Whether the debt is ultimately paid in
gold or in silver coin is of but little moment compared with the
possible reduction of interest one-third by refunding it at such
reduced rate. If the United States had the unquestioned right to pay
its bonds in silver coin, the little benefit from that process would
be greatly overbalanced by the injurious effect of such payment
if made or proposed against the honest convictions of the public
creditors.
All the bonds that have been issued since February 12, 1873, when
gold became the only unlimited legal-tender metallic currency of the
country, are justly payable in gold coin or in coin of equal value.
During the time of these issues the only dollar that could be or was
received by the Government in exchange for bonds was the gold dollar.
To require the public creditors to take in repayment any dollar of
less commercial value would be regarded by them as a repudiation
of the full obligation assumed. The bonds issued prior to 1873 were
issued at a time when the gold dollar was the only coin in circulation
or contemplated by either the Government or the holders of the bonds
as the coin in which they were to be paid. It is far better to
pay these bonds in that coin than to seem to take advantage of the
unforeseen fall in silver bullion to pay in a new issue of silver coin
thus made so much less valuable.
Pages:
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60