4.
H
Cljt littsturglj etayttt.
PUBLISHED DAILY, BY
PENNEILIN, REED, CO., Proprietors.
F. R. PENNIMAN, JOSIAH KING,
T. P. HOUSTON, N. P. REED.
Editors and Proprietors.
, OFFICE: •
GAZETTE BUILDING, N 05.184 AND 86 FIFTH ST.
OFFICIAL PAPER
Of Pittsburgh, Allegheny and Allegheny
County.
TK,m• . Stmi- Week/v.! Weekly.
One r....$ 1.4.0ne year.t.2.so,Slngle c0py...40.50
One im,nt . 7. Six mos . 1.a); 5 copies, each. 1.25
y the week t !Three mos 75.10 " .• 1.15
Mom a er.) I I—and one to Agent.
FRIDAY, SEPTEMBER 4,186 S.
National Union Republican Ticket.
NATIONAL. '
President—ULYSSES S. GRANT.
Vice President—SCHUYLEß COLFAX.
PRESIDENTIAL ELECTORS
AT LARGE.
G. MORRISON COATES. of Philadelphia.
THOS. M. MARSHALL, of Pittsburgh. •
District . District.
1. W. H. BARNES, 1 'EL SAMUEL SNOW,
.W. J. Pot,Loca - , !14. B. F. WAGONSELLER.
RICIIARD WILDET, 15. CRAB. H. MILLER,
4. G. W. HILL, • II& JOHN STEWART,
5. WATSON P. MCGILL, .17. GEORGE. W. ELSER,
6. J. 11. BRINOIIURST, 'IS. A. G. OLMSTEAD,
7. FRANK C. lIEATON, , 19.. 1.A.31ES SILL. •
'B. ISAAC ECKEIIT, '33. H. C: JonNsoN;
9.. MORILIS HOOFER, 121. J. K. EWING,
10. DAVID M. RANK, 22. WM. FREW,•
11. WIT,. DAVIS. CIL A. W. CRAWFORD,
12. W.' W• KETCHUM, '124. J. S; BUTAN.
STATE.
Auditor General-J. F. HARTRANFT
Surveyor General—J. M. CAMPBELL
. DISTRICT.
Congress, 22d Dist.—JAS. S. NEGLEY.
23d Dist.—DARWIN PHELPS.
COUNTY.
State Senate—JAMES L. GRAHAM
ICEEMEM
GEORGE WILSON, M. S. HUNIPHREYS,
GPO. P. MORGAN, ! VINCENTMILLER,
JAMES TAYLOR, !SAMUEL KERR.
District Attorney—A. L. PEARSON.
Aas't District Attorney-J. B:FLACK.
Controller—HENßY LAMBERT.
Commissioner—JONATHAN NEELY.
Surveyor—H. L. McCULLY.
*County Some Director—J. 9. MURRAY.
CITY.
.Mayor—JARED M. BRUSH.
Controller—ROßT. J. .MaGOWAN
Treasurer—A. J. COCHR AN .
- WE PRINT on the in,side pages of this
morning'S GAzETTE = Second page: Cam
paign Poetry,'`, l Let Ui Have Peace," (Origi
nal,) Ephemeris, Interview with Gen. Long
1.
street. Third and Sixth pages: Commercial
and River Intelligence. Seventh page: Interest
ing Letter Concerning Affairs in Tennessee.
GOLD closed in Ncw York yesterday at
143'1. •
Tim article on Tennessee affairs, ta which
we alluded yesterday, appears, on an in
side page of this morning's GAZETTE.
Mr. fifty-fifth anniversary of Perry's
victory on Lake'Erie, will be observed with
a grand Republican mass meeting at Erie
on the 10th inst.
THE appearance of the cattle plague in
Poitage county, Ohio, on or near the line
of the Cleveland and Pittsburgh . Railway,
is reported. Vigorous measures have been
taken to check it.
THE NEWS from Vermont continues .to
grow better. There is no shrinkage in the
returns, which, when fully in, will bring
the majority for the Republicans quite up to
thirty thousand ! .
Tam THANES of all Republicans of the
city are due to the Secretary of War, Gen.
J. M. SCHOFIELD, for his prompt response
to at request for artillery at the Vermont
celebration last night.
THE VERMONT Vi icTonY was celebrated
last night in an appropriate manner by the
Second Ward Grant Club and citizens gen
erally. One hundred guns were fired at'
midnight on the Monongahela wharf, in
honor of the Green Mountain State.
"IF ANY MAN PULLS DOWN THE AMERI
CAN-FLAG SHOOT HIM. ON THE SPOT."
Sikh were the orders of a distinguished
Democratic official under Mr. BUCHANAN,
who loved his country more than his parti.
