The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-01-27
Are Five-Twenty Bonds Payable in
Legal Tender Notes?
SECRETARY SHERMAN'S EXPLANATION.
Threats Of Invasion Causing Trouble on
the Rio Grande.
THE PRESENT FINANCIAL DISTRESS.
Debate Calling for the Remoneti-
cation Of Silver.

AdCAOA "a 0AANC
GENERAL WASHINGTON DISPATCHES.
WAsNINGToy, Jan. 26, 1878.
SECRETARY SHERMAN AND SPECIE PAYMENTS
The following correspondence has taken place.
wAsuISGroN, Jan. "a, 1873.
OMAR SiR-A brief and unitnportaut lctter OF yours
In 1868 10 Dr. Mann, 10 which invite your attention.
has been paradcd in the Senate In such as,
from my kuowled OF the man principle you con-
stautiy maintained, docs you gross injustice WHAT
ever may have been your opinion 10 the tech.
meal rights OF the government you always held that
IT was its first aud paramount duty TO mako United
States notes equal in value TO coin Very truly yours,
To Hon. JOHN SHERMAN, Secretary OF the Treasury,
Washington.
sHERMAN's REPLY TO MORRILL,.
WASHINGTON. Jan. 26, 1873
HON. JUSTIN s. MORRILL,, United States senate:-
My DEAR SIR:-Your letter Of tho oath inst. 10 re-
ceived. have noticed that my casual letter TO DR.
Mann OF the date OF March &c. 1868, incIos,ng a
speech made by me, has frequently beon used prove
THAT have changed my opinion since thai limo
the right Of the United States to pay the principal
the hvc.tweuty bonds IN legal tenders. This'would
not % very important. II true, but u is not
true, az never have changed my opinion as 10 the
technical legal right redecm the principal OF the
Gvc.twenty bonds IN legal tonders, but, as you know
and correctly state have always insisted that could
not avail ourselves OF this legal right until wa
tons imposed by tho legal tender redeem u in
coin on demand or 10 restore the right 10 it
Into an. interest bearing government bond. The
yroundsof THIS opinion very fully stated In tho
speech made February ~ 1868, referred to tho let
Der 10 DR.. Maun, and IN report on the Funding bill
made by me from the Committee on Finance, Deccm-
Der I, 1857
II my letter is taken in connection with tho speech
which II Enclosed and TO which IL expressly referred,
It Will be perceived that my position there IS entirely
consistent with what 1t now and time has prov on
that II tho report Of the Committee Finance had
been adopted, We would long since have reached the
coin standard, with an enormous saving Of interest
ana without mpairing the public credit MY posi-.
ton that while the egel tender act made United
States notes legal tonder tor all debts, public
and private, except Tor customs, dutos aud
interest OF tho public debt yet we could no, honestly
compel The public CREDITORS receive United states
notes in tho payment OF bonds until made good tho
peuge OF the public faith TO pay tho notes In com
That promise was printed on the face of the notes
when issued, was repeated in several Of Congress
and was declared valid aud obligatory by the supreme
Court
From tho first issue Of the legal tender note which
heartily supported and voted tor, have sought to
vance It's ys Vas n tho earnest aU effort sr
70 restore TO tho greenback the right 10
be converted on the demand OF tho holder into i've
per cent bond and, as soon as practicable, into coin
that made the speech referred resisting alike the
demand OF those who wished to exclude United States
notes from the operation Of funding aad the large
class OF persons VINO wished 10 cheaper, degrade and
ultimately rcpudIate them. In ail my ofical
tion with legislation as to legal tender notos,
Ezc Tor, and that is my. a.quiescence
on aGs q ~ the
from The holders OF those notes the right convert
them into interest bearing securities. This right
war, but It's repeal \ fatal act, the source and
cause OF all the financial evils wo have suffered and
right or redeem demand oes in com.
