The Lancaster gazette. [volume] (Lancaster, Ohio) 1863-1886, 1868-08-06
THE FIyE,TWENTY BONDS
How They Shall be Paid.
Speech Of Senator Morton.

| .
On the 18th inst, the Senate de-
bated the Funding bill. In the
course Of the discussion, Senator
Morton, of Indiana, said:
Mr.. President, the question as to
whether the fivc.fwSnties are pay.
able only in coin or may be paid
in legal tender notes has been
brought prominently into this de-
bate. The chairman of the Com
mittee on Finance, who has had
much to do with the financial af-
fairs OF this country for six or sew
en- years past, insists that tho Gov
ernment has right to pay the
| .twentics in existing legal ten
der notes. / say "existing" as
contradistinguished from not yet
to be issued. Tho distinguished
Senator from Massachusetts, (Mr.
Sumner) on Saturday, in q very el-
aborate speech. argued at lergth
that the Government was compel
led by law TO pay these bonds in
coin. An argument Of great abili-
ty and length was mado to the
same effect by the Senator from
Vermont early in the session.
This question is not important be-
yond the time that the Govern
ntshall resume specie payments.
Whenever we make the legal ten.
der note as good as gold then the
question is settled. But it is an i'm
portant and troublesome question
until that time occurs. l, for one,
believe that the true policy for the
Government is to take steps first
and foremost to bring about tho re-
sumption of specie payments. |
believe that lies at the foundation
of our financial troubles and there
is right where we should begin.
| will remark that this question
is entirely distinct from the ques.
tion of the right ofthe Government
to make o new issue Of legal ten
der notes and pay off the FIVE.
twenties in that new issue. AS !
shall speak of the question, l shall
speak of tho right of the Govern
ment to redeem the five ,twenties
in existing legal tender notes.
Mr.. President, / believe that tho
law-and it is to the law that we
must look in regard to the question
after all-is with the Senator from
Ohio on this question. When III s
asserted that the Government is
bound to redeem the fve,twenties
in coin, Isay it is not only without
the law, but it is in express viola
tion of at least four statutes. The
law authorizing the ten-forties dc.
clares that principal and interest
shall be paid in coin. The several
laws creating the fve-twenties de-
clare that the interest shall be paid
in coin, but are silenta as to the prin-
cipal of the debt, and do not FAY in
what kind of money the principal
shall be paid. This silence is very
significant.
But it is said by the Senator from
Massachusetts, and tho Senator
from Vermont that the Govern.
ment is as much bound to pay the
principal of tho five-twcntics in
coin as if it was so expressed in
the several acts authorizing and
creating those bonds, and that
there is no difference between the
legal obligation of the Government
in regard to tho fivo.twenties and
in regard TO the tcn-fortics. Let
me say to the Senator from Yer
mont and the Senator from Massa.
chusetts that if they desire to as
certain the qualities and capacities
of tho legal tender notes, what
debts they will pay, and what
debts they will not pay, they must
look TO the laws creating the legal
tender notes and not to the statutes
authorizing the five.twenty bonds.
The act of February 25, 1869,
by its second section authorized the
first iesueof legal tender notes: and
in said first section declares such
notes herein authorized shall be
received in payment of all taxes,
internal duties, excise, debts and
demands of every kind duo the
United States except duties on i'm
ports, and all claims and demands
gainst the United States of any
kind whatsoever, except for inter-
est upon bonds and notes, which
shall be paid in coin, and shall al
so be lawful money and legal ten
der in payment Of all debts public
and private, within tho United
States, except duties on imports
and interest as aforsaid.
Tho declaration is that such
notes shall be receivable in pay
ment "of all claims and demands
against the United States of every
kind whatsoever, except for inter-
est upon bonds and notes, which
shall be paid in coin" More COM
prehensive language could not be
employed, and you cannot conceive
of any debt against the United
States left out OF this phrase save
that which is especially excepted.
1t comprehends all claims and do
mands cf whatsoever kind. A
bond is claim; q bond is q de-
mand. The very exception proved
that bonds wero comprehended in
the phrase, for if they were not
there was no necessity for except
ing the interest upon them. But
the statute does not stop here. If
goes on to say tautologically that
such notes "shall also be lawful
money and a legal tender in pay
ment of all debts, public and pri-
vate, within tho United States,
| ovoo,,t dut;os on ;mnorta and intor