The Vermont transcript. [volume] (St. Albans, Vt.) 1864-1870, 1868-01-17
No. 200.

not by anything that has occurred
here The Senator from Vermont
[ Mr. Edmundsl has presented, in a
IL ost unexceptionable manner, the on
" really pertinent argument that has
appeared on his side of the case
Like sound lawyer, as he is, he has
deigned to refer TO the statutes, and
has sought to sustain his views with
out resort to denunciation-
The Secretary of the Treasury, on
the contrary, has in his recent report
INDUCED in some quite severe STRIFE
lures against those who disagree with
him as to the manner in which q GER
tain portion of the public debs is pay
able under the law. And the venera-
BILE eN-Secretary of the Treasurer, that
distinguished financier of another
generation, Robert j. Walker, in his
recent report is exceedingly severe
opponents of his views and theories.
Much of this, however, so far as he is
concerned. must be set down to gen
erous zeal and habits contracted in
another age-The golden age of Ameri-
can finances. This worthy citizen in
his lately published address has en-
deavored earnestly 70 serve the pub
lie, and If he has not succeeded in i'm
proving the national credit, he has at
last run great risk of bankrupting his
own Imagination. Those who cannot
endorse his ideas must nevertheless
admire the passionate ardor which he
brings into their advocacy. He and
the honorable Secretary and the Sena-
tor from Vermont agree perfectly rs
to wha. ought to be done to ensure 4
safe issue out Of our fnancial troubles,
but the misfortune still is that nobody
can do the desired thing.
According to the November state
ment of the Secretary of the Treasury,
Sits, 600, 900 of the public debt bear
interest, payable in coin. If doubts
have been raised as to the duty and
propriety of discha-ging the princi-
pal of such debt in coin, none exists
as to the manner in which the inter
est shall be paid All agree upon the
validity of the obligation to discharge
that in gold, because it is so "nomi-
mated in the bond;" the law requires
it. 1t is only the principal of a ror-
ton of the public debt that the reso-
luton of the Senator of Vermont in
tended to affect. To this, attention is
especially invoked, and since it con-
Germs full three-fcurths of the entire
public Indebtedness, the resolution,
which viii have all the force of law,
ought to, and doubtless viii, receive
the most careful consideration. Furth-
er time to investigate would have
compensated, in some degree. for a
want of skill in financial affairs; but
without much forethought few plain
propositions may be submitted.
The exact present amount Of the six
per cent fve-twenty bonds cannot be
readily ascertaiue1. The monthly
statement of the Secretary of the
Treasury for December has not yet
been published, but since the CONVEX
sion of Treasury notes into these bonds
has been going on rapidly during all
the month of November, it is safe to
say that they amount now to $1,000
100000 | include in this sum the
$130,155, $50 issued in the form of
seven-thirty Treasury notes, under the
acts of 1861, and afterward, under the
latter of those acts-the one of August
5-converted into bonds. There may
be some discrepancy about the present
form Of this portion of the indebted
ness, but | find the fact of their con-
version noted so early as on the Sec
retarv's statement of May 81. 1865,
and cannot, therefore, be mistaken
about 1t.
1t will be observed that a very large
share of the public debt-about two
thirds of the whole-is in the form of
these six per cent. fve-twenty coin
interest bonds; and the magnitude of
this question has not been at all exag-
gerated by any one, nor can it easily
be. ] agree with all the Senator from
Vermont has said upon this head, but
not so in reference to his arguments.
He asserts that the principal of these
bonds should be paid in coin, because
the seven-thirty Treasury notes and
other lawful-money securities are con-
vertible into them, and that it would
be absurd to have such provision if
the bonds themselves were afterward
redeemable in lawful
But it seems to me the iniucement
for making the change is found in sew
eral other independent facts: first, the
bonds bear an interest in coin. while
the notes bear interest payable in any
lawful money; and, second, the bonds
run for twenty years, the notes for
but three Again, there is difference
in the value of the SIX per cent. inter
est IN coin and the seven and three
tenths interest In currency; and, final
ly, the bonds are non-taxable securi-
ties, while some of the convertible
notes are taxable. These considera-
tions show that the provision for con-
version of other securities into bonds
is not altogether absurd, even upon
the hypothesis that the principal is
not redeemahle In coin or its equiva-
/ lent.
Another argument is deduced from
| section five oil the act of February %.
1862, which reads as follows: r--i
THAT all duties on imported goods shall be
I paid in coin, in notes payable on demand
heretofore authorized to be issued and by lEzs
receivable in payment for public dues; and tbs