Year: 1878




him was for resumption. Secretar,
:, John Sherman, at the head of tn
? Treasury, holds the position. III
! will enforce the sternest and hardes
! execution of the law. And it is un


derstood that any bill to repeal TIN
! clause will nows7beivetoed. / have
/, heretofores said that Gin my belief tn,
! resumption law has been the sourc'
of the greatest calamity to the bust
ness interests and prosperity of the
! country. 1t has had the effect o
causing men TO hoard greenbacl1.
and the banks to withhold and Il
withdraw circulation, in the fear o.
being crushed by forced resumption
in gold"


A favorable foreign trade has
promoted a return TO specie pay.
ments, and if the balances shall con
tinue in our faVorI expect to see ouI
paper money at par with gold at an


early day. Will the restoration OF


silver money mitigate the evils OF


contraction caused by the resump-


tion law? That is now the hope OF


the business men of Indiana. 1t is


not as cheap money that the people


demand its restoration, but as a legal


tender and coin contemplated by


the Constitution. When restored it


will become again standard and


measureOf value. Before its demon
citation silver was of par value


with gold, and when restored l


think it will rise again to the same


level. Ineed hardly say to you that


the value of any class or description


of property greatly depends upon


the important uses to which it may


be applied. Silver was money.


They stripped it of that, its most
| important use, and now say it is


worth s per cent. less than before,
| and therefore it cannot be good


mouey. Is that fair argument? AS
| a material for the manufacture of


ware silver will have only the value


which that use can give it; but


when stamped with the quality of


money, and made a legal tender for
the payment of all classes of indebt-


edness, it becomes the active agent


of trade and commerce; measures


values and discharges debts, and in
such use becomes correspOndingly


more important to society and more


valuable. Were gold stripped of


the quality of money what would be


the effect upon its value? | do not
believe the pennyweight of gold in


the beautiful wine-cup is as useful


to society nor as valuable as the
same weight of gold in the stamped


coin which does busy work in .the
channels of trade; and the demOne-
tization of gold would demonstrate
that fact. | have heretofore said


that "siIver has become an impOr-
tant product of this country, and in
asmuch as the world recognizes it as
money medium of exchange, /
cannot see why we should notutilize
our larger product Of that metal to
the greatest extent that may be found
practicable. Its value as money to
this country is too great to be thrown
away"


Should experience prove that, be- !
cause of the increased production of
silver, there will be a permanent !
and important difference between
silver and gold, Congress is clothed |
with ample power to provide the !
proper and adequate remedy.


1t is objected to the restoration OF |
silver money that it will be in bad |
faith toward the public creditors. |
If thought that possible | would |
not favor restoration, however i'm
portant to our interests | might es-
teem it. My judgment is so entirely
satisfied that ] have no anxiety |
upon that question. The question
is settled by the fair reading of the |
nN 81
Refunding Act of 1870. At the date
of the former act it was lawful to pay
the five-twenty bonds written out
in Treasury notes. But ii was con-
tended that because of the circum-
stances attending the creation of the
debt, it would not be proper to 80
construe the laws, and that payment
ought not to be made in paper. To
remove doubt and settle all contrO-
uersy the act was passed. 1t pledged
the faith of the United States to pay
ment in coin. l opposed the meas
ure in the Senate, and said that its
effect would be to make the law to
read that the debt shall be paid in
coin. The bill passed and became
law. TheTeupon the debt became
payable only in coin, not i'm gold
coin alone, but in silver coin as well,
for the silver dollar was then q part
of the coin of the country, as hon
ored in law and commerce as gold.


Next came the law of July IA, 1870,
to refund the national debt. That
act provided for the issue of new
bonds to the amount of 81 ,500,0 ,000,-
900, bearing 4, Al and 5 per cent. in
terest. The bonds so to be issued
were to be exchanged for the out
standing five-twenty bonds, "par
for par" or sold for coin, and the
were to be used in redeem
ing five-twenty bonds. In the first
section of the law it was provided
that the new bonds should be made
'redeemable in coin, at the present
Of value" That law, gen.
tlemen, had no uncertain meaning.
The new bonds were to be substi-
tuted for all the outstanding five
twenty bonds they were to be sold
for coin; and it was to be made a
part of their language that they
shall be made "redeemable in coin
of the present standard value" Ny
views on this subject were recently ,
Oh SuillClGill Importance
by distinguished citizen of New ,
York to call for review and ans
wer by himself. He had unques-
given the phraseology of
the laws relating to the bonds a
closer study than had, for it was
in the line of his business and of ,
his profits. / had examined those
laws with no professional or bust
ness purpose, but only as n citizen ,
in the financial policy !
Of the country. He found it useful
to his argument to show, if possible,
that the law under which the public
debt was being refunded required !
the bonds to be paid in gold. He
used this language: "Yet ! am sup ,
ported by the opinion of the illus
trious lawyers in the land that gold ,
Of the debt are required
and assured by the Refunding Act !
Of 1870 itself, which indeed mentions !
coin in its first section, but
in its fifth section, to carry out the !
act, excludes silver and specifically !,
the Secretary of the
to receive only gold coin !
IS the coin Of deposit and payment"
I am sure it will astonish you, after /