The daily gazette., 1878-02-04
HENDRICKS TO BELMONT
The Indiana Statesman's De-
fence of His COnsistency-Rec
ord Of the Senate and Hunt
tngs-The Coinage Act Of 1879
No Pledge 20 the Creditor
Why silver Should be Re-
mOnetfzed.

To the Editor Of the Herdid.-
laval myself of your proffered cour-
tesy to reply briefly by telegraph TO Mr..
Belmonts letter, which appeared In the
Herald on the 30th ult. The purpose of
his letter was TO show that the views at
tributed TO me oD the silver question are
incoDsistant with opinions heretofore ex-
pressed, end therefore, that | cannot be
correctly reported. The report In the
Cincinnati Commercial was correct, |
do not know how IL appears In Eastern
papers. very much desire TO be con-
sidered consistent, but would rather be
certain / am right than consistent upon
this question. / think have been con,
sisteit.
REFERENCE TO THR RECORDS.
Mr.. Belmont quotes me as holding that
since the act Of March 18, 1869, the bond
ed debt must be paid in gold as con-
tradislinguished from paper or silver.
In that he Is not correct. The bill to
strengthen the peoples credit was pend
ing In the Senate in February, 1860. l
made an argument against the section
which pledged the faith of the govern
ment TO the payment of the bonds in
coin. opposed IL because thought the
contract allowed the payment of the
principal OF the five>twenty bonds to be
made In Treasury notes. Mr, Belmont
takes one sentence TO show that | held
that the effect Of the measure would be
TO pay in gold as follows:-
In opposing the passage Of the act in
the Senate, February 27, 1869, he had
described the issue then Joined as "rhe
question whether the holders of the bonds
have an equitable claim upon us now,
while the differences between paper and
gold Is so great as 1t Is, 10 declare that
the bonds shall be'payable in gold"
Had MIR, Belmont read more carefully
he would have seen that read the sec
tion containing these words, "That the
faith Of the United States is solemnly
pledged to the payment In coin or its
equivalent" and that then said:-
1t will cause the removal of doubts and
make the law TO read that the debt shall
be paid In coin. That is the effect ofthis
section.
Upon that construction / made my
argument against the section, not as
in controversy whether the payment
should be in silver as against gold, but
whether 1t might be in paper as against
coin. 1t was not questioned In that
debate that silver was coin, and that the
debt would be payable in silver whe-
ther that section passed or did not pass.
The section Substantially, as l read it
in the Senate, became law nineteen
days afterward.
IN THE STATE CANVASS.
Its force and effect did rot become a
question Of political controversy In this
state in 1872. when was elected Gov
ernor, as Mr.. Belmont seems to suppose.
but IL did enter into the discussion OF
1874. In the Demoetatic Convention OF
that year resolution was passed de-
claring the tive-twsnty bonds payable
in greenbacks. l presided over that
Convention. and, as | could not give
that resolution my support, took oc-
casion at The first public meeting which
addressed in this city TO say so and to
give my reasons. thought then, as
believe now, tnat after the faith of the
nation was pledged to payment In coin
we could not pay in Treasury notes
that the purchasers of the bonds after
that date took them relying upon that
pledge, and that we are bound by H..
That was my argument before the peo-
pie. Neither my hearers nor | thought
OF the question whether payment could
be made In silver. 1t Was not then
doub ell. 1t was not then known to
myself, and | suppose not to one of the
audience, that the silver dollar had been
discarded" Mr.. Belmont refers to
that address and to the use of the word
i:'gold" in it instead of the word "coin,"
as committing me to payment of the
debt in gold and not in silver. The
only question then discussed was the
right to pay in greenbacks. The right to
pay in silver was not then questioned OF
considered in this State. In the ad-
dress which made as President of the
Convention, two months before, my
opinions upon the currency were some
what fully expressed. MI then said,
I'VE cannot too strongly express the
Importance of the policy that shall re-
store uniformity of value to all the
money of the country, so that 1t shall
be always and readily converted. That
gold and silver are the real standard OF
value is a cherished democratic senti-
ment not now nor hereafter to bs aban-
doned."
l certainly could not have used that
AohSuaSO III tuc SahpalSu VI 1919 ndu L
then known that silver was no longer
money.
THE EXCLUSION OF SILVER.
Having disposed of the question of my
consistency, L come to the much more
important question made by Mr., Belmont
which is that the argument which eX-
cludes payment of the public debt in
Treasury notes under the act of March 1s
1863. applies with greater force under the
act of 1873 which excludes the silver dol
lar from coinage. | think that is moi
correct. The act of 1869 was to remove
any doubt, to settle conflicting interpre.
tations of the laws under which public
Obligations Were contracted and to
pledge the faith of the United States
to the payment of such obligations
in coin. After full consideration it be
came law 1t was soon followed by the
act to authorize the refunding of the ma
tional debt. That law provided that the
81, 900, 100000 Of bonds which it authoriz
ed should be redeemable in coin of til,
present standard value. Because the act
of 1899 was the solemn nladoa of ~,