The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1893-09-21
UNITED STATES BONDS.
THEY ARE NOT PAYABLE IN GOLD AS
is GENERALLY BELIEVED.
A Financier Demonstrates That all Bonds,
as Well as Other Obligations Of the
United States, are Payable in Sill
yer at Option Of Government.

Editor of the Statesman.
There is a misrepresentation in the
minds of many intelligent people
touching the terms and the character
of the contracts between the United
States government and the holders of
it's bonds and other evidences of in
debtedness. They have fallen into
the error of supposing coin means gold
only. The truth of the matter is every
obligation of our government is pay
able in silver at the option of the gov
eminent. The act of congress "to
strengthen the public credit" APP
proved March Is, 1869, declared the
faith and credit of the United States
was solemnly pledged to the payment
in coin of all the interest bearing oEli-
cations, except in cases where the law
authorizing the issuance of such obli-
cations had expressly provided that
the same might be paid in lawful
money other than gold or silver.
The act OF congress, approved July
IA, 1870, authorizing the 'refunding of
the national debt" de clared the bonds
to be deemable in coin, and the
interest to be payable semi-annually,
also in coin.
The act of congress, approved Jan.
IA, 1875, providing for "the resump-
ton of specie payments" and author
izing the issuance OF bonds therefor,
provides that bonds issued under
authority of said act shall be OF the
same description of bonds issued
under authority of the act of July IA,
1870.
After reciting the varions acts under
which bonds have been issued and
for the purpose of more clearly and
distinctly defining the law on this
subject the following declaration was
made by the congress OF the United
States Jan. %, 1878:
"That all the bonds of the United
States issued or authorized under the
said acts of congress hereinbefore
recited, are payable, principal and in
terest, at the option of the govern
ment of the United States, in silver
dollars of the coinage of the United
States containing 412 1-2 grains each
of standard silver; and that to restore
to its coinage such silver coins as
legal tender in the payment of said
bonds, principal and interest, is not
in violation of the public faith nor in
derogation of the rights of the public
creditor.
Existing laws declare it to be the es-
tablished policy of the United States
to maintain gold and silver upon
parity with each other upon the pres
ent legal ratio, or such ratio as may
be provided by law, the silver dollar
now containing 412 1-2 grains of stand
ard silver and the gold dollar Z5.8
grains of standard gold. But no mat
ter what the law may be, it is phys
ical impossibility to maintain the two
metals on q parity, upon any ratio,
when the government discriminates
in favor of one and against the other,
Every obligation of our government is
payable on it's face, both principal and
interest, in coin, but when the govern
ment degrades and DISTINGUISHES sill
yer as money there is no power on
earth that can prevent gold from al
preciating in value.
The payment to our creditors in
gold and silver coin, without discrimi-
mating against either metal, and
according to the letter and spirit of
the contract, will maintain the two
metals on a parity in the United
States the same as in France, where
the ratio is only Is IL to l, while our
ratio is 16 of silver to of gold.
Whenever our government decides
to use silver on an equality with gold
in the payment of it's obligations, and
in accordance with the contract, the
people to whom silver is paid are
strong enough to make it's purchasing
power the equal of gold wherever the
American flag waves.
A BONDHOLDER.