Daily globe., 1878-02-26

GLOBE, TUESDAY MORN
John Sherman, at the head of the treasury,
holds the position. He will enforce the
sternest and hardest execution of the law
And it is understood that any bill to repeal
the clause will now be vetoed. have here
tofore said that Gin my belief, the resump
ton law has been the source of the greatest
calamity to the BUSINESS interests and pros-
perity of the country. It has had the effect
of causing men to hoard greenbacks and the
banks to withhold and to withdraw circula-
ton, in the fear of being crushed by forced
resumption in gold.
A favorable foreign trade has promoted a
return to specie payments, and if the balan
ces shall continue IN our favor expect to
see our paper money at par with gold at an
early day. Will the restoration of silver
money mitigate the evils of contraction
caused by the resumption law? That is now
| the hope of the business men of Indiana. It
| is not as cheap money that the people de-
mand it's restoratian, but as legal tender
and coin contemplated by the constitution.
When restored it will become again stand
ard and measure of value. Berore its de-
monetHation silver was of par value with
gold, and when restored l think it will rise
again to the same level. / need hardly say
| to you that the value of any class or
description Of property greatly depends upon
the important uses to which it may be
applied. Silver was money. They stripped
it of that, its most important use, and now
say it is worth per cent. less than before,
and therefore it cannot be good money. Is
that fair argument? AS material for the
manufacture of ware silver will have only
the value which that use can give it; but
when stamped with the quality of money,
and made legal tender for the payment of
all classes of indebtedness, it becomes the
active agent of trade, and commerce; meas
ures values and discharges debts, and in such
use becomes correspondingly more important
to society and more valuable. Were gold
would be the effect upon its value? I do
not believe the pennyweight of gold in the
beautiful wine-cup is as useful to society nor
as valuable as the same weight of gold in the
stamped coin which does it's busy work in
the channels of trade; and the demonetiza-
ton of gold would demonstrate that fact.
I have heretofore said that "silver has become
an important product of this country and
inasmuch as the world recognizes it as a
money medium of exchange. can not see
why we should not utilize our large product
of that metal to the greatest extent that may
be found practicable. It's value as money to
this country is too great to be thrown away"
Should experience prove that, because of
the increased production of silver, there
will be a permanent and important differ
ence between silver ang gold, Congress is
clothed with ample power to provide the
proper and adequate remedy.
1t is objected to the restoration of silver
money that it will be in bad faith toward the
public creditors. IF thought that possible
I would not favor restoration, however i'm
portant to our interests I might esteem it.
My judgment is SO entirely satisfied that
have no anxiety upon that question. The
question is settled by the fair reading of the
public credit act of 1869, and the refunding
act of 1870. At the date of the former act
it was lawful to pay the fye-twenty bonds
written out in treasury notes. But it was
contended that because of the circumstances
attending the creation of the debt, it would
not be proper to SO construe the laws, and
that payment ought not to be made in paper.
| 10 remove doubt and settle all controversy
the act was passed. It pledged the faith of
the United States to payment in coin. op-
posed the measure in the Senate, and said
| that it's effect would be make the law to read
that the debt shall be paid in coin. The bill
passed and became law. Thereupon the
debt became payable only in coin, not in
gold coin alone, but in silver coin as we'll, for
the silver dollar was then part of the coin
of the country, as honored in law and COM
merce as gold.
Next came the law of July II, 1870, to re-
fund the national debt. That act provided
for the issue of new bonds to the amount of
81, SOC, 100000, bearing 4, 41s and per
cent. interest The bonds SO to be issued were
to be exchanged for the outstanding five
twenty bonds, ''par for par,'' or sold for
coin, and the proceeds were to be used in re-
deeming fve-twenty bonds. In the first
section of the law it was provided that the
new bonds should be made ssredeemable in
coin, at the present standard of value. .
That law, gentlemen, had no uncertain mean
ing. The new bonds were to be substituted
for all the outstanding tive-twenty bonds
they were to be sold for coin; and it was to
be made part of their language that they
shall be made ssredeemable in coin Of the
present standard value.'' My views on this
subject were recently considered Of sufficient
Importance by distinguished citizen of New
York to call for review and answer by him
self. He had unquestionably given the phra
seology of the laws relating to the bonds {
closer study than l had, for it was il
the line of his business and of his profits.
had examined those laws with no profession
al or business purpose, but only as citize1
interested in the financial policy of the coun
try. He found it useful to his argument to
show, if possible, that the law under which
; the public debt was being refunded required
the bonds to be paid in gold He used this
languages: "Yet I am supported by the opin
ion of illustrious lawyers in the land, tina
gold payments of the debt are required ant
, assured by the refunding act of 1870 itself
which indeed mentions generally coin in it
} first section, but in its fifth section, to carr,
J, out the act, excludes silver, and specifcall,
I demands the secretary of the treasury to re
) ceive only gold coin as the coin of deposi
: and payment" am sure it will astonisl
i you, after hearing this passage read, to lear1
that the fifth section has nothing whatever t.
: do with the provisions and sale of the nev
bonds. It provides for this and no more
! that the secretary of the treasury might TO
: two years, receive gold on deposit. and issu'
gold certificates bearing low rate of inter
est, and that the deposit might be withdraw
at any time after thirty days, upon ten days
notice, and that 25 per cent. should be re-
tanned in the treasury to pay the certificates
, and the residue used to redeem fve-twent,
bonds. was criticised by this gentleman
for using the words gold and coin as synony
nous in public speech; yet to maintain
his argument, he asks that it be believed
that coin and gold cain are loosely used il
( the same sense in different sections of on