Knoxville journal. [volume] (Knoxville, Iowa) 1874-1986, 1876-08-10

and that, even if the law permits it,
II would DO unjust in short, fraud
to pay the bonds aud greenbacks
In silver. These persons however,
do not understand the Fact that the
Federal silver dollar of 4l2s grains Of
silver was the only specified legal
unit of values up to 1873 made all the
bonds and greenbacks issued prior to
that time promises to pay silver dol
lars. and nothing else. But as gold
coins were also legal tender Though
no gold coin was unit of valuesl
the government and all other debt
ors had the option of paying gold If
they chose. This option was perm
anent part of the whole monetary
system, and was exercised at diff
ferent eras in the payment of which
ever coin wGs of the least value as
bullion for export. In the first half
| century of the republic silver was
less valuable for export than gold,
and all debtors exercised their right
| to pay debts in the cheapest metal.
Many notable cases in which our
public debts were paid and bank
paper was reduced In large amounts
| In silver dollars are matters of rec
n.A One of the earliasst. aid most
notable was the conspiracy 10 cause
the suspension OF the United States
Bank by tho sudden presentation of
a, large amount of its notes at the
branch at Savannah. But these
notes were all redeemed by rolling
out of the vaults OF the bank about 100
kegs Of silver dollars. All of the
bills issued by the State banks prior
to about 1850 were redeemed "A
silver dollars. tho payment OF
gold being only optional with the
payer.
But after 1850 the discoveries of
gold In CALIFORNIA and Australia be-
gan tn make such an increased sup
ply of gold that its value as compar-
ed TO silver fell. All debtors in this
country immediately again exercised
the option of paying debts in the
cheapest OF tho two metals, and now
chose to pay in gold just IA they had
chosen Ia pay in silver when that
metal was tho cheapest. Nobody
even questioned this legal right of
option under the laws of tho United
J States ut the times the option was eN
ercised. Id WAS only when we had
created vast debt, which tho gov
ernment possessed tho ounqucstionable
right 10 pay I'm whichever of the two
metals WIS cheapest, that tho holders
Of this debt, four years ago, seeing
the vast decrease I'm the production Of
gold, aud foreseciDg that gold
would by reason of its scarcity be-
come vastly more valuable than sill
yer r-foresecing this they set to work
TO get law passed which should de-
prive tho government and nll debt
ors OF tho option, which had existed
for eighty years, OF paying i'm which
ever of the two metals was cheapest,
and IL was this fraud that was com
mitted or attempted In tho law Of
February, 1873.
After 1850 the decline in tho value
OF gold, owing 10 tho increased pro-
duction in California aud Australia,
made silver relatively tho most val
liable, and the silver coins gradually
disappeared from circulation. In
fact they became 80 scarce that frac-
tional silver coins-half dollars,
quarters, dimes, etc. c.--wero not to be
had for change, they roall export
cd as bullion. In order to remedy
this, Congress enacted, in 1853, that
half dollars and the minor coins
should contain only 1861 grains OF
standard silver TO the dollar, instead
of5i2i to the dollar, AZ they had pre-
vlously. At tho same time Congress
made these lightweight fractional
coins legal tender for only s., but
the silver dollar of 5l2I grains was
still, aud
II YET, A LEGAL TENDER ron ALL
DEBTS.
The silver dollar Of 5I2i grains Of
standard silver has neUer been deDrircd
cf its character ~ aJuH Legdt-tGaderEo for
all debfs public and I)rirdfc, and we
defy any ono 10 find in any law OF the
United States anything that can be
construed to prohibit the payment Of
United STATES bonds, or the interest
on thcro, on the payment Of green
backs or the payment Of duties on
Imports In silver dollars OF fl2f
| grains OF standard silver. But the
things which now render this legal
tender character OF tho silver dollar
| OF no avail IL the fact that the coin.
age law Of February IL fOrbids the
coinage OF the above specified silver
dollars, and they arc not TO be had
TO tender In payment. But wo as
sert that if case OF such tender OF
silver dollars could be made In pay
ment OF any debt, tho Supreme
Court could not decide otherwise
than that 1t was legal tender in full
for the debt. The thing therefore
that needs 10 be done to restore the
silver dollar IN io repeal section 3,5IG
| Of tho Revised Statues Of the United
States this being one section Of the
coinage law OF February, 1873, J
which prohibits the coinage Of tic
Federal silver dollar.
But there IL still! another trick oi
tho bondholders and capitalists con
cealod la the coinage law Of Febru
airy, 1873. That was lin section 3,5il
Revised Statutes OF the United States
which specie fixed q gold dollar o.
25 $40 grains "a the