The min who made that memorable order
wag General Join.; A. Dix, who afterwards,
when in command at New York, told Gov.
SEYMOUR 'that he had troops enough to
manage his "friends" and him too, and
who is now the' American Minister to
France. Nb one, therefore, need be sur
prised to learn that General Drx declares
now earnestly in favor of the' election of
GRANT and COLFAX. -
SECRETARY IlifcCOLLoat, declaring that
"tte financial „policy. of the. Democratic
party.wilf certainly bring financial ruin
upon the country," yields, nevertheless, to
his "paramount aversion to the reconstruc
tion" of the South, and, therefore pro
nounces for SEYMOUR and BLAIR, that is to
say, he 'hi willing tO BLUR'S
rebellion and Piwnt.,krox's repudiation
together. Henceforth, the Democracy are
Pre.cluded, from holding the itepublicads
responsible for his financiering. Hence
forth, it is possible that the public debt
statements and other official ;expositions
froth the Treasury will be "cooked up" as
electioneering documents for the Democra
cy. "Henceforth, it may , be regarded as
openly acknowledged, that the whisky and
other "rings," 'which have long been om
nipotent in the Executive departments, will
continue to run the governmental machin
ery in , the interests of their own perpetua
tion.
INDIMPENDENf- VETIERABIS FOR
THE UNION.
A meeting of the Veteran Soldiers of Al
legheny county is called, for assemblage
on fu! 10th inst. Oen. A. L. Now, of Bal
timore, formerly Adintanreeneral on HAM
coon's staff, and Gen. J. F. HARTBANIIT
will be present. Let every soldier, Inde
pendent of party, who Is In favor of Peace
and the Union;, attend.
THE BOND QUESTION.
I. ME BONDS
At the outset of the argument upon which
we are about to enter, it is beht to obtain
cri
full. and definite ideas as to howk any kinds
of United States Bonds there are, when
they are redeemable, and what is he amount
of each sort„ -
_.__...,__.._._._T__....______.
13's of SI, dated in 1861, and redeemable 20
years from January Ist, and, July Ist, of
that year. They are called 1881 s, being
due ihen. Interest on them is 6 per cent.
in Gold, payable January Ist and July
Ist. There are three series of the Bonds,
to wit.:
Issued under Act of
Feb. 8, 1861,
Issued under Act of
July 17 and August
5, 1861 t 50,000,000
In Exchange for?-30's
Act of July 17 and
- August 5, 1881 ..139,317,150
Issued under Act of March 3,
1863, (and Principal specified
in the Act as payable in Coin,). 75,000,000
Total, June Ist, 1868 *282,782,150
Old s:2o's, called old because they were the
first of these popular Bonds issued, and
. deMgnated 5-20's from the time they have
to ruh. They bear date May Ist, 1862.
Redeemable after May Ist, 1867, payable
May Ist, 1882. Interest at 6 per cent. in
Gold, - payable May and November Ist.
The Coupon Bonds of this issue sell high
er,than the other 5-20's because having
been the'first to be placed upon the For- -
eign Market and largely sold abroad,
they are always in demand for remittance
and investment there.
These Bonds are issued under
__..ket of Feb. 25th, 1862, and
amount to $514,771,600
5-20's of 1861, dated Nov. Ist, 1864, redeem
able after Nov. let, 1869; payable Nov.
Ist, 188 I. Interest at 6 per cent. in Gold,
due May and Nov. Ist. These Bonds are
issued under two acts of Congress, viz:
March 3d, 1864, (Principal speci
fied in the Act as payable in
Coin,) , • $ 3,882,500 -
June 30th, 1864. 125,561,300
Total, June Ist, 1868. $123,443,800
5-20's of 1865, Nov. Issue.—These Bonds
bear date Nov. Ist, 1865, redeemable after
Nov. Ist, 1870, payable Nov. Ist, 1865. In
terest 6 per cent. in Gold, due May and
Nov. Ist. The Coupon Bonds of this issue
beginning to be sought after in the Eng
lish Market, they bear a higher premium
generally than the Bonds of 1864.
They are issued under Act of
March 3d, 1865, and amounted
June Ist, 1838, to. 5197 - ,777,250
5-20 , s of 1865, July Issue.—These Bonds
were issued in exchange. for 7,30's con
verted, and bear date _July Ist, -1865, re
deemable after July Ist, 1870, payable
July Ist, 1885. Interest 6 per cent. in
Gold, due January Ist and July Ist.
Authorized by Act of March 3d,
1865. Amount outstanding
June Ist, 1868.. $334,072,350
.5-20 , s of ISO:. issued also in exchange for
7-30's converted, dated July Ist. 1807, re
deemable after July Ist, 1872, and pay
able July Ist, 1887, interest 6 per cent. in
Gold. due January Ist and July Ist.
