Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1867-10-11
OBJ frttman.
MONTPELIER, VI:
FRIDAY. OCTOBER II, 1867.
The Public Credit.


this country and in Europe have been dis
turbcd by publication of Gen. Butler Is
opinion, that our government was not obliged
TO pay the tive-twenty bonds in gold, but was
at liberty to redeem them as fast as they ma
tured. and give the holders greenbacks in
return Pendleton, of Ohio had not long be-
fore advanced similar opinion. but as he
was Democrat, and therefore presumed to
be in favor of total or partial reputation,
his utterances created little sensation Gen
Buffers position, however, as prominent
and active member of the Republican party,
made this expression of his opinion very sig
nificant. and naturally enough occasioned
.olicitudc in respect to the action OF Con-
gress.
Gen. Butler holds that the iiye-twenty
bonds are not by their terms, nor by the act
authorizing their issue, payable in gold and
me j. warranted. no doubt, in this opinion by
the letter of the law He further insists
that inasmuch as the holders of these bonds
purchased them for much les. than their par
value in gold, they will. in equity, suffer
nothing if they are redeemed in the same
currency which was legal tender when they
were issued These views are plausible
enough, and can hardly he met with any
reasoning founded upon the actual express
sions of the law and it is because of their ap-
parent sOundness that they have SO far al
fected our credit az to decline of two
or three cents on a dollar on these bonds
both here and in Europe.
Gen Butler does not 90 quite far rs
Pendleton in his scheme for paying these
bonds The latter individual boldly declares
himself 10 be in favor OF issuing greenbacks,
in addition 10 those now IN circulation,
enough to redeem these obligations This
would be a double reputation, it would
compel the holders of an interest paying bond
to accept for it a promise to pay without in
tercst, while this promise to pay, by the in
hation of the currency, would be worth less
than one-half the original obligation. His
honesty and fairness in this proceeding would
bc much like that of an individual who
should compel his creditor to surrender
note bearing interest, and take its equiv
olent Il note bearing no interest. Among
business men such proceeding would be re-
garded : a swindle a robbery.
Gen. Buffers plan is for the government
TO issue new bonds bearing smaller rate of
interest than those already out, sell them for
ssreenbacks, and with the greenbacks redeem
the five-twenties, and so continue until they
are all redeemed. There are two objections
10 this course In the first place the people
who purchased the five-twenty bonds were
Informed by the Treasury Department that
they would he redeemed in gold, and if this
j. not contract it is nearly in the nature
of one that it ought to be respected. In the
second place this breach of faith would SO far
weaken the confidence of the people in the
government. that the new bonds would bring
a price in the market so small TO render
the process of no possible benefit to the
Treasury, the debt would be largely in
creased by the operation.
The Treasury Department. in view of the
anxiety created by these financial projects,
has issued the following circular
TREASURY DEPARTMENT, Oct. 4, 1867.
Dear Sir-Your favor of the 4th inst. is
received Too much Importance is attached
10 the uttcrancc to which YOU refer. The
people Of the United States are all sound
upon the question of the preservation of the
National faith, they were upon the ques-
tion of the preservation of the MON. | con-
slider the faith of the Government pledged to
pay the iive-twenty bonds when they paid
IN coin. There need be, | think, no appre-
hension that they will be called in at the ex-
piratiOn Of five years from their respective
dates and paid in United States notes. The
United States notes were issued under the
pressure % Il great necessity. and are by au-
thority of Congress being rapidly withdrawn
from circulation. No more can be issued UNI
der existing laws, nor can / believe that any
considerable number of the members of Con-
gress would favor additional issue for any
purpose whatever, much less for the purpose
Of paving bonds in violation of the express
understanding under which they were nego-
tiated. The policy of contracting the circu-
Iation of United States notes adopted by Con-
grcss and being steadily pursued by the
Secretary should of itself, even if the honor
Of the nation were not involved in the ques-
ton satisfy holders that the hve-twcnty
bonds will not be called in and paid before
maturity in deprecated currency.
Truly yours.
III. MCCULLocH, Scc'y-
This circular will doubtless quiet the
alarm which Gen. Buffers scheme has occs,-
stoned, and put the creditors of the nation at
ease in respect TO their securities.
There il one way, however, in which the
government pay the five-twenties il
greenbacks. and vet break no faith with it,
creditors, and that is by going into the mar
ket and purchasing them at current rates
a loan at five per cent. interest for the pur-
pose Of procuring funds TO do this would be
obnoxious to no Just criticism. The effect o
such a loan would undoubtedly be to increase
the value of the five -twenties, and the gov
eminent would make but little by the change
but we can see no other honorable method Of
getting up these bonds except paying them