Year: 1868

Mr. Jay Cooke of Philadelphia has written the fol-
lowing letter on the financial question:


SIR: have been frequently asked Of late by my
former agents and the public press for full and cir
cumstantial explanation of the grounds upon which
the promise TO pay the interest and principal OF the
80 loan in gold based, and the extent to which
the faith of the nation was plghted consider the
agitation of this subject namely, the payment ofour
$40 bonds in anything but gold, as unnecessary
and injurious attack upon the public credit No pos
sible good can come from it, Much injury 10 the
credit not only of the nation but the whole business
community, must ensue from the bare discussion OF
such question. 1t is useless, because, unless
! prepared to expand the greenback currency, the
Treasury is not in funds to avail of its option II Il


ee right 10 do Ii is suicidal and foolish to thus
damage our credit by attempting to force a construc
tion of the Loan laws never contemplated by those
who framed them, by those who executed them, nor
by those who invested under their provisions.
/ have not hesitated to demonstrate with Senator
Sherman and others who take the " geenback view
of this question, and now l call upon you and all tho
press Of the land of all shades and parties to stand
| by the right in this matter.


| If the several Secretaries of the Treasury, the
General Agent and the Sub-Agents are responsible
/ for "gross deception of the people you gen
tlemen OF the press are equally responsible; for,
without your noble aid and untiring efforts the pub
| lie would never have responded with such an out
pouring of means You disseminated, in thousands
of editorials the statement that the funded debt tho
$40 and other loans were, principal and interest pay
able in coin. You did it honestly, and so did l.


In a recent letter TO Senator Sherman / argued as
follows: That it should be considered legal tdci
that the 5-9Os are payable, principal and interest in
gold.


Because Nothing is said to the contrary in the law
creating the loan


Because The custom of all other nations well az
our own, has always been to pay funded debt in
coin only.


Because, The debate at the time the loan law
passed revealed distinctly the mind of Congress.
The Chairman of the Committee Of Ways and Means
himself distinctly stated, at the time the bill was
pending that the bonds were, principal and interest.
payable in gold.


Because, A provision was inserted in the bill for a
sinking fund, ia coin. to be annually applied TO tho
purchase or payment of the bonds.


Because. The Secretaries of the Treasury have all
uniformly declared that the bonds would be paid in
gold.


Because, The bonds were sold to the people by the
authorized agent of the Government ON the strength
and contract of this declaration.


Because This Interpretation of the law was ac-
eepted by the whole country. Congress, including
Senator Sherman, stood by while the Treasury De-
partment was thus year after year. promising to pay
principal and interest in gold, without giving single
note of warning of any intention to repudiate tho
contract in after years.


Because When the Chairman Of the Committee OF
WAYS and Means, TO the retarding and sad injury Of
the negotiation of the loan then going in his
seat during one of the darkest periods Of the war.
and proposed his individual motion, that thereafter
the pincpal and interest of the loan should be paid
in legal-tender currency his motion was speedily
and promptly suppressed; but not until It lad done
great damage TO the public credit. The indications
unmistakably showing that upon any other than
gold basis it would be impossible to sell bonds.


Because II is fixed and settled legal as well az
moral principle that the principal is bound by all
acts of recognized agent, and legal gentlemen and
Senators may as well argue to the WINDS as attempt


TO tell the LOYAL people of this nation who furnished
the money in exchange for these bonds that Congress
is not bound by the promises OF its agents II clerk
OF agent wear after year. transacts business openly
to the satisfaction Of his principal, making sales.
purchases and contracts IN the name OF that primer
pal while he looks on approylngY, and sanctions III
innumerabe cases the agents acts, they are OF
course not only morally but legally binding upon the
principal, although the clerk or agent may never
have had written or even verbal authority TO show
that his principal is bound by what he has properly
done in the regular course of clerkship or agency.


i think have written enough to satisfy the bond
holders that there reasons and good reasons too,
why they need not fear the of any plan to de-
fraud them of their just rights. L think, however,
that may say further that any man, or any party;
reputation would be the payment OF the go loan
in greenbacks will be almost entirely unsupported
by the mass OF the people, including not only ths
intelligent educated men of all professions, oecupa-
tiOns and parties but the great mass OF honest
men, the ters of the soil. The people who through
long years of terrible war; maintained the honor and
integrity of the nation, cannot possibly now consent
10 tarnish their fair fame or to lower our standard
of honorable financial credit, 10 make this nation
an example of bad faith before the world


As have above referred TO Senator Shemans pO-
siton in this controversy, deem 1t just TO that dis
tinguished gentleman. whose position and record
during the war have been the subject Of universal
admiration, to say that while he honestly believes
the law strictly interpreted, gives the Government
the right 10 pay the bonds in greenbacks at the ma
turity of the hye-yea option yet III recent letter
he declares that while this is my opinion on legal
question, do not wish to raise il, nor did itls
forced upon us; and would gladly aid, either by
return TO specie payments or by an exchange OF new
bonds or by the purchase in open market at current
rates of 50s to avoid deciding question that IN me
minds of just men, whenever way decided, Woulu


Mr. Sherman further argues that there would be
no Injustice in the bondhOders receiving the iden-
teal money they gave for the bonds0 think there
is Injustice and wrong in the proposition; for the
bondholders bargained for 20year bond, payable in
gold, and not to be paid off sooner, unless in gold


Further by way of illustrations: Suppose man
having $1,000, gold, sold il during the war for pre-
MUM of 80 per cent realizing 5000 in legal tenders
This he invested in $1,000, 52Os. Now, under the
operation of the scheme OF repayment III greenDacks
gold runs up TO 800 per cent premium lie takes ms
g1d SSt M Iof of ' his Original Which
he honestly rsked the fate OF his country he now
has but $500 That would be tair estimate OF the
result to this bOndhoder no one can doubt who has
read the history of all Tredeemable and excessive
issues of currency in every age, IL the scheme
at all possible, just and proper strict justice would
reonire that an account should be taken from each
subscriber of the premium on gold. on the day and
hour he made his purchase of bonds and then he
should be permitted to purchase from the public
treasury an amount equal to the original SUM in
band the proceeds of his bonds at this date. Have
the advocates of these greenback" measures reflect
ed on the widespread rum that would follow ths
vested interests