The Act of March 3d, 1865, also authorizes
the issue of these Bonds,
Which amounted June Ist, .
186 S, to $317,421,050
This will be increased, as 7-30's are still be,
ing converted into them._
5.20's oflS6B.—These bonds are also issued
bY"authority of the Act of March 3d,1865,
in exchange for 7.30's converted; are
dated July Ist, 1868, redeemable after
July lse, 1873, and payable July Ist, 1888,
interest 6 per cent. in Gold, due January
Ist and July Ist. The amount of ri2O's,
1868,-pannot be, stated until the 7-30 s are
all sent in; as these not converted accord;
ing to Treasury statement of Juno Ist,
1868, were .$105,610,650; and as holders
have the privilege of choice between '67's
and '6B's.
10-40 Bonds. bearing this name from the
number, of years for which they are
issued; being redeemable aster ten years,
- and payable fortyyears from March Ist,
1864. Interest at 5 per cent. in Gold, pay
able on the .500 and 1000 Coupon Bonds,
and on all the Registered, March Ist and
September Ist; and on the 100's and 50's
,Coupons, yearly on March Ist.-
They ate authorized by the Act of March
3d, 1864, and the Principal is specially
provided for in Coin. Amount, June Ist,
1868. $194,291,300
U. S. Pacific Railroad Curreney ,Sixes.—
These are issued by the Government to
the Companies chartered by Congress to
construct Railroads to and from the Pad.;
fic Coast, and on the completion of twen
ty miles of track at the rate of $16,000,
832,000, $48,000 per mile, according to dif
ficulty of construction. Interest at 6
per cent, in Currency, and payable Janu
ary and July Ist and 16th.
They are redeemable thirty years from the
dates of their is , ue, and are all Regis
tered, in Bonds of $lOOO, 85000 and $lO,OOO.
Amount June Ist, 1868.... 825;902,000
Alll the Gold Bearing Bonds are Issued
either Coupon or Registered.
Coupon Bonds ere issued in denominations
of $5O, $100; 8500, and $lOOO. Registered
the same, with 85000 and 10,000.
Any Coupon Bonds will be exchanged by
the Government f.n. Registered of the same
issue.
11. HOW THE BONDS ARE PAYABLE
The answe r to this inquiry must be
sought, First, In the acts of Congress au
thorizing the Secretary of the Treasury to
issue the bonds; Second, In the acts creat
ing the Legal Tender currency; Third, In
the nature and limitations of unconvertible
currency-; Fourth, In the understanding
of the two Houses of Congress on . those
three points when the aforesaid acts were
under consideration; and, Fifth, In the as
surances given by the Secretary of the
Treasury, and other officers and agents of
the Government, while engaged in nego
tiating sales of the bonds. That we may
find the pioper answer, let us, at the be
ginning, carefully scrutinize the acts desig
nated, bearing is mind as we go along that
the Bonds and Legal Tenders were both au
thorized in each of several different enact
ments.
Feb. 25, 1862.—SECTION 1. The Secretary
of the Treasury is hereby authorized to is
sue, on the credit of the United States,
$150,000,000 of United States notes, includ
ing $50,000,000 of demand notes previously
issued not bearing interest, payable to bear
er,_ * * * receivable in payment of all
takes, internal duties, excises, and de
mands of every kind due to the United
'States, except duties on imports, and of all
claims and demands against the United
States of every kind whatsoever, except
for interest upon bonds and notes, which
shall be paid In coin, and shall also be law
ful money and a legal tender in payment
of all debts public and private, within the
United States, except duties on imports and
Inttirest as aforesaid. * • And such Un
ited States notes shall be received the same
as coin, at their par value, In payment for
any loans that may be hereafter sold or
negotiated by the Secretary of the Treats
nry."
Sao. 2. "That to enable the Secretary of
the Treasury to fund th Tr( asury notes and
floating' debt of the Unite?! States, be is
nereby authorized to issue, on'the credit of
the United States, coupon bends, ar regqis•
tered bonds, to an amount not exceeding
P 00,000,000, redeemable at the pleasure of
PITTSBURGH GAZETTE : FRIDAY. SEPTEMBER 4, 1868
the United States after five years, and pay
able twenty years from date, bearing inter
est at the rate of sit per centum, payable
semi-annually.
SEC. 5. "That all _ duties on imported
goods shall be paid in coin, and in notes
payable on demand, * * and the COIN
so paid shall beset apart as a special fund,
and shall be applied as follows:
First. To the payment in coin of the in
terest on the bonds and notes of the United
States.
_. . JS'econd. To th e_Tnrchase — citliiikiireirt of one
Per eentunt4rilie entire dot of thelTriit,'kr'
States, to be made within each fiscal year
after July 1, 1862.
