The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-11-04
Redemption OF the Deb, in Lawful, Money.

Redemption OF the Debt in Lawful Money.
The bondholders and their organs cry out as
Justify and unyeldingly TO- their pound of
flesh or the bond as Shylock did. They are,
too, equally as blind to he probable conse-
quences OF their overreaching cupidity and
exacions. Let us see what claim in justice,
in equity. in conscience they have for their
demand In the strict letter of law and Of the
where it is expressly said the principal as well
as interest shall be paid in gold, there is no
obligation to pay the principal in any other
than lawful money. On the bulk Of the debt
there is nothing said about paying the princi-
pal in gold; and the fact that 1t is expressly
mentioned on one class of securities-the class
referred to-proves that the intention was to
leave the paym mt of the others to be made by
the government in whatever currency might
be legal. The opinion of Mr.. Chase, of MIR.
McCulloch, or Of any other individual
weighs as nothing against this fact But we
are told by the leader of the party in power
in the House of Representatives., by the fnan-
cal organ Of that body, he who was chairman
Of the Committee of Ways and Means, Mr..
Stevens that it was understood the government
was not bound to pay the principal in gold at
the time Tho law was made authorizing the
issue Of these bonds. That, indeed, was the
general und 'rs!anding, and the demlnd now of
Chase and Mr.. McCulloch show that the claim
is an afterthought. No, the Shylocks have not
even got it written down in the bond, though
they grin with satisfaction at the grip they
suppose they have got on their victims through
a farietched legal inference.
If tie bonds had been paid for in specie or
its equivalent there might be some justice in
the claim to be repaid in the same money,
though mol hing be said on the bonds about it
but the government got only deprecated paper
money for them About two hundred millions
only OF the debt was paid for in gold-that is,
the debt contracted in the summer and fall OF
1861 and previous to the suspension of the
banks the last of December in that year After
that came the issue of legal tender greenbacks
which WIS followed by further loans and issues
of greenbacks. Gold commenced to rise then,
though its fluctuations and relative value de-
pended more on the news of military opera
tons than on the quantity of currency in circu-
lation. In 1862 the premium averaged about
fifteen per cent; in 1868 about forty-fve
per cent in 1864 It gradually rose to eighty,
until in June it reached ninety-eight, and in the
following month it run up to hundred and
o,..ht five In
vadei Pennsylvania. In August, September,
October and November, 1864, it ranged at o
hundred and thirty 10 q hundred and sixty.
Then it gradually declined till the surrender of
Lees army in April, 1865, when ii fell to forty
five. During all this time OF paper deprecia-
ton or premium on gold the bulk of the debt
was taken-all, in fact, except about two hum
dred millions, which we referred to before as
having been taken in gold. The bondholders,
then, paid for the bonds in government paper
money, and that at heavy shave. We have
not before us the data to show what was ac-
tually given for each issue OF bonds through
the period when gold was at premium but as
the necessity Of the government was greatest,
and its sale of bonds largest, during the last
years of the war, when the premium on
gold was high, they must have been obtained
at low rate. Making an average Of the whole
bought in deprecated currency, it is probable
that the bondholders did not give for the bonds
much over fifty per cent of the value in gold.
This, o. course, is only an approximate state
ment of the average; but il the bondholders
gave sixty per cent or more Of the value in
gold II is monstrously usurious and exactng
in them to demand now, without law or JUS
tic, from an overburdened people hundred
in gold. All other debts are payable in law
tl money, no matter when contracted or
what may be the relative value Of that money
to gold; and yet we are called upon to force
specie payments in order that thu bondholders
may be paid thirty to forty per cent more than
private creditors are paid, or more than they
gave for their bonds.
If specie were the currency Of the country
Of course the bonds would be redeemed in
that; bu! rs we have another currency there is
no reason why the redemption should not 60
on. The government Is under no obliga-
ton not to pay the debt in green.
backs II can surely enter the market
and buy bonds the same as Mr.. Smith
or Mr.. Jones can. II Is not obliged to force
specie payments before redeemiug the debt.
justice to the bondholder does not require 1t,
while II would be great injustice to the
country and wretched policy to do SO. What
we demand Is that the government should act
as every prudent business man acts who takes
advantage OF the most favorable circumstances
specie payments, and thus weighing the people
down with q perpetual and an overwhelming
debt, as much of the debt should be paid as
possible while the currency is deprecated and
abundant We should be in no hurry to arrive
at specie payments till a large portion Of the