The weekly herald. [volume] (Cleveland, Tenn.) 1876-1888, 1877-12-06

tlOn purposes, as hereafter stated. The annual
reduction OF interest on the public debt thus made
is as follows:
BY the sale of sls5, 900, 900 four end one.
BY he psi sale Of S5O.ooO,060 four per cent
I,OVo,OO"
Aggregaipg 3,776,OOO
In October last, after the payment Of tho popu-
lar subscriptions, arrangements were perfected TO
open further subscriptions 20 the four Der cent.
loan, and a call was about to issue for ten mil
lions OF elk per cent bonds. but IL was temporari-
lY postponed by reason OF the agitation OF the re-
peal Of the Resum ption Act and the remonetiza.
ton OF silver, which tho associates believed would
prevent further sales OF these bonds. For this
reason they declined TO offer them, and no further
call OF six per cent. bonds WAS therefore made.
On the 10Th OF June, pending the subscriptions,
the Secretary informed the associates, in an Off
cial letter, that, as the Government exaots in pay
ment for these bonds their face value in gold coin,
1t was not anticipated that any future legislation
Of Congress, or any action of any depart
or Tolerate the redemption Of the pripcipai
Of these bonds, or the payment Of the
interest thereon, in coin of less value than the
coin authorized by law at the time Of their Issue
being gold coin. The general confidence of the
public that 80 just q principle OF good faith would
be observed by the Government. no doubt, largely
contributed TO the success OF the loan. Whatever
policy the Government may adopt. at any time, in
It's system Of coinage. II should not reduce the
value Of the coin in which IL pays its obligations
below that It demanded and received. The Secre-
tary earnestly urges Congress to give Its sanction
TO this assurance.
TIC 0lBu CIGtllI U u Oulttu blukths ~ III
full observance Of its public obligations, the abund-
ance OF Its wealth and resources, the rapid reduc-
ton OF Its debt, the great accumulation OF savings
among the people, the favorable state OF foreign
trade-Ml contribute 10 enable the United States
to borrow both from It's own people and In foreign
markets on the most favorable terms.
The Secretary does not doubt that, II no ques-
tons had arisen disturbing the public credit, the
six per cent bonds would be rapidly paid on by
the proceeds Of the four per cent. bonds, sold at
par in coin or Its equivalent.
The highest public credit can be secured only
by o constant Observance OF every public engage
meDt, construed according to Its letter and spirit:
Thus far this course has been faithfully pursued
by the United States. Without II. our ample re-
sources and ability to pay are OF no avail. AT q
time when we are enjoying such credit, ana rap
idly securing the benefit OF II by the reduction Of
the rate Of interest from six to four per cent, it
would seem to be a grievOus error to raise a ques-
ton about the coin in which the ~interes IS pay
able. 6elfinterest alone, without respect 10 pride
in public credit, would lead us to secure 80 great q
benefit as would be the saving OF one'thlrd OF the
interest OF the public debt.
o tho six per cent. loans about COCO, 00O,0 900 are
now redeemable at the pleasure OF the United
States, aud of the whole debt 1.452. 900, 900 are re-
deemahle before or on the 1t OF May, 1881: BY the
reduction OF the interest, from ak to four per
cent, on the public aeot q new oS reGe1%aoic. une ire
the reduction to four per cent. Of the interest on
the total debt, ~redeemAble by the 1st OF MAY. 1881,
there would be q saving OF s22,OO0,2O5 co. per an
Any measure that creates distrust or doubt will
arrest this process, and, by disabling the United
| HULL Ah[s NAAA SohAPSh NNS SAbhGNSN
payment OF the high rate Of six per cent.
II, therefore, the public interests demand the Is
sue Of silver dollars, q subject neIea1ler discussed,
it Ia respectfully submitted 10 Congress that an
express exception be made requiring that gold coin
alone shall be paid for prin oipal or interest on
bonds issued TO public creditors since February
-, 1873, the amount Of which is $592,00O.70
These bonds have entered INTO the
markets of the world. II the market
value OF the silver in the new coin is less than the
gold dollar, a forced payment OF the new CON ls
q reputation OF a part of this debt. The saving
that would thus be made is utterly insignificant,
compared with the injury done to the public credit.
Ard even as TO bonds issued prior to February
IL, 1873. public policy and enlightened seltinterest
require us TO pay them in the coin then In circula'
ton and contemplated by bolh parties as the medi-
um of payment. Silver dollars have not been in
circulation in the United STATES since 1887, and
since 1853 fractional silver coins have been In cir
~culation and u legal tender only for limited sums,
and have not been contemplated as the modi-
um Of payment since any SoG GSSnsl Sera so poGi'
valuable than the gold dollar. 1t does not become
? O Nation like ours 10 avail itself Of the market de-
probation Of silver to gain o small saving by the
payment of silver dollars instead OF the coin con-
templated when the bonds were issued. A far
3 creator saving and higher public honor can be So
l cured by the sale Of four'per cent bonds under the
rcfundlng act and the payment OF outstanding
bonds IN gold coin. An assurance given by Con,
gress Of such payment would at once secure the
complete success Of the refundinR process and
greatly advance the present high credit Of the
Another practical impeachment in the sale OF
; bonds was, that, under tho law, tho Secretary
8 could receive coin alone In payment for them, and
/, tho only existing coin That could be received, un'
der the law, was gold coin, As this was not IN
q general circulation, II was imprecttc1ble for the
people TO pay II into the Treasury for these bonds
3 Therefore II became necessary to conduct oil sales
n through third parties, who could receive bank
bills, United States notes, drafts, certificates, and
other forms Of commercial paper, and con vert
them into coin, Tie Secretary, therefore, recon-
, mends that he be authorized to sell such bonds
either for coin or for its equivalent in United
: States notos.
: RESUMPTION OF SPECIE PAYMENTS.
+ BY tho Resumption Act approved January IA
> 1875, tho Secretary Of the Treasury Is required tt
U redeem legaltender notes to tho amount OF eighty
per centum OF the sum OF National bank notes
. issued, and TO continue shoh redemption, as circu
Z lating notes are issued, until there shall be out
Q standing the sum Of $500, 000, 600 Of such legal-tendei
! United States notes, and no more,
9 In obedience TO this net, there have been iseued
j since March !, 1877, 10 Nationnlb banks, $40, 123, 095 OF
circulating notes, and there nave been redeemed
!. retired, and Cancelled, tl2,809,1 1886 OF United State'
. notes, leaving outstanding on the LIST instant, the
y sum OF 1851, 3l0,2SS.
9 BY the q act It lie provided that, on and after
Y the first day OF January, 1879, the Secretary Of thu
q Secretary shall redeem. In coin, tho United States
! legal-tender notes then outstanding, on their pre-
Q ~sentation for redemption at the office OF the Assist
ant n reesurero OF the United States, in the cltyof New
Z York, In sums OF not less than tfty dollars. And
Y to enable the Secretary OF tho Treasury L
l. prep0re and provide for the redemption In thit
act authorized OF. required, he ID authorized TO use
v any surplus revenues, from time 90 time, In thu
u sell and dispose OF, OF not less than par, IN coin
either OF the descriptions Of bonds OF the United
States described in the act OF Congress-, approved
July IL, 1870, entitled al net TO authorize the re
funding OF Tho National debt with like qualities
h privileges ana exemptions, 10 the extent neoes
a snry TO carry this act Into full effect. and to usl
the proceeds thereof for the purpoBcs aforesaid
n In obedience TO this provision the Secretary hal
anld nj mar. for coin. SIN 600 600 fOur and nup-lul