The act of July 11, 1862, provides that
any legal tenders issued in compliance with
it may
"Be paid in coin, instead of being re
ceived in exchange for certitleateli of de
posit, at the discretion of the Secretary of
the Treasury. tAnd the- Secretary of Treas
ury may exchange for such notes, on such
terms as lie shall think most - beneficial tai
the public interest, any bonds of the United
States bearing six per centum interest, and
and redeemable after five and payable in
twen y years, which have b en or may be
lawf lly issued under the provisions of any
exis rig act, and may. reissue, the notes so
received in exchange; may receive and can
cel ny notes heretofore lawfully, issued
and r any act of Congreas, and in lieu
the of issue an equal amount in notes such
as a e authorized by this act; and may pur
cha eat , rates not exceeding that of the
cur ent Maket, and cost of the purchase
not xcecili.ig one-eielith Of one per centum,
an bonds or certificates of debt of the
Mil ed States as to may deem advisable."
The joint re olution of June 17, 1863,
reads:
"WHEREAS, It is deemed expedient to
make immediate provisions for' the pny
imnt of the army and navy : therefcirb
be it
"13es/ored, &S., That the Secretary of the
Treasury be, end he is I hereby authorized,
if required by the exigencies of the public
service, to issue on the credit of 'the United
States the sum ofone hundred millions of
dollars of United States notes, in such form
as he may, deem expedient, net nearing in
terrst, payable to bearer on demand, and of
such denominations, not less than one dol
lar, as he may prescribe, which notes so
issued shall be lawful money and' a legal
tender, like similar notes heretefOreauthor
ized, in - payment of all debts, pUblic and
private, within the United S.ates, except
for duties on imports and interest on - the
public debt; and the notes so issued shall ,
be part of the aniouiit provided for in any
bill, now pending for the issue ofl Treasury
notes that may be passed hereafter by this
Congress.
The Act of March 3, 1863, provides : " ,
"That the Secretary of the Treasury, be
and he is hereby authorized to borrow from
time to tithe, on the credit of the United
States, a sum not exceeding $300,000,000 for
the current fiscal year, rind 8600,000,000 /Or
the next *fiscal year, and to issue therefor
coupon or registered bonds, payable at the
pleasure 'of the Government after such
periods as may be fixed by Secretary,
not less than ten or more than forty years
from date, IN COIN * * heariug interest
to not exceding six per cent. per annum, pay
able on bodds not exceeding 8100, annually,
and-on all :other bonds send-annually, in
coin, * !, * * And ali bonds and-Treas
ury notes or United States , notes issued
under the previsions of this act shall be
exempt front taxation by or under State or
municipal authority." .
SEet. 2. $400,000,000 Treasury notes au
thorized, bearing 'interest; exchangeable for
legal tenders, and $140,000,000 of legal len
,.
ders authorized to facilitate exchange's.
Sal. 3. •qhat the Secretary of the Treasury
be, and is hereby authorized, if required by
she exigencies of the public service, for the
payinent of ithe army and navy, and other
creditors of the Government to issue, on
the credit o' the United States, the sum of
one handsel and fifty millions of dollars
of E,Tnited States notes, including the amount
of totes he;t tofore authorized by the joint
resoution apprdved January 17th, 18113, in ratsuch rag he may deem expedient, hot 1
k i\fo
bearing interest, payable to bearer, and of
such denominations, not less than one dol
lar, as he may prescribe, which notes- so
issued shall be lawful money and a legal
tender in payment of all debts, public and
private, within the Unjted States, except
for duties on imports -and int,erest On the -
public debt; and any of the said notes, when
returned to the Treasury, may be reissued
from time to time, as the exigencies of the
public service may require. And in lieu
of any of said mites, or any other United
States notes, returned to the Treasury and
canceled or destroyed, there may be Issued
equal amounts of United States notes, such
as are ' authorized by this act. And so
much of the act to authorize the issue of
United States notes, and for other purposes,
approved February 25th, 1852, and'of the
act to authorize an additional issue of
United States notes, and for other purposes,
approved July 11th, 1862, as .restricts the
negotion of bonds to market value, is here
by repealed. And the - holders of United
States notss, i-sued under and by virtue of
said acts, shall present the same for the
purpose of exchanging the same for bonds, as
thersin provided, on or before the first day
of .Tuly, 1863, and thereafter the right so to
exchange the same shall cease and de
termine,"
18,415,000
189,317,150
- JUNE 30, 1864. Sne.= - 1. Secretary of, the
'Treasury authorized to borrow $400,000,000.
