The evening Argus. [volume] (Rock Island, Ill.) 1861-1871, 1867-09-19
From the Cincinnati Enquirer.
Is 1t Reputation to Pay the Bonds with
Greenbacks.

GreenbackS.
SPRINGFIELD, O., Sep. s, 1861. !.
| To the Editor OF the Enquirer ! 20 /
/ regard the financial question one of more
Importance just now than any other, and think y
win have more to do with our politics in the fu-
| ture than any other question:. like your plan
of getting rid of the public debt, and the enor-
nous taxation it entails on our industry anu pu
| mess but I want to be satisfied OF one tnins'
and that is whether the government agreed 10 pay
/ its bonds principal and interest IN goiu. III IL
E AZ mnt how far did the omission extend-that
| = 10 what class ofbonds? The holders of bonds
say the government expressly agreed to pay the
nrincipaI and interest in coin; if so, shall re-
rret IL while I shall insist on adhering to the
bargain. Please give meyour views.
SPRINGFIELD,
The government did not agree to paw the
fve-twenties in coin, only tn interest. There
is nothing in the law under which these
bonds were issued, nothing on the face of
the bonds themselves, to show that they were
to be paid in coin. In running debate
between the chairman of the house COM
mittee of ways and means, Mr.. Thaddeus
Stevens, and other members of the house. in
June, 1864, we ind that Mr.. Stevens disa-
vowed any such construction as that of the
obligation to pay bonds in coin. We copy
the following from the report of the debate:
Mr.. Spalding-I desire to ask the gentle
man if, in his Judgment, the principal of the
$500,000,000 of five-twenty bonds is paya-
BILE in gold?
Mr.. Stevens-H is, Just as clear as anything
is clear that the interest is payable in gold,
but the principal IN tamfil money.
Mr.. Spalding-I ask the gentleman if he
knows whether that is the opinion of the
head of the treasury department
Mr.. Stevens-Well, sir, have not consul
| ted him. Iknoto that q great many legal gen.
tlemem Of distinction agree aoith me in the
| opinion Thare oppressed suppose 1 should
| bow to the opinion of the secretary of the
treasury if had it, and it was right, but
| have not.
Mr.. Pruyn-I would like the permissi on
| of the gentleman from Pennsylvania, to ask
| the gentleman from Ohio Mr.. Spalding)
| whether he has any information that the sec
principal of the fve-twenty bonds was pay
| able in gold?
Mr.. Spalding-1fl may be permitted to
reply to the gentleman from New York,
viii say that | have this morning learned
| from the secretary of the treasury that, in
his opinion, the principal of the five-twenty
bonds is payable in gold.
Mr.. Stevens-TheR, sir, has opinion as en-
| sirety different from the lo,c. These bonds
are made payable an money by the cypress
terms of the lou, and if legal tender notes
are money, then the notes are payable an that.
| But, sir, if both principal and interest are
| payable in gold, Their the difficulties in which
| the government is being involved are all the
| more aggravated.
Mr.. Wilson Was not the statement Just
| now made by the gentleman from Pennsyl-
| vania based upon the payment of these FIVE
| twenties IN gold?
Mr.. Stevens-Cpon the payment of the
| interest in gold. There is no doubt that the
interest is payable in gold.
Mr., Wilson, speak of the principal. l
understood the gentleman to say that there
were now about eight hundred million dol
lars of the public debt payable in gold.
Mr.. Stevens-No, sir; the interest is pay
| able in gold. I say that no man who Is a
aaryer-and Tcould moi sag that the secretary,
of the treasury as not lauyer-,oho ,ciil
carefully read The laac can possibly came to
any other conclusion than that the principal
Of these ,tfre-ttcenty bonds IS payable an car
rency. The law says expressly that the in
terest is payable in coin, and that the prin-
cipal is payable In money. The difference
in the terms employed is as distinct and de-
| finite as If 1t had been, in so many words
that one is payable in coin and the other in
paper currency.
Aside from the fact that the law under
which the bonds were issued said nothing
about paying them in coin, and the other
fact, that there is nothing on the face of the
bonds promising their redemption in coin
there is that other fact, that upon the back
of every greenback is printed these words
"This note is legal tender for all debts
public and pricate, ercept duties on import
and interest on tie public debt
1t will be seen that the greenbacks are 8
legal tender for all debts, PUBLIC AND PRIV
ATE, except duties on imports and interest on
the public debt. 1t is expressly provided il
the law on the face of the bonds, that the
interest on the bonds shall be paid in gold
thereby negativing the idea that the princi
pal was to be paid in gold. The principa
of the debt can be paid in greenbacks, with
out any violation of the public faith.
The Case of Fitz John Porter.