New-York tribune., 1867-10-02
BUTLER ON PINdNCE.

our NaJlOnhl Dtot III NdtioH'i p"P''' W"
beg the reader to note that Gen. Il. is
volunteer in this controversy. His views were
elected 10y no requirement from us, nor (wc
belicve) from any one. He must have KNOWN
before he gave them uttcrance, that they were
such IA we and many 1--WE think mosO loyal
Americans deem dishonest and rcpudiatlng.
Let us briefly show why;
l. The United States, when their National
existence was in peril from a formidable Re-
bellion, imperatiyoly needed mOncy-immcnsc
sums of it-sums which could be raised by
borrowing alone. SO they commenced borrow
ing, and were compelled to borrow more and
more for years, until their National Debt
reached the enormous aggregate OF over Two
Thousand Seven Hundred and Fifty Millions,
whereof Two Hundred and Fifty Millions have
since been paid off, leaving about twenty-five
Hundred Millions still due.
II. In the dark days of our gigantic struggle,
it was deemed necessary TO suspend Specie
Payment and make the Nations promises to
pay a Legal Tender for their facc-in other
words, to decree Universal Forced Loan,
which was swelled at length to nearly One
Thousand Millions Of Dollars Except for
certain payments to the Government, this
paper was thus made our general Currency.
III. At first, this Forced Loan was merely
poStponcmcnt of actual payment That is to
say: Instead of real cash, the Government
gave its soldiers. contractors and other credit
ors. its promise to pay so soon as IL Sh0aM nc
able. 1t was case of qualified National bank
ruptcy, exactly as when debtor asks and re-
# iI,n inn of
from his creditors. The Government issued
these paper dollars, convertible mt the will of
the holder into bonds drawing six per cent. IN
tercst in coin. This salutary aud righteous
system should never have been changed; but.
unhappily, it was. Had it been faithfully adj
hered 10. the Debt would have funded itself.
so fast and so far as it should be funded, and
we should ere this have returned of course
to Specie Payments. The change from Green
backs rcdecmablc at the holders pleasure III
Treasury six per cent. bond, the interest spcci-
fcally payable semi mi-annually an coin, to a
Grccnback which simply, markedly licd-being
Icdcemablc nowhere and in nothng-was II
deplorable illustration of the growing steep
ness of the down-hill road.
~. The first Grcenbacks were fundablc at
the holders option in a spccic-paying bond
those issued later were fmdablc whenever the
Government, victorious over It's foes. should hc
ready 10 fund. IL was at first intended to Is
sue a moderate amount only but successive
defeats, pressing emergencies, and imperative
necessities led t0 further and further issues.
until our Grccnbacks III circulation amounted
TO -Four Hundred Millions.
V. All this time. the Government was bor-
rowing all il could get-oftcn TO the extent oi
One Hundred Millions per month. Aud we
(among others were exhorting patriotic and
thrifty citizens to sell their crops, their stocks,
their farms. and invest the proceeds in the Ma
ti0nal Debt, explaining to them that they would
thus invest their GrCcnbacks, which. were at first
n fraction. but at times very largely, below spe-
Gle i'm value. in securities whereof both princi-
nal and interest were payable in coin. Had
they not done so, the Union must have per
ishcd.
VI. The Government emitted three kinds of
paper: I. Grccnbacks, for time not redcmeed
in anything; .. Bonds payable III Legal len
der; B. Bonds payable in Specie. The interest
on those payable in Legal Tender ('.'Ds) was
generally higher than that on bonds payable III
Specie (5-2Os and 10-40S). And those who took the
:. .3Os were urged TO do 80 10y the fact that they
would have the option at maturity of convert
ing them into 5-2Os, PAYABLE in coin. IIund-
reds of Millions of bonds drawing 3-i0ths per
cent. interest have thus. both before and at
maturity, been converted into j-9O,, drawing
but & per cent. These are among the bonds
which Gen. Butler says the Government may
now iuslilably pay of in Grccnbacks!
VII 1t seems clear to our mind that the
in borrowing money, incurred
an obligation TO pay; and that the amount 1t
thus contracted to pay could not he increased or
diminished at its own pleasure, since that would
be saying that it might pay whatever amount it
should see fit to pay. lie who covenants to pay
Ten Thousand Dollars does moi covenant to pay
merely whatever he may choose to consider Cor
mako Ten Thousand Dollars, but definite
amount. And when Gen. Butler proposes that
the Government shall pay its coin debt in Green
backs. and Mr.. Geo. II. Pcndlcton improves on
the suggestion by urging that Two Thousand
Millions more Greenbacks he issued, and all our
funded debt whether held at home or abroad,
paid off therein. so that the holders thereof
should thenceforth receive from the Treasury no
interest Understanding at all but bare
faced lies, not worth dime on the dollar-it
seems TO us that the rascality of the latter is
more logical and respectable than Gen. Buffers
If we are TO perpetIate a gigantic National
villainy, let it be for something.
VIII. We believe there are on record specific
and uncquvocal pledges of the Government
that the principal rs we'll us the interest of its
Five-Twcntes should be paid in coin at matu-
riy. But this is not material. \ man who
incurs an obligation is morally bound (says
Paley) TO discharge that obligation Us he sup
posed the creditor to understand him