t
sacred obligation, because it was past due, was refused either
payment or conversion, thus cutting it off from the full benefit
of the advancing credit of the government, and leaving to it only
the forced quality of legal tender in payment of debts.

"Shortly after the war was over, and notably during the presidential
campaign of 1868, the question arose whether the bonds of the United
States were payable in coin or United States notes. Both notes
and bonds were then below par in coin, the notes ranging from sixty-
seven to seventy-five cents in coin; and five per cent. bonds from
seventy-two to eighty cents in coin. Here again the opportunity
was lost to secure the easy and natural appreciation of our notes
to the gold standard. Had Congress then authorized the conversion
of notes into bonds, when both were depreciated, both would have
advanced to par in gold; but, on the one hand, it was urged that
this would cause a rapid contraction, and, on the other, that the
right to convert the note into a bond was not specie payment; it
was only the exchange of one promise for another. It was specie
payment they very much favored, but did not have the wisdom then
to secure. If the advocates for specie payment had then supported
a restoration of the right to convert notes into bonds, they would
have secured their object with but little opposition. But all
measures to fund the notes at the pleasure of the holder were
defeated, and, instead, there was ingrafted into the act to strengthen
the public credit--

"First, a declaration 'that the faith of the United States is
already pledged to the payment in coin, or its equivalent, of all
the obligations of the United States not bearing interest, known
as United States notes, and of all the interest-bearing obligations
of the United States,' except such as by the law could be paid in
other currency than gold and silver.

"Second, 'and the United States also solemnly pledges its faith to
make provision, at the earliest practicable period, for the redemption
of the United States notes in coin.'

"Here again, the obligation of the government to pay these notes
in coin was recognized, its purpose declared, and the time fixed
'as early as practicable.' What was the effect of this important
act of Congress? Without adding one dollar to the public debt, or
the burden of the debt, both bonds and notes rose in value. Within
one year, the bonds rose to par in gold, making it pra