Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1896-07-31

demonstrates that there are but two
ways in which we can continue the
present gold standard; one is to con-
tinue borrowing gold, the ether is to
cancel the greenbacks and the Sher-
man notes OF 1880. The first means
bankruptcy, for there must be an end
to borrowing; the other means the de-
struction of one-fourth of the money
of the country Under the regula-
tons esta blished by the last admins
tration, the above named currency
can be and has been used TO exhaust
the gold in the treasury, then the
government issues bonds to buy more
gold, pays out the paper currency in
the usual course of business, in the
usual course of business this currency
finds its way back into the bank,
when it is again used to exhaust the
gold in the treasury, and this calls
for more bonds TO buy more gold.
This process can be repeated without
end. 1t will not do TO lay all the
blame on the present administration,
for, with high protective tariff, the
last administration made the plates
for bond issue, realizing that it
could only maintain gold payments
by buying gold We would stop this
process by bringing silver to the aid
of gold.
The National Debt
But it is claimed with great ear
nestness that the free coinage of
silver, and using silver as standard
money, means reputation. 1t is
familiar knowledge that the law of
the land is a part of every contract.
Investors scrutinize with care the law
governing public securities. They
buy with full knowledge. When a
contract is favorable to the creditor
he always insists upon his contract.
# a contract happens to be in favor
of de btor, Is he dishonest if he pays
according to his contract? That the
national debt is payable in silver or
gold coined at the ratio of l6 to |, we
submit the following:
In 1877 Mr.. Sherman, being secre-
tary of the treasury, desired 10 know
whether he could Issue gold bonds
and in answer to his inquiry received
the following from the Repu blican
attorney general:
Department of Justice, Washington,
April 20. 1877. Sir: In answer to your
letter of the 2lst inst, requesting my
opinion upon the following question
growing out of the refunding act of
July Ii, 1870, to-wit: "Can | stipulatc
in the body of the per cent bonds
about to be issued that they shall be
redeemable in coin of present value,
that is, the standard value at the date
of their issue, or must it be the date
of the law?" l have the honor to re-
ply: The act provides for the issue Of
bonds "redeemable in coin at the
present standard value" The word
'present" undoubtedly refers as
matter of date to the time when the
act was passed, and not to the time
when the bonds were thereafter
issued. 1t contemplated that a long
period would elapse before it would
finally be carried into effect, 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 this act. BY this provision the
holder was guarded against any de-
probation that might take place In
the value of the coin, and the govern
ment would not be compelled to pay
the additional value should the coin
age be appreciated. All the bonds is.
sued 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 coin
age 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 GER
tain change in the coinage of the
country. and that silver dollars have
ceased to exist practically as coin.
\
While l comprehend the difficulty
suggested in your letter and the con-
venience that there might be in re-
any question upon this matter,
l am, therefore. of the opinion that it
would not be safe to issue the bonds,
except as redeemable in coin of
standard value of July 14th, 1879.
Very respectfully your obcdicnt
servant, CHARLES DENENS,
Attorney General
Hon. JOHN SHERMAN,
Secretary of the Treasury,
But that there should be no doubt
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,
1879, introduced into the Senate the
following resolution:
"Whereas, by an act entitled AN
act to strengthen the public credit
March IS, 1862, it was pro-
vided and declared that the faith of
the United States was thereby SOL
emily pledged to the payment in coin
or it's equivalent of the interest bear
ing obligations of the United States,
except in cases where the law author
izing the issue of such obligations had
provided that the same
might be paid in lawful money or
other currency than gold or silver;
and.
Whereas, All the bonds of the United
States authorized to be issued by the
act entitled AN act to authorize the +,
OF the national debt, APP
proved July IA, 1870, by the terms of