The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1868-01-25
SPEECH OF
Hon. Samuel F. Carey, Of Ohio,
The Bank and the Bond Questions.
DELIVERED IN TEE HOUSE OF REPRESENTA-
TIyEs, JANUARY 7, 1865.


DELIVERED IN TEE HOUSE OF REPREs ENTA-
rIyEs, JANUARY 7, 1858.
Ma. CHAIRMAN: Whatever diversity of
sentiment exists in this House in regard to
the public debt, the proper form and manner
OF its payment, we are united in the opinion
that this debt must be paid to the uttermost
farthing. Come what may, the nations hon.
or must in no way be compromised or i'm
peached We must not do or permit any
thing to be done which will impair conf
dence in the integrity of our national char
acteF. Public faith is the basis Of all private
faith, and national reputation would result
in universal Generalization 1t is most IN
wise for any part Of the community, and
especially that portion understood to pos
sess the Government bonds, 70 charge the
intention Of Reputation upon those who diff
fer from them as TO the legal, equitable, and
Just mode Of payment. The "mad dog cry'
Of rep1diation should not deter any from
carefully considering aud discussing this
subject Persons with whom the term 10
80 familiar should know that il requires no
act or declaration Of Congress 90 bring
about sUen q catastrophe; that the whole
matter would be resolved by the discovery
that the resources Of the country would not
pay the interest, much less the principal, of
the public debt in addition to the expenses
Of the Government, and the further discov-
erv that the people would not impose upon
themselves intolerable burdens to that end
The national debt is great and its burden
very heavy, and the man who, by an unjust
and forced construction OF the law against
the interests Of the people, seeks 10 make
the debt greater and the burden heavier is
the pioneer Of reputation. They who claim
that the principal Of the $4,000, 000, 900 Of
the hve-twenty bonds, payable In lawful
money, are redeemable only III coin are doing
more to debauch the morals of the country
and blunt the sensibility to national honor
than all other influences combined. Justice
is the only sure foundation Of public faith
and when the sense of justice is outraged the
sense Of obligation toward all by whom that
outrage is attempted is weakened, If not de-
stroyed. This is a principle of universal
application, and we caution the bond holders
to beware lest the overburdeued tar. payers
shall have their sense Of obligation so weak
ened by unreasonable exactions that they
will entirely repudiate the debt which they
now acknowledge to be Just. let any candid
man take a six per cent. hve-twenty bond
sci Eve per cent. ten-forty bond, examine
and say, IL ne can, whether the principal oil
both 10 payable in the same manner. Il is
not possible for him to avoid admitting that
there is a difference. What Is the difference ?
The law authorizing the five per cents ex-
presslY provides for the payment Of the prin-
cipal and interest in coin, while the law au-
thorizing the SIX per cents. tive twenties)
declares that the interest shall be paid in
com IL the principal as well as the inter
est Of tie latter was payable in coin, why
not either SO nave declared or say nothing
about how the interest should be paid
When be turns to the law providing for the
issue Of legal tender notes (ard the fact Is
published on the back Of every note issued
be hnds that they are receivable as money
Tor all debts, public and private, except IN
terest on the public debit that is to say, for
al debts, public as we'll as private, except
that which Cor gress had decl9rea specifically
should be paid in gold; and nc such declar
alton has been made about AIRY debt OF the
United States, except the interest >tne nVe
per cent (ten fc-ty) bonds.
When these laws have been carefu. > ex-
Amined let the honest searcher after sGpto
get 6n old advertisement f-J tue agents of
the Treasury Of The Government loans, 10
which he VIII find that capitalists are urged
TO invest in tae 7e per cents; (ten-forties,)
because both incipal and interest were
payable in gole aud then let him forever
after hold his peace and no longer gable
over the dicIa Of any man moments{ily raised
over the heads Of the people on thespedestai
Of office. Let him not exchange bis common
sense for the declarations of distinguished
gentlemen about the "generai undsrsiand-
ing" that the principal as we'll as the inter-
est Of the fve-twentics was to be paid in
coin when it is manifest that the Law never
could have been SO understood BY any ssha
had any understanding tn-&zz.1s And
let him not act in snrh- pad faith 10 tf 2 hold
ers Of The ave per cents, who were wiAIixe
tOioen their money to the Gcvern4ent al
one per ceit. IessAS rate of interest for the
Wy reason that the principal as we'll as the
interest was payable In gold. I say ia such
Dad faith, Tor these holders of the six per
Cents. ought to know that In setting no this
claim they sre placing 10 jeopardy with their
own property the five per cents, shout whose
payment ID gold there is no dispute Yes.
Mr.. Chairman, they are the regulators, and
not those who seek to tighten the burdens
OF the people by paying the debt in legal
lenders or In any other method consistent
with the law creating such debt. | am aware
that Mr. Chase, then Secretary Of the Tre&s-
uTy, aid say that il was lair to conclude that
these bonds would be paid in coin, as it had
always bees the practice Of the Government
thus to pay its funded debt. The very TACT |
that he was consulted about the construction |
Of the law and the practice Of the Govern |
ment is an admission that the law and the |
bonds themselves did not provide for coin
-1ayment
And it must fuftber be borne in mind that /
this letter from Secretary Chase was ir,.re- 4
ply 10 an inquiry from Frankfort in 1864 |
and long after every enc Of the bonds ID.
question had. been negofisted. This should !.
foreTer put to silence all the clamor about
the liability Of the Government for ths rep
reservations Of the Secretary of the Trsasurv. /,
as these opinions were not an iniacemeni Ii
70 capitalists to purchase bonds. They had
already made their investments, and were
only considering the magnitude OF their
Speculation.
Il was true, a. the Secretary said. that IL i
had been the uniform practice Of lie Gov
eminent to pay its funded debt in coin. for
inc best ct all reasons, that until the nae-
sage OF the legal tender act We never had4s
anything but coin for the payment Of any II
oe0t, public or priv-ts. Doubtlesi thoee :
who invested in these nve-twenty bonds sun-
posed that specie payment would bsresumed /
oefors the topds were redeeuAbia, and that /
II there should shli he lsgsf isadeff Ioies IN /
Or llation taey wor.L DE az eoual comma. |
cal yalue win gold. This bslieE and not I
the Law and be bond, was TIC ground OF
Their expectahsn OF coin paymSnts This I
expsctaticn has MOI bean fealiSads and no~ Z
that the able representatives o. thess bond 4
Bodies talk eloFently about filth, depre- I