"redeemable at the pleasure of the govern
rnent, after any period net less than, five
nor more.than thirty years, or, if deemed
expedient, made payable at any period not
more than forty years from date, * * and
bear an annual interest not exceeding six
per cent., payable in coin., * * exempt
from taxation by or under State or muni
cipal authority.
Sm. 2. That the Secretary of the Treas
ury may issue on the credit of the United
States and in lieu of an hqual amount 'of
Bonds authorized by the preceding section,
and as a part of said loan, not exceeding
$200,000,000, in treasury notes,* * *
Provided, That the total amount of bonds
and treasury notes authorized by the first
and second sections of this act shall not
'exceed $400,000,000, In addition to the
amounts heretofore issued; nor shall the
total amount of U. & notes, issued or to be
imied, EVER exceed $400460,000, and such.
additional sum, not exceeding $50,000,000,
as may be temporarily required for the re
demption of, a temporary loan."
MA nen 3, 1865. Secretary of the Treasury
authorized to issue $600,000,000 5.405. "and
the principal or Interest, or both, may be
made payable in coin or in other lawful
money, provided that the rate of interest
* * when payable in -coin, shall not ex
ceed six per cent., and when nu i t,, payable in
coin shall not exceed 7 3-10ths perent. per
annum."
APRIL 12, 1866. ,"That the 'Act entitled
an Act to provide ways and means to sup
port the Government, approved March 3,
1865, shall bo extended and con-
strued to authorize the Secretary of
the Treasury, at his discretion, to
receive - any Treasury notes or other
obligations issued under any Act of Con-
growl, whether bearing interests or not, in
exchange for any deccription of bonds au
thorized by said Act. * * * P,ovided
that of the United &wet, not,' not more
than ten millians of dollars may be retired
or caneelled within six months after the
passage of this Act and thereafter not more
than four millions of dollars in any one
Month."
IWe have now recited the laws sufficiently
in detail to allow their spirit and scope to
be got at. The natural and unavoidable con
struction of them leads to several conclu
sions :
1. That the Legal Tender notes were
designed oßur to relieve a dire necessity of
the war, and that the idea of uslog them
as an ordinary financial instrumentality VW
not expressed or even entertained because in
viohition of all sound principles of admin
istration.
2. That these notes were fundable up to
July 1,1863, that_is, could be exchanged
for bonds at the pleasure of the holders of
them, and that the Setietary of the Treasury
was authorized to redeem them in specie,
pct pars and - thattlinfsiiiiishins for funding
g
and_ude_emin _ re—re--pealed-only:e when
the expenses of th war pressed so heavily
upon the Treas9r £6 to baffle temporarily
the forecast of tie wisest statesmanship.
April 12, 1866, the funding process, in view
of the bettered aspect of the financial situa
tion, was renewed, with the full expecta
tion of rapidly; retiring the whole legal
tender ci,culations, and this wise arrange-
went continued i force until the inflationists
raised so violet a clamor as to frighten
Congress from lowing the dictates of its
judgment.
,
3. That it is p rt of the contracts upon
which all the bods now
_out were- issued
that no more tan $400,000,000 of Legal
,Tender notes shuld ever be issued. If it is
urged that Congress can repeal this clause,
the answer is, that this is not a question of
power but of honesty. Congress can repu
diate its obligations, just as a swindler can
cheat his creditors. For Congress to re
voke this pledge because it can, and in de
fiance of right, would be no better in point
.of morality than an act of highway robbery.
But it has been abundantly settled by tho
Courts that Legislative bodies can pass no
laws impairing the validity of contracts.
'This principle applies with equal moral
force to contracts between governments and
its creditors as between individuals, not
withstanding the fact-that the , government
cannot be impleaded before its own tri
bunals.
4. What the government manifestly. in
tended was to have all the bonds, which
were not specifically made payable Ili cur
rency, mature at periods so distant from
their date of issue thdt specie payments WO uld
be resumed before the cancellation of them
would become obligatory.' If this expecta
tion shall not be realizalhe event will con
tradict conclusions drawn from all past, ex
perience.
, 5. That six per cent. per annum was
deemed the equitable rate of interest on bonds
payable in gold, and seven and three-tenths
was fair on bonds payable in currency.
The inference is irresistible that all six per
cent. bonds are payable in gold unless the
contrary appears on their face. - •
, G. The fact that legal tenders were fun
dable compels the same inference. A bond
is a higher form of security than a note;
indeed, the highest known to the laws. To
allow the lesser secutity to be exchanged
for the higher was a privilege and an in
ducement which it was in the. power of the
government to hold out; to demand the sub
stitution of the higher security for the -lesser
would be an injury the government has no
right to inflict—a condition it could not
rightfully enforce without having made it,
in plain and unmistakable language, part of
the original contract'
7. Legal Tenders are payable in coin.
There is nothing on the face of them to in
dicate that they are not payable on demand.
