The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-02-02
The Indiana Statesman's Defence Of
His Consistency.
RECORD Or THE SENATE AND HuSTlNGS.
The Coinage Act Of 1878 No
Pledge to the Creditor.
WHY SILVER SHOULD BE REMONETIZED.
indianapolis, Ind, Feb. l, 1873.


briefly by telegraph 10 Mr. Beimont's letter, which
appeared In the HERALD of the 30lk ull The purpose
OF his letter was to show that the views attributed TO
mo on the silver question Inconsistent with opin.
ions heretofore expressed, anu therefore, that can
not be correctly reported The report in the Cncir-
natl Commercial was correct do no, know how Il
appears In Eastern papers very much desire TO DO
considered consistent, but would rather DO certain
am right than consistent upon this question. think
have been consistent
REFERENCE TO THE RECORD.
Mr. Belmont quotes mo as holding that since thu
act OF March 49, 1862 the bonded debt must be paid
In gold as contradisnguished from paper or silver
In that he Is not The bill TO strengthen the
peoples credit was pending IN the Senate in Feb.u.
airy, 1869 mado an argument against the section
which pledgod the faith of the government to tho
payment Of the bonds Ia coin. opposed Il because
thought the contract allowed the payment OF the
principal OF the hve-twenty bonds TO be made N
Treasury notes Mr.. Belmont takes ono sentence to
show that held that the effect OF tho measure would
DO 10 pay in gold as follows
In opposing the passage OF the act in the Senate,
February %, 1869. he had described tho iSsue then
Joined as rhe question whether tho h0lders oil the
bonds have an equitable claim upon us now, while
the Inference between paper and gold IL so great
as It Is, to declare that The bonds shalI DO payable in
COLO.
Had Mr. Belmont read more carefully he would
have seen that read the section containing these
words "rhat the faith of the United States Is
solemniy pledged to the payment in coin or It's
equivalent and that then said:-
II will cause the removal Of doubts and make the
law to read That the debt shall be paid in coin. That
IS the effect Of this section.
Upon that construction l made my argument
against the section, not as In controversy whether
the payment should BIO in silver against gold but
whether II might be In paper against coin. 1t was
not questioned that debate that silver coin.
and that the debt would be payable In sivers whether
that section passed did pass The section sub.
stantialy, as | read It in the Sonate became law
nineteen days aiterward.
THE STATE CANVASS.
Its force and effect did not become question Of
political controversy In this State In 1872 when was
elected Governor, as Mr. Belmont seoms to suppose,
but It did onter into the discussion OF 1874. In tho
Democratic Convention OF that year resolution was
passed declaring the hvctwenty bonds payable In
grecnbacks l presided over That Convention, and.
as could not give that resolution my support look
occasion tho nrst public meeting which addressed
In this city TO say and to give my rcasona
l thought then, a. l believe now, that after
the faith OF the nation was pledged to payment In
coin wo could not pay In Treasury notes; that tho
purchasers of the bonds after that date re-
lying upon that Pledge, and that bound by H.
That was my argument before the people. Neither
my hearers nor thought OF the question whether
payment could be mado In silver 1t was not then
doubted. It not then known 10 myself, and 1
suppose OF the audience that the silver
lar had been "discardod" Mr. Belmont refers to that
address and 10 the Of the word "gold" It IN
stead of tho word .coin," as committing mo to
payment OF the debt in gold aud not In silver Tho
only question then discussed the right to pay In
Tho rtvht IN in oiiv @
questioned considered in this State. In the ad-
drcss which mado as President OF the Convention,
two months before, my opinions upon tho currency
somewhat fully expressed. l thon said:-
We cannot too strongly express the importance OF
the policy that shall restore uniformity OF value to all
ana readily converted That gold and silver are The
real standard OF value Is cherished democratic
ment not now nor hereafter to be abandoned.
certainly could have used that language In tho
campaign Of 1874 had thon known that silver was no
longer money.
Tue EXCLUSION OF SILVER
Having disposed OF tho question OF my consistency,
como 20 the much moro important question made
by Mr.. Belmont. which Is that tho argument which
excludes payment OF the pubic debt Treasury notes
under the act OF March 49, 1862 applies with create
under the OF 1873 which excludes tho silver
dollar from coinage l think that IL not
correct The net o. 1869 was to remove
my doubt, to settle conflicting interpretations OF
the laws under winch public obligations werq con.
raced and to pledge the faith Of the United Stites
the payment OF such obligations In coin. Alter full
consideration II became u law. 1t soon followed
by authorize the reiunding OF the national
DEBT. That law provided that tho 81 500 000 900 or
bonds which II authorized should DO eemabe In
coin Of tho present standard value. Because tho
OF 1869 was the solemn pledge OF my country. made
by competent authority, felt that 1t binding, 60
binding. indeed. that could not DO repealed to The
prejudice OF those 10 whom II was gwen.
rnR COINAGE ACT OF 1873.
Is the act OF 1873 OF such class and chnractcrP
To whom does It mako a solemn pledge that the con.
suitutionaI power of Congress 10 coin money and to
regulate the value thereof shall again be cxcr.
csod until the public debt shall have been fully paid
Why ana wherein is the Coinage act OF 1873 moro
sacred and irrcpeaabe than tho Coinage Of 1884
which II modified? Does tho power 10 coin money
and regulate the value thereof belong tho class oil
powers that exercised become exhaustves II
that were the power had been exhausted before
tho passage OF the oil 1875 Is II tho right of tho
public private CREDITOR other to say to Congress
you shall not exercise tho constitutional power OF
coming money and regulating the value thereof be.
Cause by changing the standard you may change tho
vaiuo Of investmentsY We have not recognized such
o IueIo WOuiu Do FORCE ID sucn u Clalm, under
the act OF 1870, which provinces for payment OF
tho bonds 'In OF tho present standard
value" Tho act OF 1873 contains no pledge
nor contract II is legislation under u continuing
power Of Congress, and subject to repeal or almond.
ment ike any other law passed under the same
power II is not therefore, In my judgment, ques-
lion OF public faith, but OF expsdiency only.
Bong such seems TO me the part OF wisdom have
regard 10 tho condition OF financial distress that
exists in tho country. the disturbed state OF
tho public mind that pervades largo portion OF the
country. Any change In the coinage is always q
delicate and important work, and should be made
only after the careful consideration Of oil tho In.
terests OF the country.
SILVER SHOULD BE RESTORED.
Should silver money be restoredS have though,
SO. The pledge OF 1860 Of payment In coin and tho
In the act OF 1870 OF payment in coin at tho
thon standard valuo would to authorize, almost
to require II Compliance with tho contract cannot
DO breach Of public faith. Our country IL a LARGE