Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1867-12-25
OngreSsIOnaI.-RepOrt Ofthe
Finance COmmfttee-Sher.
mans Bill.

: law Dut 70 duOpb q DO
icy that will preserve the public faith
, restore confidence to the people, sta
bility 10 our business interests, and We
will appeal to the sense of Justice o
the people. If it is %unhappily draw
! into the arena of political fnancia
. matters it ought not to be in auy sens,
partizan, but may become so unless
. Congress can adopt g policy meeting
the requisites. The contest on thosC
most delicate and difficult questions
may be transferred to the husIings
where the heat of party strife may lesd
TO dangerous results. The Committee
examine at length the provisions of the
bill, state the condition of the public
debt, and then taking up the question
as to whether the 5 20 bonds are re-
deemable in any other money than in
coin, if the United States say the du-
ties on imported goods and interest on
the public debt are by law excepted
from the legal tender clause. This i'm
plies that the principal of the debt is
not excepted. The construction drawn
from the payments Of the previous
loans in gold is answered by the fact
that the act under which those bonds
were issued, expressly declares that q
note shall be lawful money, as well as
gold, and shall be receivable in paw
ment of a public debt. The argument
thst such q construction was put upon
the law by the agents of the United
States is answered by the fact that this
was not a mutual construction recog-
nized BY both parties g part of the con
tract, but was rather an opinion based
upon a s~upposition of a state of facts
which, after the five years had expired
did not actually exist. II is clear that
if the bonds are payable when due in
legal tenders, they are ~redeemable az
| ter FIVE years from date in the same
kind of money. The word payable"
implies q duty or obligation that must
be performed at the time stipulated /;
the ''redeemable" implies n discretion
airy power, which msy or may not be
exercised ; but the same kind of mon
ey in the same mode rendered viii re-
deem q note or pay q note.
The Committee have deemed it their
duty to present the arguments in favor
of redeeming the bonds in legal tender
notes, for It can not be concealed
that this construction has been ADOPT
ed BY many who discIaim all purpose
to evade the public engagements. Still
the admitted fact remains that these
bonds were generally taken up on the
supposition that they would be paid in
coin, and that this was expressly de-
clared by the authorized agents of the
Government in negotiating the loan
That such declaration must have been
known by Congress and not negatived;
that it was sanctioned by three success
sive Secretaries Of the Treasury; that
upon the faith Of it the bonds have
been continually higher in the market
value than notes, and the public senti-
ment both in this country and in
Europe would regard it as a breach of
public faith. Public credit is so sensi-
tive q quality that time cannet restore
it when impaired. 1t is better, far, to
forego a doubtful privilege, if in the
judgment OF impartial men we have no
right to exercise it; but the doubt
be promptly removed. The dis
Of The question manifestly i'm
pairs the public and private credit
Until 1t is settled, no new loan can be
negotiated. The public mind becomes
accustomed to the idea OF reputation,
and the widest schemes of paper mon
sy, worthy of the days of George Law,
the foundations Of public and
credit. 1t has, the Committee
been provided by Congress, by
resolutions, which declares that
the f~ve-twenty bonds are redeemable /,
only in gold. This, instead of settling
The question, win only create divisions :
and parties, and the resolution, when
nassed,- will be the subject of agitation
and repeal. !
These considerations induce the +,
without deciding the ques- {,
10 propose a substitution of new
bonds, clear ndezplicit in their terms I
or the $40 bonds as they become re- /
leemable. This exchange must depend
Upon the voluntary consent of the
but it is believed thst the great s
,ody of them will readily make the ex-
and that the government Will ]
,e able to sell the new bonds at a rate +!
hat viii redeem o. purshase sn equal !
mount Of the 500 bends. !
1t is the manifest interest of the !
oondholder as well as of the tax payer !
have his rights clearly defined, and :,
hat Congress after full consideration, Z
hould so settle them that they viii :
lot be affected by any uncertainty as to !
he manner OF their payment. If this :
.xehange is refused by the bondholder !
) viii be time enough to determine !
whether, by tae condition of his bond, !
le may not be paid in lawful money. 4
The plan proposed establishes the n
maximum of currency at the amount ]
ixed by law, and may be diminished
its payment for taxes, and Its con- t
into bonds. This process would,
I is believed, rapidly restore our cur
ency to the standard Of gold without
he severe disturbances and uncertain Q
y caused by the present system, and Q
Fhen the restored credit ofthe govern I
nent advances the market value of .
'ur bonds to the gold standard, specie I
,syment may resumed and maintained. :
his plan is in accordance with the
established uniform practice OF our gov 2
rnment prior to July l, 1868, and of o
treat Britain during the long period
T the suspension Of specie payments A
1877 tor1823. The holder of the b
aper money paid out was allowed at "
lime to convert it into a bond or Is
nnuity. The note forced upon the Il
during the suspension of specie al
ayment was never allowed to be ofless Of
slue than other securities held by o
ublic creditors.
The Committee are Of the opinion K
nat the time is not far distant when it P
i'll become the duty Of Congress to re- =
cal so much Of the existing law as q
lakes a United States bond legal ten D
in the payment Of a debt, public n
: private. This provision was adopted y
18th extreme reluctance, and un der T,
lie pressure of Overwhelming necessity. n
The Committee having stated their :,
Jews upon the difficult propositions. of F
le bill, add that they do not consider
lat this measure does embrace all the
nancial measures demanded by the
nblic interest but they present it in
le hope that it may not be embarrass-
l by the financial problems now excl 70
ng general discussion. o.
Mr.. SHERMAN, from the Finance =.
Ommittee. reported a bill for the H.
of the national debt and for af
conversion of United States notes.
said while the Committee was sat on
Ted that the leading idea of the bill W,
as right, they should accept all sug-