The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1867-10-04
| A Letter from General ButIcr-Our
| National Finances.
To he Editor Of The Tribune !:


eminent shall fully, honestly, and exactly
meet every one of its obligations accord.
ing to The exact and equitable condition of
every contract it has made with its credi-
tors. | would advocate nothing short of
this, and justice and good faith require
| nothing more.
asserted that the 500 bonds were pay
able, as to their principal, in currency, and
not in gold. This the Tribune denies, and
insists that they are payable in gold.
The whole question is, What was the
contract between the Government and it's
creditors
The first 9jO00O,00O loan of August,
1861, was issued at 40 intcrest-principal
and interest payable in gold-was so taken
and so paid. When the $40 loan bill was
passed it established the interest at six
per cent, payable in gold, but said nothing
as to the currency in which the principal
was to be paid.
When the $40 loan was before Congress,
Judge Spa!ding, of Ohio, asked Mr.. Ste
vcnS, chairman Of the Committee on APP
preparations, who reported it, if the prin-
cipal Of these bonds was payable in gold
as well as the interest! To which Mr..
Stevens replied that the principal was not
payable in gold.
At the same session, when the first $40
loan bill! was passed, the lcgal-tendcr act
was also passed, providing for the issue of
what are now known as grcenbacks." 1t
was therein provided and so printed on
the back of every note that it is legal
tender for every debt, public and private,
I'exccpt duties on imports and the interest
on the public debt. If it was not to be
received for principal OF the public debt,
why accept the interest?
Besides, the act made it receivable by
the United States for all its loans, and spc-
cially convertible into 5-2O bonds.
Again, in the following Congress, while a
portion Of the $40 loan was yet untaken,
another 1910 loan was authorized at 5 per
cent. interest; both principal and interest
of which, by the terms Of the act, were
made payable in gold.
Now, if it was the contract Of the Co
vcrnmcnt that the per cent. 500 bonds
were, interest and principal, payable in
gold, 0Htough directly the contrary lraS
stated on their face, why was it that the
Government offered a 1910 loan at 5 per
cent, interest and principal both payable
in gold
In other words, how could the Govern
mcnt expect the per cent. gold payable
and gold bearing loan TO be taken up when
it had the 6 per cent. gold-payable and
gold bearing loan still before the country
You say that the TriJ,tne was largely,
Zealously Instrumental at the request OF
Government, through its agents, in per-
suadng the people to let the Government
nave their money for these bonds. We
assured them, day after day, that every
one would be paid in full in coin-princi-
pal and interest.
Now, the 1910 loan was put upon the
market by Jay Cooke, as the agent Of the
Treasury, and if you will consult the files
Of the Irjb,uc containing the advertise
mcnt Of that loan, you orjN ind that Jay
cooke advertised the l0-40 lOu,l as The only
loan Of the Gorernment the principal ana
interest Of ,rhich 'cas payable IL golh
! have not seen that advertisement in
the 1ribl0te, but it was so advertised and
[ assume Jay Cooke took advantage of so
valuable q medium Of advertising as your
paper to make known that important fact
Of the dcsirabilty of the 1910 loan, as he
| certainly did 50 advertise in other papers.
| on luIlilcI sd tSh''''i '"tiNi ~
tered no word of dissent hcn"-i. G., when
the loan was upon the market. True, be
cause there was no occasion. And still
another, and perhaps equally available an
swcr-Gcncral Butler at that time had
other public interests in another branch OF
the service TO contemplate and try to
serve.
Again: You do not deny that this 52C
loan, in whatever it is payable, is now due
at the option of the United States. That
is, the five years have passed at the end OF
which, by their terms, the United States
reserved the right to pay them and the
Government has the right to pay them to-
day in whatever currency the contract
calls for-whcther gold or paper.
If these bonds are payable in gold, why
are they selling at from los to III in cur
rcncy when gold is worth l43 to l45
If the United States should now choose
to exercise its right to pay them (whici
would seem to be wise, as they are untax
able, so that their interest is, in fact, from
one to three per cent. higher than six pei
cent. to the holdcr)-in that case why
should the Government be called upon Il
pay them in gold or its equivalent in cur
rcncy, say l43, when anybody else can buy
them at ll2!
Why should the tax payers be called
upon TO pay the holder from 30 TO 10 pei
cent. more, in order to redeem these bond:
than, as they now have the right to do, the
capitalist is now willing to sell thcmtor tt
anybody elsc'
| Assuming that no man can doubt, II
view of the legislation of Congress and the
words Of the contract, that these bonds
are PAYABLE in currency, my next propo
,ition is, That the United States shal
issue 4 new loan upon such terms as SounC
finance shall show to be most adyanta
rcouS, and with the proceeds pay its 5-2(
creditors, and thus reduce the rate oil IN
tcrest, while at the same time 1t Keeps eX
act faith in its contracts.
lam unable to see that this is " dodge
or "rcpudiation," (which is longer Sy
nonvm for rascality," or anything "irre
coucilablc with common honesty" "Thest
be hard words, my masters" AS do mo-
think they add anything to the strength O.
the TribuncS argument upon legal qucs
ton relating to finance, | certainly cal
neither reply TO nor return them.
| only propose to reply to the SPECIFIC
argument OF the Tribune, and therefore
refrain from discussing any of the collatera
branches of this subject.
May | ask-as the question Is one
great moment to the country-you IN JUS
lice and fairness to give this letter TIT
same conspicuous insertion in the Dauy
Weekly, and Semi -,reekly Tribune which
you gave the attack
Common honesty" would seem 10 re