New-York tribune., 1868-08-26
TIE NATIONAL OBLIGATIONS.

% , tSere s Mere no Obligations OF United states
of any magnitude outstanding Of which the holders @ are
entSd 10 demand payment. also infer tbat the 1ieaT
ury IL ncumbered with large amount oI EVi'' "h Iio
suppose IL the form OF dollars, ana "h, -
bf Tor the United States To dsburse IN proper @hn'
inc hose note of the United states Wen reauS & a. o
lows: The United states promise TO pay 10 'T Tn, t
forms portion of the debt of the United htatet Is
-ented by what called greenbacks me a,ou' 10 ~
tbe debt represented by these notes Is fJ56OO0"n II
understand the Of the promise these roaes Az a.
due ON deBdRd and are payable IN dollars The Ohy uO
lar known in law or in fact with which tins note can DC
paid il the coin established by law as the dClla OF J
United states | now demand payment of the lncloscd
note in gold dollars according to the promise theIeVi
which Is certified by your signature. d,
NUnIs, respectfully,
HRPLY OF THE HON. r. X. SPINNER
TREASURY OF TIE UNITED STATES
WAsmEGToS, Aug. IS, 1865.
SIR: Your letter of the lst INST reached me seNefd
days since III hcah and pressure of Official business
prevented an earlier answer My ohce IS Simply ehecu,
law as passed by Congress. BY the acts OF Febnary -
and July H. 1853 the note on which you dr manu- % Pay pay
der IN payment of all debts public and private Wl,h
the United States except duties on imports ana lteivs
upou bonds" In the absence Of judicial decisions AGAINST
the eonsttuOnaity OF these laws am constrained To
ohev Them in their letter and sInrit Your demand for
"payment IN gold" is therefore refused Now, "a the
giving OF lrredeCmabc obligation for another as mas
baen nronosed for The redemption Of she public debt
no payment at all, herewith return you She same note
@ iilivgss ar inablity OF the Governments ~ pay To-
the miserable suberfuge OF rendering you Othef lfre
decmable paper III exchange Tor That WMch You present
mis- un3appy condition Of monetary afIaTs per
hans unavoidable when Is adopted ana Tor several
wears alter It was brought about everybody knows,
by the imperative necessities Oi the Government az
une of great public peril In order 10 save le me Oh o
nation when attacked by the worst Of men Tor te most
helish 11ruoses For a time after the putting down Of
the Rebellion 10 believed that the huFtlhHtnJ WAS
unable to resume the payment Of ITS obligation II TINS
was true In the past Il is certainly not 50 now Tie snort
securities Of she Government nave now hthIy an
been redeemed, by payment IN money, or converted INTO
bonds payable at its option after five ana within twenty
years from the dates Of their respective issues hhat
converted or VIII lis right 70 be converted or 20
draw interest After that can see no reason why me
Government 50 far As itself Is concelh.d msH' no' a.
most Immediately resume specie payments.
IL is much to be regretted that the subject ot the man
Der OF payment OF the hYe-tWenty bohus was t!tr
autated by thOss who IN favor OF preserving the
credit OF The Government untarnished ii II had been
permitted to remain at rest uhul specie payments hau
been resumed there would have been nOthhg 10 discuss
save the naked propositions of honest payment or faith
less Tcpudauon When The Government shaH nave non
esty resumed the payment OF all ltS obligations III COM
firmly fixed that il will find difficulty III obtaining
loans both ut home ana abroad 10 enable u 10 cohf0
its whole debt at rate not to exceed four per cent
The National banks are te creations of the Govern
mont and they live by ts suferauce, There have been
granted them great privileges ana valuable franchises
they should made to assist the Government in he
funding and ultimate payment OF the pubic debt .,
thai would conform she requirements Of the law This
would be perfectly safe il the Government should grad
Hay withdraw its circulating notes aud compel aIl te
banks in addition % tie securities lodged III the
Treasury, keep certain specified amount IN coin IN
nToporOn to the circulation OF each bank respectively,
In the custody of some publsc OoeT at the commercial
center OF the country for the sole purpose OF ldecmng
Their circulating notes al par Ihe interest on the slCchs
left with the Treasurer insure the redemption Of their
circulating notes might be retained for TINS purpose uHi
n reached the required amount. Redemption 81 Their
circulating notes by banks AZ their own counters r o no
practical uthty they might therefore safely be released
New bank should receive no circulating hotos from the
Controller Of th6 Currency except for fonr per cent
sloCh the United Stakes and ah e1sDng banks SHOULD
