Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1868-01-21
PAYMENT OF BONDS IN aREssBAcKs

who ranked in the days Of the American
giants second only to the Calbouns,
Clays and Websters Of the Senate, has
written another letter on the currency
and bond question. He is withal a man
of reputation for integrity, which has
descended with him down to his old age.
He has been Secretary Of the Treasury
as we'll as Senator. The following ex-
tract shows his views Of the obligation
Of the Government on this subject:
But what does imperatively demand
the action Of Congress is the adjustment
of the national debt on sound basis,
which will do justice alike to the credi-
tors and the nation. This is the more
Immediately necessary, as mistaken no
tons are abroad concerning it, A nation
should be just, not generous, in the set
tlement Of pecuniary obligations. We
should pay exactly what we owe, no
more, no less. II is case of debtor and
creditor. We are able to pay all our debts
according to contract, as those contracts
are authorized by act of Congress, and
printed in the bonds themselves; and
beyond and outside Of what is authorized
by law, and nominated in the bonds, the
ration is not bound either justly or equit-
ably. Some of our bonds are by their
express terms made payable in specie !
these must be so paid. Others, and the
larger part, expressly propde that the
interest shall be paid in specie, the bond
itself being left to be discharged, like all
other debts, in the national currency
with which they were purchased, and
with which the express law-the same
law which created the bonds-provided
that all debts might be paid. There is
no equity in the claim that bondholders
should be better paid than is provided
in their contracts. The contracts them
selves are favorable enough to satisfy the
most exacting. Take the five-twenties is
sued November l, 1864. They were paid
for at par, in currency, when gold was at
premium offrom 230 to 24l Take the low.
est fgure-230-and the purchaser Of the
bond paid for it in gold or its equivalent
little less than $44 on the Sl00-and
his bond bears interest in gold at the
rate of six per cent These bonds will
be redeemable in November, 1869, at the
option of the United States, in the same
currency with which they were pur-
chased, that currency being now worth
twenty-eight cents on the dollar more
than it was worth when they were pur-
chased And why should they not be
redeemed, if it be convenient for the
United States so to redeem them? The
bondholders can offer no objection
which deserves to be considered for q
moment. They paid $44 in gold for each
SlO0 in these bonds, and'in 1869, when
they become due, they will have received
interest on the price paid, also in gold,
for five years, at the rate OF 1876 per
cent. per annum. The greenbacks in
which they are payable are now, and
will doubtless continue to be, worth at
least seventy-two cents on the dollar,
being an advance of twenty-eight per
cent. on their value when used in the
purchase, giving the capitalist about two
hundred dollars for every one hundred
dollars advanced, all alike in gold. This
is enough for them to receive, and quite
enough for us to pay. They are entitled
to it by contract, and we, OF course,
must pay It,
A comparatively small amount of our
fve-twenty bonds was bought when gold
ranged from l33 to 100. The purchasers
of these bonds will not profit so largely
as those of 1864, but quite largely
enough. They will have received full
eight per cent. per annum on their in
vestment; they will have held their cap
ital from taxes, State or national, and
they will be repaid in currency quite
equal in value to that which they in
vested. Some of these bonds are held
under special contracts, which must, of
course be complied with.
Generally, the prices current show
that neither here nor in Europe do
bondholders expect gold for the princi-
pal If their bonds. The prices range ac-
cording to that of legal-tenders here,
with allowance for excessive interest for
the time the bonds have to run. For
example, few days ago, when gold was
lao, and, consequently, legal-tenders
worth about u, fve-twenties were
quoted at 76-the large interest of six
per cent for two years making the ex-
cess of four per cent. in the price. We
would gain nothing in credit with an in
telligent public by assuming obligations
in form or amount greater or more bur-
densome than we really owe. 1t will be
enough that we arrange to pay our debts
exactly according to our contracts, or in
such manner as may be equally conve-
nient to ourselves and acceptable to our