Clearfield Republican. [volume] (Clearfield, Pa.) 1851-1937, 1877-12-26

yer and gold coins. The silver dollar
was by law the unit Of value and the
money Of account. The law bases al
Treasury accounts upon this. As lat,
as lsi9 the gold dollar was given place
as coin Of the Government. With
this legal and practical situation. We
come to the period Of the war during
which the Government issued large
number of the bonds upon which this
issue arises and for which the faith Of
the Government was pledged to pay
that indebtedness in coin.
That pledge was to pay in coin of the
Government ofthc United States. That
coin was both gold and silver coin.
There can be no question about these
propositions. The Government held
for itself in every statute the option To
pay in either coin. From 1853 to 1873
silver was practically driven out Of the
country by the fact that 1t was under.
valued in the coinage laws as compared
with gold. II stood here at a higher
rate than gold and in the markets Of
the world, in London, it stood at q
higher rate than gold that is, during
all those years one hundred cents in
gold would not buy one hundred cents
in silver. This fact is found by refer.
cnce TO the tables Hence when silver
is named or implied from the word
"coin in the bonds and in the laws
authorizing them from 1861 forward it
was q more valuable metal than the
gold coin, which was in fact the money
used, so far as any metallic coin was
used, in governmental transactions.
That silver was not in use in all those
years was not by reason of its cheap
ness, but because that II was more
valuable than gold both here and in
England, and it continued SO until 1873.
We thus had "coin named in the law
and the bonds. We had the practical
fact that gold, cheaper metal, had
driven out silver, the dearer metal, and
that when the word coin was used it
meant both gold and silver coin.
Now, we come TO the effect Of this
upon the bonds issued. 1t seems to me
both a legal and a logical result that
the bonds thus issued by the Federal
Government, payable in coin, were
payable at our option either in gold or
silver coin, and that if silver had ap-
preciated and gold deprecated we
might have exercised and could still
exercise our option to pay in gold. If
this be true, where is the immortality
Of exercising our option now to pay
those bonds in silver. As TO those
bonds, there was no act Of demonetiza-
ton to base an argument upon.
We come now TO the refunding act
Of July II, 1870 What were its pro.
visions ? They are expressed in terms
as distinct and emphatic as anything
can be. II provides
Tha. the Secretary Of the Treasury is hereby
authorized to issue, In sum or sums not exceed
ing in the aggregate 5000, O,OO0,o 900, coupons or
registered bends Of the United States, 10 such
form as he may prescribe, and Of demon nations
Of $50, or some multiple Of that SUN, redeemable
in coin OF the present standard value, at the
pleasure Of the United States, after ten years from
the date Of their issue, and bearing interest, paya
BILE semi-annualy In such coin, at the rate Of 8
per cent. per annum.
Also eono nm o0o oc corr and n hale
per cents and a thousand million Of
4 per cents, all of which were to be
payable in coin OF the then present
standard value. Then we find that
tho law M that time fixed the standard
value of tbe GOLD dollar NJ 25 3 grains
and the standard valpe Of tho silver
dollar at 412I grains and that the all.
ver dollar was then the undisnuted unit
of valne and mon thia basis of low
and fact tho Government took the
ont;on In the az, of 1870 that then ex.
isted in evcrv bond which was then ou,.
standing hearing The seal of tbo IIn;ted
States mon II ,n our own conntrv or
in Europe 10 nav either in silver Adj.
lars of 1l2l grains or in gold dollars
OF 25.s grains IL is inevitable that
this conclusion must be reached from
consideration of this statute and of
the then existing facts.
Now we find what else ? In that
very section this
And the said bonds shall have set forth and sr
pressed upon their face the above specified cOndi-
"0a,, Yn IN,
W na. cohultlohs Inc cohditiohs
lha' .ney are payao,e ,aeo IN com oi tne
sunuaru Naiuo oi low, ootn prihclpai
ana interest Inese worus ana condl'
.,ohs arc SO. iorlh ana expressed upon
,nc iace ol lhs ponu ''se'l' 1 nave one
mere ,n reau IRON II, IL Is aatea
9uiy 10, 100, anu 'sa per cent ponu
anu reaus
The United States Of America are indebted to
T Tbis Bond a IL % is.ueS ] n M aooora.0e. with IN.
provisions Of an Act Of Congress entitled " An
/ Act a authortrQ lhA fafuultny af lhe NATHAN n