The daily gazette., 1877-12-20
Bland'S Silver Bill.
SPEECH OF MR.. HEREFORD.
OF WEST VIRGINIA,
IN THE U. y. SENATE, DEC II.
CONCLUDED,

NN' N1NH ~ ~. AohbA'hA A(SC' IL
CONCLUDED.
But we are told and threatened by
syndicate representing tor the most part
foreign capital that if this bill should
pass our bonds cannot be refunded, and
that we shall have to continue to pay 8
and q per cent. interest instead of per
cent. We are told that the public debt of
the United States to the amount of $780,
OOO, 900 bears interest at the rate of 81 per
cent. and sos, ,000, 900 at the rate of per
cent, aggregating 81, ,437, 100000 and that
If we bind ourselves to pay this in gold,
principal and interest, 1T can be funded
in per cent bonds, thereby saving to
the country annually about S2O,0O0,000.
That debt is now payable in silver. If
you make it payable in gold you increase
the amount of the debt just as much as
gold is worth more than silver. This is
the great argument urged before the
Committee of Finance by the bankers
from New York and Philadelphia.
What ddUdntdge is 1t to a man to dIneiniSh
the interest he is paying on a debt, # ut the
same time he Increases the principal and
makes itmore difficult to pay
The difference between gold and silver
now is about 3 per cent. l see this morn
ing it is q little over that. Hence the
proposition of these gentlemen who hold
our bonds is to add three per cent to our
Indebtedness which, upon 81 ,437 ,000, 900
is $43, 10000! l ask this Senate and the
country, will you do it? l answer, for
one, not by my vote.
Nor is this all, The Secretary of the
Treasury in a letter dated November 10,
| 1877, in response to a resolution of the
House of Representatives, transmitted
the contract entered into with this syndi-
cate for the purchase and sale of these
| bonds. BY The terms of this contract
| these parties are to be paid by the Gov
ernment for buying these bonds one-half
| of l per cent. payable in coin, which
amounts to 7,1S5 600; which added to
the difference between gold and silver,
| heretofore referred to, amounts to the
enormous sumof So, ,295, 900, which our in
debJedness will be increased. lappeal,to
Senators to know if they are ready to
add $50, ,295, 900 to our present indebted
| ness. | cannot believe 1t. Yet that is
the effect of the rejection of this bill for
if the bill should be rejected silver will
still be demoneuzed, aud these high con-
| tracing parties will cOnstrue our action
| into a tacit consent to the contract.
| l do not believe the people of this
country will sanction any action or non
action of Congress by which they shall
be compelled to pay this enormous debt
! in gold, and also pay 7,185,000 in coin
| for the luxury. For that is the naked
proposition, that we shall now by nom
action bind ourselves to pay this enor-
nous debt in gold and to pay to this syn
dictate 81 ,1S5,005 for the luxury of 80 do
ing.
But we are told that if we pass this bill
/ it will iniure the public credit of the ma
ton. What are the facts? Since 1861, as
shown by the reports of the Secretary of
the Treasury, we have paid to these
bondholders, in gold, who bought and
paid for our bonds in greenbacks when
they were only worth forty or fifty cents
on the dollar, the enormous sum of 81
SOL ,469, ,797 .46 in interest, and of the prin-
| cipal 1896 ,273, ,348.17, which added to the
interest, makes s., ,29I, ,743, 1853, which is
S25I, n 8 ,07669, less the cash in the Treas
ury, more than the whole debt of the
United States on December, l, 1877.
repeat 1t, all this vast sum was paid to
these bondholders in gold in about fifteen
years, who paid us for these bonds in
greenbdcks, and yet we are told that it
we pass this bill we will be acting in bad
faith and will iniure our credit. The
statement is preposterous Why all this
clamor about good faith with the public
creditors Had we not better turn our
eyes homeward and think and talk a lit
tie more about good faith with our peo-
pie, the starving millions crying for
bread? AS gold goes up everything else
goes down, values shrink; hence from
1873 to 1877, inclusive, the failures in the
United States amount to 81 ,l57 1888, 1925,
one-half of the present Indebtedness of
| the Government, and these failures are
| increasing every year and will necessari-
| ly continue until silver Is remonetized,
the resumption act repealed, contraction
| stopped, and the impost duties are paid
in legal-tenders. Then legal-tenders,
gold, and silver all will be of equal
value.
Mr.. President, now come to one of
the most remarkable and to my mind
one of the most fraudulent pieces of leg
islation this or any other country ever
saw. L refer to the manner of the pass
age of the bill demonetizing silver.
will not occupy the time of the Senate
by going over the whole history of this
most iniquitous transaction. Mr.. Hoop
er, since deceased, was at the time chair
man of the committee having charge of
bill which had been referred to his
committee, and on May q, 1872, report
ed substitute and moved to SuBend the
rules and pass the substitute, upon which
motion, among other things. the follow
ing occurred, which any Senator can find
by turning to the Congressional Globe,
part 8, page 1888.
Mr.. SALISBURY. 1 do not wish to
interrupt the Senator from West Virginia
but appeal to the Senate that the read
ing of the record by the Senator from
West Virginia shows that as matter OF
courtesy, not as matter OF right, some
gentleman of the House said, az would
like to have it read" and the Clerk COM
menced reading it, and when debate en-
sued and no further reading was proceed
ed with, and the vote was taken without
the substitute having been read.
Mr.. HEREFORD. Mr.. President, /
was a member of the House at the time
the bill was under discussion. l recol-
lect very distinctly what took place, and
what have read to-day from the record
shows the impression that had then to
be true.
Now, sir, how canthe gentleman
so torture the English langu-
age! The Speaker says "The sub
stitute will be read" and then at once
Mr.. Hooper, of Massachusetts says, al
hope not" Did he not know what he
was talking about? He said he hoped
the substitute would not be read.
He notified the country of 1t then, that it |
was attempted to put through without |
reading the bill, as he sometimes termed
it, and as Mr.. Hooper sometimes term ed |