New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-12-18

previous loans made and paid no
have been contemplated It is said, however that the
distinguished Secretary Of the Treasury who negotiated
the the % gfsS Sat to
the people and upon the faith OF this the loan was taken
Your Committee can find official declaration made by
the Secretary this subject until after the loan was nego
tated On the 18th Of May 1864 he writes to Mt Hooper
That II has been the constant usage OF the
10 redeem all coupon ana reglsterd b0nds, ioIInIng
part OF the funded or OF ted saes
In CON- and this usage has not been deVated from uus
my administration OF its affairs The 500 6s being pay
able 20 years from date, though redeemaole after nve
years. are considered as belonging 10 the iunded or DIT
manent debt and also are the 2Oyear 6 into whch me
3-year $50 notes are convertible. Ihese Donds'
therefore, according 10 the usage OF INC S GOV.
erument are payable in coin. 1t is claimed that
this language. used long after the polus were
negotiated cannot show the understanding OF the parties
when the bonds taken and that IL does not amount
construction OF the law but that II simply airms an
admitted fact that the usage OF tue Gossrhgnt nu
been to pay all its bonds in coin The same declaration
compound interest notes certificates OF Indebtedness,
all Of which are now paid IN lawful money, g.
Again II IS said that the agent emp9yeu ny tne
tary did, in his advertisement aIin 'ht 'nc PrcPai
and interest payable in con that TINS construction
acquesCed in by Congress and induced thousands 10
take these bonds who would not nav uoe SO
To tins il is replied that such promise is not IN accord
with the plain language OF me law, ana Is not
binding construction OF the law No doubt the agent
supposed that before the hVe years eXpreu specie
payments would be resumed. NO one supposed
that two years after the war was over greehDacks
would still be deprecated Inc advertisement
suppOsltiOn of state OF facts 10 occur hye years
afterward rather than legal construction OF public
law accessible TO all men And II Is contended mat
the law binding the United states to pay the princl-
pal Of this debt in COIN yet that tins construction was not
generally acquesced in and adopted by both parties
TO the contract as to create moral obligation which the
United states bound TO execute to preserve Its faith
admitted as 70 make il a part OF the contracti
Congress uniformly refused 70 declare TINS construction
the vetwenty bonds but did do so as to the ten
forty bonds And II is a further and very significant
fact that every state in the Union with perhaps the eN
this act Every state had public debt IL stood In
precisely the same position as the National debt us
com and vet under the law they held that their public
faith was complied with when they paid either principal
interest in egaltender notes and TINS construction
was acqmesced in by their creditors SO with corpora
tons and private citizens who had contracted deDts
coin considered themselves and released by pay
Hent in legal tenders. How, by welestablshed prin-
Tic meaning OF the words OF a contract, by
cotemporaneous construction IT must he shown h3t both
parties acquiesced 10 and understood and acted upon
~, ~ Jnnst Govern when general rule is laid
down and an exception made II implies that there are
no other exceptions Duties on imported goods ana IN
teres public debts are excepted Inc construction
answered by the fact that the act . under
which this loan was issued e1I o oI5 and
shall be receivable in payment OF pubic dent Inc ar
ent ~ tbe United states is answered by the fact that
this was not mutual construction recognized by DOth
parties as part Of the contract, but rather
opinion based upon q suppostion Of state OF facts,
which, when the five years expired, du h9I
are payable when due in legal tenders they are edeema
lie after five wears from the date IN kind Of money
The word payable imports duty or obligation which
must be performed at the time stipulated. Inc word
redeemahle implies discretionary power Whlch may
be or NAV not be exercised But the same kind OF money
i'm the same mode rendered VIII redeem note or pay
Your Committee have deemed 81 their duty thus to pre-
sent the argument favor OF rcdccmiug the bohus III
legal tender notes for it cannot be concealed that ms
construction has been adopted by many VINO disc3m an
uurpOse To eyade the public engagements. sun the al
United facts remain that these bonds were BehtIay
taken upon the suppostion that they would DC pad ~
coin; that this was explicitly declared bY the authorized
agents OF the Government IN negotiating the loan that
such declaration must have been known py SSnties,
and negatiyed that j. was sanctioned by three
successive Secretaries OF the Treasury mat upon tne
faith OF II the bonds nave bech Couuay Enei ~ na.
