The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-10-19
OUR NATIONAL BONDS.
Are the Five-Twentles Payable ln Gold
Correspondence with the Secretary.

Correspondence with the Secretary.
To The Editor Of the Nst0 York Times
In reference to the question whether the Five
rency, the Representations Of the secre
tary of the Treasury this point
have been referred to by General Butler and by
others of the disputants. have, on this sub
tect, an important piece Of testimony, which
am permitted TO make bubble. / was in Europe
In the summer and autumn of 1866, as an agent
Of the Treasury Department. On the 22d of
August addressed the following letter to the
Secretary of the Treasury, from Frankfort
Dear sir:-I arrived here on the 2Oth from London.
good deal Of dislrust ielt in that market lest the
PiyetTeny bonds VIII not be paid IN gold and one one
your attention to the fact, aud TO ask II you cannot
ments purpose to pay in gold which shall reassure
the M public He mentioned & g me the name Of very
an interview. who sad he would gladly invest in
understood from Mr. Chase that only the Treasury
though not expressed 10 the statutes authorizng
coin. He replied that such a statemeh rom you
would be all that is needed to quiet apprehension.
for the future action Of the Government but as the
the proper exponent of its Views and purposes in
all that relates to the finances. aud that might in
Would quiet
rope find The estimates Of the amount our ,nds
held In Europe to be lower than those given me in
or 4GS millions then spoken Of think estimates
s inc Now & pange iFpm pe i9V 70 SS lens
and Frankfort bankers; that Europe win continue to
loan this side WA '-- 'i-S'n"' ."
yours the honor to be- aRa truly
Agent Treasury Department u. 8.
To this letter 1 received. while in Paris,
towards the end of September. the following
reply, a copy OF which l sent Immediately INN to
among bankers, and have no douo! set at rest
events, 1 found tho subject no longer dis
cussed when went to London few weeks
SECRETARY MC'cULLocH's REPLY.
TRE4sURY & DEPAETHEST "a s5 J3S Sept 1885, Dear
The deb Of Re Ue States Is rs "a aP OF bonds
interest bearing notes of different descriptions, and
The bonds are the funded debt principal and inter
ss Sss @e and are pasBe m n0Sy
the larger portion being also convertible at maturity
There was no expressed pledge on the part of the
Government that the $40 bonds should be paid In
issued by the Government are considered TO be pay
The b06es that fell due The is Of JanUsry isss we're
paid in coin and the Texas INGENUITY "a m. bonds have
when presented by loyal men who received them
meH In the past, and at the present time is sufficient
guarantee Of what its course will be In future There
T@Hff keep SI % Wiz @ 9 tno severn
1here is little doubt that before the first ssue of the
been resumed; but Il this should not be the case,
@ent & 10 Justify the apprehension that depTecised
currency will be offered to the holders in payment
II. McCULLOCH, Secretary.
Hon. George Walker, ETC., ETC., London.
| Ihave never entertained doubt that the OBJ
! legation of the Government to pay the principal
of all Its bonds in coin Is manifest on fair con
| struction OF the statutes authorizing the loan
applying to these statutes these principles OF
| Interpretation which are applicable to all
statute law. But beyond the statutes there are
| the contemporary declarations of the Govern.
| ment upon which the contract with the takers
| of the bonds was based. If there was an ambt
guilty in the bond itself, 1t is principle of law
| that the contemporary represen ntatiOns of the
party making IL may be admitted In evidence
| TO explain that ambiguity In any manner not
inconsistent with its language. The bond itself
being silent as to the currency in which IL was
to be paid, the Government officers or agents
negotiating its sale had a right to say that II
was payable in gold, and the people Of the
United States are bound by that declaration as
much as by any other part of the contract.
Such letters as the foregoing letter of Mr..
McCulloch are important, therefore, as showing
what the contract was which was entered into
with the Government creditors. They do not
enlarge, but fix the statute obligation, and It is
an obligation which an honest people will be
slow to repud1ate. Congress mlght-ought 70
set this question at rest by adopting a Joint
resolution, declaring that all the bonds OF the
| United States are obligations of which both
| principal and interest are payable in coin. We
should then see whether any party is bold
enough to make reputation an issue before
| the country,
am, your obedient servant,
| GEORGE WALKER,
Springfield, Mass, oct II, 1857.