The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-12-31

subject. This Sub Committee called upon the
after a full and free oonforeCoe, the Secretary
decided that a fair construction of the law, as
well as good faith, required him TO pay all The
funded debt in coin, aud that be did not deem
IT necessary to have any further law passed to
Under these circumstances, the Committee OF
Ways and Means did not deem IL necessary to
reporta bill authorizing or requiring the funded
further law was passed; and on the first OF
January, lS6S, the funded debt falling due at
that time was paid In coin. From the time this
decision was made by Secretary Chase, down to
the present time. the same language has been
held by each Secretary of the Treasury, namely,
that the funded debt of the Government was
payable in coin both principal and interest,
and that the Government would not seek TO
avail itself OF the five years option to redeem
the Flve-twenty bonds until tt was prepared to
pay coin for the principal as well as theinterest.
But this Is not the only proof.
Messrs. Fisk q Hatch, bankers In New York
city, were prominent sub-Rgents of the Govern
ment in negotiating the 20 bonds under the
act of February 25, 1862. Many persons who
were desirous OF subscribing to this loan,
wanted to know authoritatively whether the
principal OF the bonds was payable in coin as
well as the interest. In order TO have the proof
in hand to satisfy people on this point Fisk &
large amounts OF this loan, addressed a letter to
the Secretary of the Treasury on the Sd of
August, 1868. and received from him an official
reply, signed by the Assistant Secretary of the
Treasury, which was Immediately published in
the New York Times, as follows:--
THE POPULAR LOAN.
To the Editor Of the ". y Times.
We are receiving numerous inquiries as to whether
The United states ~ ponds are reasonable Ia gold
ment most satisfactorily answering this question las
It once before answered by Mr.. Chased copy OF
ieI OF this ioan and lis wide distribution among the
people renders the subject one OF universal public IN,
FISK q HATCH, Bankers.
TREASURY DEPARTMENT.
"WAsHINGTON. D. o., August S. 1883,
Gentlemen: Your letter Of the Sd instant. relative
Of February a5 1867, has been received The follow
rSsaTd to the 9dempon PHI OF shs public
coUpoO and registered bonds forming part OF the
in ed The SEQ e bss 81 S
any time within twenty years after the lapse Of Aye
Twenty sSss Of Jy II into SSn SS the
d part GeS ans be
S1s se
pTTese Of 81 into %en e
sums Of rot less than $500 They WILL therefore be
Rai6 y ss hoSsTs prefer payment 70 In
"Acting Secretary OF the Treasury.
ITO MessTs Fisk q latch, Bankers, New York"
This official let er from the Treasury Depart
ment, in addition to Its being published in all
the newspapers, was published In hand-bill
form Zone Of the original hand bills being now
in my possession). aud sent broadcast among
the people, to induce them to come forward and
take mp these bonds, which were then In the
market, under the direction OF the Secretary OF
the Treasury, and offered by him at par was
at the time actively engaged In negoH,atimng Ing
ter extensively myself, and gave copies of IL to
subscribers at the time of making their sub
/ regarded these representations, made by
authority of the Treasury Department., and
upon the faith OF which people were induced to
subscribe for the loan, as forming part of the
contract, and that the Government is now
that whenever they seek TO redeem these bonds,
the principal as we'll as the interest should be
paid in coin. 1 should regard 1t as q gross
breach Of faith The mart of the GOVaPnmant
TO attempt to evade these declarations, or equi-
vocate in fulfilling this contract, or any part
But aside from these representations made
by the Secretary, would suggest that the plain
nection with its tito, leads to the same conclu-
sion, and that Secretary Chase In giving the
construction to the law which he did In nego-
mon sense decision. The argument of the pre-
sent Secretary, in his last Annual Report (pRges
"a, 25, and 26), Is able and conclusive on this
point. The Interpretation given to the act by
both these distinguished Secretaries is In exact
drew and introduced the bill in the House. In
January, 1852. and as believe 1t was fully un-
derslood by Congress when IT passed. The title
purpose for which IL was passed, namely, IAN
Act 10 authorize the Issue OF United States
| Notes, and for the Redemption or Funding
| thereof, and far Funding the Floating Debt OF
| the United States.n f.. r
minent peril in which we were then placed by
! Rebellion, to make a forced loan from capital
| ISIS, OY competing I06n 10 take leg0l-Jenuer
United States notes, which should be paid out
to the army and navy, and for supplies aud
materials of war, but at the same time give
them fair rate OF interest for the use of their
money. by allowing them 10 fund these legal
tender notes as they should accumulate In their
hands, and not bearing interest, into q twenty
| years bond, bearing per cent. interest
Mr.. SpaldiDg here quotes at length from q
speech made by him In Congress, in January,
These are, in part, the remarks made In the
House on the Loan bill introduced by me, and
which became law February 25, 1862 Toe
operation of the bill, in the issue of the legal
tender notes, the paying them out to the army
and navy, their hnal funding into 20-years 8
y cent. bond, have been substantially what
stated would be ITS operation at the time I in
bill was to provide the means by which the
floating and temporary debt, then bearing
heavily upon the treasury, might, by the opera
tlon OF the act, be funded into long bond
without heavy sacrtnce In making the nego-
tiatiOn.
the obvious intent OF the act, and uDfund all
this bonded debt, by again putting 1t into
floating and temporary form. regard all these
late shifts and quiboles to unsettle what
regard as already honorably fixed and deter
mined by the Treasury Department, under aud
in pursuance OF law, as unworthy of this great
nation, unstatesmanhke in those who advo-
cate IL, and, II persisted In will think, inevI-
tably destroy the credit of the Government,
and postpone Indefinitely presumption OF specie
Why take the back track under these fund
ing loan bills? Why open The question at all
at this time? The doating debt and tern nporarv
loans are already funded; or SO nearly funded
that there cannot be any reasonable doubt
that, by the 18th of July next, when the last
series of 730 notes fall due, the whole will be
funded into bonds, none OF which are payable
until 1882, being hfteen years yet before they
become due. The Government is not legally
cipal OF these bonds until they become due.
Then why trouble ourselves about funding
mat wnicn Is already funded, especially when