"My Dear Sir:--You are, of course, aware that there is a special committee now in session, organized by the Imperial Commission of France, in connection with the "Paris Exposition," composed of delegates from many of the nations therein represented. Its object, among others, is to agree, if possible, on a common unit of money, for the use of the civilized world.
"I perceive that the opinions of the committee are running strongly in favor of adopting, as the unit, the existing French five-franc piece of gold.
"May I ask what, in your opinion, is the probability that the Congress of the United States, at an early period, would agree to reduce the weight and value of our gold dollar, to correspond with the present weight and value of the gold five-franc piece of France; and how far back such a change would commend itself to your own judgment?
"I would also ask the privilege of submitting your answer to the consideration of the committee.
"With high respect, faithfully your friend, "Samuel B. Ruggles, "U. S. Commissioner to the Paris Exposition and Member of the Committee.
"Hon. John Sherman, "Chairman of the Finance Committee of the Senate of the United States, etc., etc., etc., now in Paris."
To this letter I made the following reply:
"Hotel Jardin des Tuileries, May 18, 1867.
"My Dear Sir:--Your note of yesterday, inquiring whether Congress would probably, in future coinage, make our gold dollar conform in value to the gold five-franc piece, has been received.
"There has been so little discussion in Congress upon the subject that I cannot base my opinion upon anything said or done there.
"The subject has, however, excited the attention of several important commercial bodies in the United States, and the time is now so favorable that I feel quite sure that Congress will adopt any practical measure that will secure to the commercial world a uniform standard of value and exchange.
"The only question will be, how can this be accomplished?
"The treaty of December 23, 1865, between France, Italy, Belgium, and Switzerland, and the probable acquiescence in that treaty by Prussia, has laid the foundation for such a standard. If Great Britain will reduce the value of her sovereign two pence, and the United States will reduce the value of her dollar something over three cents, we then have a coinage in the franc, dollar and sovereign easily computed, and which will readily pa.s.s in all countries; the dollar as five francs and the sovereign as 25 francs.
"This will put an end to the loss and intricacies of exchange and discount.
"Our gold dollar is certainly as good a unit of value as the franc; and so the English think of their pound sterling. These coins are now exchangeable only at a considerable loss, and this exchange is a profit only to brokers and bankers. Surely each commercial nation should be willing to yield a little to secure a gold coin of equal value, weight, and diameter, from whatever mint it may have been issued.
"As the gold five-franc piece is now in use by over 60,000,000 of people of several different nationalities, and is of convenient form and size, it may well be adopted by other nations as the common standard of value, leaving to each nation to regulate the divisions of this unit in silver coin or tokens.
"If this is done France will surely abandon the impossible effort of making two standards of value. Gold coins will answer all the purpose of European commerce. A common gold standard will regulate silver coinage, of which the United States will furnish the greater part, especially for the Chinese trade.
"I have thought a good deal of how the object you propose may be most readily accomplished. It is clear that the United States cannot become a party to the treaty referred to. They could not agree upon the silver standard; nor could we limit the amount of our coinage, as proposed by the treaty. The United States is so large in extent, is so spa.r.s.ely populated, and the price of labor is so much higher than in Europe, that we require more currency per capita. We now produce the larger part of the gold and silver of the world, and cannot limit our coinage except by the wants of our people and the demands of commerce.
"Congress alone can change the value of our coin. I see no object in negotiating with other powers on the subject. As coin is not now in general circulation with us, we can readily fix by law the size, weight, and measure of future issues. It is not worth while to negotiate about that which we can do without negotiation, and we do not wish to limit ourselves by treaty restrictions.
"In England many persons of influence and different chambers of commerce are earnestly in favor of the proposed change in their coinage. The change is so slight with them that an enlightened self-interest will soon induce them to make it, especially if we make the greater change in our coinage. We have some difficulty in adjusting existing contracts with the new dollar; but as contracts are now based upon the fluctuating value of paper money, even the reduced dollar in coin will be of more purchasable value than our currency.
