The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-07-23
ISSUED TO KANSAS
CONTINUED from Sixth Page.)

4 the creO2tOr ne Always inSlSlS upon NJ
contract. If contract happens to b
in favor OF a debtor, is he dishonest i
he pays according to contract? Tha
: the national debt Is payable in silver o.
gold coined at the ratio of Is to /, w
: submit the following:
In 1877 Mr.. Sherman being eecretar,
Of the treasury, desired to know
| whether he could issue gold bonds ant
In answer to his inquiry received tbs
following from the Republican attor
ney general:
1 Department Of Justice, Washington
April Is, 1S77.--Sir:---In answer to your
letter OF the list inst. requesting my
opinion upon the following question
growing out Of the refunding act oil
July Ii, 1870, to-wit: Can 1 stipulate
IN the body of the 4 per cent bonds
about TO be issued that they shall be re-
deemable in coin of present value. that
| Is, the standard value at the date OF
! their issue, or must 1t 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
passed, and not to the time when the
| bonds were thereafter issued. 1t con-
| templated that a long period would
| elapse before the it would finally be car
| ried into effect, and that changes In the
coinage Of the country might occur dur
| ing 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 holder
| was guarded against any depreciation
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 appreciated. All
me bonds issued under the act were to
stand alike, no matter what was the
| date when such bonds were issued
Each was to be redeemable IN coin
which was included in the authorized
coinage OF the country at the date re-
| fer'red to, it being of the standard value
as 1t 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 certain
change in the coinage of the country,
and that silver dollars have ceased to
exist practically as coin.
.
While 1 comprehend the difficulty sug-
gested in your letter and the convent
ence that there might be in removing
eny question upon this matter, I am,
therefore, Of the opinion that 1t would
not be safe 20 issue the bonds, EXCEPT
as redeemable in coin of a standard
value Of July 14th, 1870.
Very respectfully your obedient ser
want,
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 18th day Of January, 1873, intro
duced into the senate the following res
olution:
Whereas. By an act entitled An act
10 strengthen the public credit ap-
proved March IS, 1869, it was provided
and declared that the faith of the United
States was thereby solemnly pledged
10 the payment in coin or its equivalent
or aH the Understanding obligations of
the United States, except in cases where
the law authorizing the issue OF such
obligations had previously provided
that the same might be paid in lawful
money or other currency than gold or
silver; and
Whereas. All the bonds OF the Uni
ted States authorized to be issued bv |
the act entitled An act 10 authorize |
tht refunding of the national debt
approved July IA. 1870. by the terms of |
said act were declared to be redeema- |
BILE IN coin OF the then present standard |
value, bearing interest payable semi |
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. IA, 1875, they required to
be of the description of bonds of the
Of congress. approved July IA, 1870, tn
titled An act to authorize the refund I
ing of the national debt and
Whereas, At the date of the pass
age OF the said act of congress last
aforesaid, towit: the 18th day of July.
$50, the coin of the United States of
standard value of that date included
silver dollars of the weight of H21a
grains each, declared by the act ap-
proved January IS, 1897. entitled An
act supplementary to the act entitled
An act establishing a mint and regu-
ating the coins of the United States
% be a legal tender OF payment, &C
,ording 10 their nominal value, for
my sums whatever; therefore,
BE it resolved by the senate (the
1ouse of representatives concurring
-herein) that all the bonds of the Uni
ed States issued or authorized 10 be
ssued under the said acts Of congress
recited, are payable. prin-
,ipaf and interest. at the option Of the
government of the United States In sill
-er dollars of the coinage OF the Uni
ed States, containing 1924 grains
.ach of standard silver and that to re-
tore to its coinage such silver coins
IS a legal tender in payment OF said
,onds. principal and interest. is not
n violation OF the public faith nor in
lerogation of the rights of the public
reditor."
This resolution was passed by both
louses they at the time being Republic
an. And before its final passage
senator Edrnunds OF Vermont offered
n amendment favoring payment in
.old upon demand. This was lost in
he senate by vote of Is TO Is, and a
imilar amendment was lost in the
louse by vote OF 70 to $50.
1t IS certainly a long suffering people
Who will consent 10 unnecessary bond !
ssues in time OF peace. issues in inter-
I % q gold syndicate only, and then
efuse 10 coin The silver OF their own !
ounTry n pay them
5 1T WRONG TO FAVOR SILVER?
But we are told the free coinage OF sill
er. IS gold Is now coined. would favor
he silver mine owner. We reply that
ne OF our fundamental articles OF faith