The Indianapolis daily herald. [volume] (Indianapolis, Ind.) 1865-1868, 1865-12-12
Coin Interest ON Government Uonds
OF NOXcm her 4. lsEa.

l. the interest on the recent issue of Govern.
ment bonds dated November /. 1865. payable
IN cOini
The act of Congress Of March ,. 1865, under
which the issue 10 which we refer was made
authorizes the Secretary 10 borrow six hundred
millions Of dollars. aud 10 issue therefor
bonds or Treasury notes. Ii then provides n
1 follows:
and the interest on such bonds shall h.
\ payable Substantially, aud on Treasury notes
I authorized 10y this act the interest NAV be paw
4 able sem-annually or annually. or al maturity
thereof; and the principal or interest. or both.
may be payable IN coin or other lawful money
FrOrtded. that the rate Oflntcre>t on any such
bonds or Treasury notes. when payable in coin
shall not exceed six per centum per annum.
and when not pay able i'm coin, shall not exceed
seven and three-tcnths per centum per annum:
and the rate and character of interest shall
be expressed on all such bonds or Treasury
, notes.
IL will be seen that the act Of Congress fixes
only the maximum Of rate Of interest. both in
! coin or lawful money. IL SAYS nothing about
the minimum, which il, therefore len 10 the
discretion Of the Secretary. He may if he
deems that interest 10 be- sufficient. fx the rate
at six per centum, payable in greenbacks Has
he done 80 with the recent issue Of November
l, lst5: Neither the bond nor the coupon ex-
presses . the rate and character Of interest -
payable thereon. What i the explanation Of
this failure to comply with the positive man.
date OF the law.
In the Treasury notes issued under this act
II i stated upon the face Of each N the three
ISSUES that the interest l. seven and three
tcnths per ccntum per annum, PAYABLE IN law
ful money. This compliance with the law i'm
case " the Treasury notes makes more con
spicuou> the omission IN ease Of tho bonds
IL j significant that the act Of March 3. lSf3.
(undcr which the bonds of November L. 1855.
are ISSUED ,. l. the only one Of all the acts 90
Congress authorizing the issue Of Federal
bonds which does not expressly direct that the
interest be paid in coin. In tins latter act il 1,
let optional with the Secretary whether 10 pay
interest IN coin or grecnhacks: but he 4, re-
quireu 10 express hi> decision on the bond.
which he has failed o. do
The acts OF Congress II February -. lSi,2
aud June 81. 1851, under which the five-twen-
ties so-calledl are issued. expressly direct
that the interest shall De paid i'm coin
The act Of March 5. 1874. under which the
tcn-fortie> >o-calledl arr ISSUED. l. specific IN
requiring that both interest and principal De-
paid In coin.
The ~ bonds. ISSUED under acts of july L..
and August >. l~sii. covered bv prov i-iou-
of at OF February -. i~.3. in respect o. paw
mcnt Of interest in coin.
But no act Of Congress i mandatory in r.
>pcct - coin interest on the five-twenti H.
sued November I, lSi. unless the rate and
character Il interest 10 j. not enough a. >faic
the rate alone are stated on the bond. " hich.
- We have sccn. has not been done hy the
SECRETARY of The Treasury.
The determination by secretary NcCullo..b
o. put on the market bond paving siN per
ccntum interest IN grtenhark> would seem o.
De- gratifying Indication that our resources
and nnantial condition ar now sufficient %
warrant the hope that the loan viii bc taken
stthat rate World.