Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1868-08-03
The Tribune's Argument for Gold
for the BOndholders-New York
and Ohio RepudIaffon. "a


for the BOndholders-New York
and Ohio RepudIaffon.
The Ne,o York Tribune is the bond hold
ers' organ, in their plea for gold. Against
the evidence of the leading men of its
own party, that the Government bonds
were to be paid in greenbacks, the cur
rency in which that debt was contracted,
that paper insists that the payment was
to be- Ia gold. It's strong ,argument-or
rather, we should say, the argument it in
sists upon as1inal in its determination of
the question-is introducedin the follow
ing:
The People Of the United States owe
National Debt of Twenty five Hundred Mil
lions of Dollars. Two Billions of it are in
regular loans, drawing interest which is
specifically payable in coin, but with re-
gard to the greater part of this, the bonds
say nothing as to the medium in which the
principal is to be paid. And why should
they? No bond ever issued by our Gov
ernment prior to 1868 euer did say ''the
principal payable in coin or its equiva-
lent" because "dollars" sutficed. Every
one knows what q dollar is, and what an
agreement to pay so'many dollars involves
and implies es1SAs . a. 50 EssztA : IA
exchanged by Government for money, the
purchasers; paid gold or,its equivalent for
them, and they were to be paid in kind
Then there was no legal tender for Gov
ernment or other indebtedness except coin,
and hence there was no necessity for nam
ing the kind of funds in which payment
was to be made. Prior to the issuing of the
7-30 bonds in 1868, greenb backs had been by
law made legal tender for debts. The
debts, for which these bonds were issued as
certificates, were contracted in greenbacks,
and that too at time when these green
backs Were worth but ,331ss 331ss cents on the
dollar in coiny and the concurrent testi-
mony of General BUTLER, THADDEUs
STEVENS and other Radical leaders
shows that they were to be paid in
kind. The interest on portion of
these bonds was to be paid in gold,
and that fact was expressed in the
bonds, but not so the principal. Had the
intention been to pay the bonds in gold,
that fact would have been expressed in
terms, as was the case in the promise to pay
the accruing interest, but the fact that it
was not so expressed is of itself, the Tri-
bune to the contrary Notwithstanding "a
strong argument, if not of itself conclu-
sive one, that these bonds were to be paid
in "lawtul money"-the same in which the
debt was created.
Prior to the time that greenbacks were
issued and made lawful tender in payment
of debts, Ohio, New York and other States,
in prosecuting their schemes of internal
Improvement which have added so much
to the wealth of the States, borrowed
large amounts of money from foreign cap
italists. The foreign capitalists paid their
money in gold, and the sacred promise was
given that the principal and the interest
was to be paid in kind. Gold and silver
then the only lawful tender-it was
the only money recognized between ma
tfons-the only money known to the civil
lied world, in which the people of one
country could pay their debts due to those
of another nation. ?. @-9S
For time the interest on the State debts
of New York and Ohio were paid accord
ing to- contract and the credit Of those.
States stood "a No. 1 in, the money market
of the Old World. But, unfortunately for
Ohio's credit and that of New York, the
party that now claim gold for bonds, for
which greenbacks were paid and which
were to be repaid in the same currency,
had the ascendancy in the State councils of
New York and Ohio, andIthe contract was
Alta time that the greenback
currency was worth but one-third of its
face Tfhe man who sold his one thousand
dollars in gold receiving three thousand
dollars tlerefor-these "honest lagos" rec
solved to pay the interest on the State debt
in paper, instead OF gold. and, because the
foreign and domestic creditors'of Ohio7and
had no recourse, in law-tor
greenbacks were then ld,ctul tender-they
were forced to take what they could get
and Instead Of six per cent. interest in gold,
they were forced to receive it in depreci-
ated paper, which netted them, at the rate
gold was selling, but one dollar every six
months for each one hundred dollars loaned
in gold to the States of New York and
Ohio, upon the plighted faith that both
principal and Interest should be paid in
gold and silver.
Where then was the thunder of the Tri
6une heard at this violation of cpntract--th
reputation of the solemn promises of New
York and Ohio to the men who had loaned
the money to develope the resources of the
States? The Tribune was silent. Mo-
geofunfairness-noneof repudiation-'
was heard. Mo- even hint that the trans !
action had neither the merit OF honesty or
off necessity as ana excuse, made, but
the whole affair was passed over as fair
business transaction. And afterwards,
Republican Legislature of Ohio or
dered the gold and silver in the State: Trea-
sury, accumulated to- pay the interest on
the State debt, was sold at premium, and
the deprecated paper received therefor was
forced in payment of interest on the
creditors of the State, not single news
paper of the Republican party, now clamor-
ing for gold for the bondholder, uttered a
word of protest. against the transaction.
To pay the Government bonds in green
backs. when the law contemplated they
should be so paid, is no reputation, but is |
a living up to the contract in letter and in
spirit. 1t was repudiation when Ohio and
New York paid the interest on the for
eign and domestic debts of these States,
which were contracted to be paid in gold. |
The regulators were the men who now
would increase the debt of the country |
many millions by paying it in gold, when
it was contracted in greenbacks and in
it was well understood that it |
was alone to be paid.
: A New Way of Getting a
Meeting. i
Some time ago the Democrats of the |
I OH ~,