New-York tribune., 1867-10-08
THE NATIONAL DEBT IND ITS MODE OF
PAYMENT.

NEw-yoRK TRIBUNE a communication from Gen Butler,
containing sundry statements in support of his hnancai
views, plausible, and doubtless entertaining 10 tose
among seeking for avoiding their just dtDs
but sadly wanting in the Ingredient Of truth short
space IN your columns viii suffice to make TINS apparent
'e arss afy million on ofAugus 1851 Issued 80 ns,
shcP Tine a1s n da pSf ss . ETH made tse interest per
cent payable gold bat nothing TO the currency IN which the
This is entirely msstatement, The frat 80 loan wa.
authorized by act of July H. 1861 for S25oeOo0o OF
winch only about s0OOO0O1 issued, principally
through the banks; and far from its being true th,t
so taken and so pad-thea act does not contain sin
gle word Implying either principal interest should
e ep % evs SPS aa anS so pad T The interest % paid coin
ep rp cGS e notes at may noN %o.G m t6 of 1851 So much
for the first statement The remainder is scarcely ~ more orc
second section of the act Of February 30 1862 ana so
from its being true that g the interest was made
to the currency in which the principal should
be paid" the fact Is that in this WHICH, zen aoS r't n
issue $500 of 500 bonds not word sud rs TO
cdectuay dsposes Of the inference which Gen Butler
draws from his msstaement that because nothing was
said to the principal while the interest was made pay
able in gold therefore Congress intended that the prnc
pal should be paid in currency The language OF the law
the interest Identical with that held as TO all loans to
the United states from the organization OF the Govern
ent TO the date of that act 1t had always been the
practice Of the to pay ahd no
that Congress at that time since has had any intention
of making change IN the policy OF the Government IN
III
would have required that the departure from existing
custom should have been explicitly stated. But there Is
further proof OF the intention Of Congress IN respect 10
this loan.
section fourth of this very act provides for the first
time that all duties upon imports should he mado paya
bic in coin Tor in certain outstanding Treasury notes
which had been made fccelyaDe ior duties, ana y, "
which more were to he issued ana the law goes Oh 10
Aud the coin paid s. apart special fund snd shall be
@ ToiIe payment coin of the interest GA the bonds and notes Of
purchase p,ymeut Of cengm Of The entire
Thns clearly proving that the fvewenty bonds 10 he
issued under that act considered IN precisely the
light as all the other existing public debt OF hne
these bonds should he paid in why did it. in the
act which 9eated this loan make the Custom
House dues payable only in cou. and specifically pledge
Where then did Gen Butler find his willo'the wisp.
which has led him into this hog Of rcpudiaiionf
The act of February II, 1862, by s nrst section
authorized for the fret time the issue OF sisooO OF
gIeenbacks. and IN making them legal tender PROVIDED
that they should not he paid for interest upon bonds
con This applies to the interest upon ali the bonds Of
the United Sates-he bonds OF 1872 when nave since
paid Oft in god the bonds of 1876! and 1861 soon to
be paid. and all other existing indebtedness OF the
United States. There Is not word in the statute TO
justify suspicion that Congress regarded me
hvetwcny bonds in any other light than as all other
parts Of the public debt.
Let us now inquire under what representations 'ey
were sold by the Government.
The question having been raised during the sale OF
these bonds inquiry made cf Mr. Chase, then Sccrc-
tary Of the Treasury whether they would he paid
in coin at maturity Ill. reply was as follow e ,os,
Grsrrxsry: Your letter e la irsi relative to The funds in
directed by ihe Se'siAT to say th,t Il st the psPg.s Of 1e Gov
at maturity veryre'Pe NJ B. istn of III. r.,.,,
M.s.r. Barclay 4 Lrinesoa. Ncw.york
Jay Cooke & Co.. the authorized agents OF tho Govern
mcnt in the sale of these bonds III er ADVERTISEMENTS
Ib. pet tho interest ard principal being P,bl.
premium oa rd called Fi,etyeag from this o-,hit while The
them Of IN sod 1t par st sn5 tine ave ye'ra
cannot be Ied BY States cities towns or conn
ties" AF Ac
spencer. Villa Co. authorized Government agents in
Eoston say, in their advertisement: -
When Goerumeni redeem, these bond' they mast be paid
Brewster. Sweet Co. also authorized Government
agents. urge the public ,,.-
And other agents to the purport.
OF course these agents had authority To bind the
Government but these representations were put fot III
the columns of almost every newspaper Va ,he country;
he supposed for moment that Mr. Chase would have
fhev wonId prove utterly false and that the loyal people
OF tle country were being urcd by lie 10 loan their
The opinion Of the department In the Tfasnry adver-
tscnicnt OF the lOi0 bonds. put forward IN May lss
when the whole ,s5c,OoO0Oo loan had been taken THIS
Language IL used:
drft Of tnii states bosis 10 al other e
indebtedness th '.i OF aii s pse Iars. o, sees
OF n, United states iae vho oPI OF the 'on' l'-en 70 &c
| No exception being made AGAINST the hve-twenes. OF
which than five hundred millions were IN the hahds
But Cen Butler urges that because the bonds were sold
for currency therefore tcy shouiu DC pu III 'u,e'l
TO this 1t Is enough 10 reply thai tht people conpoh WIN
the terms Xcd by the Government IN oncinS tc oa
and now expect the Government TO Keep is contract III
good faith. Each bond promises TO pay To tlc hodets
certain number Of dollars, which the law defines 10 bo
% ~ 100 grains OF pure gold stamped with certain de
wee by the United States The law nowhere declares the
legal tender he dollars, hut merely compels the
community To accept them a. such. Inc grecnbacks
are PROMISES the Government 10 pay dollars at some
future time stated II j. Idle TO that the Govern
en could IN good faith compel the holders OF bonds
hearing interest TO accept In payment only promises 10
nay tLe agreed number O dollars nj some definite iuuc
lime and bearing no interest No amount OF special
pleading can make such course anything but Nat fepu
| Gen Butler farther says:
'Ag1a in following Cougce' While portion Of The 20 lo'n
We, untaAep loan suthod al cent Interest
both aud interest of Which, by Tie terms The act "ee made
This rs true The act authorizing $780, 100000 IO0 bonds
was approved March H. 1862 the last day Of the session Of
the XXVIth Congress Al that date gold was percent
premium and the credit OF the Government much I'M
pared The purpose Of Congress IN providing that these
bonds should be paid In com was doubtless to stimulate
the sale Of them. and not thereby 0Justy the inference
that the intended To repulac al the then
existing debt Of united States, not one dollar ol
which, of any ISSUE had made by statute yabc In
coin No inference unfavOrabe 10 the 0Os can be drawn
from this act which does not apply vita equal force 10
the bonds OF 1851 lsGs, 1871, 1871 and 1851 The large
amount of authorized III advance 10 carry
the Government through rs month oi war III case hc
loyal party should as was then ieafed ose eohroi Oh
| tho House Of Representatives,
Now II was the eonad Government that the cent 20
bonds nerrs. aud principal payable IN gold ogh dos N,
eontrarv aos s'at,d n, Jo wh that e Government
offered 1910 loan per cent Interest and PA' O"H pay '0
This - not irue directly the contrary Is not stated
| on their face.
| Gen Butler says again
ain oer wods How the the
gold payable gold bearing loan 10 be- taken up When bad The per
cent .old PAYABLE and gold bearing loan st'l out
The Government did not expect IT, and made no effort
to sell the lOsOs until year laerin March, l56-whc
the 52Os had long since been taken aud some two hnnd