Democratic Sentinel, Volume 1, Number 52, Rensselaer, Jasper County, 8 February 1878 — KING SHYLOCK’S TRIBUTE. [ARTICLE]

KING SHYLOCK’S TRIBUTE.

One Thousand Millions Clear Arising from No Investments at All.—A Startling Exhibit. lu the United States Senate recently, Senator Beck, of Kentucky, spoke at length on the remonetization of silver, and, in the course of his very able speech, he Quoted from Mr. Voorhees, of Trulmna, a history of all the bonds which were sold each year and the prices that were paid, and that were given, and which revealed the fact “that the bondholders had up to 1869 received over $100,000,0000f profit before they even got the principal of their bonds made payable in gold by the act of 1869. ” The following is the statement quoted by Senator Beck, and we recommend it to our readers as suggestive of the rapacity and arrogance of the bondholding class, unparalleled probably in thfe history of the world: In 1862 the Government sold 6 per cent. 5-20 bonds to the amount of $60,982,450, and received for them greenbacks at their face, dollar for dollar. The demand now is that these bonds shall be paid in gold at their face; and yet, owing to the depreciation of greenbacks at the time of their purchase, only $44,030,649 in gold was paid for them. This makes a clear speculation of $16,951,801 in favor of the bondholder in this first transaction. On this clear speculation the bondholders have received interest for eleven years, amounting to $11,187,188, which, added to its principal, makes the sum of $28,188,989 already received in that single transaction, for which not one dollar was ever paid. In 1863 the Government sold of the same kind of bonds $160,987,550, for which it received an equal amount in greenbacks. A standard authority 7 placed the average price of gold during that year at $1.58 in currency. It will thus be seen that these bonds cost their purchasers but $101,890,854 iu gold, leaving a profit of $59,096,696, without including the interest. Eor ten years, however, the Government has paid interest on this naked profit, this principal, without any consideration. The interest thus paid amounts to $35,458,017, which, added to this fictitious principal, makes $91,455,713 now in the pockets of the bondholders on that year’s operation, for which they never paid anything. In 1864 the Government sold these bonds, amounting on their face to $381,292,250. Again the Government received only depreciated paper for these bond obligations, and at that time our currency was enormously depreciated, if tried by the gold standard. The price of gold during that year was at an average of 201 in currency. The sale of these bonds, therefore, which are now assumed to be gold bonds, only realized to the Government $189,697,636 in gold, less than one-half of their face value. There was left to the capitalists who speculated in them as purchasers the immense profit of $191,594,614. This wan the amount of the broker’s shave, and on it he has drawn interest from the people for ten years, amounting at this time to $114,956,768. Add this to its principal, which stands as pure speculation, and we find that the bondholders have made as clear gain, as something for nothing, the sum of $306,551,382 on the one year’s transaction of 1864. In 1865 the Government sold bonds to the amount of $279,746,150, on which it suffered a discount of $71,532,060 at the hands of the capitalists. The interest already paid by the people on this discount reaches $38,627,307, making this year’s operation realize for the bondholders $110,159,367, for which not one cent was ever paid. In 1866 the Government sold $124,914,400 of its bonds, for which it received depreciated paper currency amounting to $88,591,733 in gold, according to the then price of gold. The difference between the face of these bonds and the amount they realized to the Government was $36,332,627. Eight years’ interest received on this shave amounts to $17,434,556. Adding this interest and principal together, and We find that the bondholders have received $53,757,188 out of this years’ sale of bonds, for which not one dollar ever left then - coffers or reached the United States treasury. In 1867 the Government sold of its bonds the immense sum of $421,469,550. The purchasers paid for them $303,215,503, leaving a clear profit to them on the operation of $118,254,047. Taking the interest on this p olit for seven years, amounting to $49,661,694, already paid, and the speculators have in their pockets, if these bonds are to be paid in gold, the sum of $167,915,741 on this year’s brokerage, and for which they never gave a farthmg in consideration. In 1868 the Government sold its bonds to the stiW further amount of $425,443,800. Their purchasers paid $312,326,323 for them, clearing by that annual speculation the sum of $112,617,477. Add six years’ interest on this bonus, amounting to $40,542,228, to the bonus itself, and we find that the: e traffickers in a nation’s perils have received in this operation $153,159,765 of the people’s money, for which not the slightest equivalent was ever paid into the United States treasury. In addition to the foregoing 6 per cent, bonds, the Government at different times during the years mentioned issued and sold $195,139,550 of bonds beating 5 percent. They realized to the Government $122,957,410, thus leaving to the purchasers a het profit of $72,182,140. Interest already paid on this profit amounts to $26,115,724, which, added to the profit itself, makes the sum of $98,297,864 as the amount now’ in the pockets of the bondholders growing out of their operations in the 5 per cent, bonds, and for which there is not the slightest consideration. An account of the bondholders’ clear profits arising from no investments at all may therefore be stated in the following tabular form : 1862 $‘28,168,989 1863 .. 94,555,713 1861" ' 306,551,182 1865" .• 110,159,397 1866;" 53,757,183 1867 167,915,741 1868 253,159,765 On account of 5 per cont. bonds 98,297,864 T0ta1•51,012,536,004 This most remarkable statement ■was, as Senator Beck declared, “carefully anti truthfully prepared.” The proof is in'the official records. “It will satisfy the country,” said the Senator, “and ought to satisfy the bondholders and their advocates, that they ought not to insult a suffering people whose hard earnings have gone to enrich them by any complaint of want of good faith to them in the effort we are making to save the country from bankruptcy.” One thousand millions of profits, and yet the bondholders cry for more ! Let workingmen see in this statement, the truth of which is beyond question, the main cause of the sufferings which they are new enduring. Let prostrate and helpless industry understand that this is the system which has made it the prop of King Shylock’s throne, and which still continues to wring from it, exhausted as it is, $700,000,000 annual tribute. Let Greenback men arm themselves with such facts and figures as are given above, and so be prepared to overthrow King Shylock, raise industry to its feet once more, and bring back the prosperity and happiness that were ours ere yet the bonds that bind us had begun to tighten on us and bear us down to vassalage.