Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1867-12-29
"GREATIsTHEM YsTERYOFGREE
RACEGss

A FIVE dollar greenback treasury note
of date March 10th, 1862, and of various
other dates not necessary to be herein
specified, has upon one side the following
inscription
"UNITED STATES oF AAlERICA-This
note is legal tender for all debts public
and private, except duties on imports and
interest on the public debt, and is e1-
changeable for United States six per cezt.
twenty-year bonds, redeemable at pleasure
of the United States after five years"
Ifthismeans anything, it lis a stipulation
by the government that thousand dol
lars of these treasury notes may be con-
verted by the holder into a bond of the
United States, due on its face. twenty
years after date, with the privilege re-
served of redemption after five years from
shat time, and bearing six per cent in-
terest
1t is well known that greenkacks are
not received at par for bonds OF the class
described, or any other class; and it is
equally well known that a large number
of persons claim that these bonds are
payable, principal and semi-Nnnual in
terest in gold, while greenbacks are at a
considerable discount The inquiry i'm
mediately arises as to the meaning of
this pledge, which would seem to be as
much part of the note as the oblga-
ton on its face The history of this
mystery is one of the curiosities of our
currency complications and is as follows
For the facts we are indebted to the New
York Journal Of Commerce
On the 25th of February, 1862, Cons
gress authorized the issue of one hum
dred and fifty million dollars in paper
money, making it a legal tender for all
debts, public and private, within the
United States, except for duties on inn
ports and interest on the public bonds
and notes. The act contained the follow
ing further provision
and any holder of said United Sta ties
notes despositing any sum not less than
fifty dollars, or some multiple of fifty dol
lars, with the Treasurer of the United
States, or either of the Assistant Treasurers,
shall recsive in exchange therefor dupli.
cate certificates of deposit, one of which
may be transmitted to the Secretary of the
Treasury, Eho shall ;hereupon issue to the
holder an equal amount of the bonds of the
United States, coupon or registered, as may
by said holder be desired, bearing interest
at the rate of six per centum per annum,
payable semi-annually, and redeemsble at
the pleasure Of the United States after five
years, and payable twenty years after the
date thereof"
In accordance with this provision the
notes bore the Endorsement we have quoted
near the head of this article. The limit
Of amount was afterwards extended
until S250000,0O0 of this currency was
authorized
In his report to Congress, bearing date
December a. 1852, but not presented I'M
til later period, Mr.. Chase, then Sec.
rotary Of the Treasury, recommended the
repeal of the clause Of the act which al
lowed the notes to be funded, on the
ground at it interfered with the sales
Of the loan Ultimately the plan was
modified, limiting the right of conversion
to a given period This was embodied
in the act Of March 3, 1868, as follows
"And the holders Of United States notes,
issued under and BY virtue Of said acts,
shall present the same for the purpose Of
exchanging the same for bonds, as therein
provided, on or before the first day of July,