The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1869-08-27
The DlHsreuse In value OTGresubasGS
ana nnIsa.

TIE DlnVreace In Value oTGrecnbaehS
aud bonds.
4 controversy has taken place be-
tween Tie T1Rss and HIGms OF ohIea-
80 IS to the charge made In some quar-
tSrs that the Secretary Of the Treasury,
In pursuing bis policy Of buying bonds,
Is taking the liberty of.pAJ Ing the bond
holders a premium not authorized.
The Tribune states the case as follows,
In behAlE OF the Secretary:
The Government must not take I'D.
vantage OF Its own wrong and bad
faith. The reason that legal. blenders
are worth less In the market than
bonds Is because Congress, at the inSti.
CATION Of the next Democratic candl-
date for President, hon, 8, p, Chase.
Wfongtnlly repealed one Of the origl-
nal slip1lasIons Of the Five.swenty
and Legal. tender Act, which distinctly
provided that the holders Of greenbacks
should have the right TO convert them
into Flve-tWenty bonds. The holders
OF these Treasury notes never gave the
Government permission TO abrogate
The conveEtlblllly clause ofihe contract.
II was done'At the instance Of the then
Secretary Of the Treasury, under the
mistaken notion that the financial
sxigencles OF the Government REQUIRED
the preparation OF this Wroug on the
nOteholders. The effect was TO greatly
depreciate the value OF these notes,
The original contract with the public
creditors distinctly provided that the
greenbGckS Shottid DO convertible into
gold fhtere5t sir per cent. bonds, al ne
pleasure Of the holder. The Times adj
units this 10 be the fact. Bat It non
senslcGlly argues that after the Gov.
ernment had DEPRECATED the green.
backs twenty-five per cent. below the
value OF the bondP, II has q right 10
compel the bondholdeTs 10 surrender
them Tor these dishonest notes, dollar
for dollarl
The original compact With the note
holders aud bondh0lderS, plainly pro-
vided for two things, viz: The estab.
lishment OF u compound Interest sink.
Ing fund, for which one per cent. OF the
entire debt was to be purchased annu-
ally, With the gold derived from duties
on EXPORTS and, secondly, that the
gIeenbaCkS should be exchanged into
FlVe'twenty gold interest bonds, at the
option Of the holder. Both these highly
important sIipulRtions were snbse-
qusnlly violated and dIsregatded, with.
out the consent Of the public, For
seven years Chase and McCulloch, as
Secretaries OF the Treasury, refused to
exchange bonds for greenbacks. The
consequence OF the one breach OF con-
tract WAS 10 almost ruin the value Of
the bonds, and OF the other 70 shame
fully depreclate that OF the notes, A
few mon'hs ago Secretary Boutwell,
began 10 comply with the Sinking
Fund provision OF the law, and the
effect has been most remarkable. In
four months the bonds have advanced
twelve per cent. In value-Whereas
they were worth but seventy eight
cents last month, they are now selling
ier ninety cents IN coin. But the con-
verIiblliIy provision OF the Legal.ten.
der act has not yet been complied With,
and vii not until Congress assemblies.
Meantime greenbAcks are at tWenly~
Two per cent. discount below the market
price OF Five twenty bonds, whereas
they ought to be exactly OF the same
value. The first thing 10 do Is TO restore
their convertibillty power, and then
the Secretary OF the Treasury can 'pur-
chase or redeem FiVe.tWenty bonds
for greeubacks, dollar for dollar, to the
Iullextent OF the surplus revenues, for
the next eighteen years.
Let Boutwell, continue 10 purchase
bonds for bis sinking fund, as the law
directs, and let Congress restore the
conyertibllity clause TO the greenbAcks
as the original contract requires. and
before another year elapses, both the
bonds and the notes will be at par with
gold