92 CONGRESSIONAL PROCEEDINGS. 



Mr. 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, without any objec- 

 tion, they certainly cannot 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 per- 

 manent 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 or- 

 dinary way, which they 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 corporation, whether rich or poor, whether it 

 is a charitable one, or one making money on its own ac- 

 count, 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 rigorous 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 cer- 

 tainly should do so to this corporation, whether it be rich 