Rct value than the notes, and that the puoc a'meh'
both in this country and Ia Europe would regard ~ az
breach OF public faith Pubhc credit ~ 80 7ehslu1e
quality that time cannot restore when Impaired IL Is
better fr to f9regq dgn9tu Ihses' t ~ Il,
ercise IL. But the doubt should he promptly
removed The discussion OF the question maniesty I'M
can be negotiated The public mind becomes accustomed
naper money worthy Of the day OF George Law. poison
the fountain Of public and private credit " mas pee
me 90 bonds are fedcemablc only In gold ms instead
OF settling the question: VIII only create DIVISIONS au.
parties ana the resolution, Wheh passed. VIII nc s"J'0'
Your Committee have heretofore considered this ques-
notes limited a they are O0OOOO0O can bcapplied to the
redemption Of the bonds The question now arises Can
the United States, In good faith, avail itself OF e dpre
citation OF its notes TO issue geateramount 0i them tha
was provided for when the 30 bonds were a1iI anu
note 10 is a promise by the United states 10 pay
specified sum on demand no ltgHender cSuio apps
gold silver coin, is the only money mat can redeem
therefore the United States gave to the note every valna
bic quality possible 10 was made lawful money ana
nav this note IN coin the earliest moment practicable
Is continuous obligation. our tduIe 10 40 ~ ~ Ihe
standing reproach OF our nnaneml system, ~ - ai5
TO- our d ates notes in coin or ITS equivalent ON de
INNS
ton This does not consist IN allowing our h"iui
nancy 70 continue i TO be less syalua6io than
gold or silver coin Payment Of the bonds IN existing
notes would not materially affect the market OF the bonds
for the market value Of the notes Increased as would
be by the provisions OF tins bill, would make p9ih NOES
and bonds approach nearer tho standard Of gold The
present issue is held by the people ana cannot
he drawn into the Treasury except by taxation.
We have already largely diminished internal taxes
and cannot hope to receive SOOOOOOO in currency In
excess OF expenditure IL Is manifest that snch
surplus is insufficient TO redeem our bonds, I'M
less aided by further issue OF notes or new loan TO
pay OFF the original Fiye-rwenty loan, the only one
poper money 10 be still further increased as
other loans become TeueeinaDie Ins hiaiinins
propositions has been made and IL Justified by the arseI
ton that the bondhoders bought these bonds with
United states notes when goa was hg ana are eoinpG
stated by repayment In legal tenders true mat sOe
Of the latter loans were paid for when legal tenders were
certain result Of the war; but the first loan OF $OOOOO
now to be redeemed, sold at par when
20 the MARKET price Of gold in NewYork during the sum
and Fail Of 1863 IL appears that TINS loan was sold at
now be bought in the market in NewYork at &c cents IN
gold you pay these bonds IN legal tenders, limited
n amount az they now, TO less than 100000 600 and
with the privileges conferred by this bill, the holder OF
the bond VIII realize &c cents in gold, and will have the
advantage OF rapid approximation Of his notes bonds
the gold standard II increase our paper money TO
an sufficient TO pay the first loan he will
not receive 80 cents In god-f indeed this act of
injustice and Reputation does not, by destroying
the public credit, utterly destroy that in which
YOU propose pay debt contracted when the enemies
Of the country confident Of its overthrow, when
foreign nations and large portion Of people
cpaed the permanent division Of the Union This course
once entered upon the first debt thus paid the rest will
follow Confidence thus destroyed all values affected the
distress OF the people will compel them to resort TO
fine utter Reputation OF the Of paper money.
SO 1t with the Continental money SO it was with the
French dSSigtdts.