New-York tribune., 1867-10-02
Il LETTER FROM GEN. BUTLER.
OUR NATIONAL FINANCES.

My high respect for the Editor the paper, and its
readers. prompts to u rejoinder which may con-
tain little clearly the exact statement of tho
question at issue between us
My most earnest desire is that the Government
shall fully honestly. and exactly meet every of
its obligations according TO the exact and equitable
condition of every contract 1t has made with its
creditors. ] would advocate nothing short of this,
and justice and good faith require nothing more.
| asserted that the $50 bonds were payable 10
their principal in currency. and not in gold. This
The TRIBUNE denies insists that they payable
in gold.
The whole question is what was the contract be-
tween the Government and its creditOTsi
The first $J00oO0OO loan of August, 1861 was issued
at 10 intercst-principal and interest payable In
gold-was so taken and so paid. When the 5--0 loan
bill passed. it established the interest at six per
cent payable in gold, but said nothing TO the cur
rcncy in which the principal to be paid.
When the $40 loan was before Congress, Judge
Spaulding of Ohio asked Mr.. Stevens, Chairman OF
the Committee on Appropriations who reported IT. II
the principal of these bonds payable IN gold, ia
well Us the interest! To which Ar. Stevens replied,
that the principal was not payable in gold.
AT the same session, when the first 800 loan bill
was passed. the legal tender act also passed, pro
vidng for the issue of what now known ms
"gIrcnbacks." II was therein provided and 80
printed ON the back of every note that it is legal
tender for every debt public and private. except
duties Oh imports and the interest the public debt
If u moi 10 be- received for principal of the public
debt. why except the interest
Besides the act made it receivable by tho United
States for all its loans and specially convertible into
5-20 bonds
Again, in the following Congress. while portion
of tho 5-9o loan was yet unakcu another 1910 loan
was authorized at per- interest; both principal
and interest of which. 10y the terms OF the act.
made payable III gold.
Now. If il the contract of the Government that
the per 30 bonds were, interest and principal,
payable in gold although directly the contrary satod
their Jo, why was it that the Government Offered
q 10 loan per cont interest aud principal both
payable in gold
In other words. how could the Government expect
the , per cent gold-payabe aud godbearing loan
to be taken up when il had the per cent gold
able and gold bearing loan still before the country
You say that THE TRIBUNE was largely. zcaously
instrumental, at the request Of Government through
its agents III pcrsuadng the people to let the Gov
eminent have their money for these bonds. We as
surrd them. day after day, that every would be
paid in iull in coin principal and interest.
Now. the 1910 loan WAS put upon the market by
Jay Cooke the agent Of the Treasury, and if you
will consult the flee of TE TRIBUNE containing the
advertisement Of that loan poa ,riH md that jay
Cooke adraf,cd fhc 1910 loan hc o1iy loan Of the
GorcaDH he p,5Ac,pd and interest Cf rhich Uds pay
able ~ gold.
have not seen that advertisement in TIM TluB-
UNE. hut IL was ~ advertised; AID ASSUME Jay
Cooke took advantage OF 30 valuable a medium of
advertising ~ Your paper to make known that inn
portant fact OF the dcolrability of the lOO loan.
IA, ,prt tiulN did sp AL lycrils. iu otl,r
Nom further say: Gen. Butler uttered no word OF
dissent hcn" I. e.. when the loan upon the mar
ket. True because there no occasion. And still
another and perhaps equally available answer-ticn
Butler at that time had other public interests III
another branch of the service 10 contemplate and
try to serve.
Again: lou do not deny that this 5-20 loan. in
whatever II il 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 night to pay them to-day in
whatever currency the contract calls iOr-Nhe
gold OF paper
II these bonds are payable in gold why are they
selling at from los to IL in currency when gold Is
worth ifs ." li5
II the United States should now choose To eXer-
else il, right to pay thcm-lwhch would seem 20 bc
wise ~ they arr untaxabe that their interest is.
in fact from one three per cent. higher than siX
per Ia the holdorin that cast. why should the
| Government De called upon 10 pay them III gold
0r lis equivalent in currency Say li3, when ans body
else can buy them ut IL!
Why should the Taxpayers he called upon to pay
the holder from - to 20 per cent more in order 10
redeem these bonds than. they now have the right
TO do. the capitalist is now willing to sell them
! for to any body else
Assuming that no man can doubt in view of the
legislation OF Congress, and the words of the CON
tract that these bonds payable in currency, my
next proposition is, That the United States shall
issue a new loan upon such terms sound finance
shall show to Dc most advantageous and, with the
proceeds pay its 800 creditors, and thus reduce the
rate Of interest. while at the same time 1t keeps
! exact faith in It's contracts.
am unable To see that this is "a dodge or repu-
diationr (which is longer synonym for rascality,'
/ OF ANYTHING rreconcilable with common honesty
These be- hard words my masters AS | do not
| think they add anything to the strength of HE
TEBU MS argument upon legal question relating To
finance | certainly can neither reply TO return
| them.
only propose TO reply to the specific argument
! of The TRIBUNE, and therefore refrain from dis
cussg any of the collateral branches of this subject
MAY ask-ls the question is one of great moment
to the countryyou in Justice and fairness to give
this letter the same conspicuous insertion IN 1HE
! DAILY WEEKLY. and SEMI WEEKLY TRIBUNE. which
you gave the attack
| Common honesty" would seem to require this.
Very truly Yours Il. j. BIIiLR.
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