rho speech referred 10, and which have recently
le,tor 10 Dr. Mann, viii clearly snow that
i have not been guilty OF Inconsistency or
a change OF oplniou-lho most pardouaole Of
all oncncos-but then insisted AS now insist, that
no discrimination should be made against the note
holder, but that until ready pay him in coin
money into bond at par Untd then our noses
are Deprecated ny our wrongful ac'. ana we
pwn wrong by forcing upon the tho notes
We refuse 10 receive. Tuis Is the precise principle
yoved 10 the act strengthen tho public crodit, APP
ypect change the legal and moral obligations OF the
United States but expressly provides that OF the
Understanding obligations not already due shall be
redeemed or paid before maturity, unless nj such
time as the United States notes shall be convertible into
CON at the option oil the HOLDER And tho act iur-
ther solemniy pledges the public iaitn to make pro-
visions ut the earliest practicable PERIOD for
demption OF Uuiled States notes in CON-"
TINS Is Ia exact harmony with the position held
when wroe Inc letter 10 DIR. Mann and that now
maintain the primary principle being that the United
States notes shall first be brought to par IN CON
fore they shall 90 forced Tho public creditor
payment OF his bonds. This Is the settled law,
and whatever any mans opinions were before It
passed. he woua assume grave responsibility who
would seek to evadc It's terms, weaken It's authority,
or orc, shn.gs us provisions. /. has entered into
passed the ordeal OF four Congresses and
two elections tor Presidents, 1t cannot be
revoked without public dishonor So far tho bond
holder Is concerned IT Is an executed law. over
500, 100000 oi bonus have been redet med in coin
under II, aud the civilized world regards all the re-
mander as covered by its sanction, and IN their faith
IN II our securities have become second only in the
markets Of tho world Inns law IL not yet quite
executed 50 lar as the note holder concerned HIS
note IL not yet quite as good as coin. Congress
debated over since It's passage the best
II good. Tho Senate in 1870 PROVIDED, in tho tnrd
section OF tho REBUILDING act as II passed that body
thai these notes might BE- converted Tour per cent
bonds, but the House would not concur. Every BODY
that II th,s had been done these d OF es
would now be ut par 10 coin. Other expedients were
proposed and finally the Resumption act was passed
AMI, II un disturbed, rs now on the OF execution
The promise made Ia 1852. and so often repeated
about 10 be fulfilled Agitation collateral questions
on the face every United States and sacrcdiy
pledged " tho act TO streng,h hen tho puUic credit
VIII give US neither peace nor assured prosperity
until It IL iulhled Public upiuons may viOrale and
men aud parties may array themselves against the
fulimcnt OF these public promises but in time thoy
VIII be fulfilled, and, think, the sooner the better
Pardon me for this long answer to your note but
have no time 10 condense IT. Very respectfully,
JOHN SHERMAN.
TRADE DOLLARS FROM CALIFORNIA
The Treasury Department has Information that
ovoF lion OF trade dollars havs during tho pres.
emit month. been sent from San Francisco by express
The Eastern critics to 10 placed in domestic cireua.
tion. Al the same tmo there is considerable demand
for these COINS for export TO China. Tho gain as
profit on shipping trade dollars TO the Eastern states
Is three per cent Secretary Sherman has tho matter
under consideration, and II IS probable that tue trade
dollar coinage Will for time either DO wholly sus.
pended or the Philadelphia Mint will DO opened for
the same coinage in order to place tho Eastern
holders Of bullion upon equality with those OF tho
Pacific coast.
DIR. LINDgRMANN AND THE SILVER QUESTION
A meeting was neld by the Committee on Coinage,
Weights aud Measures, before whom DR.. Linderma nm
Director OF the Mint gave hrs vews on the silver
coinage question.
THE POPULAR FOUR PER CENT LOAN.
Up TO date the popular subscription 70 The four per
coat loan Of which the department has been advised
amounts to 81 V25, 900.
INVESTIGATING THE RIO CYANIDE TROUBLES
The Texas border troubles occupied the attention OF
two OF the House Committees to.day--Forcign Affairs