The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1867-11-23
Another Letter from Ben. Butler
on Paying the Bonds.

My most earnest deBlre II that tho G0v-
ernment shall fully, honestly aud exactly
meet every one Of its obligations, according
to the exact and equitable condition Of
every contract it has made with its cred
itors. would advocate nothing short
of this, and justice and good faith require
nothing more.
asserted that the fve-twenty bonds
were payable as to their principal in cur.
rency, and not in gold. This the Tribune
denies, aud insists that they arc payable
in gold.
The whole question is, what was the
contract between the Government and
its creditors
The FIRST $50, 900, 900 loan of August,
1861, was issued at 7.30 interest-princi.
dal and interest payable in gold-was so
taken and so paid. When the $40 loan
bill was passed, il established the interest
at six per cent, payable in gold. but said
nothing as to tho currency in which the
principal was to be paid.
When the fivetwenty loan was before
Congress, Judge Spalding of Ohio, asked
Mr.. Stevens, Chairman of the Committee
on Appropriation, who reported it, if the
principal of these bonds was payable in
gold, as we'll rs the interest. To which
Mr.. Stevens replied, that the principal
was not payable in gold.
At the same session, when the first
FIVE twenty loan bill was passed, the legal
tender act was also passed, providing for
the issue Of what are uow known as
"grccnbncks. Il was therein provided.
and so printed on the back Of every note,
that it is legal-'ender for every debt, pub.
lie and private, except duties on imports
and the interest on the public debt. If
it was not to be received for principal Of
public debt, why except the interest?
Besides, the act made it receivable by
the United States for all IFS loans, and
specially convertible into fyc.twenty
bonds.
Again in the following Congress, wEile a
portion of the 500 loan was yet untaken,
another (10-40) loan was authorized at
fve per cent. interest both principal aud
interest Of which, By the terms of the act,
were payable in gold.
| Now, if il was the contract ofthe Gov.
erpment that the six per cent. 5-20 bonds
were, interest and principal, payable in
gold, although directly the contrary was
..tated on their face, why vas it that the
Government offered 1910 loan at FIVE
per cent, interest and principal both pay.
able in gold /!
In other words, how could the Govern.
ment expect the i've per cent gold pay.
ing and gold bearing loan TO be taken up,
when the six per cent. gold payable and
gold bearing loan it had still before the
countryg
You say that the Tribune was largely.
zealously instrumestal, at the request OF
tho Government, through its agents, in
persuading the people TO let the Govern.
ment have their money for these bonds.
We assured them, day after day, that
every one would be paid in full in COIN
principal aud interest.
Now the l0.40 loan was put upon the
market by Jay Cooke, as the agent of the
Treasury. and if you will consult the files
Of the TriJHne containing the advertise
ment of that loan, you will find that Jay
Cooke advertised the l0-40 loan as the
only loan OF the Government, the princip-
al and interest of which was payable 10
gold.
have not seen that advertisement in
the Tribune, but il was so advertised, and
assume Jay Cooke took advantage Of so
valuable medium of advertising as your
paper to make known that important fact
Of the desirability of the ten.forty loan, as
he certainly did SO advertise in other
papers.
You further say, General Butler ut
tered no word of dissent them" 1. e. when
the load was upon the market. True, be.
cause there was no occasion. And still
another, and perhaps equally available
answer: General Butler at that time had
other public interests in another branch
of the service to contemplate and try to
serve.
Again, do not deny that this $40
loan, in whatever it Is payable, is now
due at the option of the United States.
That is, the five years have passed at the
end of which, by their terms, the United
States reserved the right to pay them ;
and the Government has the right to
pay them today in whatever currency
the contract calls for, whether gold or
paper.
If these bonds are payable in gold,
why are they selling at from 108 to liz
in currency, when gold is worth l43 to
l45?
/ If the United States should now
choose to exercise its right to pay them
which would seem to be wise, as they
are untaxable, so that their interest is,
in fact, from one to three per cent. high
er than six per cent. to the holdcr-in
that case, why should the Government
be called upon to pay them in gold or
its equivalent in currency, say l43, when
anybody else can buy them at IL?
Why should the tax payers be called
upon to pay the holder from thirty to
forty per cent. more in order to redeem
these bonds than, as they have now the
right to do, the capitalist is now willing
to sell them for to anybody elsa /?
i Assuming that no man can doubt, in
! view OF the legislation of Congress. and
the words Of the contract, that these
bonds are payable in currency, my next
proposition il, that the United States
shall issue a new loan upon such terms
as sound finance shall show to be most
i advantageous, and, with the proceeds pay
its 6ye-twenty creditors, aud thus reduce
the rate ofinterest, while at the same time
j it keeps exact faith in its contracts. &
i lam unable to see that this is dodge
or s'repudiatioD, }" which is longer syn.