The advocate., 1894-09-12

speeches of John Sherman, who was
at the time Of the report chairman OF
the finance committee. 10 a report
Of that committee made to the SEN
ate December II, 1867, may be found
the following audscious statement:
The question now arises whether these
5 20 bonds are redeemable at the expiration
Of five years from their date in any other
money than the coin Of the United StRtesg
II this question rested solely upon the
act of February %, 1862, and the bonds had
been negotiated under that RCt alone, il
would be manifestly breach of faith to
redeem the bonds with the present Dnitad
States notes. They are very different from
the first legal tender notes, which, from the
limited amount authorized, and the priVi-
lsge to convert them into bonds, could mot
have had q less market value than the
bonds. But it was found that with suCh
restrictions upon the notes the bonds could
not be negotiated, and it became necessary to
depreCiGte the notes ir order TO CreGte market
for the bonds. [See psge 144, Sherman's
Speeches and BepOrbs.
D. Appleton & 90. have published
Mr.. Sherman's speeches and reports
edited and prepared for the press by
his own hand. On page 1852 Of that
work, in a speech made in the senate
February 27, 1868, he says:
Iwish to read little further, TO show
that the secretary of the treasury, Mr..
Chase, year afterward, in December, 1863,
in his report again stated that congress,
having relived him from all the restrictions
of the act of 1862, enabled him to sell the
$50 bonds. He says;
On that day, March 3, 1868, the acs TO pro
vide ways and means for the support OF ene
government received the approval OF the
president and became law. ln addition
10 various provisions for loans, it CON
tanned clauses repeating the restricslo ons
Affecting the negotiation OF the 5-20's, and
thus dis engaged that important loan from
the embarrassments which had previously
rendered it almost unaVallaoIe'
Then he goes on and says that almost
every dollar of the loan was sold in a shors
time, presenting a remarkable case Of sue
cess; but 1t lVas not sold under the act OF
February 25, 1862. On the contrary there
was an utter failure to sell the loan under
that aot. Il was sold under the subs equent
law which repealed the restrictions Of the
act of 1862, and il was sold upon basis Of
currency amounting to $45O, 100000, and
when the notes had been 80 deprecated By
our legislation, Intentionally, for wise pur-
poses, whom the right to fund was taken
away, and no right was given to the notes
except to be paid to the government in the
way Of taxes.
Again in speech Feb. 28, 1870, he
says:
AT the date of this act 300 million dollars
of United States notes we're outstanding,
with the distinct right printed on the face
Of them that they might be converted into
bonds bearing per cent. interest in gold.
Why was this right taken away from themv
Was it because We did not wish them CON-
verted into bonds? On the contrary, this
provision was adopted to induce their con-
version. All our bonds, euen s per cent. gold
bonds, tUere then BELOW THE PAR OF
UNITED STATES NOTES; and in order
TO expedite the conversion Of the notes into
honda WE DEPREOTATED THE NOTES
10 s0 grdue question lOhether this measure lCd,
not a breach Of public JGtth. Il was clearly
so, unless We regard it simply q Limitation
Of the time within which the right to con-
vert should be exercised. II was inserted
in the senate with grave doubts, and th'
the error was, that it was so framed as tC
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