The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1874-08-04


issues OF the banks, that il shall not be in .
their pJwer 10 put into circulation more curren. /
~ sah they hye oS e
the government is simply a measure OF safety I
for the people by preventing over-issue.
CONTRADICTORY RESOLUTIONS.
But, according 10 this resolution, the govern
ment should issue $751; 200 of additional green
backs for circulation instead of the bank notes
These additional greenbacks will be public |
debt to that amount, though not drawing in
terest and the very next resolution declares
that the government shall return TO specie pay /
ments as soon as the business Interests OF the I
country viii permit. 1t requires little refSc- !
ton TO see that these two resolutions are ex-
actly contradictory, and that the tirst puts it
OuL of the power OF the government 10 comply
with the second. II the go ,ernnent can not
procure the gold wherewith 10 redeem s3Sz,OOO,-
zoo of greenbacks the present amount in ciTcu-
iation how will il be able to redeem the green
hacks when the volume shall have been in
creased by adding sS5t,t0O.OOO more In place e, OF
600 of greenbacks? The difficulty of returning
10 specie payments will be increased nearly lOJ
per cent. and according to the generally re-
ceived theories this will largely aed 10 the de-
probation OF the greenbaelSs.
THE PLEDGE OF 1864.
In the act of 1864 a dis met pledge was given
TO the creditors of the government that the
whole volume OF greenbaclxs should never ex-
esed 500, 900 GOETHE amount authorized by the
acts of 1862 and 1858. The recent bill which
passed Congress and was vetoed by the President,
assumed this pledge to be binding, and hxed the
maximum amount OF green backs a. SiOooooJtV % ~
increase the issue Of greenbackS Sj9i,VVJVOJ, Is
bsset with difficulties ana contradictions on
hapd m & ana Mhfs & hs fe ere be
| the leaders OF the democratic party, embracing
/ the oldest and most distinguished members OF
1 this convention, as unconstitutional, upon the
l ground that Congress had power 10 make
ANYTHING but gold and silver legal tender IN
payment of debts, When Chief Justice Chase
delivered the opinion of the majority OF the
supreme Court TO the efiecS MAJ "a .e sc s,G 8 d %sde
ers Of the democratic spaity throughout the
/ United States; and when aiterward President
| bench, and this decision was reversed and the
enns!ituiionality of those acts affirmed, he was
charged BY the politicians and pire,s ,t OF the
| packed the Supreme Court Tor the purpose of OBJ
tanning decision In gross violation OF the Consti.
peace, long after the war is over, we find por-
tion OF the same politicians urging that the num-
Der of greenbacks should be doubled, and that
| ment OF the hve-twenty bonds issued and sold
by the government years before. The position
Of these Democratic leaders is subject 70 this
| critieism-that during the rebellion, when the
cuiion Of the war, they denied the power; and
now in time OF peace, TO gain q political adNan-
tage, they assert the power, though II would In
volve broken pledge, and is stripped of all plea
OF necessity.
A DOUBLE REPUTATION.
And this brings me To the consideration of the
first resolution of the platform:
"That weare in favor of the redemption Of the
! hve-twenty bonds in greenbaclxs, according TO
the law under which they were Issued
The existing greenbacks were authorized and
fiSettwenty BONDS. The law creating them de-
elares and upon the bs ck ofevery note is printed
'lhls note Is legal tender AT It's lace value Tor
all debts, public and private, except duties on i'm
ports and interest GA the public debt" II was
purchased at par from the government by the
people, and IL was coniended with great force
Inc law had right to use these notes in the pay
ment of those bonds. In fact, II was difficult 70
see how, upon principles of equity and the read
ing of the law, this conclusion could be avoided.
Nevertheless, it was strenuously argued that
there was an understanding outside of the Law,
and manifest public policy which required
those bonds to be paid in coin.
THE PEN0LEToN THEORY.
But in 1861 Mr.. Pendleton, a distinguished
democratic leader, advanced the proposition
that year after the bonds had been sold, Con-
gress had the tight 10 make further issue of
greenbacks beyond the four hundred millions
, authoT ized by The original acts and TO make
them n legal tender In payment of those pre-ex-
listing bonds, and that these new greenbaclSs
should be issued in such quantities as to enable
the government TO pay of the DOndS al n rapid
rate, aud stop The interest. 10 me this PROPOSE
tion. To require the holders OF the five
twenty bonds To accept in their payment the
original greenbacas with which the bonds had
!, beed bought from the government, expressly
made legal tender in payment OF all public
debts, except interest and duties, was equitable,
and a measure of which they had the notice
but to require them 10 accept in payment a ;ur-
had purchased their bonds would be not only
in violation OF tn pledge given in the act OF
and equities of the original transaction and in
consistent with national faith. This proposition
} of Mr.. Pendleton had the support of many dis
! tinguished leaders OF the democratic party in
r the Western States; and resulted in very gell-
eral ami somewhat violent discussion OF the
Soon after the Inauguration of General Grant
in March, 1859, Congress passed an act declara-
tory of the law, intended TO settle the whole
question IN which il was provided that the We
twenty bonds were payable only in coin, princi-
pal and interest. This act was intended 10 be a
settlement of the controversy 10 the mode of
paying those bonds, ard was generally received
3 the question, ard believe it must now be so re-
ceived. Since that time these bonds have been
bought and sold upon the express declaration OF
coin, and the government is estopped IRON now
asserting the right to pay them in any other way.
| Whatever may have been itsnghts TO paw them
with the original green backs that was expressly
/, waived by this act, and the who world was in
vited 70 deal in them, upon the pledge thst they
should be paid in coin. The d democratic plat
:, form, therefore. involves double reputation:
backs with which to pay the five-twenty boz DIS;
and secondly, by proposing to repeal the pledge
those bonds have been bought and sold Tor more
, than five years.
FINANCIAL CONDITION AND PROSPECT.
1t may be safe, therefore, to predict that the
settlement of this question by the act OF 1869 will
not be disturbed; thaC ii wilt not be in The pow
er of the democratic party of Indiana reopen
: the question, and that the national bank system
will not de abolished. 1t may also ne assumed
that the pledge contained in the act of 1884, that
the whole amount of greenbscks should never
exceed SiOOOO,g0O, will be accepted valid and
and taas the Policy So, Of IN making ak an
as substitute for national bank notes for
any other cause, has been abandoned, and in
fact that the volume of greenbacks will never
exceed S3S2 006 900. the amount now in circula-
ton. And the greenSack probleEa which re-
mains to be solved, is the REDEEM ption of these
notes in coin at tho earliest practicable period,
as promised by the act of 1859. That this period