Freeland tribune. (Freeland, Pa.) 1888-1921, 1896-11-30
FALLACIES EXPOSED
G0LDBUG s0PHISTRIEs AND FALSE
HOODS SHOWN UP.

Hammer Test, Payment of Bonds,
and Silver Producers Consid-
cred and Clearly Explained
None Should BE Imposed Upon.
Goldbug sophistries and fslseh9ods
are difficult to deal with. They mul.
tiply like weeds and assume all
manner of shapes without any
regard to congruity CT con-
sistency. They seem absolutely
Impervious to logical refutation and
to survive with renewed Yigor every
demonstration OF their absurdity.
Nevertheless, as their continued and
emphatic reiteration Is liable to mis-
lead, it seems necessary 20 persevere
in exposing their falsity. AS there is
10 method in their presentation, 1
think it is we'll to take them up in
discriminatory upon the plan of hit
ting head wherever 1 see it. And
first here is little one called
THE HAMMER TEST.
1t is said: "Take United States
gold coin and smash it with ham
mer and the bullion mass will be
equally valuable with the coin, but
submit silver dollar to the same
test and nearly half its value is de.
stroyed." Very true, but why? The
defaced gold can be Immediately
taken to the mint and without cost re.
stored to coin. Give back to silver its
coinage privilege and it Will stand the
test in exactly the same way and for
the same reason. ii the mint is open
you may smash silver dollar on the
anvil until it is shapeless and the rem
nant bullion will be worth exactly as
much as the coin before defacement,
for the plain reason that without cost
it can be reformed into the stamped
and standard coin. No one but a
simpleton can be imposed upon by so
absurd n proposition as this "hammer
test" The next which comes in my
way regards
1.-THE PAYMENT OF BONDS"
II is said that Notwithstanding our
bonds are in terms payable IN "coln,"
yet as gold was given for them there
is moral obligation to pay them in
bOiu' LC VI luCb iS ltlst,
because nearly every Government
bond in existence has been obtained
by refunding bond originally pur-
chased with much deprecated legal
tender notes. But [ do not wish to
insist upon this. prefer to admit
that gold was given for every bond,
and then ask what that has to do with
n mi hh
which it shall be paid? Is the method
of payment to be looked for in the
consideration for the bond or in those
OF its terms which prescribe the
method of payment? 1t must make a
lawyer smile to see such a question
made matter of serious considera-
tion. At no time and in no country,
and under no legal system was the
character of the consideration for an
obligation allowed to control or in.
fuence, legally or morally, the uu-
dertalling of ihe obligor. What the
consideration may have been is imma.
terial. 1t may have been the building
of railroad or the furnishing OF
Government supplies or any one of a
| r,
then tho amount paid WAS equally i'm,
portant with the quality. To refer to
either one or the other or in any way
to the character of the consideration
as guide i'll considering the obiiga-
tion of the Government is as contrary
to all legal principles and precedents
as it is to the teachings OF common
| &C 80
that every bond was purchased for the
least consideration at which it could be
obtained. If gold was paid, then the
purchase was made with just as small
an amount of gold as the buyer could
induce the Government or its repre-
sentatives to take. What he paid or
how much he paid has nothing to do
with the question OF what he bought.
Let me illustrate by an actual trans,
action. A year and half ago the
Government wished to sell sixty two
millions of bonds, and money syndi-
cate was negotiating for the purpose.
Pending the negotiation Mr.. Cleveland
sent message to Congress, stating
that for thirty year bonds, payable in
coin (the only kind then authorized by
law, the syndicate would require that
the rate of interest should be 81 per
cent, but if thirty-year gold bonds
could be authorized they would take
them at per cent. the consideration
in either case to be in gold. The diff
ference, reckoned to the maturity o.
the bonds, amounted to about fifteen
millions of dollars. Congress not be
ing willing to authorize gold bond,
the contract was concluded for coin
bonds at 81 per cent. interest-that is
to soy, the Government obligated it.
self TO pay to the syndicate fifteen
millions of dollars for the privilege Of
satisfying the bonds in coin, insteac
of obligating itself to pay in golt
alone. Now, l ask, supposing silver
to be cheaper than gold, in what kline
of coin ought the principal aud inter
est of these bonds to be paid? Car