New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-01-23
will hcacefo rward hand over impsdent and
boisterous visitors to the police.
PACIFIC RAILROAD BONDS
To ne Edftor Of The Trtbume.

G1CIfIC RAILROAD BONDS.
To ne EdftOr Of The TrfBune
SlR. IN your comments on Wednesday, Won
contr0ysrt the fairness without showing wherein the
unfanees corrsists OF the statement Of facts in our
article regsrdln tbe holders OF the T. Pacific bonds Wa
wholly agree with you that the Government mortgage
Interest as well priBcipaI-raDks next to the first
mortgage bonds, both in "law and equity" But tbs
question raised by is, what is Law and equity in the
matters involved between the outside holders ~ the u
T.. Income Bonds and the Government Allow VS. L,
digress moment to illustrate:
The $40 Government bonds Issued without stipu
lating on their face that they should be paid coin. We
think the debates In Congress may show that 1t was
least moOted question whether or no. they were TO 10
so paid. They issued a time when the Govern
! mont struggling for existence and TO raise the
needful money its agents unOfcially advertised far
wide that both principal and be paid
coin. The people believed what the Government agents
asserted and purchased the bonds to the needu extent
Now suppose by the conditions Of the Act Of Congress
somewhat vaguely expressed. these bonds really
made payable in currency, some assert was intended,
what would be rigid law in the easel Why, simply that
the bonds should be paid In legal tenders. Bft in view
that Government never protested against the unauthOr
ized acts OF its agents what would equity. requret
Plainly and Enthusiastically, that the bonds, both
principal and interest, should be paid In gold
purchasers were told they should be when they
contributed their money. Il strikes rs that the
equally Just claim Government this. Leg as see.
TIE the 18th admits, the bald A. Of the
Pacific Railroad herculean task and public
necessity; and that without large aid fron Govern
ment" it could have been constructed. Hou also
admit substantially that the road has already Hycl the
Government In transportation some sevenE millions
of interest Maid ont OF the Treasury In tI bonds
granted the Company. Further mat II ltd
grant by Government to the road las Jt1'IIi,"Iiy
added TO rather than diminished the yaue Of Pinlc
nd
double the efficiency Of our military iGrne' rgNfed
in the West; and hually that, had the highway existed
previous to 1857, the Mormon expedition Oi that year
| would probably have been unneees'aIy' ,
Now, with these CTHE TRRUSE's favorable ipreshow-
ngs for the road what the equities In the e. Tho
work was commenced and pushed forward wtta yicor
unparalleled perhaps in history The proceeds OF me
Inent bonds and the road remained stlll uih,lshed
The land granted by Government was next morteaged
to the full it would bear; and yet more money
needed As last toriorn resort some Ten Millions
for payment Of both principal and interest on it, Income
were required TO complete aud equip the ROAD Ineso
were offered to the PuDHc' ana ne9OIdted w par,
LEAST solely on the grounds set forth IL our FORMER
Now. we hold that the Government has right to
take advantage of s own wrong, and mat III + n9ua
I to o project H aT P Pr Se IN oe Of &
unofficial agents, much more should IL po uou,"
losses Towing ont Of the Illegal acts inisundersand
| inss Of lite officials. III IL
Comments by The Tribune.
We shall never be able to see eye to eye
with II. X. H.. because of his heroic contempt
| for facts. He asserts that the Five-Iwenty
bonds of the Government are payable In coin
only because unofficial agents" Of the Treas
ury so assured the public in order to thduce
it to purchase those bonds. Now we oppose
to this naked assertion these recorded and in
cOntestable facts:
l. Mr. Thaddeus Stevens, who piloted the
| T I or Of Fol
| through the House, in explaining and COM
mendng its provisions, repeatedly asserted
that the Five-Twenty bonds thereby cheated
were payable at maturity in coin; and no man
| controverted or questioned this averment
| Mr.. Stevens afterward figured as a champion
of the Greenback theory; but he could not
deny the fact herein set forth, though chal-
lenged to do so by Gen. Garfield.
2. Beside Mr.. Stevens aforesaid, no member
of the Ways and Means Committee of the
| House or of the Finance Committee OF the
Senate who originated and sustained the Legal
| Tender act ever questioned or doubted the
obligation of the Government to pay the Five
| Twenties in coin.
| g. The Secretary Of the Treasury (Chase)
who issued those bonds, and every one OF his
successors (Fessenden, McCulloch and Bout
welD have always maintained that the Five
Twenties were payable in coin. Mr.. Chase so
declared during their issue; and he, certainly,
was no unofficial agent"
4. The provisions of the act are unequyocal
and conclusive On this point. They prescribe
that all the Revenue from Customs Duties on
Imports) shall be collected in coin or com
notes; and that this coin shall be devoted,
first, to the payment of the interest on the
bonded Debt of the United States; secondly,
"to the purchase or payment of one per
"centum annually of the principal" OF that
Debt, the residue being applicable to other
PURPOSES and they also prescribe that no
Legal Tenders shall be issued beyond the sum
of Three Hundred Millions of Dollars. these
conditions point Enthusiastically to the paykent
of the Fiye-Twenties in coin.
Enough said. We might further demon
strate the futility of T. r. HIS attempts To
make the Income Bonds prior lien in equity
ON the Road to the Governments Second
Mortgage; but We see nothing in his resta'e-
ment of the case to render argument necessary
CEi