The Sun.
London, England, 1868-04-15 00:00:00

SCHEMES OF REPUDIATION.

I think I have written enough to satisfy the bondhol-
ders that there are reasons, and good ones too, why they
need not fear the success of any plan to defraud
them of their just rights. I think, however, that
I may say further that any man, or any party, advocating
such a shallow and dishonest scheme of repudiation as
would be the payment of the 50-20 loan in greenbacks,
will be almost eatirely unsupported by the mass of the
people, including not only the intelligent educated men of
all professional occupations and parties, but the great mass
of honest yeomen—ths tillers of the soil. The people who,
through long years of terrible war, maintained the honour
and integrity of the nation cannot possibly now consent to
tarnish their fair fame, or to lower our standard of honour-
able financial credit, or to make this nation an example
of bad faith before the world.
SENATOR SHERMAN'S OPINION.

As 1 have above referred to Senator Sherman's pcsition
in this controversy, I deem it just to that distinguished
gentleman, whose position and record during the war
have been the subject of universal admiration, to say that
while he honestly believes the law, strictly interpreted,
gives the Government the right to pay the bonds in green-
backs at the maturity of the five-year option, yet in a re-
cent letter he declares that " while this is my opinion on
a legal question, Ido not wish to raise it, nor do I. It is
forced upon us—and I would gladly aid, either by a re-
turn to specie payments, or by an exchange of now bonds,
or by the purchase in open market, at current rates of
5-20's, to avoid deciding a question that in the minds of
just men, which ever way decided, would affect the public
credit.

Mr. Sherman further argues . that there would be
injustice in the bondholders receiving "the identical
money they gave for the bonds." I think there is injus-
tice and wrong in the proposition ; for the bondholders
bargained for a 20-year bond, payable in gold,, and not to
be paid off sooner, unless in gold.
Further : By way of illustration. Suppose a man
having $2,000, gold, sold it during the war for a premium
of 50 per cent., realizing $3,000 in Legal-Tenders. This
ho invested in $3,000 5 20's. Now, under the operation of
the scheme of repayment in greenbacks, gold runs up to
500 per cent. premium. He takes his greenbacks, $3,000,
for his bonds and reinvests in gold, but finds, instead of
his original $2,000, which he honestly risked on the fate of
his country, he now has but $5OO. That this would be a
fair estimate of the result to this bondholder no one can
doubt who has read the history of all redeemable and ex-
cessive issues of currency in every ago. If the scheme
were at all possible or just and proper strict justice would
Nequire that an account should bti Iktila from each sub

scriber of the premium on gold on the day and hour he
made his purchase of bonds, and then he should be per-
mitted to purchase from the public Treasury an amount
equal to the original sum in hand of the proceeds of his
bonds at this date. Have the advocates of these "greenback"
measures reflected on the widespread ruin that would follow
the successes of their efforts—ruin to vested interests, to
widows, orphans, the poor, the unprotected and ignorant
all over the land ?
THE QUESTION OF TAXES.

It is common for public speakers who advocate the vio-
lation of the nation's faith by insisting on local taxation of
bonds, their payment in greenbacks, &c., to designate the
bondholders as " rich," as "privileged," &c., and also to
stir up the West against the East because of the presump-
tion that the East holds an undue proportion of the public
debt. All this is mere demagogism and wilful perversion
of truth. With the exception of banks and savings insti-
tutions there are not many large holders of Government
Bonds, the great bulk being held by the people, not the
capitalists.