Bristol news. [volume] (Bristol, Va. & Tenn.) 1867-189?, 1868-09-05
The BO1idhOIIeT Versus the Note
holder,


SENATOR SHERMAN on THE GREENABACK Is.
sUE-HE SAYS THAT LAWFUL MONEY ONLY
is DEMANDABLE FOR $50 BoNDs. EXTRACT
PROM HIS SPEECH AT HILLsBoRo, o., AUG.
10TH.
But here the difficulty arises-may the
United States pay this debt In lawful mon
ey, such the law compels all other creditors
to take, or must it be in gold or silver coin 7
Now, this depends upon the contract be-
tween tho parties. When q nation deals
with party, and stipulatcs to pay money,
the presumption is that the money to be
paid is that kind of money recognized among
nations, unless some other money is stpu-
lated for in the contract. Now, when we
come to look at the law, which is an essen
tial part of the contract, we find that a
kind of money Geilued in that act and call
ed lawful money, shall be legal tender, in
payment of all debts, public and private,
which must be paid in coin. Now, / have
reasoned about this matter very often, in
public and private discussion. Ihdue made
and ansloered collateral arguments IN speeches
and reports /; but my mind allcdyS comes back
to this conclusion that under the lao, the con-
tract betlCeell the creditor and the United States
lCdS that the creditor should loan the United
States L1lCtW money, or paper mOney-that
the United States would pay the interest at
six per cent. in coin, and that the United
States might, at the end five years, return to
the creditor his principal sum in the same
money loaned 80 the Government, or might
postpone this twenty years. But upon this
question there is a diversity of opinion, not
confined to parties, and the whole Of il
grows ont of the condition of our the cur
rency. The real breach of faith in this
matter is not with the bondholder-it is
with the noteholder. 1t affects the bond
holder only as it affects all other creditor.
The dOndhOlder Is no more the creditor of
the United States than the note-holder. We
haUe dllodyS complied atih our promises
but neuer to the nOte-holder. We promise to
pay the note on demand, but don't pay 1t
at all, and refuse even TO take it for our
bonds except at a discount. This is the
key to to all our financial discredit. If we
will pay our notes, or make them equal to
other money, all the trouble about the
bonds and high prices disappears. Do we
refuse to pay the notes because we can't
pay them Not at all. We could pay
them easily with the gold in tho Treasury,
or redeem the amount o. them, so that the
rest would be equivalent to gold. Why,
then, don't we do 1t? This answer is, that
to do it abruptly would so contract the cur
rency as to interfere with the vast business
operations Of the country. 1t will compel
the debtor class to pay their debts in diff
ferent medium or money. than the debt was
contracted in. 1t would suddenly reduce
the nominal value Of commodities. Prices
would fall from dollar to seventy cents.-
Now, everybody admits that we must come
to this sometime; but all shrink from the
inevitable distress at the change. Now,
what we want is to gradually bring up the
the value Of our notes TO par with gold,
and, if possible, without too great contrac-
tion Of the currency, or too abrupt a change
of prices.