The States and Union. [volume] (Ashland, Ohio) 1868-1872, 1869-02-03

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ssascnahls rate ofintersaf ana is SOW
I Il yetif power to take an inloftant
4 and decisive step II thai nire<fion.
i TheaN d $500 600, 600 cf-thsl liNe-
:; tsEenfiessofie e62 now paysbls. at he
pleasure Of the Government, in iseni,
4 tender currency On whatever else the
,sfsditor and the Government may ~
mutual agreement, prefer To legef ftsls
iEders-say bonds redeemable in 36ffz
ycars, bearing m interest ffbir tr1t,
t-perhsps thsss and : hslf NaEs -
But bsss We ass as.s i.se mi rhst IN,
IS eslls fI
f1hs c1zsszs5 8 dspfscIs!s = je. g,
say some, make that equivalent 10
| gold, and then-this disturbing ele.
ment being removed proceeded b
fund. This, I take It, ia the bondt
holders proportion, for Il would
place the nation in his power, and en-
able him to dictate terms In behalf
of the people, and In farfherance If
justice, I submit that the funding glof
the debt and the reduction of INTEREST,
which is most Immediately pressing,
should be first disposed of--renoved
out Of the way as ga disturbing sele-.
ment"-and. afterward, that ths re-
sumption of specie payments be con.
sidered, or that that question be lsft
where it belongs, to be settled by thu
law of trade. Whenever our currency,
under the operation Of thAt lRB, b.
comes equisaleat to gold, the question
The act of -Fehruary Is, 1867,
which provides for the issue of the
$500, ,QUO, GOO Of 5-2Vs, provides. ex.
pressly that Treasury notes which it
also authorizes "shall be receivable IN.
payment of all taxes, internal duties,
excuses, debt, and .demands of eve7
kind due 10 the United stateS, excsps
duties on imports, aud Of al elaine
and demands of every kind wh4tso-
ever against the United States, except
for interest upon bonds and nptesS
which shall be paid in COIN; and shall
also Be lawful money and q 1egal-fene
der in payment Of all debts public and
private within the United States, OK!
cept duties on imports and interest as
aforesaid" saaa 2zls .ss1F 49,,
This law u the authority sf, tn
Secretary of the Treasury 90 borrow.
the money. Having defined his pow.
ers IN this, it gives him instructions
as to the management of the fnapcss;
but these instructions have nothing 10
do with the loan or the contract with.
the creditor, no moro than the eeono-
mical resolution of the ordinary debe.
or has to do with his contract with his
creditor. The creditor in either cass
has much interest in the general good
financial management Of bis debtor
but departure by the debtor from
his expressed purposes IL no breach Of
the contract unless it be distinctly In
serted and expressed as pledge. In,
this case the United States borroWs
its own legal-tender notes, and stipu-.
lates that the interest on the bonds
which it exchanges for them shall be
paid in gold !; but the creditor is at
the same time told, and it is made
part of the contract, that when the,
principal becomes payable at the end
of five years, he must receive in pay.
ment legal-tender notes precisely the
character of funds which he lent, I'M:
less by new arrangement the creditor
may give him something which he
prefers-and there is no pledge coun.,
tanned in the law or in. the contractsz
unless raised by forced implication,
that the United States viii not pros
vide,- in due time, in the way deemed =
most expedient, in legal-tender notes
to make the payment. a., 80
What is said Of promises made by
the Secretary of the Treasury and his,
agents, that the bonds would be re-
deemed in specie 10 30 far absurd that.
no respectable lawyer would venture;
to urge it in a court of justice. The
act Of Congress, which was the Sec
power of attorney, was IN the,
hands of the whole reading public,
of the capitalist and his
counsel, who could not fail to know
that the Secretary had no power %
pledge the Gov ernment by parole, or
in any manner not written down IN
the law. He, doubtless, entertained
and expressed q strong opinion that
specis payments would be resumed
before the bonds became payable, but
the nation is certainly under no obli-s
CATION now to bankrupt itseH, and add
its whole wealth for ages to the d,
ready enormous profits of tho capitMl.,
lists, in order to make good the Prsdics
ton. s,,x !. -J.s,,i -.
This settles the question. ssse fhSs
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