The advocate., 1891-09-16

bonds were issued. This was neces-
sary in order that the importer might
use the purposely deprecated cur
rency with which to buy gold to pay
duties, and that the banker might thus
acquire the notes at a tremendous
discount with which to buy the bonds;
and the immense profits Of this
scheme may be estimated by the fol-
lowing from the report of the comp
troller of the currency for the year
1857:
OF every one hundred million dollars In legal
tender paid out over twenty-five million dollars
we're paid out for discount.
Even this would not cover the prof
it's Of the bankers, for they sold their
gold at immense premiums, at one
time as high as 285 for one. 1t is no
wonder that Judge Kelly should say:
That crime perpctrated by the Senate Of the
crime, has cost the American people more than
all the war would have cost had the House bill
been adopted as originally passed.
Do you still ask why we have left
the Republican party? I will give
you further reasons.
These bonds thus purchased at an
average price Of not over 60 cents on
the dollar, according to the testimony
of Mr.. Morton, were, by the act which
created them, payable in this same
currency. In proof of this we offer
you the testimony of Senator Sher-
man. In a letter to Horace Mann,
dated March 20, 1868, he said:
Your idea that we propose to repudlate or viO-
late promise, when we offer to redeem the
principal In legal tender is erroneous. think
the bOndhOlder violates his promise when he re-
fuses to take the same sort Of money he paid for
the bond. II under the law as It stands
the bOndhOlder can demand only the kind of
money he paid, then he is repudlatOr and an
extOrtioner to demand money more valuable
than he gave
And again in speech in the United
States Senate July 27, 1868, he said:
say equity and justice are amply satisfied II
we redeem these bonds at the end OF FIVE years
Of the same kind Of money, of the same intrinsic
value It was at the time it was issued.
This was before Mr.. Sherman was
''seen." Yet in 1869, by the credit
strengthening act, SO called as q
blind, it was enacted that these bonds
should be paid in coin. In the dis
oussion of this measure Oliver p.
Morton said:
And now PROFOUND this question: 1t is
either intended by this bill to make new con-
tract or lt Is not If 1t is understood to make
new contract protest against 1t. We should do
foul Injustice to the government and people Of
the United States, after we have sold these
bonds at an average OF not more than sixty
cents on the dollar, now to make new contract
for the benefit of the bOndhoders. 1t gives to
those laws construction that do not believe In,
and that have shown Is cOntradicted by at
least four acts Of Congress.
Sir, 1t is understood, believe, that the pas
sage OF a bill Of this kind would have the effect
In Europe, where our financial questions are not
well understood, to increase the demand, and
that will enable the great operators TO sell the
bonds they have on hand at profit 1t In
the nature Of q brokers operation. 1t bull
movement to put up the price OF bonds for the
interest Of parties dealing In them. This great
interest is laundering at the doors Of Congress,
and has haan many mnnfha and hv avarY meana