The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1878-07-25

Gated in unmeasnred terms the amend
ment OF the Senate making the interes
payable in coin. 1t was universally admit
ted that the 500 bonds $50 called becaus
the Government could pay them at the ex
piration of five years from date, while tn
creditor could not demand payment 70
twenty years. were payable in legal-tende
notes, and no one five or six years after it
passage announced any other opinion. Til
bonds called for dollars, and were paid TO
and bought with paper money when thu
latter was at discount of from so to Is pei
cent. and 500 in greenbacks bought at s10(
bond.
/ Can any sane man believe if the bonds
had been gold bonds that they could have
been purchased with this deprecated cur.
rency, dollar for dollar? In 1s67-'S the
question of paying these $40 bonds in gold
began to be discussed. Both political par
ties in the West claimed their payment in
legal tender notes. The present Secretary
of the Treasury, then a Senator of the
United States, and chairman of the FL
nance Committee when the law passed,
wrote as follows:
ssUNITED STATES SENATE CHAMBER.
Washington, March 80, 1868.
| DEAR SIR Il was glad to receive your
letter. My personal interests are the same
as yours, but, like you. do not intend to
be influenced by them. My construction of
the law is the result of careful examina-
ton, and feel quite sure an impartial
court would confirm it if the case should be
| tried before court. I send you my views,
as fully stated in a speech. Your idea that
we propose to repudiate or violate prom
Use when We offer to redeem the principal
in legal tenders is erroneous. l think the
bondholder violates his promise when he
refuses to take the same kind Of money he
paid for the bonds. If the case is to be
tested by Jay Cookies advertisement, am
wrong. I hate repudia: ion or anything like
it, but we ought not to be deferred from
what is right for fear of undeserved cpl
thets. If under the law as it stands the
holders of fve-twenties can only be paid in
gold, the bondholder can demand only the
kind OF money he paid, then he is a repu
diator and extortion.r to demand money
more valuable than he gave.
Truly yours,
JOHN SHERMAN"
But the pressure OF the bondholders be-
came greater and greater. They were here
in full force, lowering around the halls Of
legislation and using every means that mon
ey and talent could command to satisfy
their greed for more. At length bill was
introduced declaring these same bonds to
be payable in coin. The mere announce
ment that a proposition so menstrous could
be seriously thought of shocked and startled
the country. Many leading men denounced
the measure and attempted to prevent its
consummation, conspicuous among whom
was Senator Morton, who, while represent
ing political views anragonistic to my own
State, and my section, was then the defend
er of the interest of all the people engaged
in industries without regard to class Or Sec
ton. And when the proposition came be-
fore the Senate to declare these bonds paya-
BILE in coin, though it was the measure OF
his political party, spoke as follows:
''And now PROFOUND the question. 1t
is either intended by this bill to make a new
contract or it is not. If it is intended to
make new contract. protest against it.
We should do foul inj tice to
the Government and the people OF the
United States after we have sold these
bonds on an average for not more than
sixty cents on the dollar now to make a
new contract for the benefit of the holders.
1t gives to those laws construction that
I do not believe in and that I have shown
is contradicted by at least four acts of Con-
gress.
Sir, it is understood, believe, that the
passage of bill of this kind would have
the effect in Europe, where our financial
questions are not we'll understood, to in
crease the demand, and that will enable the
great operators to sell the bonds they have
on hand at profit. 1t is in the nature Of
brokers' operations. 1t is bull move.
ment intended to put up the price of bonds
for the interest of parties dealing in them.
This great interest is laundering at the
door of Congress, and has for many
months and by every means been attempt
ing to rive us into legislation for the pur-
pose of making money for the great opera
tors. That is what it means, and nothing
else.'
Mr.. Chairman, if necessary could pro-
auce many more extracts of the opinions of
distinguished men of the same character
and 1 could read the act authorizing the
issue of greenbacks as currency to corrob-
ate what have said; but, sir. this is not
important, every note bears upon it the
words of the act, ''this note is legal tender
at it's face value for all debts, public and
private, except duties on imports and in
terest on the public debt" Are not The
| five.twenties the bonds and therefore the
debts of the United States which could be
paid with these notes Nothwithsta nding
this contract the edict of the bondholders
was carried into effect in March. 1869, as
follows:
'sThat in order to remove any doubt as to
the purpose of the Government to discharge
all its just obligations to the public credi-
tors and to settle conflicting questions and
interpretations of the laws, by virture OF
which such obligations have been contracted,
it is hereby provided and declared that the
faith of the United States is solemnly
pledged to the payment, in coin or its equiv.
alent, of all the obligations of the United
States not bearing interest, known as United
States notes, and Of all the interest bearing
obligations of the United States, except in
cases where the law authorizing the issue Of
any such obligation has expressly provided
that the same be paid in lawful money OF
other currency than gold and silver"
Thus changing the contract from currency
to gold and robbing the people of many hun
dred million of dollars by thus creating it a
bond payable in gold that before this ac
had been payable in greenbacks, when one
dollar in gold was worth from one dollar and
half to one dollar and seventy-five II
greenbacks, placing the average discount at
40 per cent. The volume Of outstanding
Nn M