Year: 1868

to the bOndholder, but never to the
note holder. We promise to pay
the note on demand, but don't pay
it at all, and refuse even to take it
for our bonds except at discount.
This is the key to all our financial
discredit. If we will pay our notes,
lor make them equal to other mon
ey, all the trouble about the bonds
and high prices disappears. Do we
refuse to pay the notes because we
can't pay them? Not at all. We
could pay them easily with the gold
in the Treasury, or redeem the
amount Of them, so that the rest
would be equivalent to gold. Why
then don't we do it? The answer
is, that to do it abruptly would so
contract the currency as to inter
fere with the vast business opera
tions of the country. 1t will COM
pei the debtor class to pay their
debts in a different medium, or mon
ey, than the debt was contracted in.
It would suddenly reduce the nom
inal value, but not the real value of
all commodities. Prices would fall
from one dollar to seventy cents.
Now, everybody admits that we must
come to this some time; but all
shrink from the inevitable distress
of the change. Now, what we want
is to gradually bring up the value of
our notes to par with gold, and, if
possible, without too great con-
traction of the currency, or too alb
rupt a change.of prices.


"Another difficulty occurs. Gold
is the money of the world. 1t meas
ures all values, except domestic val
ues in the United. States. All our
foreign commerce is in gold. We
collect duties in gold, and pay our
interest in gold; and yet contract
for gold cannot be enforced in our
courts. 1t is banished by the law,
boarded in our vaults, and yet it is
the king of all prices. Now, the real
king should be enthroned again.
Contracts, when made in gold should
be enforced in gold. Our people
should become familiar with the jim
gle of gold, SO that when our paper
money becomes equal to gold the
transition will not be abrupt. These
three things the Senate Committe on
Finance sought to effect by what is
called the Funding Bill. We pro-
vided for the reduction of the rate of
interest by the voluntary exchange
of bonds bearing interest at six per
cent. for bonds bearing interest at
five, four and half and four per
cent. according to the time for which
they run, and made the terms so
that we were confident the exchange
would be made without raising the
legal question as to the payment in
greenbacks. We provided that the
United States notes might be con-
verted into bonds, and thus ad-
vanced in value by being made equal
to the bonds, and to rise with them
to the par in gold. We provided
that people might deal in gold as
well as in greenbacks, at their pleas
ure. All these changes are very i'm
pOl ckflu fhoO lAGCl CSOo,
but, feel sure, are wise, and will
soon be adopted. There can be no
reason why people are not allowed
to deal in gold as well as in wheat
or corn. There is no honor or hon
esty for the United States when it
owes man a note due on demand,
and can't pay it in money, to refuse
to give in exchange its note on in
terest. A private person who would
do it would be called rogue or a
bankrupt. There is no reason why
the United States may not now,
when at peace, borrow money at as
low a rate as Russia or France. But
the Funding Bill had a troublesome
voyage, was mutilated in both
houses, and finally landed in the
pocket of Andrew johnson. But I
have no more doubt that every pro-
vision Of the original bill will be the
law of the land, than I have of the
election Of General Grant-about as
certain as any future event can be-
and that the Republican party will
reduce the interest of the public
debt to less than 100000, 900, in
strict compliance with the public
faith"