The midland journal. (Rising Sun, Md.) 1885-1947, 1895-03-15
LIVE ISSUES.
Senator Stewart on Gold Bonds.

Senator Stewart on Gold Bonds.
From the National Waterman.
Last week Senator Stewart made
a speech on the gold bond issue.
We print the following, which is
the greater portion of his address.
The resolution quoted is known as
the Matthews resolution of 1878:
Resolved by he Senate, e House of Representatives.
conou,ring MereinJ That all the bonds issued by
the United States, issued or authorized to DC
issued under the said acts of Congress herein
before recited are payable principal and insterest
at the option of the government of the United
States, in silver dollars of the coinage of the
United States, containing 4121a grains each OF
standard silver and that to restore to its coinage
such silver coins as legal tender in payment OF
said bonds principal and interest Is not in viola
ton of the public faith nor in derogation OF the
rights of the public creditor. (See Congressional
Record, volue :, part / Forty-ffth Congress. sec
ond session. page 564.)
The concurrent resolution was
adopted in the Senate, as | have
stated, on the 25th day of January,
1873. In the House of Represen-
tatives the resolution was concur
red in as whole, the premble and
the resolution being voted upon at
the same time, by one vote, and
the resolution and preamble were
concurred in by the House Of Rep
resentatives by vote of 1S9 to 70.
Among those voting for that reso-
luton I find the names of John G.
Carlisle, the present Secretary OF
the Treasury; William Mckinley,
Roger @. Mills, VIM. M. Springer,
and ex-Secretary of the Treasury
Charles Foster, of Ohio. There we
have the present Secretary and the
ex-Secretary of the Treasury of the
Treasury declaring that the obi
cations of the United States were
payable in silver coin.
Did the President know Of this
resolution and of the overwhelming
vote by which it was passed when
he said:
OF course there never should be any doubt as to
the redemption in gold of the bonds OF the United
States which are made payable in coin?
But we need not go to that act
for construction, We need not
argue the correctness of the con
struction given by Congress on the
plain language of of the law. The
President and the syndicate with
which he is dealing have given it a
construction. They have construed
the bonds that are about to be
issued as silver bonds.
There can be no question about
that, for the President tells us so.
He tells us, in the passage | have
read, that he can sell gold bouds for
3 per cent, whereas he can sell no
bonds which he can issue under
existing laws for less than 81 pei
cent. The difference in per cent is
equal to Is per cent premium. The
President is offering Is per cent
premium now for gold. 1t is pro
posed to sell the bonds of the
United States and buy gold at Il
per cent premium. That will be
on the basis of 3 per cent; but il
the credit of the government had
not been impaired by the alarm
rised by the Treasury Department
and the banks, if this question had
not been raised at all, our bonds
would would sell at par, drawing
only 2! per cent.
A few years ago about $4,000,
900 of our bonds fell due, and thu
Secretary of the Treasury was
enabled to obtain an extension at
per cent. In 1879, or about tina
date, when the tours had from sew
enteen to eighteen years to run
they sold in the market at q pc
cent premium. If they had hat
the time to run they would hav'
sold for over 80 per cent premium
and really the President is payin!
more than 30 per cent premium TO
gold to-day. That is the real fact
and the country may as well under
stand that we are paying to-day
on the proposition submitted by tn
President, more than 80 per cen
premium above what we would b
required to pay if this question hat
not been raised by the banks, b,
the Secretary of the Treasury, ant
the President.
On the 9Th of November, 1892
no longer ago that that, the marke
price of the bonds of the Unite'