Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1888-03-23


to the credit OF any man To have know
ingly voted for that act.
What was the situation Of this country
at that time and the circumstances under
which the bill was passed? Specie pay
ments had been suspended from 1852 nm
til that time, except in the Pacific States
and in the Territories. We were not on
a metallic basis at all. It's said that we
were not coming any silver dollars. That
is not true. On the contrary, there was
but one year between 1910 and 1873, to-
wit, 1858, in which no silver dollars were
coined, and the coinage of silver dollars
at our minis had exceeded a million an
nually for the two years previous TO 1873.
The people of the States this side OF the
Rocky Mountains were not thinking OF
the standard, because paper was the only
circulating medium.
During the war the creditof the United
States was at a great discount. The
bonds realized probably not as much as
80 cents on the dollar in coin. They
were payable in lawful money. Com
gress had made legal-tender notes, COM
monty called greenbacks, lawful money.
The interest only on the bonds was pay
able in coin.
When the war closed there was a laege
amount of greenbacks i'm circulation
They were the money OF the loyal States.
What did Congress do? Did it increase
those grcenbacks so as TO keep the same
amount of money per capita throughout
the United States when the rebellion
failed and third more population was
added? No. The fact that the pOpula-
ton was increased operated TO contract
the currency about 1874 per cent. But
this fact was wholly disregarded.
This was not all. Ii was said that the
honor OF the nation was involved. and it
was a duty TO resume specie payments ;
and consequently Congress passed laws
from time to time to cnforce that demand.
and retired a large amount of the green
backs. This, Of course, enhanced the
value OF the bonds.
But this was not all. II was only one
step. I'm March, 1869, bill was passed
in the Senate and in the other House de-
clarng that all United States bonds were
payable i'm cOin-not i'm the grcenbacks
which those who had supplied the armies
were compelled to receive, and with
which our soldiers were paid-they were
not good enough for the bOndhOdcrs. II
was the pride Of the nation, in which |
and others participated, which induced
us to redeem a supposed promise OF the
Secretary Of the Treasury that the entire
debt would be paid in coin. It was an
issue before the people in 1865; and at
the time the act passed, in 1869, after the
election of General Grant. it was said TO
be in pursuance Of the verdict of the peO-
pie. The people submitted to this legis-
lation without complaint.
After this was done. on the 18th OF Ju-
ly, 1870, in order that there should De no
mistake as TO the meaning Of the general
declaration that the bonds should be pay
able in coin, Congress passed the fund
| ing act. | was here at that time and
voted for it, and know that Senators
were very particular then TO know in
what currency the bonds were TO be paid,
and it was very properly proyidcdin that
act that the bonds should BE rcdecmable
| in currency u the then standard value.
The metallic currency then consisted OF
/ coin OF gold and silver. A dollar in gold
consisted Of 2J.S grains Of gold nine
| tenths fine. and dOlariu silver Of ll24
grains OF silver nine-tenths fine. Every
| dollar of bonds issued since that act is
payable i'm either gold or silver.
In view OF this, and Notwithstanding
| the enormous contraction which was nee
essary, at the time the rebellion failed
and peace was declared, to spread the
currency then eXistingal over the coun-
/ try; the South as well as the North not
withstanding the enormous contraction
subsequently required in reaching specie
payments; Notwithstanding We had
agreed to pay the bonds in coin, the
bOndhOlders were not satisfied they
demanded payment in gold alone. Is it
possible that any Senator who ever Occu-
pied a seat i'm this Chamber would have
openly declared that it was his purpose
to take from the people the right to pay
these bonds in silver as well as gold!
Will any Senator say that the bondhold-
er was not sufficiently favored by incrcas-
ing the value Of his bonds more than 30
per cent. by the acts which had been
passed before the world was robbed OF
more than half of its circulating medium
! by the demOnetizatiOn Of silver! Is it
possible that any Senator now lives who
will attempt to justify the act OF Febru-
airy u, 1873? feel that the fact that
was in this Chamber when that act pass
ed requires from me an apology.
The Presidentpro tempore. The Chair
reminds the Senator from Nevada that
under the agreement Of the Senate, de-
bate is limited to five minutes by each
speaker.
Mr.. Stewart. was not aware Of that.
Mr.. Sherman. hope that the Senator
will be allowed to proceed with his re-
marks.
The President pro tempore. Is there
objection to the Senator from Nevada
proceeding? The Chair hears none.
hr. Stewart. regret to occupy the
time Of the Senate, but | deem an eXpla-
nation necessary after whathas been said
| by the Senator from Ohio.
As to the history OF the bill OF which |
have been speaking think am safe in
saying that the Senate passed it in igno-
rance Of its contents or effect; that no
body knew its effect; that nobody knew
/ that One-half Of the worlds money was
/ to be put out OF existence; that the cred
itOr class was to be vastly benefited;
that the prosperity Of the world was to be
checked by the measure which the Sena-
tor from Ohio declared was debated for
three long sessions, considered line by
| line, and precept by preccpt.'
There was at that time in the civilized
world twenty-five thousand millions OF
national debts. and at least three times
as much more Of other debts. That in
debtedness was by contract payable in
either gold or silver, and do not believe
that any Senator here thought he was be-
coming a party 10 a new contract by
which that vast sum should be paid in
gold alone.
| This is the history Of the legislation
John Jay Knox, the Comptroller OF the
| Currency, and the author OF the bill 10y
which the war on silver was inaugurated
| I'm the United States, made a report which
was transmitted by the Secretary Of the
Treasury 10 the FOrty-lir,t Congress on
April %, 1870. This report will be found
in Senate Miscellaneous Documents Of
lSG0-'7O No 1872. Mr.. kuoX's report is
explanatory Of the bill prepared by him
ito revise ahd amend the laws relative
to the mints, assay Oliccs, and coinage
OF the United States" II appears in his
report that he objected to the silver dol
lar Of 4l24 grains Of standard silver be
cause II was more valuable than gold
dollar, aud proved by statistics that the
amount Of silver necessary 10 make sll-
yer dollar had on an average for the pre-
cedlng six years been worth about 3 per
( cent more than the amount Of gold nee
essary TO make gold dollar.
- a 4 . n
because it was the cheaper metal. He
strongly objected to the ratio established
IN this country, which is about l6 OF sill
yer 70 4 Of gold, and advocated the Eur
rOpean ratio Betgeen gold end silver