Special qualities were imparted to them in
order to keep them in circulation; but as no
provision now exists for their payment, they
are practicably irredeemable. To compel_
the holders of the bonds to accept an irredeem
able premise, not bearing interest, for a re
deemable promise, bearing interest, would
be downright swindling. If two men
should contract for the sale and purchase of I
a farm on credit, end to secure payment,
bond and mortgage should be duly executed,
and the buyer should attack the seller, take
from him the bond and mortgage, and thrust
into his pocket instead a due bill, he would
earn' a cell in the penitentiary, and would
get it upon the facts being duly proven.
8. At the time the bonds were issued and
taken the manifest undErstanding, on both
sides, was that they were payable in coin.
Payment in currency was an 'after-thought,
and tutu, not of the government, which up
to this hour has abided by the only just
construction of its duty in the firemises,
of some of the people; a sharp dodge,
save money by defrauding the public crecli-
tors
'Dr. PALEY, in his Moral Philosophy, re
iterating the teachiegs of ethical philoso
phers in all ages, sets forth as the scope and
extent of the obligation incurred_ by a
promise:
"11. In what sense are promises to be in
terpreted ?
"Where the terms of a promise admit of
more senses than one, the promise is to be
performed in that sense in which the prowl
ser apprehended, at the time, that the promisee
received ,
"It is not the sense in which the promisor
actually intended it that always governs
the interpretation of an equivocal promise;
because, at that rate, .you might excite ex
pectations which you never meant, nor
would be obliged, to satisfy. Much less is
it the sense in which the promisee actually
received the promise ; for, according to
that rule, you might be drawn into engage
ments which you never designed to under
take. It must, therefore, be the sense (for
there is no other remaining) in which the
promisor believed that the promisee accept
ed his promise."
So much is made out from the language
of the laws. Going back to the debates in
Congress upon the bills _authorizing the
Legal Tender notes, we find indubitable
evidence that those notes were not only in
tended to be temporary, but that their tem
porariness was confessed to be the only
possible excuse for putting them afloat.
Congress understood that as a pernianent
currency unconvertible paper was not to be
tolerated anywhere or by anybody.-
Mr. E. G. SPALDING, of New York, who
introduced the original bill to authorize
legal tender notes, declared that he offered
it as "a war measure —a MEASURE OF NECEB
srry and not of choice."
Mr. HOOPER, of Massachusetts, sai d
"The unusual- exigencies of the country
require that we should look for other and
deeper sources of revenue than any to
which we have been heretofore accustomed."
Mr. ALLEY, of Massachusetts, said:
"Nothing could induce me to sanction this
measure but uncontrollable necesait,y ."
Mr. Pus, of Maine, said "Nor need
we fear that what we do will be used as a
dangerous precedent; but the _circumstances
which form our justification MUST BE DUPLI
CATED before our action can lie taken as an
example for others."
Mr. CAMPBELL, of )'ennsylvania, said:
"The bill now before the Committee is
necessary to sustain the credit of the coun
try, and to carry on the'yar.':
Mn. -- STEVENS, of Pennsylvania, - said ;
"This bill is a measure of necessity, not of
choice. 7" -
Mn. llrciorAN, of Pennsylvania, said
.:
"I am disposed to wah - o the question of
propriety or expediency, And vote fur it as a
necessity."
Mr. FESSENDEN, of M ine, said : "As
surance should be given tlie country that it
{Legal Tender) was resorted to, not as a
policy, but that it was, what it professes to
be, A TEMPORARY NECESSITY. II is . put on
,the ground of absolute, OVERWHELMING
NECESSITY."
Mr. SIIERMAN. of Ohio, said : "I agree
that this measure can only be justified on the
grOund of necessity."
Mr. Ilownito, of Michigan, said : "It is
undoubtedly a hard necessity to which we
are driven."
Mr. SUMNER, of Massachusetts, said :
"Your soldiers in the field must be paid and
fed. Here, there can be no failure or post
ponement. A. remedy which, at another
'moment you would reject, is now proposed.
Whatever may be the national resources they,
are not now within reach, except by sum
mary process. Reluctlantly, painfully, I.
'consent that the process should issue."
Other Senators and Representatives can
be cited to the same effect; but these are suf
ficient. Each of those quoted sets forth the
only ground on which a paper currency not
convertable into actual money at the will of
the holders is allowable upon just principles
of public policy and equity between man and
man. There 'oust be an absolute necessity
arising out of the existence of war, 'which
necessity, in its very nature is of short du
ration._ To adopt, this policy, in time of
peace, and for an indefinite period, cannot
be justified. To sanction it through con
siderations of economy, that is, because it is
Cheaper not to pay interest - than to pay it,
or more convenient to let the public faith
suffer than to maintain it, is rank-dishonesty.
