Western sentinel. [volume] (Winston [i.e. Winston-Salem], N.C.) 1856-1886, 1878-01-31
PAYMENT OF GOvERNM MENT
BONDS.

SENATOR MERRIMoN's sPEECH-THE
GOVERNMENT MAY PAY It's CREDI-
TORS IN SILVER.
Extracts from the Congressional Record,
January 10, 1S7S.l
The resolution of Senator Mat
thews of Ohio, being under con-
sideration, Senator Merrimon said:
Mr.. President, the question pre-
sented by the peLding resolution
is one OF no ordinary moment
The decision of it one way or the
other will affect in large measure
the material interests of the people
throughout the Republic. :
l am very sensible of the high
importance of thorough preser-
vation of the credit, faith, and
honor of the government in all re-
spects. l will not consent to allow
them to be impaired ill any degree.
| recognize the rights OF the crodi-
tors of the government and am not
hostile to them. I am sure, | shall
not Intentionally ask to withhold
from them a farthing to which
they are, or may be justly entitled.
But, on the contrary, l shall not
be driven or persuaded to allow
them to so vary :heir contract and
the obligation of the government
by unwarrauted construction as to
enable them TO receive more than
is Justly due them. [ wish to be
Just to them and faithful to the
government and the people.
Now, putting aside all clamor,
defamation, and harsh and un-
seemly words, that prove nothing
on the one side or ON the other, let
us calmly and in the light OF rea-
500, see what is the right Of the
creditor and the right of the gov
erument in respect to the bonds
embraced by the resolution before
the Senate.
STATE OF THE LAW.
The naked question before the
Senate is, may the Government
lawfully pay its creditors embraced
by the resolution in the silver dol
lars of the standard value of the
United States GU aud before tie
l4th day of July, A. D. 1870 F?
To answer this question, We must
know the state of the law of the
United States in reference to the
silver dollar of the standard value,
and also the terms of the contract
with The creditors.
The ninth section of the act OF
Congress approved January, A. d.
1877, in reference to coinage, pro
vides as follows
"Fhat of the silver coins the dol
lar shall be of the weight of 412I
grains the half dollar of the
weight of 2064 grains the quar-
ter dollar of the weight of 1O3s
grains the dime, or tenth part o
a dollar, of the weight of Al
grains and the half dime, OIL
twentieth part of a dollar, of the
weight of twenty grains and five
eights of a grain. Aud that dol
lars, half dollars, quarter dollars
dimes, and half dimes, shall be le-
gal tenders of payment, according
to their nominal value, for an.
sums whatever.
AnGbe 1t further enacted, Tha
the silver coins heretofore issued a
the Mint OF the United States ant
the gold coins issued since the 3ls
day OF July, 1884. shall continu
to be legal tenders of payment TO
, their nominal values on the sam
terms as If they were of the coin
age provided Tor by this act"
The silver dollar thus provide
for was and continued to be legs
tender in payment of all debts fo
all amounts until the 18Th day c
! February, A. d. 1873, when til
act demonetizing silver became
law. This applied to all debt
without exception. There is nc
where any provision of law ex
cepting any bonds or other obliga
tions of the government from th
effect of the statute just cited.
J The act authorizing the refund
: ing of the national debt, approve
July IA, A D. 1870, contains th
following important and materi;
provision
"That the Secretary of the Trea.
ury is hereby authorized to issu,
in a sum or sums not exceeding
the aggregate 5000, ,000,0 900, coupe
or registered bonds of the Unite
States, in such form as he may pr,
scribe, and of denominations {
$50 or some multiple of that sun
, redeemable."
And these are the important an
operative words
"Redeemable in coin of the pre-
ont standard value, at the pleasu,