The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1864-07-01

able in coin, but the courts in three States had
not so decided
Mr. Spaulding, of Ohio, briefly replied to
Mr.. POmerOy, stating that the Committee of
Ways and Means had faithfully performed their
duty in providing the bills necessary for rev.
enue, and then expressed the opinion that all
the trouble arose from the extraordinary de-
mand for gold, for gold is not now currency.
In 1862, the banks falling to loan the govern
ment money; we were driven to the necessity
Ofissuing legal tenders. No system ever worked
better in this or any other country, and he
supposed specie payments would not be re-
sumed for ten years to come.
During the great NapOleOnic war the Bank
of England suspended specie payments from
1896 to 1922. Whoever looks for a more
speedy resumption in this country was in his
judgment. unwise. and studied history to but
little profit. He deprecated the present policy
of paying the interest of the public debt in
gold, and asserted if this should continue with
an increase of debt the Government would fail.
1t was fatal policy, which rests like an incu-
bus upon us, and gold would continue to 90
up, as he long ago predicted until the govern
ment cannot procure the coin. 1t was to save
the country from reputation that he then ex-
planned the character of the amendment which
was to authorize the borrowing of $4O0, 0O0,.
900, and to issue therefor coupon or registered
bonds of the United States, redeemable at the
pleasure of the Government after any period
not less than five nor more than forty years.
and if deemed expedient, made payable at any
period not more than twenty years from the
date, payable in coin. Such bonds are to be of
such denominations as the Secretary of the
Treasury shall direct, not less than $40, and
bear an annual interest not exceeding eight
per cent, payable semi annually in currency.
After considerable debate, the Committee of
the Whole acted upon and agreed to Mr.. Ste
yens' substitute for the final section, ayes y,
nays 81.
The House, however, at subsequent stage
of the proceedings, refused to concur in the
action of the Committee, by vote of SO
to 80.
The House also refused to amend Mr.. Pow
ellis substitute for the second section, by a vote
Of II against 81.
The bill was then passed without division,
! the yeas and nays having been demanded and
refused. The bill authorizes the Secretary of
| the Treasury to borrow from time to time on
the credit OF the United States, $500, 000 900,
and to issue therefor coupon registered bonds
! of the United States. redcemable at the plea.
sure of the Government after any period of not
less than five nor more than thirty years or if
deemed expcdient, made payable at any pc
rod of not more than forty years from date,
! the bonds to be of such denomination as the
Secretary of the Treasury shall direct, not less
! than fifty dollars and to bear an annual inter-
est not exceeding per cent, payable smi.an-
/ III
| may dispose of such bonds, or any part there
of, and any bonds commonly known as 5-2Os.
remaining unsOld in the United States. or if he
| shall find it expcdient in Europe. at any time
on such terms and conditions as he shall deem
most advisable in lawful money of the United
States. or at his discretion for Treasury notes.
! certificates OF Indebtedness, or certificates of
! deposit issued under any act of Congress,
bonds. Treasury notes, and other obligations
| of the United States, to be exempt from taxa
! ton by or under state or municipal authority.
! The Secretary of the Treasury may issue on
| the credit of the United States, in lieu of an
! equal amount of bonds authorized by the pre-
ceding section, and as part of said loan, not
| exceeding 5000 O00, 900 in Treasury notes, of
any denomination not less than ten dollars,
! payable at any time not exceeding three years
| from date, or, if thought more expedient, re-
| deelnablc at any time after three years from
date, and bearing interest not exceeding the
rate OF I 80 per cent, payable in lawful
money at maturity, or. in the discretion of the
Secretary, cem-annually. Treasury notes may
! he disposed of by the Secretary of the Treas
ury on the best terms that can be obtained for
lawful money. and such of them as shall be
made payable principal ard interest shall be
! legal tender to the same extent as United
| States notes for their face value excluding the
Interest. and may be paid to any creditor of
! the United States at their face value, excluding
! interest, or to any creditor willing to receive
them 1t par including interest and any Treas
ury notes issued under the authority of this
act may he made convertible al the discretion
Of the Secretary Of the Treasury into any
bonds issued under the authority of this act
I The Secretary of the Treasury may redeem
and cause to be cancelled and destroyed any
I Treasury notes or United States notes hereto
fore issued under the authority Ofprevious acts
/ Of Congress, and substitute in lieu thereof an
equol amount of Treasury notes such as are au-
! thOrized by this act or OF other United States
! notes OF such denOminatic rs shall be deemed
eXpedicnt, not exceeding one dollar provided
the total amount of bonds and Treasury notes
authorized by the first and second sections of
this act, shall not exceed $400, 900 900 in addi-
ton to those heretofore issued, nor shall the
total amount of United States notes to be is
sued ever exceed $500, 5000 900, and such addi-
tional sum not exceeding $50 OOO,O 600. as may
be required tor the temporary loan, nor shall
any Treasury note, bearing interest issued I'M
der this act. be legal tender in payment or
redemption of any notes issued by any bank,
banking association Or banker, to circulate as
| money.
The interest on all bonds heretofore issued
payable annually may be paid semi-annually,
and in lieu of such bonds authorized to he is
sued. the Secretary of the Treasury may issue
bonds bearing interest payable semi-annually,
and may also exchange for Treasury notes
heretofore issued bearing $40 per cent inte-
rest besides the six per cent heretofore author
lied the like bonds of all the denominations in
which such Treasury notes have been issued.
The interest on such Treasury notes after ma
turity shall be paid In lawful money. and they
may be exchanged for such bonds at any time
within three years.
SO mach of the law approved March s. 1864,
as limits the law authorized therein to the cur
rent fiscal year. IS reported, and the authority
OF the Secretary of the Treasury to borrow
money and issue therefore bonds and notes
conferred by the first section of said act, shall
cease on ana alter the passage OF this act.
The Secretary of the Treasury may author
ize the receipt as temporary loan of United
States notes, or the notes OF national banking
associations on deposit for not less than 80 days
on sums not less than $50 by the Assistant
Treasurer of the United States or repositories
designated for that purpose other than national