back into
the reserve fund. The question of bond
issue is the most vicious of all. Hay-
ing established the gold standard it is
thought necessary that the Treasury
should have power to borrow money at
all times without Limitation in order to
maintain it. Every nation that has
attempted to maintain the gold stand
ard has had to saseEt to extra efforts to
maintain it. I do not believe the gold
kdard of sufficient value to justify
lie extension of the public debt. l
predict we shall continue the national
debt and that no mar now living will
see it paid. I do not suppose the peo-
pie who favor this will ever want to see
the national debt paid. There is nc
limit to the possible extension of the
debt. and it is intended there shall be
no limit. II the Republican party is
again successful in 1900, you will see
the public debt increased and not de-
creased, and this bill is ex industrial
for that purpose"
A GIFT OF MILLIONS.
The 18th section of the gold standard
bill provides that all bonds due in 1904,
1907, 1908, may be exchanged for 2 per
cent gold bonds, not payable for 30
years. All bonds are now payable in
coin, gold or silver.
The bonds which can he exchanged
for the new two per cent. bonds are:
-Four per cent. bonds matur-
ing in 1907, $545, 345, 200
Five per cent. bonds
maturing in 1904. $95, 009, 700
Three per cent. bonds
maturing in 1908, S198, 791, 44O
The new two per cent. bonds will be
issued to the holders of the old bonds
to the face value of the old bonds, but
certain premiums will be paid by the
Treasury in cash. The effect OF the
premiums paid will be that man hold
ing a bond for $1,000 will receive a new
bond at 2 per cent. for $1,000, and be-
sides receive a check from the Treasury |
Tor the premium, amounting in the
case of the tours and ives to something
like 500, and will hereafter receive
interest at the rate of 2 per cent, in
stead of the higher rate on the old
bonds.
The conversion of all these DO nds by
the refunding plan will call for the
payment of premiums. to capitalists of
$SS, O09, 900 estimated by Senator Aid.
rich, while the nation will not have re.
duced e dollar of its bonded debt.
CAKE AND PENNY TOO. |
Section 10 provides that .'upon the
deposit of any U. s. bonds with the u.
s. Comptroller by any banking associa.
ton, such association shall receive cir
culating notes equal in amount to the
par value of the bonds so deposited, |
and shall pay ! of one per cent. upon
the notes in circulation
The interest on the bonds is made
too small for individuals to hold them.
Any i've or o persons can take $685.
600 more, buy bonds deposit them with
the Comptroller, and get $25. 900 or