The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1896-10-06

tOFS anu NnPnlOt~U On the SuDJeCts
Colonel George : German, for many
years resided in California, n was
a member of the national Republic"n
committee from that state, from les
to 1850. He was secretary of >the Uni
ted States senate from 1868 to 1872.
and was N the national political coun-
ellis OF the Grant and Conkling element
He edited The National Republican at
Washington for four years. For more
than twenty years he has favored the
restoration Of the free coinage of sill
Yer, and left the Republican party in
June last, when it adopted the gold
standard, and is now an earnest sup
porter of Bryan and Sewall. He has
written the following letter:
The Hon. Charles P. Johnson. st.
Louis, Mo.-Dear Sir: In compliance
with your request l present he fol-
lowing narrative of the steps which
led to the characterization of silver III
the United States in 1873, and the
methods adopted to accomplish that re-
suit:
The national debt at the close OF the
civil wal was about 81. 500. OOO, 600, the
principal being payable by law In any
legal tender money, and the interest
in coin. Certain great anking houses
Of Europe-follOwing the example set
by their predecessors in England i'm
mediately alter the fall Of Napoleon,
and setting an example which was fol-
lowed by their class in Germany after
the FrancO-Prussian War-inaugurated
a scheme to greatly enhance the value
Of this vast obligation by making it
payable in gold and then increasing
the value Of gold.
The Methods Adopted.
This involved two Legislative meas
uras:
First. Such changes in the laws of
the United States as would provide for
she payment of the principal of the
bonds in coin only. and would forbid
the payment of any portion Of 1T prior
to the resumption of specie payment, in
legal tender treasury notes, in which 1t
was expressly made payable by the
law authorizing the issue of the bonds,
and in exchange for which, when
greatly deprecated, they had all been
issued.
Second. The demonstration of silver
ir the. United states so that coin
Would mean gold only. and the value of
that metal at the same time be greatly
enhanced. =,
The Hon. John Sherman, a senator
from Ohio, became the chief promoter
Of his foreign scheme.
On the 18th of May. 1857. being then
on a visit to Paris and having just Wis
tied london, he addressed a letter to
the United States commissioner to the
international conference on coinage,
weights and measures, then in session
in the former city. In that letter, which
was published, he strongly urged the
adoption of the gold standard, and said
of his own country: LAS coin is not
now in general circulation We can cas-
lily fix by law the size, weight and
measure of future issues" The con-
ference adopted the gold standard, and
our commissioner reported that this re-
suit was largely due to the letter Of Mr..
sherman.
Senator Sherman next attempted to
easily fix by law" in this country the
new monetary system so to
the success of the scheme above de-
scribed. To that end, on the Sth Of
February, 1868. he introduced in the
senate a bill ono. 21O to demonetiZe
silver by disseminating the coinage Of
the silver dollar. He reported this bill
f~avorably from the finance committee,
but Senator f. D. Morgan. Of New
York, vigorously antagonized 1t in a
minority report, in which, after show
ing the advantages to the United States
Of continuing the double standard, he
said:
we have a distinctive American
policy to work out-one sufficiently free
from the traditions of Europe to be
suited to our peculiar situation. and
the genius of our enterprising
trymen."
From this stalwart blow by the great
merchant senator from New FORK the
bill never recovered. Mr.. Sherman
never again called it up.
The movement for a gold standard
was not renewed in any quarter until
nearly two years afterwards, and more
than a year after the expiration OF
Senator Morgan's term of office.
Strengthening the Bondholders.
Meanwhile. in obedience to the con-
certcd newspaper ClamOr inspired by
the operators in bonds, congress passed
the act Of March, 1869. r strengthen
the public credit" by which, without
any consideration whatever, the prin
cipa( Of the bonds of the government.
then payable in any awful money, was
made payable in coin only. The ad-
vantage this gave 10 the bondholders
will be apparent when we consider that
the major portion Of the bonds were by
Law reheemable in any lawful none
atthe pleasure of the United States. The
act Of 1869, to strengthen the purses OF
the bondn0lders, surrendered this priv.
ilege and bound the government to re.
deem in coin, then at an enormous pre-.
MUM.
This was followed. July IA, 1870, by
the ~refunding act. under which exist.
ing bonds were authorized to be con.
verted into bonds payable, principa
and Interest. in the coin of the United
gates OF the present standard value.
That is to say, the value Of July IA
1870. Silver dollars were at that tim
equally with gold a full legal tender.
a second unsuccessful attemp
at the demonetization Of etlve
was ~inauSurated on the 25tl
Of April, 1870, by the intro
duction in the n by Senator Sh.-