"We can easily adjust the reduction with public creditors in the payment or conversion of their securities, while private creditors might be authorized to recover upon the old standard. All these are matters of detail to which I hope the commission will direct their attention.
"And now, my dear sir, allow me to say in conclusion that I heartily sympathize with you and the others in your efforts to secure the adoption of the metrical system of weights and measures.
"The tendency of the age is to break down all needless restrictions upon social and commercial intercourse. Nations are now as much akin to each other as provinces were of old. Prejudices disappear by contact. People of different nations learn to respect each other as they find that their differences are the effect of social and local custom, not founded upon good reasons. I trust that the industrial commission will enable the world to compute the value of all productions by the same standard, to measure by the same yard or meter, and weigh by the same scales.
"Such a result would be of greater value than the usual employments of diplomatists and statesmen.
"I am very truly yours, "John Sherman."
As the result of its investigation the commission agreed, with entire unanimity, that the gold five-franc piece should be adopted as the unit of value, and that the coins of all nations represented should be based upon that unit or multiples thereof. This would require a slight change in the quant.i.ty of gold in the dollar of the United States, amounting to a reduction of about three cents, a reduction in the pound sterling of England of about one penny, and a slight reduction or increase in the gold coins of other countries.
Mr. Ruggles reported the proceedings and recommendation of the commission to the President, and his report was referred to Congress.
A private letter to me from Mr. Ruggles, dated December 30, 1867, shows the nature of the opposition to the measure proposed, being entirely from British opposition to a change in the pound sterling.
He wrote:
"New York, December 30, 1867.
"My Dear Mr. Sherman:--You may have perceived, within the last week, articles in the "New York Evening Post," the "New York Times"
and the "World," on the subject of the proposed monetary unification; the first denying its _propriety_, the second its _practicability_, and the third underrating its _importance_.
"The articles are hastily and ignorantly and, in some respects, bitterly written. My first impulse was to briefly answer each of them in its respective newspaper. On further reflection, it seemed more decorous that, as a member of the "conference," I should first appear before the Senate committee now in possession of all the papers, and there render any proper explanations, and not obtrude myself as a combatant in the newspapers, prematurely and only partially defending my official action. If, however, you should think that the articles should be answered without delay, I could readily cause it to be done, by other persons.
"I cannot but think that the dignity of the subject, formally presented as it now is, to our national authorities, by a diplomatic a.s.semblage representing nearly all the civilized nations of the Christian world, ent.i.tles it to a full discussion before the Senate committee, to be followed by a maturely considered report, fairly weighing and presenting to the country all the merits and demerits, facilities and difficulties of the measure.
"I am just at the moment confined to my house by an "influenza,"
but if I can be of any service, either before the committee or elsewhere, I shall hold myself subject to your official call, for any duty, after the 7th or 8th of January, which you may indicate.
"You must have perceived that my report to the department of state, having in view the possibility of European readers, abstained from some considerations which might properly be brought to the notice of the committee of the American Senate.
"It is strange, indeed, to see American newspapers eagerly maintaining the inviolability of the "pound sterling," when it has become entirely evident that the great monetary struggle of the future must lie between the British pound and the American dollar. In truth, this was virtually admitted in the "conference" by Mr.
Graham, one of the British delegates, and master of the royal mint.
"With high regard, faithfully yours, "Samuel B. Ruggles.
"Hon. John Sherman, "Chairman Senate Finance Comittee, etc., etc., etc."
We were called upon to legislate upon the subject. The French government promptly acquiesced in the coin proposed. Mr. Ruggles"
report said that several governments had already a.s.sented to it.
The report was referred to the committee on finance of the Senate, who submitted a favorable report with a bill to carry out the recommendations, and that report was published. There was no dissent from the plan except that Senator Morgan, of New York, thought it would interfere with the profit of New York brokers in changing dollars into pounds. As a matter of course, it would have interfered with the exchanges of New York and London, the great money centers of the world. It would have interfered with bullion dealers who make profit in exchanging coins; but the whole of it was for the benefit of each country.
