The Penn's Grove record., 1896-09-11

the act under which they were author
lied in coin of the then present stand.
ard of value, that is, the standard value
at the date Of their issue, which was
gold, instead Of coin Of the standard
value at the date Of the law, which was
silver and gold. But the Attorney
General, to whom the question was re-
ferred, said nay to such an unwarrant-
able Interpretation Of tho statute.
So Mr.. Sherman had to appeal 10
Congress which he did, recommending,
ON December 8, 1875, that an express
exception shall be made requiring that
GOLD coin 0198t shall he paid for princi'
pal and interest on bonds issued to the
public creditors since February II, 1878
1.-THE date Of the Act iemonetizing sill.
ven, the amount of which is $500, $780,
| ZOO" But Congress promptly pat its
stamp of disapproval IN Mr.. Sherman's
suggestion in the interest of the bond
holders, by the passage, January 90,
1878, of u resolution reported 70 the
Senate by Senator Stanley Matthews,
of Ohio, adopted by that body by a vote
of As to %, and concurred in by the
House by a vote of 1S9 to ga resoIu-
tion to the effect THAT ALL Of the
BONDS of the United States, issued OF
authorized to be issued, = y are
PAYABLE, PRINCIPAL and INTEREST,
at the option of tie United States, IN
SILVER DOLLARS of the coinage of the
United States, containing 4l23 grains
each Of standard silver, and that to re-
store 10 its coinage such silver coins as
a legal tender in payment of said bonds,
principal and interest, is not a viola
tion of the public faith, nor in deroga-
ton of the rights of the public credi-
tors
With such a resolution on record,
with the words 'pay able in coin" writ
ten across the face OF EVERY BOND,
how can it be said that our bonds we're
purchased with the understanding that
they would he redeemed in gold; that
our government is in all honor morally
bound to redeem them in gold, and that
it would he a breach of faith to pay
either interest or principal in silver.
The Act of 1870, under which all our
bonds are issued, those sold by Mr..
Cleveland during the last three years,
as well as those sold by Mr.. Sherman
in 1S77-79, reserved the option of pay
ment in either gold or silver TO the gov
eminent. Iu the winter Of 1895, and
pending the famous contract with the
Belmont. Morgan syndicate, whereby
Mr.. Cleveland sold So, 3l5, 400 bonds to
that syndicate at 1919, which bonds
sold Immediately after at 100 and above,
Congress refused to surrender this OPP
tion to the b~ondholder, although Mr..
Cleveland ostentatiously declared that
such refusal would cost the government
SIG, 900, goo. According TO Mr.. Cleve-
land, Congress, in order to reserve the
option of paying their bonds, principal
and interest, in either gold or silver, in
volyed the government in an extra an
nual interest charge, amounting dur
Ing the thirty years which the bonds
would run, TO SIG, 900, 600. Bonds
specifically payable in gold could have
been sold; 50 Mr.. Cleveland declared at
the time in his special message to Con.
gress, at a lower rate of interest than
bonds payable in coin.
But Congress preferred that Mr..
Cleveland should pay more for what be
borrowed rather than to obligate the
government to the payment of such
bonds in gold. And what justice is
there in the proposal that Congress SUI.
render to the bond. holder this option,
for which it paid so highly? IL this OPP
tion should be ever surrendered to the
bond holders, honor and equity would
require that such bond.holders hand
to the Treasury the sun they have
received as interest in excess Of that
sum they would have been willing to
take if the bonds had been made pay
able in gold. When the bond-holders
offer to voluntarily reduce the interest
they receive on the bonds they hold it
will he time enough for them. to de-
mand that their bonds be made specifi-
cally payable in gold.
For years they have received a dol.
lar as interest that has grown greater
i'll purchasing power IRON year TO year,
that las cost a greater and greater sac
rillce of labor and energy to raise, and
that has enriched them at the expense
of the producing classes by II PROCESS
that has amounted to a virtual confis-
cation of the properly of their debtors.
Yet they assail as regulators all those
who demand the restoration of silver
to its place as money with a view to
checking Tue appreciation OF gold and
the fall of prices that has gradually in
creased the burden of all debts aud re-
suited in transferring to the holders of
our bonds a greater and greater quaint.
ty of the produce of mems labor, so
that now the dollar paid by the govern
ment as interest is worth nearly double
what the dollar was when the greater
part of our present outstanding bonds
were issued in place Of bonds Of an ear
lier date falling due in 1S77.79.
In 1879 wheat sold at s1.10 $40 a
in 1895 at 500 cents. In 1870
the farmer realized 37.5 cents per bush
ell for coru, Csc cents for rye and 33.1
cents for oats. In 1895 we received but
26.4 cents for corn, A cents for rye,
19.9 cents for oats. In 1879 903 bush.
els of wheat would have paid Il thou