But members of Congress did not stop
with these declarations as to the legal tender
notes. They went on to declare expressly
that the bonds were payable, principal and
interest in coin. Take the strong averments
of Mr. STEVENS on this head as a specimen
of the whole. .In the debate on the bill
anti - prizing these bonds, he said :
• , A dollar in a miser's safe, unproductive,
is a sore disturbance. Where could he in
vest it? In "United :Rats loans at six per
cent., redeemable in gold at twenty years—
the best and most valuable permanent in
vestment that could be desired."
Again
"But widows and oiphans are interested,
and in tears lest their estates should be
badly invested. I pity no one who has his
money invested in United States bonds,
plyablc in gold in f wenty years, with inter
est semi-annually."
•
Again :
"Let me restate the various projects.
Ours proposes United States notes, secured
at the end of twenty years, to be paid in
coin, - and the interest raised by taxation
semi-annually—such notes to be money and
of Uniform value throughout the Union."
Again
"Here, then, lies your choice. Throw
bonds at six or seven per cent. on the mar
ket between this and December, enough to
raise at least $600,000,000 * * * * *
or issue United States notes, not redeema
ble in coin, but fundable in apeciepaying
bands at tiventy years."
During the last session of Congress,'when
the scheme for redeeming the- bonds in
greenbacks was under discussion, Mr. GAR
FIELD, of Ohio, said :
"Thus, Mr. Speaker, I have shoWn that,
when the original Five-Twenty Bond bill
passed the House in 1862, ALL who referred
to the subject stated that the principal of
those bonds was payable in gold ; that the gen
tleman from Pennsylvania [Mr. Stevens]
so stated five distinct times, and no member
suggestea anything to the contrary; that
when in 1863 that gentleman raised a doubt
on the subject, he wa , a promptly met by the
statement of a leading member of the Com
mittee of Ways and Means that lie never be
fore heard of such a suggestion, and nobody
on the Committee of Ways and Means dream
ed of the possibility of paying them in any
thing but coin." ,
Not a member, Republican or Democrat,
ventured to deny this broad and - positive de
claration, and for the plain reason that it
is abudantly sustained by the records.
Three different gentlemen have presided
over the Treasury Department, since the
bonds in questinn were issued—two of them
Republicans, and the last a Democrat.
These are CIT.ASE, FESSENDEN and McCuL-
Locu. Each of the Secretaries has unhes
itatingly declared that the bonds it is now
proposed to pay in currency are honestly
'payable in gold. - Only a few days ago Mr.
FESSENDEN, in responding to a welcome
from his fellow citizens of Portland; took
occasion to affirm that• he never had any
other conception than that the bonds were
payable in gold, and that he so officially au
thorizedfall the agents of the Department,
in this country and Eurotie, to declare in
negotiating loans. All the agents employed
by him, as well as by Mr. CHASE and Mc-
CULLOM:I did give the assurance. Mr. Mc-
CuLLocn now states that to adopt the Dem
ocratic financiaL policy, would bring un
speakable ruin upon the country.
It sometimes happens after two men have
made a contract for the performance and re
ception of a particular service, both under
standing the terms of the bargain alike, and
after the job has been duly executed{ that
the one who bas the money to pay strives
to torture the language of the agreement so
as to force a meaning that would let him off
by paying only a pert of the stipulated sum.
Everybody acquainted with the facts, com
prehends at a glance that his 'purpose is to
cheat the man he 'owes. If he succeeds in
that object, be damages his reputation more
than the money frathlulently made Is worth.
In this situation are all citizens who seek to
to cancel the 5-20 s with greenbacks.
Juift here another'consideration stemands
attention. In interpreting statutesand ap
plying them to matters in di Fpute between in
dividuals, Judges always rely upon the text,
and not upon contemporaneous exposition.
That is because it is Indelicate :or courts to
go back of the laws to find the intention of
the law-makers. But when the exposition
of a law devolves upon the body that
framed it, this rule is not applicable. Con
gress is bound, in honor and equity, to be
true to itself ; to meet the national obliga
tions on the terms and in the spirit in which
they were contracted; and, to scorn all sub
, Unties of pleading to avoid doing what it
-plainly-or by fair inferenceengaged_ to do.
We ha:ve'now made it appear, from the
laws authorling the bonds; from the law
limiting the - Mcnount_of greenbacks that may
e•er be put in circulation, from the declara'-
tions of members as to the "nature and con
tinuance of an irredeemable paper currency,
and as to the medium an which the bonds
were to be paid, from the position steadily
maintained by • the Treasury Department
and by its agents, -that the agreement eras
that the bonds should be paid in gotd.
