Year: 1878

utilize our own large 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
because of the increased production Of
silver there will be 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
its restoration, however important to our
interests might esteem it. My iudg-
ment is so entirely satisfied that | have
no anxiety whatever upon that question.
The question is settled by the fair
reading of the public credit act OF
1863, and the refunding act of 1870.
At the date of the former act
it was lawful to pay the 5-2O bonds
in treasury notes, but it was con


tended that because of the circumstances
attending the creation of the debt it
would not be proper to c0nstrue the
laws, and that payment ought not to be
made in paper. To remove doubt and
settle all controversy, the act was passed.


1t pledged the faith of the United States
to payment in coin. ! opposed the
measure 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. There
upon the debt became payable only in
coin, not in gold coin alone, but in silver
coin as well, for the silver dollar was
then part of the coin of the country,
a. honored in law and commerce as gold.
Next came the law of July II, 1870, to
refund the national debt. That act pros
vided for the issue Of new bonds to the
amount of fifteen hundred million dol.
lars, bearing four, four and half and
five per cent. interest The bonds 80
issued were to be exchanged for the out


standing 5-2Obonds, par for par,
or sold for coin, and the proceeds were
to be used in redeeming the 500
bonds. In the first section OF the
law it was provided that the new
bonds should be made redeemable in
coin, at the present standard value.
That law, gentleman, had no uncertain
meaning. The new bonds were to be
substituted for all the outstanding , 20
bonds. They we're to be sold for coin,
and it was to be made part of their
language that they should be redeemed
in coin of the present standard value


My views on this subject were recently
considered of sufficient importance by a
distinguished citizen OF New York to call
for review and answer hy himself. He
had unquestionably given the phrase,
ology Of the laws relating to the bonds Il
closer study than had, for 1t was in the
line of his business and of his profits. !
had examined these laws with no protes'
sonal or business purpose, but only ~ a
citizen interested in the financial policy
OF the country. He found it essential tc
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 supported by the opinion OF
some of the most iliustrious lawyers of
the land that gold payments Of the debt
are required and assured by the refund
ing act of 1870 itself, which, indeed,
mentions generally coin in its fifth
section, to carry out the acU, does exclude
silver, and especially commands the secre.
tary of the treasury to receive only gold
coin as the coin o. deposit and payment"
am sure it will astonish you after hear.
ing this passage read to learn that the
fifth section has nothing whatever to dc
with the provisions and sales of the new
bonds. 1t provides for this, and no more;
That the secretary of the treasury might
Tor two years receive gold on deposit and
issue gold certificates, bearing low rate
of interest, and that the deposit might
be withdrawn at any time after thirty
days upon ten days notice, and that
twenty-five per cent. should be retained
in the treasury to pay the certificates,
and the residue used to redeem the
500 bonds. was criticised by this
gentleman Tor using the words "go!d'
and "coin," as synonymous in public
speech, yet to maintain his argument, he
asks that it be believed that coin and gold
coin are loosely used in the same sense, in
different sections of one of the most i'm


portant laws of the United States. The
gold certificates were to issue
only upon gold deposits, but
in the second section the bonds were tC
sell for coin, and in the first section they
were to be redeemable in "coin of the
present standard value" The solemn
assurance given by that law to the public
creditor was that the bonds issued unde


it should be redeemable in gold and sill


yer, of the weight and fineness then fxet
by law. Upon this subject | have II,
new opinion to express, In my lettel
accepting the st. Louis nomination 70


vice. president, said "Gold and silve


are the real standard of value Indeed


| would rejoice if our supply of tn,
precious metals were sufficient for tn,


wants OF our trade and commerce, bu


we all know that it is insufficient, anc


that We must also have paper currency


and therefore, have opposed the policy


Of forced resumption Of specie payments


upon contractions by Withdrawing the


treasury notes from circulation. The


treasury note has been a safe currency,


and the people have had great confidence


in IT. and have not asked for its redemP


tion. While it isa safe currency IL IS


also cheap currency, in the sense tna1


II does not represent an interest bearing


obligstion of the government. Ia that


espec: and IN The respect That it tb,a is


ths national bank note. Becsise OF these


r;sw. SaS / have urged the repeai, not only
oi Nth, the resumption clause, but also of the


provisions p that are sought to substitute


hank @ notes for the outstanding treasury
notes. notes No higher duty rests upon the
legislators Of this country than the
nr5mpt and final settlement OF the finan.
cisl questions upon right and perma
nent basis. From the iarm, the shop
and the market-place there comes the
earnest appeal for final decision, that,