After the soldiers had been paid off in the depreciated currency of the
Government, and it had gone into general circulation, one of the most
gigantic schemes ever concocted by the money-power was then devised.
The object was to destroy the money of the country, and issue in its
place many hundreds of millions of dollars of Government bonds drawing 6
per cent interest in coin, payable semi-annually.
During the winter of 1865-66, an agent of the Rothschilds went to
Washington and secured the enactment of a law providing that any person
might take any of the depreciated paper that had been issued by the
Government for the purpose of paying off the soldiers and the other
expenses of the war, and exchange it at its full face value for bonds of
the United States drawing 6 per cent interest in coin, payable
semi-annually, and that the money paid for such bonds should be
destroyed within three years after the close of the war. By this means
nearly $1,000,000,000 of the currency of the country was withdrawn from
circulation and destroyed, and an equal amount of 6 per cent coin bonds
were issued in place of the currency that was so destroyed.
No laws that were ever enacted, and no decrees that were ever
promulgated by any tyrant that ever sat upon a throne, ever enabled a
few to amass wealth as rapidly as they were enabled to do under the
provisions of these laws.
Under the provisions of the laws of 1863 the currency was depreciated to
less than 50 cents on the dollar, and under the law of 1866 hundreds of
millions of dollars were bought up by the Rothschilds and other English
and European bankers, at from 40 to 60 cents on the dollar, and were
converted into five-twenty United States bonds drawing 6 per cent
interest in coin, the interest to be paid semi-annually. This was
equivalent to 12 per cent upon the actual cash paid for the depreciated
paper with which they bought the bonds.
But this was only a part of the profit they were enabled to make. The
interest was paid every six months in gold. The interest on
$1,500,000,000 every six months was $45,000,000, and as the law that
required the duties on imports to be paid in coin had never been
repealed, gold was for many years at a high premium. The bondholders
could take their $45,000,000 every six months to the gold-room in Wall
Street and sell it for 50 per cent premium. This was equivalent to 9
per cent on the face value of the bonds and 18 per cent on the coin they
had paid for the currency with which they had bought the bonds.
But this was not all the profit they were enabled to make, for still
other laws had been framed in the interests of capital and speculators.
Public-domain text, read in full here on John Shaqi.
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