The Northern Pacific farmer. [volume] (Wadena, Minn.) 1878-1885, 1880-09-30

had touched the Bible to solemn 1ze an oath
faithfulness in Office. In this inaugural address,
then delivered, stands these words: "A great debt
mas been contracted in securing to and our pos
terity the Union. The payment of this debt, Prin-
clpal and interest we'll as the return to specie
basis as soon as it can be accomplished without
material detriment to the debtor class or to the
country at large, must be provided for. To pro-
tect the national honor, every dollar of govern
ment Indebtedness should be paid in gold unless
otherwise expressly stipulated in the contract. Let
1t De understood that no rePudiator of one farth
ing OF our public debt will be trusted in public
place: and it will 60 far toward strengthening
credit which ought to be the best in the world,
and will ultimately enable us to replace the debt
with bonds bearing less interest than we now pay"
sensation. Both houses of Congress were Repub-
ican. Immediately bill was introduced in each
house, . to strengthen the public credit" In less
than fortnight it had passed both houses. and
was approved by President Grant March IS, 1869.
It was the first act he signed. 1t declared that
:" The faith Of the United States is solemnly
pledged to the payment in coin or its equivalent,
of all the obligations of the United States not
bearing interest, known as United States notes.
and OF all the Understanding obligations of the
United States, excepting in cases where the law
authorizing the issue of any such obligations had
expressly provided that the same may be paid in
lawful money Or other currency than gold or sill
yer; and the United States also solemnly pledges
its faith to make provision at the earliest prac-
tioable period for the redemption of the United
States notes in CON-" This bill was resisted by
the solid democracy in both houses. They voted
against it. They voted against considering it.
They voted for amendments to pervert and re-
verse its meaning. Senator Thurman, of Ohio,
moved to add to it: "Provided that nothing here
in contained shall apply to obligations called $50
Nnr H. nr0fi koI
for this; every republican voted against it. The
500 bonds then constituted the bulk of the public
debt, and the proviso would have frustrated and
vitiatcd the whole act. Senator Davis, of Ken
lucky, moved to amend so as to scale down the
bonds to the coin value at the time of the curren-
cy received for them. This was supported by tho
democrats, Senator Bayard, of Delaware among
others, speaking in its favor. Senator Vickers, Of
Maryland, moved to amend so as to prevent coin
ever being purchased to be used to pay bonds.
Sem Bayard denounced the bill as wrong unwise,
and as 'stock jobbing operation" After all this
the bill passed, and not one democrat voted for it
in either house.
THE NEXT STEP
in this progress was the funding act of July, 1870
The act authorizing the redemption of the 800 or
lower interest All the democrats resisted this
bill also, and voted against it. Exempting the
new bonds from taxation was opposed in the SEN
ate. Mr.. Bayard moved to strike out the provis-
sion, and to subject the bonds to taxation. AL
the democrats voted for it again. Mr.. Bayard
moved an amendment to bring back the State
banking system, and all the democrats voted for
that also the bill at length carried by repub-
lican votes. By this time our currency had much
appreciated, and funding at lower interest began.
In 1874, by a vote not democratic alone, an nfa-
ton bill made its way through both house. This
bill proposed to keep out permanently $26,00O,00O
of legal tender notes belonging to the treasury
serve, which had been put out temporarily during
the panic OF 1878, and to put out $lS,000,0 900
more. The suffering produced by the panic drove
many republicans into the support of this measure
as an experiment and expedient for relief. The
sign it exceeded anything Of the kind I have
ever witnessed. Men who should have upheld
their hands, not only threw their weight upon him
put industriously criticised, and even ridiculed
his venturing to get up his opinion against u
majority in such a crisis. He vetoed the bill how
referred to the declaration of the republican
party, to his inaugural to the act of 1869 already
cited, and he said theproposed act would violate it.
This happened on the 22d Of April, 1874. About
a month later convention occurred in the even
ing, between the president and his chief adviser
Secretary Fish and others about the wise course
out of the increased difficulties which had come
from the disasters of the year before One of those
present at this convention was Senator Jones of
Nevada. So struck was he with the views ex-
pressed by President Grant that the next day,
June 4, 1874, he, by letter, requested that the
substance of them should be put in writing and
copy sent to him. This was done and Il mem
orandum made by the president handed
and aftcrward found its way into print. Here it
is. 1t is the foreshadow of the resumption act to
which they paved the way. read two passages:
Il believe it high and plain duty to return to
specie basis ut the earliest practical day not only
in compliance with legislative and party pledges,
h,to Sfo inIicr To
property. [ believe, further, that the time has
come when this can be done at least begun,
with less embarrassment to every branch of in
dustry than at any future time after resort has
been had to unstable and temporary expedents to
stimulate unreal prosperity and speculation, on a
exchange throughout the commercial world The
particular mode selected to bring about restora-
ton Of the specie standard isnot of so much con-
sequence as that some plan be devised, the time
fixed when currency shall be exchangable for
coin ut par, and the plan adopted rgidly adhered
to. would like to see provision that at a fixed
date, say July 1876: the currency issued by the
United States should be redeemed in coin, on
presentation to any assistant treasurer and all
the currency 50 redeemed should be Cancelled, and
never be reissued. To effect this it would be
necessary to authorize the issue of bonds payable
i'll gold, bearing such interest as wonld command
par in gold, to be put out by the treasury only
in such sums as should from time to time be need
ed for the purpose of redemption
1t was not long before this advice found the
form Of law. A committee, composed wholly of
republican senator's Of whom myself was one,
prepared the bill now known as the resumption
act. 1t was not the work of any one senator, nor
did it express literally and in full perhaps the
views Of any single member Of the committee. It
was compromise Of somewhat conflicting opn-
ions. 1t was submitted to every republican mem
Der Of the senate, and every one after considera-
ton. determined to vote for it. 1t was brought
forward in the senate, and every republican sena-