The New Orleans crescent. [volume] (New Orleans, La.) 1866-1869, 1869-03-07
sCHENCK's BILL.

Before its adjournment, Congress passed
bill, introduced by Mr.. Schenck OF Ohio,
and having for its object, as expressed
in its title, the strengthening of the public
credit. In order that it may be seen in what
manner Mr. Schenck proposes to strengthen
the public credit, we republish the bill, which
is as follows
A BILL to strengthen the public credit, and relat-
ing to contracts for the payment OF coins.
BE u enacted bv he Senate and House Of Rep
resentottces Of he United States Of America an
Congress assembled. That In order TO remove
to discharge all just obligations to the public
creditors and 10 settle conflicting questions and
interpretations OF the laws by virtue OF winch such
obligations have been contracted, II Is hereby
provided and declared that the faith OF the United
States is solemnly pledged to the payment in coin,
or its equivalent, of all the interest bearing obi
cations of the United States. except in cases
where the law authorizing the issue OF any
such obligation has expressly provided that
the same may be paid In lawful money
or other currency than gold and silver; Prouided.
hOtcere. That before sny of said interest bearing
obligation, not already due, shall mature or be
paid before maturity. the obligations not bearing
interest, known as United States notes, shall be
made convertible into coin at the option OF the
owner.
SEC. .. And be Il further enacted. That any
contract hereafter made specifically payable In
coin, and the consideration OF which may be q
loan of coin. sale OF property. or the nderlng
of labor or service Of any kind. the price OF which
is carried into the contract, may have been ad-
justed on the basis OF the coin value thereon, at
the time of such sale or the rendering OF such
service or labor shall be legal and valid. and may
be enforced according TO its terms; and on the
trial of suit brought for the enforcement of any
such contract, proof of the real consideration
may be given.
If ever there was conspicuous illustration
of the production of an abortive mouse by a
parturient mountain it is furnished by this
question. 1t will be seen that the bill de-
clares that the bonds shall be paid in gold,
except when otherwise expressed on their
face. But this is simple expression OF the
opinion of the members who voted for the
bill, having no effect whatever on the original
Congress. If the question is question OF
Interpretation, succeeding Congress is just
as competent as the last Congress to make the
Interpretation. But, leaving this point out OF
consideration, the condition contained in the
first section deprives it of efficiency. The
nNe-lNeullts are uOt uue OeiOre l"on0y ySai :
from the date of their issue but they may
be paid at any time after five years, at the
option of the government. But the govern
ment cannot avail itself of this privilege,
under Mr. Schenck's bill, unless greenbacks
are first converted into gold. OF course,
when greenbacks are convertible into gold, il
makes no difference whether the bonds are
paid in coin or in paper. Moreover, if, al
the expiration of twenty years there is enough
gold on hand to pay them, greenbacks and
coin will, before that time, have reached an
equilibrium as to each other. In this view OF
the case the bill becomes simply meaningless
and inconsequential The second section is
equally superfuous since the decisions of the
Supreme Court affirming the legality of con.
tracts To nav in cold.