648 CONGRESSIONAL PROCEEDINGS. 



Mr. JOHN SHERMAN. The Committee on Finance have no doubt at 

 all about this proposition so far as it is now reported. It is true that 

 a proposition was submitted to the committee that the back payments 

 already made should be made equal to gold. That we rejected on the 

 ground that the money having been received by the corporation, with- 

 out any objection, they certainly can not now present a legal claim 

 against the United States to make good any loss which may have 

 accrued from their taking a depreciated currency. But upon the main 

 question, that they are entitled to the interest of this trust fund in 

 gold, we had no doubt. All the permanent debt of the United States 

 is now payable in coin. That has been the established policy of the 

 Government since the foundation of the Government, and I think it 

 never has been departed from. Let me put this case: Suppose this 

 corporation, instead of allowing this money to remain simply as a trust 

 fund in the Treasury of the United States, had taken bonds of the 

 United States registered in the ordinary way, which the}' had a right 

 to do, and left them in the Treasury Department; they would have 

 drawn their interest in gold precisely as the holder of any other bonds 

 would have done. I am informed that this now stands as a registered 

 debt. 



Mr. GRIMES. How long has that been so? 



Mr. SHERMAN. Always, I presume. It stands as a trust debt. 

 There is no difference between them. 



Mr. GRIMES. Where is the distinction between this case and that of 

 the Indians ? 



Mr. SHERMAN. I will mention that in a few moments. 



There is, therefore, no distinction between this case and any other 

 portion of the permanent debt of the United States. This corpora- 

 tion, whether rich or poor, whether it is a charitable one or one mak- 

 ing money on its own account, would have the right to demand of the 

 Government the same interest that is paid to any other bondholder of 

 the United States. The fact that this money stands to the credit of 

 this corporation as a trust fund in the Treasury Department only 

 strengthens that obligation, because it is a general rule of equity, as 

 well as a rule of law, that a trust fund must be treated more favorably 

 than any other fund. Therefore the United States, having assumed the 

 burden of a trustee, would be held in a court of equity to a more rig- 

 orous rule than it would be even where it stands upon its legal rights. 

 If the United States is bound to pay to any other class of bondholders 

 interest in gold, it certainly should do so to this corporation, whether 

 it be rich or poor, whether it be a charitable one or one making money 

 on its own account. It seems to me, therefore, the proposition is plain. 



But the Senator says that we have refused to do this with the 

 Indians. The difference between our treaties with the Indians and an 

 obligation of this kind is that an Indian treaty requires us to pay 