111. ARE. GREENBACKS DOLLARS!
In a legal, technical and subordinate sense,
they are. That is money which the law
makes money to the same extent that what
the law makes property, is property. By
this latter maxim - Mr. CLAY sought, to
sanctify slavery. Yet every man and 'wo
man whose moral consciousness vas not
sadly corrupted felt that the maxim involved
both a falsehood and an absurdity. All the
laws which! governments could possibly
frame could not rightfully convert a human
being into a chattel personal. So, all the laws
which it is posSle to enact cannot transmute
paper into dollars, except as an article of
merchandise. Read a greenback and stand
convinced that it does not profess to be one
or more dollars, but only a promise that at
some time, not specified, a dollar or dollars
shall be paid for its redemption.
We once encountered a man, possessed of
a smattering of legal knowledge, but with
out a Particle of honesty, who boasted that
he had paid all his numerous debts. Aware
that he was not in that line, except by de
ceit, we interrogated him as to the process
he employed, when he naively replied that
he had taken up his old notes by givingnew
ones which he did not mean to pay.
It was stretching the case far enough to
make unconvertible paper promises a legal
ender in time of war and under direst ne
cessity proceeding therefrom. The war has
now been_closed for nearly three years. It
is full time' government and people went
earnestly at work retiring the greenbacks,
either by funding them, or by redeeming
them, according to agreetnent, in dollars.
IV. HONESTY THE BEST POLICY
Upon supefficial inspection it may
seem a master-piece of financial strategy to
pay off these bonds in greenbacks, thus ap
parently saving large sums which wouhl
otherwise have to be appropriated in pay
ment of interest. What seems so plausible
is only Dead Sea fruit, It will turn to
ashes in the hand that grasps ? it. Of neces
sity,it will cost more, in the end, to pay the
bonds in _currency than to pay them in
money. Financial laws are as immutable
and inexorable as auy other.
Why, as) the effect is popularly expressed,
did gold go up as the currency was inflated?
Because every producer and dealer added
per tentage to the price he put upon his
goods and wares in consideration of the in
security of - the medium of payment. At
last these per centages became so large that
gold rose to 2,80. Assuming that part of
this premium was exacted not id conse
quence of the actual condition of affairs,
but through fear of what might come, still
the penalty inflicted for the introduotion of
unconvertiblepaper was enormous. Congress
was torced to 'calm the agitation by a sol
emn pledge that no more should be issued.
To disregard that pledge, and to resume the
manufacture of , Unconvertible paper, would
certainly transmute the fears which were
universally entertained into absolute reali
ties.
All Writers of authority estimate'that pro
ducers and defilers add from one to two per
cent. to prices in all transactions .in conse
quence of- depreciated currency. At one
per cent. this premium is judged to amount
to $130,000m0 yearly; at two per cent. to
$260,000,000. As the total interest on the
public debt is now only $128,000,000, the
penalty for sustaining a depreciated curren
cy is manifestly greater than what can be
made by avoiding the payment of interest
on the whole debt.
Take another view of this point. ; The
population of the United States is estimated
at forty millions: an average of $3,50 for
each man, woman and child, will pay the
interest on the entire national debt. Let a
man calculate the difference between what
the greenbacks he expends in the course of a
year will pay for, and what the same number
of actual dollars will purchase, and he will
see that he must suffer just in proportion
to the inflation of the currency.
The fact that the bonds—in some cases,
few or many—were sold for Legal Tenders,
which a less amount of gold sufficed to bdy,
is neutralized by a reference to another fact
that the depreciation of the currency repro
sented the rate of rtistrnewcz the govern
ment had to stand to satisfy the risk of
ultimate inability to pay which the pur
chaser naturally feared.
But it not must be forgotten that many
of the bonds were marketed by the govern
meat while the paper currency was nearly
or quite on a par with gold. Let us
recall and adopt some forcible words of Mr.
R. B. CARNAHAN'S on thrs point.
"•What was given was accepted as full'
value, and in fact those sold in 1861
and 1862 were purchased with coin
or its equivalent. The war aitually `•,
began in April, 1861. Until Febru
ary, 18q2, the - paper currency was. at
par with gold. From that period until
July, 1862,-the I minium on gold ranged
from one to five per cent. From July 1861
to January 1863, the average premium was
per cent., but prices ha.i not yet become
inflated, and'the paper currency was prac
tically the equivalent of coin.
"During these twenty-one month; of the
war a large portion of the bonds wore sold,
including tbe $250,000,000 authorized by"
the act' of the 16th of July, 1861, and the
1500,000,000 6-20's of February 25th, 1862.
All of these were paid for in told or its
practical equivalent. In 1863 the average
premium of gold was 48y4' per cent. and in
1864-102%. Of course the loss in discounts
to the government was very groat, or