New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-12-31
LITTER FROM TIE hon 7. @. SP1ULDEc
PUBLIC DEBT-GOOD FAITH.

Sherman aud Senate BIZ No 2O7, "for funding the ma
tonal debt and FOR the conversion Of the notes Of the
instant asking my opinion on the proposed measure.
any Of its parts and desiring me 10 communicate my
! suggestions at an early day.
deeply impressed With the importance Of a return
ors Ho b s'"nuaru az nf tho tdesI nUc
people concur fully III that part of the report OF your
United states notes, possible their value in
ggd rms, In my opinion should engage the earnest
efforts OF Congress and the Executive; and much
athed To see your Committee earnest and decided
urging return TO the specie standard at the earliest
practicable moWeut resumption OF specie payments by
Inc Government Tie banks ana peope, il Tie rst great
thing TO be accomplished This would dispose OF nearly
ell the complicated and disturbing Issues that have been
raised by politicians and others, 10 the time waen ana
the kind OF money in which, the public debt shall he paid
1t would demonstrate clearly than anything else
our resources and ability to nav public debt aud
determination preserve unimpared the good faith OF
the nation and establish all business operations Oh firm
| and enduring basis
notice that senator Sherman, in his report tpagess
and y, giving countenance the idea that the $50 bonds
under the act OF 25th February 1902 may be paid in the
deprecated greenback currency is laboring under ma
teal misrepresentation Of the facts In regard to the repre-
sensations made by the agents Of the Government when
the loan negotiated, and especially as TO tho time
II is said that the distinguished Secretary Of the
Treasury who negotiated the 52OlOan construction
10 this act a the time the loan was Oeed that TINS was
announced to the people and upon the iath OF TINS inc
! loan was taken. Your Committee can lind no Official
declaration made by the Secretary tins subject until
after the loan was negotiated" and then refers TO
letter written by Secretary Chase, May 49, 1884 as being
the first official declaration on the subject mat has come
! TO his knowledge. The Senator seems 10 consider
/ tu0L IT lne SECRETARY mduO OINldl ucCIa4dtlOnb Ut
the time the loan negotiated. giving construction
% the act the effect that the principal well as the
understood that to be the construction Of the law such
declarations would form part Of the contract and that
the Government would DE bound to make these decaia
Ons good and to give effect to the contract as under
stood by both parties when II was made Now the proofs
hand that such official representations were made
by the distinguished Secretary Of the Treasury before
and 0t The time the loan being negotiated and viii
Secretary Chase who negotiated that loan decided
early as December 1902 that fair construction OF all
the under which the funded dent contract
ed required us to pay actual money-gold ana silver
tended payment another promise OF the United States
was payment, but merely changing the form OF the
greenbacks would be merely Substituting the debt Of the
Government in the form Of legal tender notes bearing no
interest for bonds bearing sl& per cent lnelest-Nhcn
would be mauiiesuy unjust This question came
On The for KIND PavS O E at mart t Of the funded
debt created prior 10 tho Rebellion which fell due Jan
shed The Committee OF Ways and Means in December,
1902 short time before its maturity, desired 10 know
insure the payment OF coin on that part OF the funded
ogbt falling due within few days ~ order 70 ascertain
thc Treasury would put upon the law subcommittee
rom The Committee Oh ways ana Means was aIpohcd
re- chilled upon The Secretary at the Treasury Depart
mcnt and after full and free conference, the Secretary
decided that fair construction OF the law - vel ~ good
fh required him TO pay the funded debt in coin. and
he did not deem II necessary 10 have any further law
passed to enable him to do 80.
Under these circumstances. the Committee OF Ways
and Means did deem 1t necessary To report bill au
thOrzDg requiring the funded debt To be paid IN CON-
January 1868 the funded debt falling due at that
time paid liz coin. From the time tins decision was
made by Secretary Chase down 10 the present uuc the
language has been held by each Secretary oI the
Treasury, namely that the funded dent OF ths Govern
ment was payaD IN CON- Dom prlhcipal ana ihleSs
aud that the Government would not seek 10 avail itself Of
the five years option 20 redeem the $40 bonds until
wasprepaTed to pay com Tor tne principal 10 wen he inc
interest But this is not the only proof
prominent subaCeuts OF the Government ia negotiating
the 500 bonds under the act OF February 2 1892 Many
persons who were DESTROYS Of subscribing 10 this loan
wanted know authoratvely whether the principal Of
the bonds payable IN coin well "a the interest nor
Fisk Hatch, 40 the very time they negotiating large
amounts OF this loan addressed letter 10 The Secretary
OF the Treasury the 80 Of August 1868. and received
law Of The treasury which Was Immediately published IN
Tie NcU York Times, a. follows:
TIN POPULAR loan.
