the dollar or less, and were particularly interested. Their agent, August Belmont, who had secured the position of chairman of the Democratic National Committee, was instructed by Baron James Rothschild as early as March 13, 1868, that unless the Democratic party went in for paying the 5-20 bonds in gold, it must be defeated. The first step was to have the national convention held in New York City. It accordingly convened there on the 4th of July, 1868. Belmont and his satellites were unable to control the convention, at least in the matter of the platform. After a stormy session the platform was promulgated on the 7th of July, and contained the following plank: "Resolved, Third: When the obligations of the government do not expressly state upon their face, or the law under which they were issued does not provide that they shall be paid in coin, they ought in right to be paid in the lawful money of the United States." This resolution doomed the party to defeat. At this time Mr. Belmont owned a large interest in the New York World, generally regarded as the leading Democratic newspaper in the country. About the first of October this interest is believed to have been transferred to Manton Marble, editor and part proprietor of the paper. On the 15th day of October, a few weeks before the general election, the World, to the consternation of the democracy throughout the country, came out in a leading editorial denouncing Horatio Seymour, the candidate of the party for the Presidency, as unfit and unavailable, and advising his withdrawal. This act of treachery has never been equaled in the annals of politics; and, strange to say, the World, under the same corrupt influence, continues to occupy the position of a leading Democratic newspaper. The money power was more successful with the leaders of the Republican party. Through its aid Grant was triumphantly elected. President Grant was duly inaugurated on the 4th of March, 1869, and in pursuance of the programme marked out for him, thus alluded to "the sacredness of the public faith" in his inaugural message. He said: "Let it be understood that no repudiator of one farthing of our public debt will be trusted in public place, and it will go far toward strengthening a credit which ought to be the best in the world, and will ultimately enable us to replace the debt with bonds_bearing less interest than we now pay." This was intended as a warning to all those who might desire to stand well with the administration. On the 12th of March a bill was introduced in the House by Mr. Schenck, of Ohio, entitled "An act to strengthen the public credit of the United States." In due time it passed both branches of Congress, and was approved by the President March 18, 1869. It was the first act of Congress that received his official sanction. This act provides as follows: "Be it enacted, etc., That, in order to remove any doubt as to the purpose of the government to discharge all its obligations to the public creditors, and to settle conflicting questions and interpretations of the law, by virtue of which such obligations have been contracted, it is hereby provided and declared that the faith of the United States is solemnly pledged to the payment in coin, or its equivalent, of all the obligations of the United States not bearing interest, known as United States notes, and of all the interest bearing obligations, except in cases where the law authorizing the issue of any such obligations has expressly provided that the same may be paid in lawful money, or in other currency than gold and silver; but none of the said interest bearing obligations, not already due, shall be redeemed or paid before maturity, unless at such times as United States notes shall be convertible into coin at the option of the holder, or unless at such time bonds of the United States, bearing a lower rate of interest than the bonds to be redeemed, can be sold at par in coin. And the United States also solemnly pledges its faith to make provision at the earliest practicable period for the redemption of the United States notes in coin." To show conclusively that the 5-20 six per cent. bonds of the United States were not regarded either at home or abroad as payable in coin, Mr. Lawrence, of Ohio, called attention to the fact that, "on the 30th day of November, 1867, (over two years after the war was over) our five-twenty six per cent. bonds sold in London at 70 cents, while New Brunswick and Cape of Good Hope six per cents sold at 105; Russian five per cents at 85 and Brazilian five per cents at 75." Congress and the President had done everything in their power to make the 5-20's payable in gold, but the Rothschilds and the money power generally were apprehensive as to the future, inasmuch as the act of Congress of March 18, 1869, was in violation of the terms of the contract under which the bonds had been issued, and might be repealed. No time was lost, therefore, in inducing the Secretary of the Treasury to pay off these bonds in gold. By means best known to themselves, McCulloch had been induced to redeem about $150,000,000 of these bonds, during his administration of the Treasury, and the process was continued under Boutwell and his successors, until the 5-20 bonds, issued under the original act of February 25, 1862, were all redeemed in gold or its equivalent.* This single act of robbery, for it is only one of the many acts of robbery which have been perpetrated by the money power during the past few years under the guise of law, will foot up about as follows: *See public debt statement, page 231. Amount of 5-20 six per cent. bonds..... Interest in gold at six per cent., compounded semi-annually, for ten years.. $500,000,000 00 403,096,132 71 Total.... $903,096,132 71 Cost of $500,000,000 bonds at say sixty cents on the dollar. 300,000,000 00 Net profit in ten years, in gold. $603,096,132 71 ..... REFUNDING THE PUBLIC DEBT. The next move of the money power was to have the public debt refunded, in order to place its payment in coin beyond all question. Accordingly an act entitled "An act to authorize the refunding of the national debt," was passed and approved July 14, 1870. This act provided, "That the Secretary of the Treasury is hereby authorized to issue, in a sum or sums not exceeding in the aggregate $200,000,000, coupon or registered bonds of the United States, in such forms as he may prescribe, and of denominations of fifty dollars, or some multiple of that sum, redeemable in coin of the present standard value, at the pleasure of the United States, after ten years from the date of their issue, and bearing interest, payable semi-annually in such coin, at the rate of five per cent. per annum." $300,000,000 of like bonds, bearing four and a half per cent. interest, redeemable after fifteen years, and also a sum of bonds bearing four per cent. interest, redeemable after thirty years-in all not to exceed $1,000,000,000, were also authorized. The Secretary of the Treasury was authorized to sell these bonds at par for coin, and with the proceeds to redeem any of the bonds of the United States outstanding, known as five-twenty bonds, "or he may exchange the same for such five-twenty bonds, par for par." By the act of January 20, 1871, the act last recited was amended so as to increase the amount of five per cent. gold bonds authorized to be issued to $500,000,000, and to make the interest on the bonds payable, at the discretion of the Secretary, "quarter yearly." Under these two acts gold bonds to the amount of $465,558,450 were issued up to November, 1875; and a bill, of a like character, introduced by Sherman in the Senate, is now pending in Congress, to complete the job. When it shall have passed Congress, the entire public debt, contracted in lawful money at a time when it was greatly depreciated as compared with gold, will be transformed into a debt payable, principal and interest, in gold. The following table exhibits the amount and character of the public debt, bearing interest, on the 30th day of November, 1875. It will be observed that the greater part of the debt of the United States, incurred during the war, is now represented by bonds issued since the war: Loan of 1858, act of June 14, 1858, 5 per cent. 8, 1861, per cent... Oregon War Debt, act of March 2, '61, 6 per c. July 17, and Aug. 5, 1861, 6 per cent...... $260,000 18,415,000 945,000 189,321,350 75,000,000 194,566,300 46,891,100 152,534,250 202,663,100 310,622,750 Five-twenties of 1865, act of March 3, '65, 6 p. c. Total... 465,558,450 $1,694,251,300 |