The Vermont transcript. [volume] (St. Albans, Vt.) 1864-1870, 1868-01-17

was the contract?
If these loans Of "depreciated cnr-
rency" were really made with the dis
tinct understanding" as the Secretary
asserts, that they were to be returned.
principal and interest, in coin, it goes
much further to prove financial shrewd-
ness on the part OF the lender than his
loyalty and patriotism.
Under the act of March 3, 1868. and
the supplementary act of March 3,
1864, the Secretary of the Treasury
was Authorized to issue the ten-forty
bonds, and to make them redeemabie,
principal and interest, in com. The
amount of this description OF bonds,
issued under this authorization, and
still outstanding, is believed to Ice less
than two hundred millions. The Sec
retarys authority, in the laws re-
ferred to, went only to the issuance OF
the bonds-he had no discretion as to
the character of the money IN which
they shall be made redeemable.
The advocates of the theory nat all
other bonds of the Government are
likewise payable in coin will not con-
tend that the same state OF facts exists
in reference to the fve-twenties. The
utmost that can be claimed for any OF
these is that the Secretary had discre
ton to make them payable in coin or
in other lawful money. Without con
ceding. except for the argument. that
be had such discretion, it NAV well be
claimed that he has exercised that dis
erection and exhausted his authority in
the premises by actually making them
PAYABLE in the lawful money of the
United States. Had he made them on
their face payable in coin, they would
not have been so in fact, unless the
law under when they were issued con
tanned the authority The law IS a
part Of the contract, and 10y it all the
world is put upon the notice as to the
extent of the authority of the Secreta-
~, who is but the agent of the Gov
eminent, and can only bind 1t within
the scope of his authority.
Let US now refer TO the several laws
relating to this subject, to the end
that We may ascertain, if possible, The
extent of the Governments obligation.
The act of July II, 1861, and the act
supplementary thereto ot August 5.
1861, under which S1e9, 155, 600 in
bonds had been issued mp to the last
Of May, 1865; the act Of February 25
1862, under which, prior to the same
date, May 81, 1865, S514, $50. 500 had
been issued, and the act Of June 30
1861, under which, within the same
time 800, 789, 600 in bonds had been
issued, VIII all be searched in vain 10
( find the least authority Tor diseharg-
ing the principal of the debts created
by them in other or different currencv
from that provided for the payment Of
all other Obligations, public or pri-
vate, except, OF course. dulles on i'm
ports ard interest on the pubic debt, -
and the principal of the ten forty
bonds.
/ In addition to the bonds above de-
sclibed there had been issued, before
the month OF June, 1865, under the
law of March 3, 1863, $75,000,000 in
bonds payable III 1861. and bearing
interest at six per cent, but whether
the principal of them was discharge
bic IL coin, like the ten-forties issued
under the same law, or whether Ike
the other bonds, they were redcema-
bic in lawful money, does hot appear.
But since there was no authority in
the law of 1868 TO make other than
coin bonds 1t Is presumed they axe Of
that class, though. bearing six per cent.
interest and payable in eighteen years.
Leaving these out of tue calculation
there was on the last of May. 1865, Of
this fve-twenty class of Indebtedness
only $794,725.l50.
The Senator from Vermont, in his
calculation on yesterday, makes the
sum Of these fiye-twenties issued prior
10 1865 only at little over Six hun
bred and ninety millions But be
possibly excludes from his figures the
S50,000,000 aud the SI39. 000, coo is
sued under the acts Of 1861, and in
cludes the SIS 900, 900 of The 1863 IS
sue. Clearly, l am within the facts
when | say there was not to exceed
/ $794725,150 in fve-twenty bonds in
June, 1865.
This was some time after the wal
had ended and when retrenchmeut
should have begun, but nevertheless
by changing debt bearing interest in
lawful money, and debt bearing d. in
terest, into debt bearing interest in
coin, this description of Indebtedness
has been more than doubled 1t has
grown in these two years and a hall
from less than eight hundred million
dollars to upward Of sixteen hundred
million dollars Had this taken place
during the exigencies of the war, il
would have been OF piece with the
many other desperate schemes of those
times; but it is difficult to detect the
wisdom ofthat tinanciering which adds
a large amount, perhaps twelve or IF
teen millions, to our annual interest
list in time ofpeace, and when it could
have been avoided. This remark is
intended to apply not more to the
honorable Secretary than to the legis-
lation which conferred upon him the
authority, Indicated the course, and
gave the discretion. The law of March
3, 1865, under which most of these
conversions have taken place, and un-
dor uhi,.b tbay a ra p0tx, ,r,N,p,x %, AZ