We are RECEIVING numerous Inquiries to whether tie uai s
ne T1gaserv Dtparitnt most satisfactorily suws1g question
las was before aurSersi b. Ar Cba,e copy Of which We
dtsibucn the people rsBie 'ls subject - Of an's I.b
v be ,e,,be To- yoar Ieader Fi.r Hlrcn Balls
IE,Tl pErA5stsr W,nIF'Tos D. y, agg l3
o. per cent $50 bonds q The Joan q February 2 ~ ha' been re-
Soas forming psr permanent loan Of TIE Ca S,,e, on be
rele,aed 10 god Tue $50 H1e being rsse,se q Iay IIe
s S 1S,DT oa .d 50 ao % tie 20 year. jay
II 1861 which the TIRE YEAR 40. are eon'eres Al o9
ssurty IN United unless before such maturity pn'Hra'n
note. form part mref, Wit, The Pr,,s. q 'Sa,s,n
or not tual r'H iArl WI tffl'fr
De- paid tie holders prefer iasli 70 ,Ss.sI'l ID 0l'' '
note" 1ctas seoisi.ry Of. Treasury"
To Mes,r. F,t & Hatch. Bankers. Ses,iorE
addition 10 ia being published in all the newspapers
published In handful form zone Of the original handbs
beng IN my possessioD' ana sent DIO9ucAI among
the people 10 irducc them come forward ana take mp
these b0uds-whch were Hcn ~ 'e marei under the a.
rccou of the Secretary OF the Treasury aud offered by
him at par. al the time actively engaged IN nego-
uatng THIS loan adVertlsed anu Cltt9"TG . lT'o
extensively myself ana gave COPIES 81 u t AZ
the time OF making their subscription 10 TINS loan re-
cardcd these representations made by authority OF inc
Treasury Department. ana upon IN, ia'h on with Iolo
were induced tO subscribe for the loan "a form
ing part Of the contract, and that the Government Is
now bound TO make these representations good and that
whenever they seek to these bonds the principal
regard N as gross breach OF faith the part Of the
Government 20 attempt 70 eyade these declarations OF
But aside from these representations MADE by te sec
rotary would suggest that the plain meaning OF he act
of sC2 when read connection with IT, title, lead. 10 inc
conclusion. and that secTearV Chase III g.is o
construction 10 the law when ne uIu ~ n
loan, gave correct, practical common sense aecson
The argument OF the present Secretary IN MS la,l ~
Renor Tages "a o. and 2G) IL able and conclusive on
this point The Interpretation given To the act by pom
these distinguished Secretaries u IN exact hceo ua.se
with my Intention at the drew and introduced the
bin in the House In January, 1862 and as believe IL was
fully understood by Congress when II passed Inc ulo
of the act expressive OF the Intention ana pnIpoe o
which 1t passed, namely, AN Act to authorze te
Issue of United states Notes, ana Tor the Eedenp0 VI
Funding thereof and for Funding the Floating DoO' o
II was Intended by this measure tho imminent peril
IN which then placed by rebellion To make J0tea
loan from capitalists by compelling them 10 take tsal
tender United States notes. which should De pad Oul 10
the army and navy, aud for supplies aud material OF war
but al the time them fair rate Of Interest TOT
the OF their money by allowing them 10 fund lneso
egal.tender notes they should accumulate In their
hands and not bearing interest, into 70 years b9nd
hearing per cent In the opening speech wmch
/ made i'm the House the 2sth January, 1862, sad
"The demand put circulation would meet tho
present exgences OF the Government In the discharge
OF its existing liabilities 10 the army ana navy ana con
tractors supplies, materials, and munitions OF war
These would find their way into all the channels on
trade among the people and as they accumulate III the
| hands Of capitalists, they would exchange them LOT
per cent 20 years bonds Ihene SlICulAtlB notes a
the hands Of the people would enable them to pay taxes
imposed, and would facilitate all business operations pc