The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1876-08-25
S lver and U. S. Bonds.

DuFlnS Tue ul6CuSSlOu VI Gue mdbtcE
appertaining to the silver coinage OF the
United States and the decentralization of
silver by the Act of 1873, much stress
has been laid by the opponents of silver
upon the gross injustice there would be
in making payment of the bonded in
debtedness of the United States In silver
coin. In order to make their case more
mOnstrous than the facts would warrant,
even according to their own view oil
them, these opponents of silver money
have not been deficient in the exercise
of their inventive faculties in producing
enormties unfounded in fact. They
have, accordingly, freely asserted that
payment Of our bonds in silver would be
shameful violation OF contract on the
part of the Government, whose bonds
were made payable in gold.
Mr.. HATCH, a new York banker, pub
lished his views in which he insists that
the legislation in Congress on the sub
jeot Of our bonds 'implted payment in
gold" The n. Y. journal of Commerce.
ther than Mr.. Hatch, and asserts that
the promise in the bonds was to pay
them in gold coin. That journal said
that, in order to avoid the possibility Of
any modification of the contract set
forth in the bond, by subsequently de-
basing the gold dollar, "the old plates
were laid aside and new promises were
engraved, stipulating not only to pay
the debt in gold coin, but in gold coin of
the United States Of the present 2Ceigbt
and fneneSS." The Journal Of Commerce,
from which this is quoted, is a most rep
utabe paper, and yet in this statement
it is utterly mistaken. We do not believe
that the Government ever printed sucn
abond. II it did, we know that it never
issued such a one. There is no such
stipulation to be found in any United
States bond in existence, and never was.
Nor is this all, another New York
paper, one with the highest possible pre-
tensions to both dignity and infallibility,
The Nation, makes this assertion
"When our bonds were issued, it was
expressly stipulated that, to guarantee
forever the payment Of these IN gold, the
customs receipts should be payable only
in dold COIN" In this statement the
Nation is just as much in error as was
the Journal Of Commerce as to the new
plates and revised bonds.
And thus it is that it has become
common opinion that the United States
bonds are actually and expressly made
payable in gold coin. And the argument
then is, that to pay them in something
else OF less value than gold, would be
of public faith. The argument would
certainly be good, unanswerable, from
such state of facts. But we utterly
deny the existence of the facts. Those
assertions are pure fctions. Whether
those promulgating them will attribute
their mistakes to ignorance or to pre-
Varication can make but small differ
ence. Their argument is worthless,
because baseless.
The solid fact is that there is no act
OF Congress, nor has there ever been an
act, that declares any bond issued, or to
be issued, by the Government, to be pay
able in gold. Without exception, all
such acts specify that such bonds, ex-
cepting the special currency bonds, are
payable, principal and interest, sin
coin." The first act authorizing the is
sue of bonds, passed in July and amend
ed in August. 1861, says sin coin." The
act of February, 1852, issues other bonds,
redeemable at pleasure sin coin;" and
provides that the customs receipts shall
be Sin coin" (not in "gold"), and shall
be applied, first, in payment OF United
States bonds sin COIN" The act OF
March 8, 1858, authorizes bonds to the
amount Of $500, zoo, 900, pay able Sin coin."
Ths act of June 30, 1864, for $400, 200, 900,
has the same stipulation. The act of
July IA, 1870, Tor refunding the public
debt, makes its bonds payable sin
eein."
And when, in 1869, it became ques-
tiOn, in view of the legal-tender act, as
to how our public bonds were to be paid,
Congress passed an "Act to strengthen
Public Credit" which declared that, in
order to remove any doubt as to the |
purpose Of the Government, "the faith |
OF the United States is solemnly pledged |
to the payment IN coin, or its equivalent, |
OF all the Understanding obligations, |
except in cases where the law authoriz-
ing the issue of any such obligation has
expressly provided that the same may
be paid in lawful money or other cur
rency than gold and Silcer." In this
carefully worded and well considered
act, Congress is found using the words
"coin," and "gold and silver" as con-
vertible terms. In this connection,
therefore, silver is construed to be just
% much 0coin" as gold lie.
And when, again in 1870, the refund