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 late
as lS49 thegold 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 q 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 of the 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 1878
silver was practically driven out of the
country by the fact that it 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, il 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.
ence 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 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 it 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, a 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 q legal and 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-
prcciated and gold deprecated we
might have exercised and could still
exercise our option to pay in gold. III
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.
tion 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
That the Secretary OF the Treasury is hereby
authorized to issue, In sum or sums not exceed
ing in the aggregate 5000, 900 900, coupons or
registered bends Of the United States, In such
form as be may prescribe, and Of demon natons
Of $50, or some multiple Of that sum, 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
bic semi-nnnually in such coin, at the rate Of
per cent. per annum.
Also $500, 900, 900 of four and a half
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
the law at that time fixed the standard
value of the gold dollar at 25.S grains
and the standard value of the silver
dollar at 4l2l grains and that the sill
yer dollar was then the undisputed unit
Of value, end upon this basis of law
and fact the Government took the
option in the act of 1870 that then ex-
isted in every bond which was then out
standing bearing the seal Of the United
States upon it, IN our own country or
in Europe, to pay either in silver dol
lars of 4l2l grams or in gold dollars
OF 25.S grains. 1t is inevitable that
this conclusion must be reached from
q 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 ex-
pressed upon their face the above specified cond-
lions.
What conditions The conditions
that they are payable in coin Of the
standard value of 1870, both principal
and interest. These words and condi.
tons are set forth and expressed upon
the face OF the bond itself have one
here | read from it, 1t is dated
July IS, 1877, and is 4 per cent. bond
and reads
The United States Of America are indebted to
the bearer in the sum Of $50.
This bond is issued In accordance with the
provisions Of an Act Of Congress entitled " An
Act to authorize the refunding Of the national
debt" approved July II, 1870, as amended by an
Act approved January 20, 1871, and is redeema-
bic at the pleasure OF the United States afler the
LIST day Of July, 1907, IA coin Of The standard
rdlus Of tke Uniied States said JAY II, 1870,
ri interest IN ,ueh coin from the day Of the date
hereof at the rate Of per cent. per annur, paya.
bic quarterly on the LIST day Of October, January,
April, and July in each year The principal and
interest are exempt from the payment Of all taxes
or duties Of the United States, as well as from
y, aosI an,so;,tS !" y 'V'" W VI u"''' '" "un'p'
wlsnisoros, July /, 1871.
Here is the contract written in the law
and printed in the bond. nevery one of
the bonds that my friend from n. Y. re.
ferred 10 of the $500, 900, 900 issued since
February 12, 1873. Is found the express
provision that the contract Is that we
may pay these bonds in silver dollars
of il2l grains, or IN gold dollars of 49,
grains, and not only these but all
others issued under the act of 1870,
and, yet, in the face of the law, and Of
the express, contract that these men
made with the Govermnent-me who
are not simple. men who know what