within specified time DC required 10 SUBSTITUTE Ike
stock for the stocks deposit with the Treasurer o
secure the redemption Of their circulating notes Inc
aydty with which the whole first authorized issue OF the
United States three per cent certificates was taken by
these banks, and their danor winch induced congress
70 authorize another issue which - being taken bp AZ
fast as Be prepared wonH seem ~ Indicate that
n would be no hardship for these banks TO hold four
ner cent stock: especially Co cruneut stocks IN their
hands the amount Of their capitals, are now by law
exempt from the payment OF outy on capital Stock
levied or them In hcu Of all other taxes
should Government agencies az the same time DC csah
sbed In Amsterdam, Frankfort London aud Pans. for
She negotiation Of such four Gems loan and the pay
ment VI the interest thereon quarterly at either Of the
places named respectively, o ~ either a the offices IN
This country where 10 Is now payable ~ the option ~ the
holder OF the stock It IS believed enough would bc takca
held IN Europe but much OF that stock tat is held
at home. These stocks should Of course have long terms
70 run 10 maturity giving Lhe somewhat the character
Of aunuitts, and nlEhtbe knOVnas AnoIcdH CDhsoi"
All tais stock should be convertible from coupon
tU a registered and FROM registered O eOnpOn stOc4
at any time, at the owners option.
with these arrangements completed one half of the
present public debt would bc disposed Of AZ Of in
teres; oneird less than that PAID After that the
Government would have httic difficulty IA nacng tho
malnder on the same terms at nome hs could be done
by commencing TedenpORs III the order Of the Issues "
the various stocks by payment IN money Every dollar
received the sale Of the new four per cents would
deem dollar on the old six per cent stock Ssch
stock should however, DC exempt from every knd oi
taxation whatever. by the General Government, or by
States municipalities, or corporations. Such provision
would only the stocks desirable and read
y taken but u = necessary 10 the Vcy existence OF The
Government Itself. Any Government that taxes its
stock is repudatOr 70 The extent Of such TAXATION II
IL permits States municipalities 10 tax H. the Govern
ment would always be the mercy the States and mu
inequalities: for they might at any time tax 1t 10 sush
extent virtually tax out Of existence and thus
forever after prevent the Government from negotiating
loans howeVoE much they might be needed for It's OWE
preservation once grant 70 tne Stco the power 10 tax
United States stOeks Secession Will have easier rod
disuniOn aud separation Han aby that could bc opened
by an armed rebellion.
Many Of the men who during the RebcElon, invested
country from dissolution, would from motives OF patr
otsn II not from peSunlay considerations he willing 70
stock that would be reliable to tbem and satisfactory 10
the great hodV OF tlle people
Know at least one such the earnings OF whose vhohe
life are invested, who would at any time. now IN
hereafter under such circuusanc and condiiions be
glad 60 Join others in making such exchange doubt
he and biS Ioya friends who hold his peculiar 0pinjos
n regard the mode OF redemption of tire ve-twentrs
would he willing to make the exchange. f1rst because
would satisfy ard quiet the public nina and bring
would be for the holder than the mode proposed
by him II is believed that II resumption does not take
place IN short time IL wnl be because the National
banks will Rot be prepared for It,
10 may be SAID that the Government should do
right and whenever il Is able to do rfespce
tive Of HE wishes necessities Of the banks. Before
coming tO such conclusion 10 should be remembered
that tie Government is the indOrser all the National
hank notes and mat has taken ts bonds Ito in
deuuty against loss by OF It's guaranty tO the
bill holders of such bauks Should these hanks fa their
notes be redeemed at the Treasury At once, and
that too whether the securities pledged for the purpose
sufficient not This being tbe case, 1t VIII he
that the circulating notes OF every National bank that
NAV fail in consequence OF premature resumption,
any other must be added TO the outstanding
matured liabilities OF the Unlted states Ihe Goyern-
ment on such failures in order 10 provide itself with
redeem TIE notes Of such broken banks would
obliged seal It's stocks held by Itself in trust tr
them.
II many should fail there might be thrown upon the
market such an amount Of such stocks as might for
time at least, seriously impair It's merchnntable value
Perhaps the depreciation might, under such circuln
stances reach point low that the avails from the