506 THE IMPENDING REVOLUTION. 



supply. The inevitable result of the maintenance of the 

 gold standard is perpetual contraction, while our popula- 

 tion is constantly increasing. " 



u Do I understand you to say that as the population 

 of this country increases, a system of contraction is 

 constantly going on?" 



; ( Most assuredly. This is in pursuance of the cherish- 

 ed policy of the bondholders. They never have, in any 

 one instance, since the war closed, suggested a measure of 

 legislation which did not involve contraction. The bonds 

 originally payable in greenbacks, interest only payable in 

 coin, were made payable by the act of March, 1869, in 

 coin. Over a billion of greenbacks were destroyed to 

 resume specie payments. In 1870, the funding act pro- 

 vided that the bonds issued thereupon should be paid in 

 coin of the then standard value, viz: in dollars consisting 

 of either 25 8-10 grains of gold, nine-tenths fine, or 412 1-2 

 grains of silver of the same fineness. The next move of 

 the bondholders was to enhance the value of bonds by 

 destroying silver as money and compelling payment in 

 gold alone. The national bank system is organized on .the 

 principle of contraction. As the bonds are paid their 

 circulation is being retired, and if no false or fraudulent 

 legislation can be obtained to patch up the system, all the 

 national bank circulation will go out of existence upon 

 the payment of their bonds in a very few years. The sys- 

 tem itself is a curious one. 



"The United States has hundreds of millions of 

 greenbacks in circulation drawing no interest. They issued 

 a large quantity of bonds, say between three hundred and 

 four hundred millions, and sold them for greenbacks, upon 

 which the government has since paid interest. John Doe 

 and Richard Roe, who bought these bonds, were allowed 

 to deposit them in the treasury and continue to draw 



