The advocate., 1896-07-22

Obn6E IMAM BnOBo WHICH bnA9 SbnbuEo PiUFAu0Ss
While comprehend che difficulty suggested
in your letter and the convenience that there
might be in removing any question upon this
matter, am, therefore, Of opinion that IL
would not be safe to issue the bonds, except
as redeemable In coin of the standard value
Of July "a, 1870 Very respectfully. your Obe-
dent servant,
CHAs. DEvENs, Attorney General
Hon. John Sherman, Secretary Of the Treasury.
This correspondence took place dur
ing April, 1877. Mr.. Secretary Sher-
man, seeing that the law officer of the
government construed the word coin
the same as 1t had always been con-
strued in the United States, and desir-
ing to make the bonds more ssleable
by making them q more desirable In
Vestment for men who make bust
ness Of lending money In large amounts,
asked Congress to authorize him to
make the bonds redeemsble In gold
coin. The request is In the form Of q
recommendation in his report under
date December 8, 1877, In these words:
If, therefore, the public interests demand
the issue OF silver dollsrs-a subject hereafter
d1scusssd-it is respectfully submitted to Con.
gress that an express exception be made re-
quiring that gold coin alone shall be paid for
principal or interest on bonds issued to public
creditors since February -, 1878, the amount
Of which ls S5O2,99O,7OO. These bonds have en-.
tered into the markets Of the world. IL the
market value of the silver In the new coin Is
less than the gold dollar, forced payment In
the new coin Is repudlatiOn Of part Of this
debt.
The point that was suggested by the
Secretary of the Treasury was, that In
case at the time the bonds were to be
paid the amount of silver In the silver
dollar should be Of less value than its
coin value, and creditors were forced
to take it, 1t would be to that extent
the repudistlOn Of the debt.
Congress did not act on this recon-
mendstiOn. One would suppose this
fact to be notice, If any were neces.
ssry, to the officials Of the United
States that Congress did not aggree
with the Secretary In his interpreta-
ton OF the case, whether upon the law
or the facts. Congress did not see that
either the law or the equities required
any readjustment. Congress knew, as
all men knew, that the bondhOlders
had taken very good care Of themselves
already, and had In 1870 provided for
full, and more than full, payment by
the passage Of the provision for pay
ment In coin Of either metal.
While Congress took no action on
the action of Mr.. Secretary Sherman,
it did take action of its own motion.
In order to place the matter beyond
possibility of doubt or persdVenture,
this whole question as to whether the
bonds of the United States were law
fully payable in either gold or silver at
the option Of the United States was
thoroughly discussed by the represen-
tatiVes Of the people in both houses Of
Congress In 1873, prior to the passage
Of the silver purchasing law of that
year. On the 10th Of January, 1873,
the Hon. Stanley Matthews, then q
Senator from the State Of Ohio, sub
mitted to the Senate q concurrent reso.
luton as follows:
Whereas by an act entitled ~An act to
strengthen the public credit" approved March
Is, 1869, Il was provided and declared that the