The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-07-21

4
ministration, for. with,a high protective
/ tariff, the last administration prepared
/ the plates for a bond issue realizing
| that it could only maintain gold pay
| mentS by buying gold. We would stop
| this process by bringing silver to the
I aid of gold.
THE NATIONAL DEBT.
| But it is claimed with great earnest
using silver as standard money, means
| reputation. 1t is familiar knowledge
that the law of the land is part of
every contract. Investors scrtinize
with care the law governing public Sc
| curities. They buy with full know
| ledge. When a contract is favorable
to the creditor he always insists upon
! his contract If a contract happens to
be in favor of a debtor, is he dishonest
| if he pays according to cOntract2 That
the national debt is payable in silver or
gold coined at the ratio of 16 to 1, we
submit the following:
In 1877 Mr.. Sherman, being secretary
of the treasury, desired to know wheth-
er he could issue gold bonds and in an
swer to his inquiry received the follow
| eral:
Department of Justice, Washington,
April 20, 1S77.-Sir:-In answer to your
letter of the 21st inst. requesting my
opinion upon the following question
growing out of the refunding act of Ju-
! ly IA, 1870, tO-wit: can I stipulate in
the body of the per cent bonds about
to be issued that they shall be redeem
able in coin of present value, that is,
| the standard value at the date or their
issue, or must it be the date Of the
law?" have the honor to reply:
The act provides for the issue of
bonds "redeemable in coin of the pres
ent standard value" The word pres
ent'' undoubtedly refers as a matter of
date to the time when the act was pass
ed, and not to the time when the bonds
were thereafter issued. 1t contemplate
! ed that a long period would elapse be-
fore it would finally be carried into eff
! feet, and that changes in the coinage
| of the country might occur during that
| period
! Whatever changes in the coinage
should occur, these bonds were, how
! ever, to be redeemed in coin of the
standard value as it existed at the date
| of the act. By this provision the hold
| er was guarded against any deprecia-
ton that might take place in the value
| Of the coin, and the government would
not be compelled to pay the additional
value should the coinage be appre
| cfated. All the bonds issued under the
act were to stand alike, no matter
what was the date when such bonds
were issued. Each was to be redeem
able in coin which was included in the
authorized coinage of the country at
| the date referred to. it being of the
| standard value as it then existed.
Since the law was passed no change
has taken place in the standard value
! of the coin. 1t is understood that there
! has been a certain change in the coin
| age of the country, and that silver dol
| lars have ceased to exist practically as
coin
While I comprehend the difficulty
suggested in your letter and the con-
venience that there might be in re-
moving any question upon this matter,
I am, therefore, of the opinion that it
would not be safe to issue the bonds,
except as redeemable in coin of a
standard value of July 18th, 1870.
Very respectfully your obedient ser
CHAS. DEVENS.
Attorney General.
HON. JOHN SHERMAN,
Secretary of the Treasury.
But that there should be no doubt
concerning this matter Stanley Mat
thews, a Republican senator from Ohio,
afterwards an associate justice of the
supreme court of the United States, on
the 10th day of January, 1873, intro
duced into the senate the following
resolutions:
Whereas. By an act entitled AN act
to strengthen the public credit ap-
proved March Is, 1859, it was provided
and declared that the faith of the Uni
ted States was thereby sOlemnly
pledged to the payment in coin or it's
equivalent of all the interest bearing
obligations of the United States, eX-
cept in cases where the law authOriz-
ing the issue of such obligations had
previously provided that the same
might be paid in lawful money or 9TH
er currency than gold or silver; and,
Whereas, All the bonds of the Uni
ted States authorized to be issued by
the act entitled An act to authorize
the refunding of the national debt
approved July IA, 1870, by the terms of
said act were declared to be redeerna-
bic in coin of the then present standard
value, bearing interest payable semi
annually in such coin; and,
Whereas, All bonds of the United
States authorized to be issued under
an act entitled An act to provide for
the resumption of specie payments ap-
proved Jan. Il, 1875 are required to
be of the description of bonds of the
United States described in the said act
OF congress, approved July II, 1870. en-
titled An act to authorize the refund
ing of the national debt and,
Whereas. At the date of the pass
age of the said act of congress last
aforesaid, to-wit: the 18th day of July.
1870, the coin of the United States of
standard value of that date included
silver dollars of the weight of 4121h
proved January Is, 1887, entitled An
act supplementary to the act entitled
An act establishing a mint and regu-
Iating the coins of the United States
to be legal tender of payment, ac-
cOrding to their nominal value, for
any sums whatever; therefore,
BE it resolved by the senate (the
house of representatives cOncurring
therein) that all the bonds of the Uni
ted States issued or authorized to be
issued under the said acts of congress
heTeinbefOre recited, are payable, prin-
cipaI and interest, at the option of the
government of the United States in sill
yer uoIlaIS u the CoIHdSe % the I'M
ted States, containing 4121A grains
each Of standard silver and that to re-
store to its coinage such silver coins
as a legal tender in 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"
This resolution was passed by both
houses they at the time being Repub-
hcan. And before its final passage
Senator Edmunds of Vermont offered
an amendment favoring payment in
gold upon demand. This was lost in