The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-12-12
sta nlsy Matthew'S Assault on ehs
Public Credit.

| Bland Silver bill is not brazen enough to
declare in downright terms that the Princi-
pal and interest of the national bonds shall
be paid in silver, but only says it by impll-
cation. But Mr.. Matthews stands up in the
Senate and openly advocates resolution
affirming that payment OF the ma
tional debt in silver would be no
violation of the public faith. This
Mr.. Matthews, having brought himself into
discredit and contempt with both political
parties by his clandestine bargaining with
Southern politicians after the Inauguration
of President Hayes. by his tricky conduct
in supplanting Mr.. Garfield, and by desert
ing the man who persuaded Garfield to stand
out of his way in the contest for the Sena-
torship, now makes q desperate effort to re-
trieve his lost popularity in his own State
by outstripping the widest and boldest sill
yer fanatics OF Ohio. Having deserted the
President by voting against his Southern
policy he turns against him also on his
financial policy, as if he were anxious to
display his treachery and ingratitude to the
friend who lifted him to his seat in the
and so faithful republican as Mr.. Gar
field
Mr. Matthews rests his whole case on
the fact that the word ''coin" and not the
word "gold" is used in the various acts OF
Congress relating to the bonds This would
be an equally good argument for proving
that the public debt may be paid in copper
or nickel, both Of which metals, as well
as silver, are coined at the Mint. The
generic word 'coin" is used rather
than the specific word ''gold," in order
to accommodate the law to the frac-
tional parts of payments. II mer-
chant pays at the Custom House duties
amounting to SIT 81, he may offer seven
eagles, one half eagle, two gold dollars,
seventy-fve cents in silver, a five cent
nickel piece and copper cent, using all OF
the four metals which enter into our COIN
age. The fractional parts Of the pay
ment are covered by the word ''coin,
employed in the law, whereas exact
ness would have been impossible
under the exclusive word "gold." The
same convenience is subserved in paying
the fractional parts Of the semi-annual in
terest on the national bonds. But payment
in silver was not contemplated except in
this limited way.
The history Of that legislation amply
shows that by the word ''coin" gold coin
was intended, both by the Congress which
passed and the executive officers who adj
ministered the law. In the debate the
words ''coin," ''specie" and "gold" were
constantly used as interchangeable terms.
We could prove this by endless citations,
but a very few will suffice. The first fund
ing bill was passed in February, 1862. It
was prepared and reported by the Commit
tee on Ways and Means, Of which Thaddeus
Stevens was then chairman, and Mr.. Spaul-
ding, of this State, one of the most promi-
nent members The same bill authorized
the legal tender notes and made provision for
funding them. Mr.. Spaulding, who was the
principal author Of the bill, had charge of it
on the floor Of the House. These two gen.
tlemen, Messrs. Stevens and Spaulding, IN
derstood the meaning Of the funding bill
if anybody understood it. In the speech
made by Mr.. Stevens when it was on
its passage he said, ~ pity no man who
has his money invested in United States
bonds, payable in gold in twenty years, with
interest semi-annually. This shows the
intention of his committee that the bonds
should be paid in gold. In the very next
paragraph Of his speech Mr.. Stevens said;
"Our project proposes United States notes
secured at the end Of twenty years to be
paid in coin, and the interest raised
by taxation semi-annually. Here the
word "coin" is used, but the preced-
ing extract proves that he meant
gold coin. Mr.. Stevens opposed the
Senate's amendment making the interest on
the bonds payable in coin, and he used
this language now comes the main
clause All classes Of people shall take
these legal tender notes at par for every
article of trade or contract unless they
have money enough to buy United States
bonds. and then they shall be paid in
gold" This plainly shows Mr.. Stevens
Interpretation of the word ''coin" while
the bill was under debate. "But how is
this gold to be raised?' he went on to
inquire. That difficulty was met q day or
two later in the committee of conference,
which agreed to make the customs duties
also payable in coin, meaning gold coin, as
is proved by the uniform practice of the
government from that day to this, a period
of nearly sixteen years.
Four months later, in juno, 1862 Secre-
tary Chase asked for permission to issue
another one hundred and fifty million dol
lars Of legal tender notes, part of them to
DO in den nominations less than five dollars.
The government was then paying out for
tho army the gold collected for customs,
and in his letter to the Committee on Ways
and Means Secretary Chase showed his
understanding that the bonds were to be
I'll -, <.oIl Ho co;J ha TTp,ta1