The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1878-08-17
1S6S-1S77.
Sherman on Lawful Money.

sherman on Lawfnl Money.
Every greenback has printed upon it these
words:
THIS NoTE Is A LEGAL TENDER AT ITS FACE
FOR ALL DEBTS. PUBLIC AND PRIVATE, EXCEPT
DUTIES ON IMPORTS AND INTEREST ON THE
PUBLIC DEBT.
The original debt Of the government was not
payable in coin ut all, but lawful money. Let us
quote. in support Of this allegation, from the
speech Of Mr. Sherman, the present Secretary Of
the Treasury, delivered In the Senate on the 9th
day Of February, 1868. 1t is interesting, though
astounding reading when we consider that Mr..
Sherman now insists upon paying those same
bonds in gold alone. Said he:
When VIC look at the law, which Is the con-
tract it Is plain that the identical act which pro-
vides for the legal tenders also provides for the
flve-twenty bonds Every man who bought a
bond, bought it under an act which also provides
for the legal tenders. The notes were all out
standing before single bond was issued. This
legal-tender clause provides that
'Such notes, hereiR authorized, shall be re-
ceivablc In payment Of all taxes internal duties,
excuses and debts and demands Of every kind
due to the United States, except duties on I'M
pOrts and demands against the United States, of
every kind, whatever, except for interest upon
bonds and notes. which shall be paid in coin !;
and shall also be lawful money and legal tender
in payment Of all debts, public and private, in
the United States, except duties on imports and
interest as Aforesaid"
Does not this act, in SO many words, declare
that while coin shall be paid for the interest of
the public debt, the notes provided by this act
shall be lawful tender IN payment Of all public
debts l say that equity and justice are
amply satisfied II We redeem these bonds at the
end OF five years in the same kind of money of
the same intrinsic value 1t bore at the time they
were issued.
URGING-IN ORDER TO DEFEAT THE ARGU-
PUDIATION,
Why, sir, every citizen Of the United States has
cOnfOrmed his business to the legal tender clause
He has calculated and paid hisdebts accordingly
Public as well rs private debts, contracted since
the legal tender act did not rest upon opinion but
upon express stipulation In the law, and it Is
equitable and right that the United States should
avail itself Of this part Of the contract.
just consider 1t seventy six dollars Of gold will
buy dve-twenty bond bearing six per cent in
terest I'm gold, and that bond cannot be redeemed,
according to one construction, until the United
States are ready-noto only TO pay this per cent.
on one hundred dollars for the use of seventy-slx
dollars, but also to pay one hundred dollars in
gold for what now costs seventy-six dollars
Ifepeat that if this offer Is re-
jected 0he offer tn refund the five-twenty bonds
in the bonds bearing lower rate Of INTEREST,"
will not hesitate to redeem maturing bonds in the
currency in existence when they were issued, and
with which they were purchased. This cf.nclu-
sion have arrived at against the earnest argu-
ments Of personal and political friends, and
against my own personal and pecuniary interests.
But, SIR saw two years ago, and We all see clear
ly now, that the existing relation between the
public creditor and Taxpayer Is one which the
former enjoys all the blessings Of the government
without cost receives without diminution high
er rate OF interest than courts would enforce be-
tween citizens and may demand payment of the
principal in gold for paper loaned, while your
courts refuse to enforce special contract OF gold
for gold.
Such q system cannot endure in a
government not entirely despotic, scith-
out creating discomfort that may e,ada,a-
ger the fair and equitable performance
Of the public engagements.
You cannot disguise your knowledge Of this grow
ing discomfort The unavoidable effect of preach
ing specie payments In reducing prices and shrink
ing values, will increase this discomfort In that
painful process the people will see that the I'M
taxed productive industries Of the bondholders
alone viii be increased in value, while all other
[oms Of property win be reduced in value. 1t is