New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-12-13
PAYMENT or THE HVETWEYTY BONDS
M "a. Editor OF TIE T-tDune

Sin. The material strength OF nation lies III JUS
resources for men and money. The latter tue more
Indispensable for with it the deficiency oil men may
crorallv he sumlied and without it an army of its
own citizens cannot be sustained III Tue helu WIN
fbe munitions essential to its efficiency ms Is also
Die most vulnerable element. and general whose
ll,ndars failed TO destroy army. or q weak or
Irescborous politican who failed 10 ALLEVIATE the loyal
ar IN district their councils, may at this exposed and
vital point give the cOwardly stab which will lay his
,ounry PROSTATE at the feet of any petty foe that
Uould insult or trample upon it. In the recent war
the South was exhausted in money and credit, and
was vanouished the North sustained its credit ana
sOnquered
Any country. however small its territory or It's
population, with ample credit, is more than matcn
Cor one, however large whose promises to pay are
rejected. The one can command the spare labor ana
resources of the world the other is, at BEST il.e"
10 and can seldom fully command even ITS own NJ
hountry then can afford to disregard or tribe WIN
khis essential element of its power. Inc cIeul. u
hation is moro sensitive than that of individuals DC
sause the fulfllment of its promises depends upon "
honor. 1t cannot be coerced to pag' ana tue mere
suspicion that it may refuse OF eVaue pay ''n' 10
destructive to its financial ability.
An insidous attempt is now being made 70 destroy
Ebo credit which was one indispensable element OF
nur sDccess in the recent struggle, and upon which
Aur mower and our rank among nations Is still de-
pendent . -, -. ,o4 ..;,,
late that the $50 bonds shall be paid in CON- and that
The holders having paid for them in deprecated pa
Der, can equitably demand only the return OF what
they paid. with lawful interest.
The facts seem to be- that the law provides only for
the payment in dollars but doubts arising on
this point and the necessities of the Government re-
auiring It, the officers specially charged with Its
finances held out tho assurance that the bonds would
be paid in gold. 1t is well known that even with
this assurance there often great difficulty IN OBJ
tanning in exchange for them the means for prose
cutting the war; and the Government and the Nation
ItoOd by and its regularly appointed agents take
the money of the purchasers upon tins assurance
without protest or notice that it was unauthorized
and would not be held valid. A principal who thus
accepts the money upon assurances made for hun by
his agent with his knowledge, and made to save him
from ruin. is bound by oil the principles of law,
honor and common sense to regard the assurances
ma hs own and to fulfill all the obligations under II
The same as if made by himself. Even II the agent
IN view of the urgences of the case, had given only
bia own assurance, and without the priyity OF ms
erincIpal the obligation of the principal would stl
be very strong In this the immediate represent
tatiyes Of the peol 10 in Congress confirmed the as
purances of the financial officers that these Donds
would be paid in coin.
redeem one promise by giving another promise; in
pther words stipulated for renewal or an extension
of the time of the Loan the holders raise question
From real or supposed deficiency OF gold for the
present promises of gold in the future with interest
were made the basis of circulation and 1t was
expected that by making the demand and
other short obligations of the Government con-
Fertible into these promises, any excess OF cur
roncy would be funded and the evils of an imitation
be thus avoided Though the result fell short Of the
anticipation this eventual promise of gold publicly
mitigated the evils of expansion. But for this re-
bourco of the holders our currency might have run
down, as it did at the South, losing its purchasing
power, and inviting national bankruptcy. Such was
the use of Five-Twenty Bonds, and, for this, their
eventual payment in coin was an essential condition
Re seems absurd too to eonstrain simple contract
10 pay "dOllars" as to make it payable in another
promise 10 pay dOlIdrs which, with equal reason might
else be deemed to be payable in third promise OF
Lhe same kind. and so OH ad infntum. Still more
absurd is it to suppose that the lender took promise
for "dolars" with interest understanding that the
Government had the option of paying him with a
promise for the same number of dollars without
interest ,.,,.
In dollars" and another portion only convertible
Into other promises TO pay dollars the Government has
recognized distinction which it is bound in good
= whom it contracted to pay dollars" to settle as
N though their contracts stipulated payment in other
~ promises TO pay dollars
II Is said that the holders Of the bonds took
advantage of the necessities of the Government and
pad for them in deprecated currency. Its admitted
That they paid the market price for them in fair and
open competition and abundant notice TO all parties
interested. More than this it may be asserted that
tho patriotism of the loyal citizens was successfully
appealed to- and that through this appeal the price
obtained was something more than mere commercial
considerations would have Endorsed. Nations anc
individuals are liable to emergencies in which 1t ];
necessary to obtain money even at exorbltant rates
10 prevent absolute ruin, and, in such emergencies
tho risk of lending is often greatly enhanced
Eustfying the promise and the expectation Of larger
premiums for the loan for If the imminent danger
Is not averted, the whole amount may be lost The
Increased premium in such cases is the inducement
to the Capitalists to take the increased risk, and
without it the lending in such cases would, on the
average result in loss TO the lender. Let nation OF
individuals ayow that for such loans only the actual
value received, with lawful interest will, in any
event be repaid and they would be wholly unable to
obtain aid in such emergencies, and be exposed to
subjugation or ruin fromEwhat might otherwise be
trihing misfOrtunes. With the reputation OF thus
dealing with their creditors no money could be OBJ
tanned. II would make 10 difference what they
promised if their performance was thus limited III
fulfilling In the case in hand the national exist
ence was threatened involving real risks, which
were magnifed by Rebel agents and Rebel sympa-
thizers People were warned in Wall-st. to " wait
till they had Government before they invested IN
it's securties7 During much of the time, invest
e. ments in real estate would have paid better, but