The daily gazette., 1877-12-06
TO SECRETARY sEE HERMAN.

MRssRs. COLGATE & co. RESPOND TO THH
HEAD OF THE TREASURY DN THE SUB
JECT OF SILVER FoE BONDS.
The very decided opposition manifested
by Secretary Sherman to a proposition
suggested for purchase OF four per cent
bonds, interest and principal payable in
silver, has within a few days attracted
considerable public attention. The fol
lowing reply has been written by Messrs
James b. Colgate and Co.
NEW YORK, Dec. 3. 1877.
Hon. John Sherman, Sec'ry oftlte 7reastr11:-
DEAR SIR-Yours OF the LIST inst. is this
day received. AS it was published in the
evening journals of Saturday last a copy
was doubtless procured from your office,
from which source ours of the Goth ult.,
probably obtained its publicity, as we
furnished no copy for the press.
We simply inquired of you whether
you would accept an offer for 100000
United States four per cent bonds, inter-
est and principal payable in silver dol
lars of 4123 grains standard hneness, ard
we to deposit in the United States Assay
Office an amount of silver bullion which
would produce the sum required to be
paid in such silver dollars at par" We
look for simple answer yes or no.
We are at loss to know what Interior
ends you have to serve in replying to our
letter in such an extraordinary manner
and so early furnishing a copy to the
press. We thank you, however, for the
calculation of profits, specious as it Is,
which you suppose we would make, pro-
vided our offer had been had been ac-
cepted. We think it, however, entirely
uncalied for, as il Is generally conceded
we are fully competent to make our own
calculation. AS one good turn deserves
another, will you please eXtuse us if we
make suggestion as to how the Treasury
could protitably use the 10000 silver
dollars wa offer in payment? 1hese sill.
yer dollars from the year 1862, at which
time the government began freely to is
sue its six per cent. bonds, were always
at premium above gold, until they were
dropped from une list OF authorized
coins In 1874, and at whiph time they
were worth about par in gold. We sug-
gest that the Treasury could now Use
the $50, 900 silver dollars amt make from
1t Sl60, ,3S1 02 subsidiary coiu and dispose
of it to the people at par in currency,
thereby making clear profit to the
Treasury of 81 ,038.02, but we would ask,
Do you think this fair or honest?
The Treasury has gained millions of
dollars the past few years minting sub
sidiary coin and selling it at par In cur
rency to the people, each Il 200 of which
weighing 555 ounces less than $1,000
of the discredited dollars of our fathers,
and we would ask, Do yoh think this
fair or honest?
Why not issue silver bond? We
have about s64, 100000 of currency bonds
interest and principal payable in curren-
cy, and aboutS1 200, ,000, 900 Df bonds, pay
able in coin, now gold, BECAUSE the sill
yer dollar is demonetized, and why not
have bonds payable in silver? The cou-
stitution of our country has deprived the
several States of the right OF coinage and
makes gold and silver only a lawful ten
der. This being so, we would, with all
due respect inquire whyone man whodigs
1000 of gold from the earth should
have thel product OF his labor made into
coin without expense, and another digs
81 900 of silver and the product of his Ia
Dor be reviled,i stigmatized as a swindle
and refused coinage? DO you think this
fair or honest?
Our proposition was distinct, that the
principal and interest oh the bonds
should be paid in silver dollars. The in
umation from so high an authority as
yourself that the government might re-
duce the value of the DOLLAR aud might
hud Ouls eApeuleuI 10 pay cheaper dol
lar so convenient" that 1t might think
1T better to adopt the Latin ratio, I53 of
silver to one of gold, and cbin dollar of
4OO of silver with which 30 Pay you"
"Or it might think'' a subsidiary dollar
containing 385 grains is good enough "to
pay bondholder" The intimatlon is
exceedingly painful to us, as it would be
to others.
We should not have written the above
had you simply declined our offer, but as
you launched out Into profits, fairness,
honesty, &c, we deemed it proper to re-
ply. With great respect, truly yours.
JAMES Il. COLGATE & co,