No man can estimate the benefit it would have conferred upon our own people. It was only defeated by the refusal of Great Britain to a.s.sent to the change of her pound sterling by the reduction of its value about one penny. But pride in the existing coins, so strong in that country, defeated the measure, although it had been a.s.sented to by her representatives in that monetary congress; and so the thing ended.
It is easy now to perceive that if this international coin had been agreed to it would have pa.s.sed current everywhere, as it could rapidly be exchanged at sight without going through the hands of brokers. I do not believe that Mr. Morgan would have insisted on his opposition, as the only ground of his objection was, it would have destroyed the business of the money changers of New York.
Even his resistance would have been ineffectual, as the committee and the Senate were decidedly in favor of the bill and the opposition of New York brokers would have added strength to the measure.
The greatest statesmen of Europe and America have sought for many years to unify the coinage of nations, and to adopt common standards of weights and measures, so that commerce may be freed from the restrictions now imposed upon it, but Great Britain has steadily opposed all these enlightened measures, and thus far has been able to defeat them.
My report from the committee on finance, made to the Senate June 7, 1868, contains a full statement of the acts of the monetary conference at Paris, and of the approval of its action by many of the countries there represented, and of the support given to the plan in Great Britain by many of her ablest statesmen and the great body of her commercial cla.s.ses, but the party then in power in parliament refused its sanction, and thus, as already stated, the measure failed.
It has been quite common, during recent discussion about silver, to attribute the alleged demonetization of that metal to the action of the Paris monetary conference. In 1867, when this conference was in session, as already stated, sixteen ounces of silver were worth more than one ounce of gold. Fifteen and one-half ounces of silver were the legal equivalent of one ounce of gold in all European countries. No suggestion was made or entertained to disturb the circulation of silver. The only object sought was to secure some common coin by which other coins could be easily measured. As gold was the most valuable metal in smallest s.p.a.ce, and the five-franc gold piece of France was the best _unit_ by which other coins could be measured, other gold coins were to be multiples of the unit, so that five francs would be a dollar and five dollars would be a pound. The coins of other nations would be made to conform to multiples of this unit.
It was perfectly understood that, while silver was the chief coin in domestic exchanges in every country, it was not convenient for foreign commerce, owing to its bulk. The ratio between gold and silver was purely a domestic matter, to be determined by each country for itself. It is apparent that the chief cause of the fall of the market value of silver is its increased production.
This affects the price of every commodity, cotton, corn, or wheat as well as silver. The law of supply and demand regulates value.
It is the "higher law" more potent than acts of Congress. If the supply is in excess of demand the price will fall, in spite of legislation. The most striking evidence of this was furnished by our recent legislation by which we purchased over 400,000,000 ounces of silver at its market value and h.o.a.rded it, and yet the price of it steadily declined. We can coin it into silver dollars, but we can keep these dollars at par with gold only be receiving them as the equal of gold when offered.
CHAPTER XIX.
IMPEACHMENT OF ANDREW JOHNSON.
Judiciary Committee"s Resolution Fails of Adoption by a Vote of 57 Yeas to 108 Nays--Johnson"s Attempt to Remove Secretary Stanton and Create a New Office for General Sherman--Correspondence on the Subject--Report of the Committee on Impeachment, and Other Matters Pertaining to the Appointment of Lorenzo Thomas--Impeachment Resolution Pa.s.sed by the House by a Vote of 126 Yeas to 47 Nays-- Johnson"s Trial by the Senate--Acquittal of the President by a Vote of 35 Guilty to 19 Not Guilty--Why I Favored Conviction--General Schofield Becomes Secretary of War--"Tenure of Office Act."
During the spring and summer of 1867 the question of impeaching Andrew Johnson, President of the United States, was frequently discussed in the House of Representatives. The resolutions relating to his impeachment were introduced by James M. Ashley, of Ohio, on the 7th of March, 1867, and they were adopted on the same day.
These resolutions instructed the judiciary committee, when appointed, to continue the inquiry, previously ordered, into certain charges preferred against the President of the United States, with authority to sit during the sessions of the House, and during any recess the Congress might take.