Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1867-09-26
The Currency Question.

the national currency IS peculiar,
and can only be attributed to lack of
earnest consideration of the matter
What is the significance, the intention,
and the object of the so.called currency
but to pay the obligations its issuance
assumed2 The gleenbacks were
made a Illegal tender which act
though, every one knows, was question
ably legal; but since they were made a
lawful obligation, why not use them for
the lawful purpose of paying our debts 2
Since they are legal tender between in
dividuals, there certainly can be no incon-
sistency in a nation, which is a combi-
nation of individuals, making the same
use of them. There is but one issue of
bonds-the Ten. .Forty-upon which it
would be illegal to pay the interest in
greenbacks. 1t is only this issue, the
principal and interest which the law de-
clares shall be paid in gold. All the
remainder of the bonded debt of the
country is left to the law, and the terms
of the bonds themselves, to be paid in
whatever is the legal tender of the
country. That is manifest on the very
face of every greenback issued, But
since there seems to be much hesitation
among the Southern people in regard to
this proposition, and since prominent
New Orleans journal has declared that
"Vallandigham's plan" as it is pleased
to term it, "would burden the masses,
after fashion compared with which
their present troubles of taxation would
be as nothing" l wish to direct their
attention to an extract from speech
recently delivered by the Hon. Geo. A.
Peudleton, at Cleveland, Ohio, which, l
think, so efectually disposes of the
question that the most backward of
these doubling Thomases will be con-
vinced. Mr.. Pendleton said:
/ shall avail myself Of this opportunity
to allude to a matter in some sense per-
sonal. 1t touches the accuracy of an ar.
gument which l made some weeks since,
in relation to the payment of the five
twenty bonds of the United States.
endeavored to show that these bonds
ought to be redeemed in legal tender
notes at the earliest moment; that time
and experience would indicate how rap
idly they could be redeemed without un-
due initiation of the currency. asserted
that by the terms of the laws authorizing
the issue of the five. twenties, by the
terms of the legal tender law, and by the
terms of the bonds themselves, the Gov
ernment might legally redeem them with
legal tender notes. The New York
Tribune said promptly that had
misquoted and misrepresented the
law but il so happened that
in day or two Senator Sherman and
Mr. Bingham both made speeches, at
different places, probably without con-
cert, and both asserted that the law
undoubtedly was as had stated, This
sienced the Tribune. But an able and
active and influential newspaper, whose
exertions in behalf, and whose influence
in the Democratic party are very great,
whose editor always writes as gentle.
man and reasons as statesman-l mean
the World-admitted that / was right as
far as had gone, but asserted that | had
overlooked an important section of the
act of February 25, 1862. That section
provides that the duties shall be paid in
coin, and that the coin shall be applied
as follows:
First To the payment in coin of the
interest on the bonds of the United
States.
"Second. To the purchase or payment
of one per centum of the entire debt of
the United States to be made within each
fiscal year after the lst day of July, 1862,
which is to be set apart as sinking
fund, and the interest of which shall be
in like manner applied to the purchase
or payment Of the public debt, as the
Secretary of the Treasury shall from
time to time direct
"Third. The residue thereof shall be
paid into the Treasury of the United
States"
The World claims that this language
in the second clause constitutes pro-
mise to pay the principal in coin. |
differ with the World. Mark the Ian
guage: ITO the purchase or payment of
one per cent. of the entire debt" The
purchase or payment was to commence
during the year between July l, 1862,
and July l, 1868. This law is the first
one authorizing the issue of FIVE twenties.
They we're not redeemable by the |
government before five years. Not one |
of them, therefore, could be redeemed |
until after the 25th Of February, 1867. |
The compound interest notes and the |
seven-thirties we're not yet due-indeed, |
had not yet been issued to any extent |
None of the public debt became due in |
that year or the next and therefore |
could not be redeemed By the terms
of the law, then, the amount Of one |
per centum must be purchased. Dur |
ing the first year gold went steadily |
upward, reaching, | believe, nearly 200 /
per cent premium. In few months |
the bonds were prepared. You remem-
Der that Jay Cooke was employed to sell |
them that he made extraordinary efforts /
to do so, and that he was well paid by /
the Government for getting them of at
eighty cents in greenbacks. Now, then,
If the Interpretation of the law put upon |
il by the World is correct, the extraor-
binary spectacle was presented that the
Government was, by law, paying its
agents to sell its bonds at eighty cents in
Creenbacks on the dollar, and by the same 1
law was compelled to buy them back, at
the same time, at par in gold, which was
worth two hundred cents in greepbacks.
It seems to me that need only state this
result to show that the Interpretation is
wrong. The coin was to be laid aside