Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1867-11-08
NOVEMBER 8, 1867.


be paid in legal-tender.g [Cheers. Prior
to the year 1862 the laws of the United States
provided that gold and silver coin should
be legal tender in payment of every debt.
Every debt which was contracted before
that time, whether it was upon a contract
for money, or bond, or note, was paya-
bic in coin, whether it was expressed upon
the face of the contract or not.
In February, 1862, the Congress of the
United States passed what was called
legal tender act. 1t provided thst one
hundred and fifty millions of dollars should
United States, and that these paper dollars
should he received as "lawfuli money"-Il
quote the language of the act-as 'lawful
money, and as legal tender in the dis
charge of all debts, public and private, ex-
cept only duties upon imports and interest |
upon the public debt" Mark the language
of the act-"lawtul money" That is the |
first legal tender act. 1t provided for the
emission of hundred and fifty millions Of !
dollars in paper money. tr<t raj Of a'i5 |
Every contract that was made after that |
time for the payment of money, whether it |
bond, by whomsoever made, was made up |
on the faith of the law and was payable in |
these legal tender notes, and not in coin, |
unless the maker chose so to discharge it.
The Government o. the United States has |
paid in coin every bond that was issued be- |
lore tue pdSSdSe Vi t1dt law, anu WHICH mas
matured since its passage; and the Govern
ment of the United States since that time,
by an act of Congress, has provided for the
issuing of other bonds, which, notwitstand. |
ing the legal tender act, are to bear upon
their face an express promise that the prin-
cipal shall be paid in gold. These are the
ten-forties. They are payable in gold,
principal and interest; and L maintain
fellow citizens, that every other bond, eX-
cept the 10-40 bonds, and all those issued
before the legal tender act, are discharge
able in the greenbacks of the country.
Applause. .8 %. g.. .srVut s--
Not only does the legal tender act of
which have spoken control this, but the
law itself under which these bonds were
issued, provides that the principal shall be
paid in lawful money, and the interest
shall be paid in coin. And not only that,
but the face of the bond, shows that the
principal may be paid in lawful money,
while the coupons declare that the interest
shall be paid in gold. . .-.f - ..-.
Some gentlemen will say to me, perhaps,
that the legal tender shall not be permitted
to override the uniform policy of the
him not object to the legal tender act for
it is only by virtue of it that the interest
on the first two hundred millions of 5-2O
bonds is payable in gold. The very act
which authorizes the issue of these legal
tender notes provided for the issue of the
D ~ UOnuS. lUdI dlOues VI dll Tile acCS au-
thorizing the issue of $40 bonds, did not
provide that either the principal or intere st
should be paid in gold only. l say to those
who have bonds of that issue, that the pay
ment of their interest i'm gold depends on
the construction of the legal tender act,
which says that this paper money shall not
be received in payment of interest upon
the public debt.
Some gentlemen will say to me, as has
been said before, that the law which pro-
vided for the issue of these same legal ten
der notes. provided that the coin to be de-
rived from the payment of duties upon inn
posts. should be set aside and appropriated
to the payment of the interest of the pub
lie debt. and to the purchase or redemp-
tion, year by year, in every year after the
| first day of July, 1862, of one per cent.
upon the public debt. 1t is claimed that
| this provision of the law implies a contract
to pay the principal of the public debt in
| coin. r--H.-o --
| Now, gentlemen. the same language
| which applies to the redemption of the
public debt, applies also to its purchase
If those words constitute promise to pay
| the public debt in coin at par, they also
constitute direction to purchase the pub
| lie debt prior to The time it becomes due
also in coin, at par, and that would be SIM
| ply absurd, as you know that at that very
| time the Government of the United States
was selling the $40 bonds at par in green
| backs.
1t is said-1 saw it in a newspaper put
lished in Wisconsin, to day, that the Sec
retary of the Treasury, while these bonds
were being issued, thought, and gave it s
his opinion, that these bonds would be
paid in gold. What he may have thought
| is of no consequence. What lie said was
promptly met by Mr.. Stevens. ChairmaG
OF the Committee OF Ways and Means
/ who said on the floor of the House, thai
these bonds were not payable in gold. and
the opinion of the Secre tary of the Trea-
sury was wrong, and would bind nobody
| 1t is said that the newspapers declared
that these bonds would be paid in gold
When the 1040s were issued only few
months later, the newspapers declared
under authority OF Jay Cooke, that they
were the only bonds whose principal wa:
payable in gold. The one declaration may
offset the other. ~
1t is said those who purchased these
bonds believed they were to be paid il
gold. cannot aver, my friends, that they
did not believe it. but do aver that they
had no reason to believe it. The law wa:
open to their inspection, and was plain
They knew well that the government o
the United States paid every other deb
it owed, except only the interest upon tht
bonds, in legal tender notes. They knew
| that they themselves discharged every deb
that they owed in legal tender notes
They knew that they themselves. wher
they bought these bonds, paid for them il
legal tender notes, and they had no reason
to believe that an exception would be mad,
in their case alone.
: Now, gentlemen, have thought it wortl
Willie to dwell thus in detail upon the lega
and moral obligations of the government
to pay these bonds in gold, because it ha
been thought, in some quarters, a sutficien
answer to every argument to cry out IRE
:. pudiation! repudiationw There is not
fia1a Of e,t;o
Neither the law, the contract, nor the fac
of the bond, nor good morals, require tina
they should be paid in gold. [Cheers.] Re
i. PUDIATIoN. That is charge which come
with an excellent grace from men who, i
Ohio, and indiana, and New York, AM
Pennsylvania, and perhaps here in Wis
d consin, paid in legal tender notes the inter
est upon the State debt, which was con
tracted to be paid in gold. REPUTATION
That charge is made by the men who vote
$ tor the law which authorized every maj
who had agreed to pay a hundred dollar
in gold, to discharge the debt by payin
0 hundred dollars in paper. REPUTATION
4 They are the repudiators, who, aftey the
e have compelled the people to take thes
legal tender notes in payment of ever
:. public and private debt, in payment c
: !, every State, and county, and township, an
city and railroad bond-now turn aroun
II and depreciate these notes; and say the.
are not "lawful money" as they were de
e clared by Congress to be, and not fit to b
given to public creditor. [Cheers.]
q Do not misunderstood me here. L di
: not vote for that legal tender act. r
It voice, 81 know it'll was in Congress a
C the time. opposed it. L voted against il
1 believed the policy was bad. We ha
.; coin currency and | believed We shoul
maintain it. 1 thought the war might hav
been carried on, as the wars of Napoleo
:, against the world were carried on. fo
It years, upon coin basis, and without infla
Il nit no Of